• Analysis : o While the withdrawal of new leasing opportunities and withholding of permits for additional activities was not entirely unexpected given the President ’ s antagonistic view of the sector , the EO does exert a chilling effect over an industry that is just regaining its footing in the U . S ., with billions of dollars of investment now committed and five projects currently under construction . In addition , the approach taken in the order , with DOI wandering into questions around the economics of electricity generation , fall outside of its purview and raise potential legal issues . Action , if any , ultimately taken , by the Administration against existing leases and the significant capital invested in mature projects is almost certain to draw appeals and litigation .
• Outlook : o The EO is likely to dampen investment in U . S . offshore wind projects , particularly due to the halting of new approvals and permits . The prolonged period of “ study ” while activities are paused evokes the Biden administration ’ s own move to pause LNG activities . A similarly long period of uncertainty is expected to hover over the offshore wind sector even as coastal state electrical grids are strained by rapidly growing demand — thus dampening new activity and investment when fresh sources of electrical power are needed most .
• Dismantling White House Climate Efforts o Among the list of 78 Biden EOs that Trump rescinded was Tackling the Climate Crisis at Home and Abroad . The Trump EO then :
• Dismantles the White House Office of Domestic Climate Policy , including the National Climate Advisor
• Dismantles the National Climate Task Force
• Reverses administration policy that calls for consideration of climate impacts on Federal procurement , including with regards to clean electricity (“ carbon pollutionfree electricity ”) and clean vehicles (“ clean and zero-emission vehicles ”) such as for the United States Postal Service .
• Lifting the LNG pause o Analysis :
• Citing national security concerns , Trump ’ s “ unleashing American energy ” EO lifts the Biden administration ’ s moratorium on new liquefied natural gas ( LNG ) export applications and directs DOE to restart the review of applications “ as expeditiously as possible , consistent with applicable law .” The EO specifically instructs the Secretary of Energy to consider the economic and employment impacts to the United States and the impact on allies and national security in assessing the “ Public Interest ” to be advanced by an application . o Outlook :
• By lifting the pause on LNG export applications and directing the Department of Energy to expedite reviews , this Executive Order creates a pathway for businesses to capitalize on growing global demand for natural gas . The explicit consideration of economic and employment impacts , as well as national security , in assessing the “ Public Interest ” will likely result in a more favorable regulatory environment for energy projects and partnerships . bracewell . com 6