Simplifying the Funding of Energy Infrastructure and Critical Mineral and Material Projects

President Trump issued a memorandum to streamline federal funding for energy infrastructure and critical mineral projects.

The memorandum mandates that agencies share information regarding funding applications and commitments with the National Energy Dominance Council (NEDC).

The action also requires the Office of Management and Budget (OMB) and the NEDC to develop a common application for accessing these funding opportunities, enabling applicants to apply to multiple programs simultaneously.

Arguments For

  • Intended Benefit: Increased efficiency and speed in funding energy infrastructure and critical mineral projects, reducing duplication and improving strategic investment.

  • Evidence Cited: The memorandum mentions the administration's ongoing efforts to improve government efficiency and support domestic energy industries. Implicitly, the need for streamlining is evidenced by the existence of multiple, complex, and substantially similar application processes.

  • Implementation Methods: Information sharing among agencies, development of a common application for multiple funding programs.

  • Legal/Historical Basis: The memorandum acts under the President's authority to manage executive branch operations and directs agencies to act "to the extent permissible by law."

Arguments Against

  • Potential Impacts: Potential delays if agencies encounter legal impediments to information sharing or if the common application process proves difficult to implement. Increased reliance on a centralized process could potentially slow down smaller or less bureaucratic efforts.

  • Implementation Challenges: Achieving effective information sharing across numerous agencies with potentially differing systems and regulations may present technical and logistical hurdles. Creating a truly "common" application that satisfies the requirements of multiple diverse programs could be complex. Securing necessary consent from numerous applicants could prove time exhaustive.

  • Alternative Approaches: Individually streamlining application processes within each agency, rather than creating a single common application could deliver incremental improvements with less complexity. Granting agencies more latitude in their information gathering could reduce consent friction.

  • Unintended Effects: Over-centralization of funding decisions could lead to less responsiveness to localized needs or priorities.

MEMORANDUM FOR THE SECRETARY OF STATE THE SECRETARY OF THE TREASURY THE SECRETARY OF DEFENSE THE SECRETARY OF THE INTERIOR THE SECRETARY OF AGRICULTURE            THE SECRETARY OF TRANSPORTATION THE SECRETARY OF ENERGY THE ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET

THE ADMINISTRATOR OF THE SMALL BUSINESS ADMINISTRATION THE CHAIR OF THE NATIONAL ENERGY DOMINANCE COUNCIL THE DIRECTOR OF THE TRADE AND DEVELOPMENT AGENCY THE PRESIDENT OF THE EXPORT-IMPORT BANK OF THE UNITED STATES THE CHIEF EXECUTIVE OFFICER OF THE UNITED STATES INTERNATIONAL DEVELOPMENT FINANCE CORPORATION SUBJECT: Simplifying the Funding of Energy Infrastructure and Critical Mineral and Material Projects Throughout my Administration, we have acted to make the Federal Government more efficient and to support our domestic energy industries.  To maintain energy dominance, executive departments and agencies (agencies) must share information with one another when providing funding to energy infrastructure and critical mineral and material projects.  This will eliminate duplicative diligence processes and improve strategic investment.  We must further ensure that applicants for Federal funding within the energy infrastructure and critical mineral and material industries are not burdened by requirements to complete multiple, complex, and substantially similar applications.  Streamlining this application process and increasing information-sharing across agencies will enable the Federal Government to make faster, better funding decisions that support our domestic energy infrastructure and critical mineral and material supply chains. To the extent permissible by law, the heads of agencies to whom this memorandum is directed shall share with the Chair of the National Energy Dominance Council (NEDC) information regarding applications for funding, and existing funding commitments of their respective agencies, related to energy infrastructure or critical mineral or material-related projects, and shall permit the Chair of the NEDC to share such information with such other agencies as the Chair of the NEDC deems relevant.  To the extent that sharing such information would require the consent of the applicant, or of the funding recipient with respect to funds that have already been committed or disbursed, agencies shall seek such consent as expeditiously as possible.  If consent is needed prior to sharing the relevant information, agencies shall not obligate or disburse any funds for energy infrastructure or critical mineral or material-related projects effective on the date of this memorandum, to the extent permissible by law, unless the applicant or funding recipient has provided the necessary consent as determined by the applicable agency in consultation with the Chair of the NEDC.  Within 60 days of the date of this memorandum, each agency to whom this memorandum is directed shall further modify its existing information-sharing policies and initiate appropriate rulemaking proceedings as needed to permit this information sharing, as appropriate and consistent with applicable law.  Within 180 days of the date of this memorandum, the Director of the Office of Management and Budget (OMB) and the Chair of the NEDC shall, in coordination with the heads of agencies to whom this memorandum is directed, develop a common application for Federal funding opportunities related to energy infrastructure or critical mineral or material-related projects that enables applicants to apply simultaneously to multiple Federal Government funding programs using one common application.  The common application shall include any legal terms, including consents, necessary to facilitate the information-sharing requirements of the preceding paragraph.  The heads of agencies to whom this memorandum is directed shall determine, in coordination with the Chair of the NEDC and the Director of OMB, the appropriate programs that will utilize the common application, the technical means by which the common application will be utilized by applicants and agencies, the material that will be requested by the common application, the need for or permissibility of any agency-specific addenda, relevant exemptions to use of the common application, and any legal terms required to be included in the common application in order to enable collection and sharing of information across agencies. This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person. DONALD J. TRUMP