Interior Secretary Convenes Endangered Species Committee (aka “God Squad”) Regarding Oil & Gas Exemption: What Companies Need to Know

In a rare move that could have significant impacts for businesses operating in regulated industries, the Trump administration has indicated plans to invoke the Endangered Species Committee, commonly referred to as the “God Squad.”  See 16 U.S.C. 1536(e); 50 C.F.R. Part 453. On March 16, 2026, the Interior Department published a notice in the Federal Register, stating that the Committee will hold a meeting – which will be livestreamed - on March 31 in Washington, D.C. to consider an ESA exemption “with respect to oil and gas exploration, development, and production activities” in the Gulf.^[1]This little-known but powerful federal panel earned its nickname because it holds the authority to exempt certain projects from the protections of the Endangered Species Act (ESA), potentially clearing the way for development and other activities in sensitive habitats.

Congress amended the ESA in 1978 to create the Committee following the Supreme Court’s decision in Tennessee Valley Authority v. Hill, in which the Court ruled that in the ESA Congress struck a balance “in favor of affording endangered species the highest of priorities,” preventing the completion of a dam to protect a small fish called the snail darter. As an indication that it did not intend the ESA to be absolute, Congress created a process  whereby the Committee—comprised of panel members including the Secretaries of Agriculture, Army, and the Interior; and the Administrators of the EPA and the National Oceanic and Atmospheric Administration—has the power to grant exemptions to the ESA’s stringent limitations on activities that could affect endangered and threatened species if it finds:

• there are no reasonable and prudent alternatives to the agency action;
• the benefits of such action clearly outweigh the benefits of alternative courses of action consistent with conserving the species or its critical habitat, and such action is in the public interest;
• the action is of regional or national significance; and
• neither the Federal agency concerned nor the exemption applicant made any irreversible or irretrievable commitment of resources[.]

16 U.S.C. § 1536(h)(1)(A). Notably, obtaining an exemption involves significantly more effort than simply submitting an application and holding a meeting. Rather, the Committee must also hold a hearing, assemble a record, and make formal findings regarding the exemption request. If the exemption is granted, the Committee must also establish mitigation measures to minimize adverse effects on endangered and threatened species and their habitat. And, as with other agency actions under the ESA, the Committee’s exemptions are subject to judicial review.

There is, however, one important carveout, which has never yet been invoked: “the Committee shall grant an exemption for any agency action if the Secretary of Defense finds that such exemption is necessary for reasons of national security.” 16 U.S.C. 1536(j). However, to obtain this exemption, it appears that the requesting entity would need to submit an application “not later than 90 days after the date on which the Federal agency concerned takes final agency action with respect to the issuance of the permit or license” or simply put, after the agency has completed the consultation and review process and ultimately denied the permit or license. 16 U.S.C. 1536(g)(2). To date, the Secretary of Defense has not requested this type of exemption.

In fact, the Committee has only rarely met since its creation, the last time was in 1992.^[2]

Yet, beginning on the first day he took office, President Trump issued two executive orders addressing the Committee. The first one, Declaring A National Energy Emergency, issued on January 20, 2025, directed the Committee to meet to evaluate submitted applications as part of the administration’s efforts to address the president’s declaration of a national energy emergency. The second one, Enabling Competition In The Commercial Space Industry, issued on August 13, 2025, directed that agencies consider whether spaceport development projects warrant seeking an exemption from the ESA, to enable competition in the commercial space industry. However, until March 16, no Committee meetings had been announced.

The announcement regarding the Committee’s upcoming meeting is extremely vague as to its intentions for oil and gas activities in the Gulf. But because the panel is rarely convened, its activation in a seeming move to expand oil production in the Gulf is significant. Businesses in affected industries will need to pay close attention to the Committee’s next moves. Moreover, other industries with interests affecting natural resources, including energy, infrastructure, and land development, should take note of how the process plays out. While the Committee has the potential to unlock new opportunities, exemptions are not without risk, both legal and reputational. Careful planning and stakeholder engagement will be critical in navigating this evolving landscape.

Crowell & Moring lawyers continue to monitor and report on these developments as they arise. To subscribe to our alerts, please see this link.