With the selection of Ohio Senator JD Vance this week, Donald Trump has officially finalized the GOP’s presidential campaign ticket. With the fanfare of the Vice President selection over, the GOP should build on its 16-page policy platform, where “unleashing American energy” is featured prominently. With energy affordability and reliability a priority for American families, here are four policies a Trump-Vance White House should prioritize should there be a change in administration in 2025.
1. Modernize Regulations
According to a recent analysis from the Bank of America, electricity bills in the U.S. increased by 5.6% year-over-year in May 2024. In real terms, families are now paying an estimated $300 per month on utilities. While there are several reasons for these cost increases, BoA specifically mentions that “upward influences on electricity demand” from onshoring of manufacturing, AI, and electrification are driving this trend.
Whether it is nuclear power plants, solar arrays, or natural gas pipelines and transmission lines, an inefficient and outdated permitting system hampers energy production in the U.S. This not only hurts the nation’s economic competitiveness but also increases costs for consumers as supply is unable to keep up with demand.
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While emerging innovations may be a part of the solution, America needs to build more generation and transmission infrastructure. Unfortunately, the U.S. is trending in the wrong direction to meet growing demand. In 2023, interconnection queues, which are wait times for energy projects to connect to the grid, jumped by 27% and totaled 2.6 terawatts worth of projects. Moreover, the average interconnection wait time in 2023 reached five years, compared to three years in 2015 and less than two years in 2008. While not all projects may need to be built and policymakers must be mindful of cost socialization for linear infrastructure, America is going to need more affordable, dependable energy supplies.
Streamlining permitting timelines and queues is an important piece of the energy demand puzzle. The first Trump administration prioritized permitting reform and directed the Council on Environmental Quality to modernize its National Environmental Policy Act (NEPA) guidelines. These NEPA reforms included setting page and time limits for environmental studies and expanding the list of categorical exclusions. While the Fiscal Responsibility Act codified some of these reforms, President Biden’s NEPA rules negate many of these positive Trump-era reforms. Should they be elected, a Trump-Vance administration should build off of the 2020 rules and work with Congress to address some of the judicial review challenges that delay projects.
2. Capitalize on America’s Energy Abundance
From shuttering the Keystone XL pipeline and slow-walking federal oil and gas leasing on his first day in office to pausing future LNG exports, President Biden has politicized traditional American energy production. This has not only hurt investor confidence in the sector but it has also pushed allied countries to turn to dirtier energy sources to meet their respective power demands.
>>>READ: LNG Exports: The Economic, Environmental and National Security Trifecta
As we have pointed out in a recent white paper, American LNG has several economic, environmental, and national security benefits. American natural gas saves consumers money on monthly utility bills and is far cleaner than coal or LNG from Russia and China. Opening access to domestic energy production and embracing all forms of energy should be a priority for whichever candidate wins in November.
A potential Trump-Vance administration should also look to capitalize on the momentum surrounding nuclear power. While the recently passed ADVANCE Act includes several much-needed reforms, additional steps are needed to unleash innovation and put America’s commercial nuclear industry on an even playing field with other energy sources. Furthermore, a potential administration should refrain from villainizing specific technologies and allow the market and consumers to drive energy production and choice.
3. Support Federal Research and Development
America is a global leader in innovation, a feat that is made possible by public-private collaborations and world-class research institutions at federal agencies and universities. Each year the Department of Energy (DOE) works with startups to help fund critical basic research and development that can deliver massive economic breakthroughs. Past successes include GPS, the Internet, and artificial intelligence.
Other DOE programs are helping to bridge the funding gap for specific nascent technologies including advanced nuclear power, direct air capture, and energy storage. In Vance’s home state of Ohio, DOE is working with Centrus Energy to develop a domestic supply of high-assay low-enriched uranium, which is needed to fuel many advanced nuclear designs. If successful, this project will play a pivotal role in powering the next generation of nuclear reactors.
The road from concept to commercialization is an arduous and expensive process. As a Trump-Vance administration looks to bolster American productivity and innovation, it should not forget the important role of public research and development. Policymakers and the administration should also provide strong oversight to reduce government waste and minimize government intervention in energy markets.
4. Welcome Free and Open Markets
Open, competitive markets improve the lives of consumers and businesses. They lower prices for American households, provide American businesses with more opportunities to sell their products, and give consumers more choices. While Trump and Vance hail from a more populist and isolationist ideology, adopting policies that open up access to markets and streamline global trade will do much more to meet their stated objectives of helping American workers and families.
>>>READ: Biden Administration’s Tariffs Will Hurt Consumers and Clean Energy Deployment
A Trump-Vance administration should avoid the protectionist measures and tariffs of the first Trump administration, which reduced worker productivity and manufacturing, and reduced per capita GDP growth. Tariffs are a tax on consumers and shield businesses from international competition, which ultimately discourages investments in emerging technologies and innovative practices.
Embracing tariffs may also increase inflationary pressures, according to a recent study from the International Monetary Fund. Because tariffs increase borrowing costs and the cost of doing business, central banks around the world and in the U.S. may be forced to hold rates at high levels.
The U.S. is facing many challenges, one of the most notable being energy affordability and reliability. A Trump-Vance administration could provide relief to consumers and businesses by modernizing regulations, supporting innovation, and increasing competition to allow the market to meet America’s energy needs.
The views and opinions expressed are those of the author’s and do not necessarily reflect the official policy or position of C3.
