(Reuters) -The Trump administration will revise a Biden-era rule that required the oil and gas industry to provide nearly $7 billion in new financial assurances to cover the cost of decommissioning old infrastructure, the Interior Department said on Friday.

In a statement, the agency said it would develop a new regulation, but did not give specifics. The move is aligned with President Donald Trump's push to reduce federal regulations and boost domestic energy production.

An Interior spokesperson declined further comment.

"This revision will enable our nation's energy producers to redirect their capital toward future leasing, exploration, and production all while financially protecting the American taxpayer," Interior Secretary Doug Burgum said in the statement.

The Biden policy, which was finalized last year by the Interior's Bureau of Ocean Energy Management, required companies without investment-grade credit ratings or sufficient oil and gas reserves on a lease to provide supplemental bonding to reduce the risk to taxpayers in the event the driller could not cover the cost to dismantle equipment.

The rule was challenged in court by three oil-producing states who alleged the rule would increase costs for smaller companies. A federal judge declined to block the rule earlier this year.

The rule was supported by environmental conservation groups like the Sierra Club that said at the time that Biden's reform would "ensure that oil and gas companies are accountable for their cleanup responsibilities and taxpayers won't be left holding the bag."