3 ways Trump can give a jolt to energy sector and empower Americans
In November, Americans voted for relief from the Biden-Harris administration. The inflation once deemed "transitory" has persisted, and though the rate of increase has declined, the overall increase itself has not. Utilities are 30% higher. Food is more than 20% more costly. Energy is everything, and four years of Biden-Harris policies targeting energy have made life expensive.
As part of his promise to "fix everything," President-elect Donald Trump has vowed to change direction, even boldly promising to cut electricity costs in half. While some policies will take time before consumers feel the benefits, there are three things Trump can do on day one to bring help quickly:
Snuck into the $891 billion and improperly named "Inflation Reduction Act" is a tax on the natural gas industry. Of course, the climate change lobby that inserted this provision claims it is a tax on methane meant to reduce emissions, but that is pure political window dressing. It is a tax on natural gas, and like all taxes on businesses, the consumer pays the tab.
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Consider that Michael Regan, the outgoing administrator of the Environmental Protection Agency (EPA), issued guidance on the implementation of this tax just days after Trump’s victory. Such timing does make one wonder: if a natural gas tax to fight climate change was so pressing, why did it take nearly two years after the IRA for its implementation?
Thankfully, the incoming administration has a variety of options to shut it down. Incoming EPA Administrator Lee Zeldin can call for review. The IRS can determine this tax to be overly burdensome and unconstitutional. The new House GOP Majority can delay the implementation in the Ways and Means Committee. The new president can declare executive action to waive the tax completely. President Joe Biden certainly had no problem waiving student loan payments or even rent.
Ultimately, the natural gas tax must be repealed, and with the new Congress and administration pledging an energy revolution, this should be low-hanging fruit.
In July 2022, President Joe Biden flew to Massachusetts to give a climate change speech from the empty lot where a coal plant once operated.
Biden made a green jobs promise. "On this site, they’ll manufacture … 248 miles of high-tech, heavy-duty cables," ostensibly to connect offshore wind farms to the onshore electrical grid.
Two years later, reality has set in. Construction of the onshore plant is in limbo due to opposition from local groups. And the offshore wind farm? This summer, a 300-foot blade broke and fell into the sea, closing beaches in Nantucket, and the wind farm was shut down. It has still not reopened.
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This is the green agenda in a nutshell: sanctimoniously dismantle what works, make promises, fail to deliver and walk away. Meanwhile, the people of Massachusetts have some of the highest electricity rates in the country, on top of the lost jobs and tax revenue from the coal plant. Standard green failure.
Trump can issue an executive order immediately stopping the dismantling of existing electricity plants. Furthermore, the incoming White House Energy Council can work with states to reopen and reignite those plants currently offline. An increase in electricity production is not just critical to stabilize the grid but to bring relief for every household. Lower electricity costs for business will translate into lower prices for consumers.
Because most of Biden’s punitive energy actions were so unpopular couldn’t pass Congress and were implemented via executive action, they can be reversed immediately. Announcing dates for regular land leases, reversing bans on offshore and federal land production, reopening Alaska: these will send a market signal which will have an immediate impact on oil prices.
Despite record high production, oil prices are surging because markets see no reason for future optimism. American energy companies prefer volume over price. Volume is sustainable. Price is fickle and punitive. Sending a signal that American oil and gas exploration and production is back, what Trump calls "drill, baby, drill", is the greatest hedge against foreign cartels like OPEC and the greatest signal to lower costs for consumers.
These are just a few actions Trump can take to make America energy dominant again. Quick, immediate and clear, they can help usher in an era of affordable, reliable, abundant, domestic energy making us a prosperous nation once again, paving the way to the "golden age of America" Trump has envisioned.