Energy

Energy policy roadmap: What utilities can expect through 2026

Strategic energy policy planning benefits from extended preparation periods, as demonstrated throughout American history. Dwight D. Eisenhower, who served as Supreme Allied Commander in WWII and later as Supreme Commander of NATO before becoming president, understood the complexity of executive leadership, noting: “The presidency has many problems, but one of the worst is that you have no idea how much you don’t know until you’re in it.”

The rare occurrence of non-consecutive presidential terms creates unique opportunities for comprehensive policy review and strategic planning. This approach led to the Heritage Foundation’s publication of “Mandate for Leadership: The Conservative Promise” in April 2023, serving as a detailed policy framework known as Project 2025. With 25 of the document’s 40 authors having previous government experience and the energy section’s “American Energy Dominance” framework now guiding current policy, examining implementation progress provides insights into energy sector developments through 2026.

What’s already been implemented: de facto policy

For those who haven’t read the Project 2025 policy piece (and who’d blame you; it’s 920 pages), the first obvious question is: what are the main goals? On the energy front, it’s fundamentally about rejecting American energy as a means to achieve climate policy and instead embracing it as a source of strategic power.

Energetic leverage: “American energy dominance will allow the United States to secure energy for its citizens, markets for its energy exports and access to new energy natural resources and will provide tools for US policymakers to assist our allies and deter our adversaries,” the authors wrote.

Project 2025 policy document authors

Liquefied natural gas, where the US is already the world’s largest exporter, is a perfect example. Countries become more dependent on America the more it sells them energy, just as Russia held leverage over Europe through its own gas supplies. For this reason, the administration is looking to expand its LNG exports.

On his first day in office, the president signed an executive order to end a pause the Biden administration had placed on new LNG export facility approvals. The Department of Energy has since eased export permit extensions, removed barriers to using LNG as a marine fuel and even offered favorable loans to upcoming American LNG projects.

Reliability focus: One of the key tenets of Project 2025 energy policy is that renewables have made the grid unreliable and that a new administration should do everything it can to re-prioritize reliability in the system.

In part, that called for an end to federal subsidies for renewables. That is a fait accompli, as tax credits for wind and solar projects were wound down quickly with the One Big Beautiful Bill Act passed in July.

US LNG exports by destination (Jan-Oct 2025)

US Energy Information Administration

It also called for support of projects and infrastructure deemed to be reliable by the authors. The clean power tax credits that were preserved in the OBBB were for baseload power projects, like nuclear and geothermal. In September, the DOE published its Speed to Power initiative to accelerate large-scale grid infrastructure projects. And later in December, the House passed the Power Plant Reliability Act that gives FERC authority to order coal plants to stay open.

What’s advancing: direction set, execution ongoing

Rome wasn’t built in a year and neither was Trump’s new world order. But last year did lay the foundation of US power through its energy sector: both physical and system power.

Physical power: Looking through a lens of technology, the US is seen as the nation of cutting-edge innovation via Silicon Valley. But viewed through an energy lens, the picture flips. America starts to resemble a sclerotic incumbent like Hewlett-Packard, caught flat-footed as Chinatech, the gritty upstart, races ahead designing and manufacturing the next generation of energy technologies.

As a result, the US is now playing catch-up, starting by building out supply chains for key inputs like critical minerals. This has involved embracing a state-sponsored capitalist approach, with the government investing and taking stakes in private companies, including a public-private partnership between the Department of Defense and MP Materials, and an investment into Trilogy Metals, a deal that comes with expedited mining permits.

The administration is also openly pushing to build more nuclear. But the industry must find a way to curb costs, which have been climbing for decades compared to other countries. Rising costs have often been blamed on cumbersome regulations, with Project 2025 advocating to “streamline the nuclear regulatory requirements and licensing process.”

Overnight construction costs of commercial nuclear power plants
USD per watt

Lui et al. (2025)

With that in mind, the president passed an executive order in May to reform the Nuclear Regulatory Commission and speed up license approvals to under 18 months for new reactors.

The White House later signed the Atlantic Partnership for Advanced Nuclear Energy with the UK that expedites approvals for reactors in one country that have gone through rigorous safety checks in the other.

System power: At the heart of Trump’s “America First” values are instincts about power, sovereignty and obligation that the US should put domestic needs first. “The next Administration should make US energy dominance a key component of its foreign policy while ensuring that domestic and international goals are aligned,” reads Project 2025.

Any outside influence on its strategic energy sector, like international efforts to address climate change, are hostile to the ethos.

In his first couple of weeks back in the White House, the president signed an executive order to once again withdraw the United States from the Paris Agreement and then another to review its participation in all international organizations and whether they run against American interests.

A perfect example of this is the International Maritime Organization, a UN organization that was set to vote on a net-zero fuel mandate last fall that had near-universal support. But since this runs up against Americans being able to make its own fueling choices by limiting the options for international shippers, many of whom port and bunker in the US, the administration threatened retaliation to any supporters. It succeeded in delaying the vote.

Looking ahead: What to watch for in 2026

There are some goals that were kicked off last year with executive orders but take more time to legislate that will likely show up this year.

These include overhauling nuclear approvals. Changing how agencies conduct reviews under the National Environmental Policy Act. Weakening the ability for states to block energy projects. Rolling back fuel economy standards. Scrapping the greenhouse gas reporting program for large emitters. Eliminating the Endangerment Finding that gives the EPA much of its power. Overturning mercury and air toxics standards. Revoking energy efficiency standards.

And there are some hints in Project 2025 about more ambitious plans.

Promoting American energy interests: The authors make no qualms that having security over an abundant supply of energy and natural resources is in America’s best interests.

“The next Administration should make US energy dominance a key component of its foreign policy while ensuring that domestic and international goals are aligned. American energy dominance will allow the United States to secure energy for its citizens, markets for its energy exports, and access to new energy natural resources and will provide tools for US policymakers to assist our allies and deter our adversaries,” the authors wrote.

The Trump administration didn’t hide that toppling Venezuelan dictator Nicolás Maduro earlier this year was to gain access to Venezuela’s oil reserves. And why lie? That’s its stated public geopolitical energy strategy.

And for those who think all the hard talk around Greenland is just more Art of the Deal from Trump for some concessions, Project 2025 is very clear on its position about the Arctic.

Chilling views: “The next Administration needs to define American strategic and economic interests in the Arctic Circle… In particular, this means identifying US energy interests in the Arctic Circle, identifying foreign government and commercial interests and activity in the region, and ensuring that the United States does not forgo important energy and national security interests in the Arctic,” reads the report.

Map of Greenland’s critical minerals

Government of Greenland, Geological Survey of Denmark and Greenland, American Action Forum

To avoid painting the Project 2025 authors as warmongers, they clearly advocate for energy resources as a means to assist the US and its allies, regularly listing Canada and Europe as key allies. So annexing Greenland via a military coup would seem to run in the face of Project 2025.

Zooming out: The four-year break from office gave Trump, or at least key people around him who work for him again, a rare chance to plan and strategize a second term.

With his disruptive instincts, a rubber-stamping Congress and an unobstructive Supreme Court, Project 2025 could help make Trump the most revolutionary president in American history. Undoing the world order that President Eisenhower once helped create.

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Categories: Energy