Washington, D.C. — President Donald Trump’s ambitious legislative push, known as the One Big Beautiful Bill Act, has sparked significant changes in the nation’s energy policy, prioritizing traditional fossil fuels while diminishing federal support for solar and wind energy. The House of Representatives approved the contentious bill on Thursday, building on a narrow Senate green light earlier in the week, while a White House-imposed deadline loomed.
In recent statements, Trump has made his determination to shift the U.S. energy landscape clear, expressing a strong preference for oil, gas, coal, and nuclear power. “I don’t want windmills destroying our place,” he stated in a Fox News interview. The bill epitomizes this focus, aligning closely with the objectives of the fossil fuel sector.
The legislation facilitates broader access to federal lands and waters for oil and gas exploration, reversing restrictions set by the Biden administration. It mandates a minimum of 30 lease sales in the Gulf of Mexico over the next 15 years and opens areas across nine states for additional drilling. The law also reduces the royalties that oil and gas developers owe the government, likely leading to increased production.
Industry advocates celebrate the bill as a milestone achievement. Mike Sommers, president of the American Petroleum Institute, called it potentially transformative for energy access in the U.S. “It includes almost all of our priorities,” he added, emphasizing its expected impact on increasing domestic fossil fuel production.
Additionally, the legislation promotes the adoption of carbon capture technologies, offering enhanced tax credits for oil producers who inject captured emissions underground, thereby enabling further crude oil production. Renewed investments in hydrogen fuel production also received a boost with an extension of relevant tax credits through 2028, benefiting firms like Chevron and Exxon as they enter this evolving market.
Meanwhile, the coal sector stands to gain from the new law, which allocates at least 4 million additional acres of federal land for mining operations and cuts royalties for coal companies. It also introduces a new tax incentive for metallurgical coal used in steel manufacturing.
Conversely, the bill signals a decline for renewable energy initiatives, particularly solar and wind. It phases out investment and production tax credits critical to the growth of these sectors. Projects that become operational after 2027 will no longer qualify for these financial incentives, with a minor exception for those that begin construction within a year of the bill passing into law.
Abigail Ross Hopper, CEO of the Solar Energy Industries Association, criticized the legislation, stating, “Despite limited improvements, this legislation undermines the very foundation of America’s manufacturing comeback and global energy leadership.” As the sector braces for an uncertain future, concerns grow regarding potential factory closures and reduced investment in solar and wind technologies.
The new tax rules will also affect incentives for using domestically manufactured components in future renewable projects, which some industry leaders warn could stifle growth in the sector by diminishing demand for U.S.-made equipment.
As the implications of this legislation unfold, the nation’s energy landscape is set for dramatic shifts. The focus on fossil fuels marks a significant departure from previous energy initiatives, prompting a renewed debate over the country’s energy priorities in the years to come.