Shaping the Future of Rural Energy: The Impact of National Energy Policies on Local Power Supply

Energy providers for rural communities often must balance affordability, reliability and innovation amid evolving federal policies. As the United States stands at the crossroads of an energy transition, the evolving policies from current and past federal administrations will significantly influence the affordability and reliability of electricity provided by Oregon Trail Electric Cooperative (OTEC for its service area. If the first two months of 2025 are any indicator, this concept will likely be a high priority for the foreseeable future.

“Energy policy shapes the future of our communities, businesses, and livelihoods,” says Shane Stenquist of OTEC. “Understanding how national decisions impact our local power supply is crucial.” 

The Impact of Energy Policy on Rural Communities 

OTEC is part of a broader network of over 900 consumer-owned, not-for-profit electric cooperatives represented by the National Rural Electric Cooperative Association. Together, these cooperatives power 56% of the American landscape, serving 42 million people and over 22 million businesses, homes, schools, and farms across 48 states. They are vital to rural America, providing essential services in some of the nation’s most underserved areas.

However, the reliability of this crucial infrastructure faces increasing threats due to shifting federal energy policies. NRECA CEO Jim Matheson has warned that flawed public policies could lead to the premature closure of power plants, increasing the risk of rolling blackouts in many states over the next five years. This issue is further compounded by rising electricity demand, primarily driven by the growing data center industry, which could consume nearly 10% of U.S. electric output by 2030.

Diverging Approaches: Trump vs. Biden Energy Policies 

The past two presidential administrations have taken significantly different approaches to energy policy. During Donald Trump’s first presidency, the focus was on domestic energy production and independence. Trump's policies supported the coal, oil, and natural gas sectors, reduced regulatory burdens, and encouraged exploration and extraction on federal lands. While his administration emphasized fossil fuels, it also invested in advanced energy technologies, such as small modular nuclear reactors and carbon capture.

In contrast, President Joe Biden’s administration focused on transitioning from fossil fuels to address climate change. Key actions included canceling the Keystone XL pipeline, implementing stricter emissions standards, and regulating new fossil fuel projects. Biden’s Infrastructure Investment and Jobs Act allocated $65 billion for power grid improvements and $21 billion for environmental remediation. His administration also promoted clean energy and electric vehicle infrastructure, aiming for 50% of all new car sales to be electric by 2030.

While these policies support renewable energy goals, they have also raised concerns about grid reliability and increased costs. For instance, the potential removal of the four lower Snake River dams threatens the clean, carbon-free hydropower many Pacific Northwest communities rely on.

Preparing for What’s Next 

As the nation anticipates another shift in energy policy, the focus may shift back to fossil fuel production and reduced regulatory constraints. This approach could enhance U.S. energy independence and job creation but may come with environmental trade-offs and uncertain support for renewable initiatives.

Despite these changes, OTEC remains committed to providing safe, reliable, affordable power. “Our priority is ensuring our member-owners have access to consistent and cost-effective electricity, regardless of the policy landscape,” Stenquist emphasizes.

Stay Informed and Get Involved 

To keep up-to-date on how federal energy policies affect your community and electricity service, visit OTEC’s Economic Development Page and contact our team. Together, we can navigate these changes and continue building a resilient energy future for Oregon Trail communities.