Trump 2.0: Cabinet Highlights for the Energy Sector
Nominees for key energy policy positions in the U.S. Federal Government.
As President-Elect Donald Trump's inauguration approaches, his choices for key government posts in the energy sector will critically impact our country’s energy future for years to come. Much of the typical guesswork on this subject is unnecessary, as he has foreshadowed the new administration’s probable direction, current cabinet nominations, and pre-election pronouncements. While implementing this planned direction will not be as simple as some hope, the directional vectors seem straightforward. The new administration has not discussed the specifics of Fusion Energy extensively so far. Still, we remain optimistic about continuing funding for Fusion Energy and building the supply chain to meet future energy demands for strategic economic growth and AI. This blog will look at the organizations responsible for energy policy in the U.S. Federal Government.
Department of Energy
The primary federal department responsible for implementing energy policy is the U.S. Department of Energy (DoE). The DoE employs roughly 14,000 federal employees and over 95,000 contractors between its headquarters in Washington, D.C., and its field locations. The DoE’s FY-2024 budget was $52 billion; the key executive in the DoE is the Secretary of Energy, supported by the Undersecretary of Energy (both presidential nominees).
The primary responsibilities of the DoE include the following:
Nuclear Security: The key DoE agency for this is the Office of Nuclear Security and National Nuclear Security Administration, led by the Undersecretary for Nuclear Security (a presidential appointee). This group is responsible for US nuclear weapons, naval reactors on aircraft carriers and submarines, counterproliferation, emergency operations, and defense nuclear security.
Energy Science and Innovation: This DoE agency, led by the Undersecretary for Science and Innovation (a presidential appointee), manages the DoE’s national laboratories and energy research programs, including artificial intelligence and technology, renewable energy, fossil energy/carbon management, nuclear energy, electricity, and the DoE Office of Science.
Energy Infrastructure: The Energy Infrastructure Department, run by the Undersecretary for Infrastructure (also a presidential appointee), is responsible for the security of the US power grid, the infrastructure supply chain, DoE power administrations, and nuclear waste management efforts.
Additionally, several other agencies are directly under the Secretary of Energy, such as the Advanced Research Projects Agency for Energy (ARPA-E), Intelligence/Counterintelligence, and the Energy Information Administration (US-EIA).
Federal Energy Regulatory Commission
TheFederal Energy Regulatory Commission (FERC), under the DoE, is an independent agency charged with regulating the interstate transmission and pricing of electricity and the interstate transport of petroleum and liquified natural gas (LNG). FERC has five commissioners (no more than three can be from the same political party) appointed by the President for staggered five-year terms. Currently, FERC has three Democratic commissioners (two of whose terms will expire during Donald Trump’s administration) and two Republican commissioners (both of whose terms will expire during the Trump Administration).
Environmental Protection Agency
The U.S.Environmental Protection Agency (EPA), while a separate Cabinet-level Agency under the President, impacts the energy sector primarily through clean air, clean water, radiation, and vehicle emission regulations.
Key Positions Within DoE, FERC, and EPA
Trump’s expected nominees for the key positions within these organizations are:
Secretary of Energy: Donald Trump’s nominee for the leader of the DoE is Chris Wright, currently the CEO of Liberty Energy. His nomination is being applauded by fossil fuel industry associations and power companies while being lambasted by environmental groups. In addition to supporting fossil fuels, he supports nuclear power, geothermal energy, and carbon-reducing technologies, which will likely allow new LNG terminals in US ports. He is, however, not a fan of “low-density, intermittent, unreliable” energy sources such as solar and wind energy.
Under Secretaries of Energy: Trump has not publicly named anyone for the lower-level positions (Nuclear Security, Science and Innovation, Infrastructure, or ARPA-E) in the Department of Energy. However, his choice of James Danly for Deputy Energy Secretary (the #2 position at Energy; Danly was previously the chairman of FERC under Trump), along some of his picks for other Cabinet deputies, would indicate that he will favor those with previous experience to bolster his less-experienced Secretary of Energy. Trump’s previous choices for other Energy undersecretary roles in his first administration included Mark Menezes (a DC lobbyist and attorney for a variety of power companies and industry associations), Lisa Gordon-Hagerty (a LLNL employee, congressional staffer, and nuclear industry executive), Steven Winberg (a coal executive), and Rita Baranwal (previously a nuclear energy executive). It would not be surprising to see similar choices in the upcoming administration.
FERC Commissioners: The President gets to choose who the chairman of FERC is; this is important as the chairman gets to set the agenda on what gets voted on and what commission staff spend time researching. However, there are currently 3 Democrats and 2 Republicans on the commission, and the first commissioner to come up for replacement is Republican Mark Christie in June 2025, meaning Democrats will have a majority through June 2026 when the current chairman (Willie Phillips) comes up. Trump’s last two FERC nominees (1 Republican and 1 Democrat) were seen as bipartisan choices so that this trend may continue.
EPA Administrator: Trump has named Lee Zeldin for the Environmental Protection Agency (EPA) administrator position. Zeldin, a former congressman from New York state, an unknown since he did not serve on any congressional committees for environmental or similar issues. However, he has expressed doubts about climate change, and has not supported the Paris Climate Agreement.
Under Secretary of State for Economic Growth, Energy, and the Environment: Trump has announced that he will nominate Jacob Helberg for this role in the State Department. He is seen as a ‘hawk’ in China trade, and advocates banning TikTok due to its links to China.
The Federal government has many programs that continue to advance fusion energy, and 2024 was one of the best years for private funding ($1.8B). As we know, the 2025 budget process will have many twists and turns. However, at the end of the proverbial “sausage-making,” I predict we will continue incremental federal investments to compete with China if nothing else.