DOI Moves Forward With Reorganization and Consolidation Plans
Update provided by Meguire Whitney
The Department of the Interior launched a broad reorganization and consolidation April 17. In a secretarial order—Consolidation, Unification and Optimization of Administrative Functions—Interior Secretary Doug Burgum wrote that the department “will be unifying and consolidating many of its functions,” including human resources, information technology, financial management, training and development, international affairs, contracting, communications, federal financial assistance, and other administrative functions. Burgum’s order said the goal is to allow the department to focus on its core mission, including managing national parks and federal public lands, engaging with Native American tribes, conserving fish and wildlife, and providing emergency response. The order also assigned Tyler Hassen, a former Department of Government Efficiency staffer and current acting assistant secretary for policy, management, and budget, to oversee the consolidation effort. The order does not specify when the reorganization and consolidation plan will be executed, how many employees might be involved, or when it will be completed.
EPA to Launch Formal Rulemaking in Reconsideration of 2009 Endangerment Finding
Update provided by Meguire Whitney
During an April 21 press conference, Environmental Protection Agency Administrator Lee Zeldin said EPA’s anticipated reconsideration of its 2009 Endangerment Finding will be a formal rulemaking with public comment. Zeldin announced in March that EPA will reconsider the finding, which underpins the agency’s authority to regulate greenhouse gases, alongside a slew of other planned deregulatory actions. If EPA does undo the finding, it would collapse its legal justification for regulating carbon dioxide and other climate pollutants from most sources, including cars, trucks, and fossil fuel-burning power plants. Zeldin did not offer a specific timeline for the rulemaking process to reconsider the finding or for the several other deregulatory actions he has announced. He has emphasized that he wants the actions taken to be “as durable as possible.”
Former FERC Chair Willie Phillips Steps Down at White House Request
Update provided by Meguire Whitney
On April 22, the White House asked Democratic Commissioner Willie Phillips to step down from the Federal Energy Regulatory Commission, leaving the commission with a 2-2 partisan split and giving President Donald Trump the opportunity to flip the independent agency’s leadership to a Republican majority. Phillips, whose term was set to expire in June 2026, was seen by industry as fairly moderate, and he was someone who built consensus among his fellow commissioners. Phillips received praise from several Republicans, including former FERC Commissioner Neil Chatterjee, who called it “disappointing” that Phillips was asked to resign. A few names are already circulating as possible replacements, but there is no timeline yet for a nomination to be made. Another consideration for the White House is whether to renominate current FERC Chair Mark Christie, whose term expires June 30, as well as whether to retain him as chair or appoint a different commissioner as the next chair.
DOI Announces Expedited Environmental Reviews for Certain Energy Projects
Update provided by Meguire Whitney
On April 23, the Department of the Interior announced it will expedite environmental reviews for certain energy infrastructure projects under a new “alternative National Environmental Policy Act compliance process.” The department will fast-track environmental reviews to approve projects within 28 days, with a 10-day public comment period—cutting the process down to weeks instead of years.
The expedited review process applies only to certain energy projects, such as oil and gas drilling, critical mineral and coal mining, and biofuel production, among others. Geothermal energy is also included on the list, although other renewable energy sources such as wind and solar are excluded. Companies applying for permits must specifically request the alternative process be applied.
The move draws on emergency authorities and follows several other actions by the administration to expedite energy permitting. Sen. John Barrasso (R-Wyo.), a member of the Senate Energy and Natural Resources Committee and chair of the Public Lands, Forests, and Mining Subcommittee, praised the move as helping to fix the U.S.’s “disastrous permitting system,” whereas House Natural Resources Committee Ranking Member Jared Huffman (D-Calif.) said the plan is unworkable and creates more uncertainty. The plan is likely to face legal challenges.
FERC Holds Its April Open Meeting, Chair Outlines Workforce Reductions
Update provided by Meguire Whitney
The Federal Energy Regulatory Commission held its April Open Meeting on April 17. During the meeting, the commission moved forward with implementing Order No. 2023. The order aims to speed up the connection of new energy projects to the grid by requiring transmission providers to prioritize projects based on their readiness rather than when they applied for interconnection. The commission unanimously approved the New York Independent System Operator’s plans for interconnection reform under the order. The meeting also highlighted a report by FERC and the North American Electric Reliability Corporation which found that the power grid performed well during cold weather in January. The findings indicate that cold weather resilience measures are paying off with improved electric reliability. FERC Chair Mark Christie also said the commission expects to lose about 9% of its workforce as part of the efforts of President Donald Trump’s administration to slash the federal workforce. Christie emphasized that FERC is “working hard” to keep key experts in their roles, including those who work on natural gas permitting.
Additionally, during a press briefing, Christie expressed some support for Trump’s April 9 executive order for energy agencies to sunset regulations unless they are affirmatively extended through public review and cost-benefit analysis.
“A regulatory housecleaning is a great idea,” he said.
Christie singled out Order No. 679—which offers rate incentives to transmission developers that demonstrate their projects will improve reliability or reduce power costs—as a potential target for review. No formal actions have been taken at this time, however. Christie also emphasized that any action by FERC “has to be done in accordance with law” without skipping proper rulemaking procedures.
Empire Wind 1 Project Ordered to Stop Construction
Update provided by Meguire Whitney
The Department of the Interior has directed the Bureau of Ocean Energy Management to order the Empire Wind 1 offshore wind project to cease all construction until further review. In an April 16 letter to the bureau, Interior Secretary Doug Burgum contended that the project was “rushed through by the prior administration without sufficient analysis or consultation among the relevant agencies as relates to the potential effects from the project.” Burgum stated that construction will remain halted until further review is completed.
The 810-megawatt Empire Wind 1 project, based in New York, was one of 11 offshore wind projects permitted by former President Joe Biden’s administration. President Donald Trump has long been an opponent to offshore wind. On the first day of his current term, Trump issued an executive order temporarily halting offshore wind lease sales in federal waters and pausing the issuance of approvals, permits, and loans for all wind projects.
The order to halt construction on the fully permitted Empire Wind 1 project marks an escalation of this opposition, targeting a project that had already received federal approval. New York Gov. Kathy Hochul vowed to fight the order, labeling it as “federal overreach.” Similarly, American Clean Power Association CEO Jason Grumet said “doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment.”
FERC Approves SPP Markets+ Funding Agreement and Funding Mechanism
Update provided by Southwest Power Pool
Southwest Power Pool’s Market+ development reached a significant milestone April 22 when the Federal Energy Regulatory Commission approved the Markets+ Phase Two Funding Agreement and the mechanism for funding the market’s development. On April 18, FERC also accepted SPP’s clarifying edits to its Markets+ tariff, which it unanimously approved on Jan. 16.
“These achievements represent meaningful steps in the progress towards launching Markets+ and bringing the West closer to realizing the substantial value of a robust regional market,” said SPP Chief Operating Officer Antoine Lucas. “SPP is proud to see the hard work of the Markets+ stakeholders pay off in this series of approvals that clear the path toward market launch in 2027.”
The funding agreement details how the market’s $150 million in implementation costs will be financed by SPP and later recovered throughout the operation of Markets+. The agreement has already been signed by eight western entities, who collectively operate a diverse mix of generating resources and serve more than 216,000,000 MWh in the Desert Southwest, Pacific Northwest, and Mountain West regions of the Western Interconnection. The funding mechanism, meanwhile, details how SPP will finance the implementation phase of the market’s development.
During the second phase of Markets+ development, stakeholders and staff will collaborate to develop the systems, processes, and operations needed to conduct market trials and launch and operate the market.
“Markets+ represents a significant opportunity to improve efficiency across the Western Interconnection and to bring reliability and economic benefits to customers,” said SPP Vice President of Markets Carrie Simpson. “These approvals mark a subtle but significant point in our market implementation effort to enable the next phase of development.”
SPP filed the Markets+ tariff on March 29, 2024. Markets+ is expected to go live in 2027.