Recent Executive Orders and Impact on Utility Energy Projects

Background

What is happening?

On January 20, 2025, the Trump Administration released several Executive Orders (EOs) pertaining to federal energy projects, including those funded by the Infrastructure Investment and Jobs Act (IIJA) / Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA). 

Section 7 of the “Unleashing American Energy” EO mandates an immediate pause on federal disbursement of funds appropriated through IIJA / BIL and IRA, and requires that agency heads review their funding related processes (e.g., grants, loans, contracts) for “consistency with the law” and other energy priorities referenced in Section 2 of the EO. Within 90 days of January 20, 2025, these agencies must also submit reports to the National Economic Council (NEC) and the Office of Management and Budget (OMB) that detail the findings of this review, including recommendations to enhance IIJA / BIL and IRA programmatic alignment with the policy set forth by the administration. No IIJA / BIL or IRA funds can be disbursed at the federal level until this process is complete and NEC/OMB have approved these agencies’ recommendations.

The ”Declaring a National Energy Emergency” EO seeks to expedite energy and infrastructure projects; facilitate the supply, refinement, and transportation of energy; and assess vulnerabilities in the domestic energy sector. Section 8(a) of the order defines energy and energy resources to be “crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water, and critical minerals…” Renewable energy resources are excluded from this definition.

Additionally, the “Initial Rescissions of Harmful Executive Orders and Actions” EO rescinded Executive Order 14008 of January 27, 2021 (Tackling the Climate Crisis at Home and Abroad), which established the Justice40 Initiative.

Which programs have been impacted?

Federal disbursement of funds has been paused for ALL programs funded by IIJA / BIL or IRA—competitive, formula, etc. that are implicated by the President’s EOs. (The OMB Q&A Regarding Memorandum M-25-13 specifies the “pause does not apply across-the-board. It is expressly limited to programs, projects, and activities implicated by the President’s Executive Orders, such as ending DEI, the green new deal, and funding non-governmental organizations that undermine the national interest.”² The pause in funding disbursement includes, but is not limited to, the following energy programs/federal agencies:

• Department of Energy (DOE): e.g., grid resilience, home energy efficiency and electrification rebates, State Energy Program, building codes, energy security, energy-related workforce development

•  Environmental Protection Agency (EPA): e.g., residential and community solar + storage, heavy duty zero-emission vehicle adoption. 

• Department of Transportation (DOT): e.g., electric vehicle (EV)/zero-emission vehicle charging and refueling infrastructure

• Department of Agriculture (USDA): e.g., rural utilities funds for renewable energy, infrastructure improvements

EV-related programs, appliance efficiency standards, and offshore wind appear to be significant targets at this time. 

Key Program Consideration for Utilities

If you are under contract to receive funding under the IIJA / BIL or IRA, it’s important to be aware of these considerations given the Unleashing American Energy Executive Order’s pause in funding disbursement. 

1. Comply with Your Contract

A pause in disbursement of funds does not equal a pause in performance. While there is financial risk in continuing work during a pause in disbursement, there is also significant risk in not conforming to contractual and reporting requirements. If possible, uphold the minimum requirements to remain in compliance with any agreements. With varying guidance on interpretation, you may need to make decisions based on your capacity and comfort level.

Read your program or project contract and identify the minimum requirements you must uphold to remain in compliance (without incurring too much cost) during this pause. For example, if procurement can wait, put that on hold. However, if you’ve committed to a reporting cycle, you still need to abide by that commitment. Create a plan that ensures you continue to meet the terms of the contract during the pause in funding.

2. Pay Attention to Cash Flow

The pause in disbursement of federal funds will primarily affect project cash flow. Make sure that you have enough cash flow to cover the minimum contractual requirements and activities. Prepare accordingly to remain in compliance with your contract parameters and avoid unnecessary costs until disbursement resumes. Email your assigned project officer or other point of contact if you are unable to identify sufficient cash flow to continue activities. Place questions in writing and understand there may be a delayed response. 

3. Review Program or Project Language

Using a public relations lens for your project or program, review the goals and communications surrounding your initiative and align the language with that of the current administration’s energy policy priorities. Articulate the goals and activities of your existing projects through the lens of energy security and grid resilience. For example, consider how energy efficiency can be used as a generation asset (not just an act of socially driven conservation) or renewable energy as portfolio diversification (not just a sustainability lever). You likely do not need to change the fundamental goals but reframe how they are communicated.

4. Vet Sources

Stay informed by monitoring the long-term conversation. More activities are going to come, and they're going to be informed by new policy. Directives and information change rapidly, and long-term guidance will be released slowly. To navigate the deluge of information, pay attention to 1-3 trustworthy resources that align with your organization’s needs and trust their analysis and guidance. Resources we recommend include:

• American Public Power Association (APPA)

• Guidance from your State Energy Office

• National Association of State Energy Officials (NASEO)

We are here to help!

FREE WEBINAR- Adapting to New Executive Orders: Considerations for Utility Energy Projects

🗓️ Thursday, February 13 at 2:30 CST

Join the Milepost team for a 45-minute webinar, hosted by Holly Baird and Susan Steffenhagen. Recent Executive Orders have introduced significant changes to federally funded energy projects, including a pause on disbursement of funds and a shift in policy priorities. This webinar is specifically designed for utilities and joint action agencies that are federal funding recipients and will provide actionable strategies to navigate these changes to the new and evolving energy landscape. 

FREE RESOURCES AVAILABLE IN OUR TRAINING LIBRARY:

• Part 1: Preparing for Compliance

  Learn how to develop internal policies that foster cross-departmental (e.g., human resources, environmental review, finance) communication, and to evaluate the feasibility and priority alignment of new funding opportunities. 

• Part 2: Implementing Compliance Post-Award

  Gain a clear understanding of reporting requirements and learn essential strategies for monitoring and preparing audits to ensure ongoing compliance with federal funding regulations. 

CONTACT US FOR COMMUNICATIONS SUPPORT:

Policy-Aligned Program Repositioning
Our team of energy experts and communications strategists can help you reposition your program goals and messaging to ensure alignment with the current administration's energy priorities while still meeting your stakeholder expectations.