On Wednesday, January 16, 2024, President Trump’s nomination for Secretary of the Interior, Doug Burgum, testified before the Senate Energy and Natural Resources Committee and emphasized a vision of balanced land management and energy development while highlighting his experience as North Dakota's governor in managing natural resources and tribal relationships.
In a hearing that lasted three hours, Burgum drew on his experience as a governor and business leader, describing himself as someone who could help assess and manage "America's balance sheet" of natural resources while ensuring both protection and responsible development of public lands.
Key Takeaways
1. Burgum pledged to streamline federal permitting processes while maintaining environmental standards.
He noted that current permitting queues for electricity projects at the Federal Energy Regulatory Commission (FERC) can take "seven years or longer," calling this timeline unsustainable. The nominee emphasized how uncertain and lengthy permitting processes drive up project costs and discourage private-sector investment.
Drawing from his experience as governor, Burgum highlighted examples where North Dakota successfully reduced both project timelines and costs through collaborative approaches. He emphasized that faster permitting does not mean weaker standards, pointing to his state's record of maintaining clean air and water while streamlining approval processes."
2. Burgum's work with tribal nations has earned him widespread support from Indigenous communities.
Drawing from his experience working with five tribal nations in North Dakota, Burgum highlighted his approach to tribal consultation: "It has meant actually spending time and going to the tribes, listening—sometimes listening for hours to really understand what the issues are." His nomination has received support from over 185 tribes nationwide.1
The broad tribal support for Burgum's nomination stands in stark contrast to historically contentious relationships between Interior and tribal nations. His experience navigating complex issues like law enforcement jurisdictions and healthcare access on tribal lands could prove valuable in addressing longstanding challenges at the federal level.
3. Burgum advocated for market-driven approaches to emissions reduction over federal incentives.
"When we can decarbonize traditional fuels cheaper than we can subsidize some of the renewables, then that should be looked at fairly and equitably," Burgum stated, emphasizing economic solutions to environmental challenges. He pointed to North Dakota's success in producing "carbon negative" barrels of oil and questioned the cost-effectiveness of electric vehicle tax credits.
His stance represents a significant shift from the Biden administration's incentive-based approach to clean energy transition. While supporting technological solutions like carbon capture, Burgum's emphasis on market forces and cost-effectiveness suggests a broader skepticism of federal clean energy incentives. When pressed by Senator Cortez Masto on electric vehicle (EV) tax credits, Burgum argued that his state's biofuel program could achieve carbon reductions at $60 per ton compared to $900 per ton for electric vehicles, highlighting his preference for allowing market competition to drive environmental improvements rather than federal subsidies.
4. Recent wildfires in California prompted Burgum to call for comprehensive fire management reform.
In response to devastating recent fires in Los Angeles that burned over 40,000 acres and destroyed more than 12,000 structures, Burgum committed to improving federal wildfire response and prevention strategies. He expressed sympathy for those who lost homes and loved ones while emphasizing the need for a comprehensive re-thinking of fire management on federal lands.
Drawing from his experience with wildfires in North Dakota, in 2023, where two lives were lost, Burgum demonstrated an understanding of both urban and rural fire management challenges. He emphasized that proper grazing, timber management, and surface development can help reduce fuel loads and create access roads that support firefighting efforts. His focus on preventive measures and support for active forest management signals a potential shift in federal wildfire policy.
5. Burgum warned of grid instability, calling for energy balance.
Throughout the hearing, Burgum consistently emphasized the critical importance of maintaining adequate baseload power capacity alongside renewable energy development. He noted that while his state successfully integrated significant wind power (providing about 35% of North Dakota's electricity), he expressed concern that current policies have created an 'imbalance' in the electrical grid, with FERC's project queue being '95% intermittent sources and only 5% baseload.'
'We need baseload to be able to allow the renewables to be part of the system,' Burgum stated, emphasizing that grid stability requires a balance between intermittent and reliable power sources. While supporting an 'all of the above' energy strategy, he stressed that addressing baseload capacity shortages should be an immediate priority to ensure grid reliability and prevent potential brownouts.
Pending Legislation Mentioned in the Hearing
Several major pieces of legislation emerged as focal points during the hearing, signaling key priorities for the potential new Interior Secretary:
- The America the Beautiful Act (S.5402), championed by Senators Daines and King, would reauthorize and expand the National Parks and Public Land Legacy Restoration Fund through 2033, increasing annual funding to $2 billion. The bipartisan bill focuses on addressing the massive maintenance backlog in national parks while introducing new matching requirements and expanding eligibility for Fish and Wildlife Service lands.
- The Recovering America's Wildlife Act (S.1149), introduced by Senators Heinrich and Tillis, represents a proactive approach to species conservation. The bill would provide significant funding to state wildlife agencies for voluntary conservation projects, aiming to prevent species from reaching endangered status through early intervention.
- The HOUSES Act (S.3117), introduced by Senator Lee, proposes a novel solution to the Western housing crisis by creating a framework for federal-state partnerships to identify and transfer underutilized federal lands to local communities for housing development. During the hearing, Burgum expressed support for this approach, drawing on his experience with successful land transfers in North Dakota.
- The RISEE Act (S.373), a bipartisan bill led by Senator Whitehouse, would restructure revenue sharing from offshore energy projects, including both renewable and traditional energy sources. The legislation would increase state revenues from offshore projects while removing certain caps on revenue sharing from oil and gas leases.
If confirmed, Burgum would oversee roughly one-fifth of the nation's land mass and play a crucial role in managing America's natural resources, tribal relationships, and public lands. The Senate Energy and Natural Resources Committee is expected to vote on his nomination in the coming weeks.
How Ankura Can Help
Ankura's Global Strategic Advisory team specializes in helping businesses across the United States and abroad navigate and secure federal and state incentives to support growth, innovation, and development. As policy priorities shift with the incoming Trump Administration, our team monitors developments and provides tailored support to maximize the value of available programs. Whether you are seeking tax credits, grants, or financing for your projects, we ensure you stay ahead of evolving opportunities. Our services include:
- Incentive Eligibility Assessment: Identifying the programs and opportunities best suited to your organization's needs and goals, with particular attention to emerging opportunities in energy development, tribal partnerships, and public land initiatives.
- Strategic Application Support: Guiding you through the application process, ensuring compliance with program requirements, and developing compelling submissions that align with new federal priorities and streamlined permitting processes.
- Financial Modeling and Impact Analysis: Creating detailed financial models to highlight the value of incentives and their impact on your projects, including analysis of market-driven approaches to emissions reduction and energy development opportunities.
- Stakeholder Advocacy: Engaging with local, state, and federal officials to build support for your projects and secure necessary approvals, with specialized expertise in tribal consultation and multi-jurisdictional projects.
With over $300 million in state incentives and $375 million in federal incentives secured for our clients in the past year, Ankura is your trusted partner in leveraging incentive programs to achieve your strategic objectives.
Contact us here.
References
Hearing to Consider the Nomination of the Honorable Doug Burgum to be Secretary of the Interior
1. Senator John Hoeven. Hoeven: Doug Burgum is the Right Man for the Job of Interior Secretary. January 16, 2025.
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