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After eight years of the Obama administration's diwswe energy and enwronmental polices, the
American people have voted for a change?a big change.

We expect the Trump administration will adopt pro-energy and pro-market polICies~much
different than the Obama administration?s top-down government approach.

President-elect Trump has promised to hit reset on the most harmful parts of the Obama climate
agenda, including the Paris Agreement and the so-called ?Clean Power Plan." He has also vowed to
open up more federal areas for energy expl0ration and development. In short, the Trump
administration could replace the Obama administration's harmful poliCies with ones that restore
power and choice back to where they beIOng?with the American peeple.

Not only did Trump Win, but the Republicans retained the Senate, and as of this writing, still have
nearly a SO-seat majority in the House. And we're confident, that when needed, Vice PreSident-
elect Mike Pence will side with responsible energy development. Additionally, Republicans picked
up three more governorships. Things are clearly looking up for American consumers.

Further, a carbon tax ballot initiative in Washington State was soundly defeated. If a carbon tax
cannot pass in deep blue Washington State, where can it pass? This result effectively ends any
talk of ?momentum? towards a federal carbon tax or carbon-pricmg scheme. Although we must
remain Vigilant to ensure it doesn?t rear its head again, especially if Congress takes up
comprehensive tax reform in the coming months. To be sure, our work is still far from over.

The next couple of months will see the Obama administration scramble to issue Executive Orders,
finalize regulations, and create National Monuments in an effort to tie PreSident-elect Trump's
hands and give the Trump administration more work to do. We must stop them in their tracks so
that the Trump administration can immediately get to work promoting pro-growth and pro-
consumer poliCIes.

Th A mini in' En Pl 

The Trump administration?s energy plan and statements on the campaign trail indicate that they
Will likely focus on the followmg policies:

. withdrawing from the Paris Agreement. The Paris Agreement is in deep trouble.
Pre5ident-elect Trump has promised to cancel the agreement and stop spending taxpayer
dollars on wasteful U.N. climate programs. Even if the Trump administration does nothing,
this means there Will be masswe defections from the agreement. Any prior commitments to
reductions or taxpayer funding for the Green Climate Fund should be seen as null
at this pomt.

- Increasing federal oil and natural gas leasing. Less than 3 percent of federal offshore
areas are currently leased for energy development. In particular, this Will increase in the
Chukchi and Beaufort Sea and the mid and south Atlantic. Onshore, there Will be more
leasmg, espeCIally in places like the National Petroleum Reserve-Alaska and on federal lands
in the west.

. Lifting the coal lease moratorium. The Obama administration?s coal leasmg moratorium
on federal landse-a part of their ?keep it in the ground? strategy?Will likely be terminated
and royalty rates will likely be kept at current levels.

. Giving the states greater say on energy leases on federal lands within their
borders. Here's what the Trump campaign Wrote in response to the American Energy
Alliance's PreSidential candidate questionnaire:

?The federal government does have stewardship of millions of acres of
land. Rather than selling the land to states and private enterprises, the
first step should be establishing a shared governance structure Mm the
states. This first step w0uld allow for maintaining the aesthetics of the
land while finding ways to gain revenue that would benefit both the
federal and state governments."

- expediting approvals of LNG export terminals. The Obama administration has slow-
walked the rewew of LNG export term'm?ls' under the Trump admm'Strat'OH. approvals Will

be expedited.

- Hitting reset on the Clean Power Plan. This regulatory rule is Currently befOre the DC
Circwt Court. Even if the regulation is upheld, the Trump administration Will issue a new
regulation withdrawmg the Clean Power Plan. Also, the seldom-talked about regulation of
carbon dioxide from new power plants Will also be Withdrawn.

Reconsidering the ?endangerment finding." In response to Massachusetts v. EPA, the
Obama administration found that greenhouse gas emissions harmed human health and
welfare. This is the regulatory predicate to the Obama administration's Corporate Average
Fuel Economy (CAFE) mandates and Clean Power Plan and greatly expanded EPA's power.
This finding will be reconSidered and possibly revoked, marking a miner blow to
underpinning for many climate regulations.

- Moving forward with pipeline infrastructure. The Obama administration slow-walked
the Keystone XL pipeline, making it a political issue, and has done the same With the
Dakota Access Pipeline(DAPL). The Trump administration will likely work to streamline and
expedite pipeline permitting.

- Taking a closer look at the environmental impacts of wind energy. Trump has been

concerned about the harms to wildlife from Wind turbines such as bird and bat deaths.

Unlike before, wind energy will rightfully face increasmg scrutiny from the federal

government.

Reducing energy subsidies. Here's what the Trump campaign wrote in response to the

Presidential candidate questionnaire from the American Energy Alliance:

?This is an issue for Cengress and the people they represent. SubSidies
distort markets and should be used only when national security is at
stake. Eventually, all sub5idies should end so that the demand for
energy Will set prices, allow consumers access to the best values and
encourage all facets of the energy industry to do all they can to keep
their particular source competitive.?

Amending the Renewable Fuel Standard (RFS). Trump has expressed support increase domestic energy production. The RFS Will be amended to reduce
discretionary authOrity to set the biofuel levels, especially after 2022.

Hitting reset on the Obama administration's unconstitutional definition of ?Waters
of the United States". This rule is currently in the courts. The Trump administration could
revise the regulation to work cooperatively with the states. An expanswe definition of
?waters of the United States" under the Clean Water Act tramples on the prerogatives of the
states to regulate water.

Relaxing the federal fuel economy standards. Under the Obama administration's CAFE
standards, light-duty vehicles must achieve 54.5 by 2025. This regulation Will be
significantly relaxed. It will either be completely withdrawn or revised and phased out to be
closer to the current levels of fuel economy.

Ending the use of the social cost of carbon in federal rulemakings. The Obama
administration aggressively used the social cost of carbon (SCC) to help justify their
regulations. During the Trump Administration the SCC will likely be reviewed and the latest
SCIence brought to bear. If the SCC were subjected to the latest science, it would certainly
be much lower than what the Obama administration has been using.

El. H, i.

According to press reports there are a multitude of names being floated to run key energy
agencies such as the Environmental Protection Agency, the Department of Interior, and the
Department of Energy. It is difficult to know at this point whom the Trump administration Will
nominate to fill these positions. However, the Trump team has selected several longtime IER and
AEA allies to lead the tranSition process for these agencies. Given the personnel that is in place
and our involvement with the process, we are confident that the Trump administration Will
nominate candidates who embrace free-market ideals and who are dedicated to hitting reset on
the Obama administration?s harmful policies.

riini I Ev

As someone from the business world who has never held public office, PreSident-elect Trump and
his administration represent a break from the norms of Washington and present real opportunity
for change.

However, we must not rest on our laurels. We must seize this moment.

The opportunity that lies before us means that IER and mISSlOl'l is as important as ever? It is
incumbent upon us to continue to fight for policies that take power out of Washington and restore
it back to the states and the people.

For decades, the federal government's role in Americans? energy choices has steadily grown and
has ballooned under the Obama administration. Failing to rein in Washington and reset decades of
failing policies will result in a dim future f0r our children and grandchildren who win not enjoy the
same opportunities as past generations.

We must continue to work With our allies to promote free-market ideals and to hold Washington
lawmakers accountable. By Staying true t0 OUT we can turn this opportunity Into real-

world change.
as helped us get to this point, but there is much more to be done. With your

tment, we can enact real change that Will not Only reset decades of failed poliCieS
oward prosperity for generations to come. 

Your support 
conUnuedinves
but Will blaze a new trail 

please feel free to contact me at 202.621.2952 anytime With feedback or suggestions,