



After two months in office, it’s clear that the Trump administration is determined to reverse course from the previous administration and embark on an entirely new policy path on energy. To date, the administration has signed orders to expand drilling, increase American gas exports and streamline bureaucratic red tape that too often strangles energy exploration and projects. Taken together, these actions will spur new investments and boost the U.S. supply of energy — directly and indirectly putting downward pressure on soaring energy prices and fulfilling a key campaign promise.
From transporting goods and manufacturing to what technologies are available to businesses and consumers, the access and affordability of energy is woven into every facet of how an economy operates. As the U.S. economy continues to grow, so too does its energy consumption. To ensure a strong America, it’s important the president gets energy policy right. President Donald Trump’s energy plan is promising. He seeks to increase domestic energy production and distribution. Securing U.S. energy dominance is critical not only because it has crucial national security consequences, but also because it has direct beneficial economic effects.
Trump is right to unleash oil and natural gas, but the country simply needs more energy to keep up with the growing demand. To ensure our energy grid remains affordable, reliable and secure is of paramount importance. Fossil fuels are crucial to achieve this goal, but the importance of renewable sources like wind and solar should not be overlooked. While it should never be subsidized, in cases where it is economical, renewable energy can play a crucial role in delivering energy to ratepayers.
There is one energy issue, however, on which President Trump should consider a new strategy. On his first day in office, Trump signed a sweeping executive order halting the development of onshore and offshore wind projects. Worse yet, language from that order also includes the potential for projects already in operation to have their permits revoked — meaning the federal government would direct some operators to shut down. Shutting down wind farms simply because of their technology runs counter to the president’s goal of becoming energy-dominant and energy-independent.
Trump has the opportunity to remedy the energy missteps of the past administration, but his executive order pausing approvals for onshore and offshore wind projects falls into the same trap that previous leadership did. Former President Joe Biden was wrong to single out types of energy in preference over others, as he did with wind energy and other renewables and canceling the previously approved Keystone XL Pipeline.
At the end of the day, we need more energy, no matter where it’s sourced. And it is the market, not regulators, that should determine what technologies are used.
That’s why the Taxpayers Protection Alliance and other conservative-minded groups sent a coalition letter urging President Trump to reconsider his executive order on wind energy. Unleashing domestic energy production should not mean new shackles for renewable energy. The government should instead pursue technology-neutral policies to keep costs low for consumers and meet the increasing demands on the grid.
Renewable energy sources often benefit from favorable treatment through tax subsidies and state mandates. This preferential treatment should be ended posthaste, but it would be an over-correction to cancel already-approved offshore wind projects or impose broad restrictions.
Besides their potential in use cases where they are optimal, wind leases generate large sums of money for the federal government. This is revenue that can help address the growing U.S. deficit. As Congress continues to debate what should and should not be included in an upcoming spending package, it would be remiss to leave out provisions to expedite the sales of onshore and offshore wind leases. Revenue generated from wind projects translates into more royalties to federal and state governments.
Congress is considering an important extension of the president’s 2017 tax reform. Expanding land and ocean for lease sales will generate revenue that can be used to reduce the net cost of the package; revoking the costly, anti-market clean-energy tax credits in the Inflation Reduction Act and the Production Tax Credit could also lead to budget savings. By rectifying these provisions, Trump can provide more much-needed tax relief to Americans.
Keeping the cost of energy low should be the number-one priority and guidepost for future decisions on energy policy. This will be accomplished best by government removing itself from the business of picking winners and losers in markets.
America needs more power from diverse sources to deliver lower costs while meeting growing demand. Ultimately, achieving true energy dominance requires embracing all viable options without bias or favoritism. It also requires smart tax policy, which will promote both economic growth and a reliable and secure grid for generations to come. A technology-neutral energy policy that frees markets to function optimally will further both ends.
David Williams is president of the Taxpayers Protection Alliance.