The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, represents a massive shift in U.S. energy and environmental policy. It significantly rolls back many of the clean energy incentives established by the 2022 Inflation Reduction Act (IRA) while pivoting support toward traditional energy, nuclear power, and domestic manufacturing.
The Act shifted federal energy policy from green energy subsidies toward fossil fuel and nuclear energy. The most significant impact is on utility-scale renewables. The law shifts the “technology neutral” credits into a much tighter deadline. With varying deadlines, wind and solar energy projects will be phased out.
The President’s public statements have led to confusion as to whether or not that will eventually lead to the cancellation of currently operating projects. The OBBBA rescinded billions of dollars in “unobligated” funding from the EPA and the Department of Energy.
The income tax credits toward the purchase of Electric Vehicles, home energy improvements, and home Solar roofing have expired. This already has led to a reduction in the sale of electric vehicles as manufacturers have cut back production.
During Trump’s first term, the U.S. withdrew from the 2015 Paris Agreement. This treaty included commitments from major nations to cut-back emissions and to increase the use of power-generating services that don’t produce emissions. It cut-back the use of coal in generating electric power.
The administration will increase drilling for oil in Alaska in wildlife protected territories. This production alone will increase emissions and dangerous byproducts. It also will prolong the primary goal of using petroleum products and reduce the use of carbon-free products. The Administration has proposed massive expansion of offshore drilling in Public Waters off the California, Eastern Gulf near Florida, and all of Alaska coasts.
The one positive step is the proposed increase in the use of nuclear power and the reduction of time to construct these facilities. These facilities are not only carbon-neutral but also have lower costs of actual production of electrical energy. The high cost of nuclear power in the past was due primarily to the lengthy periods and high costs of getting permits.
The past efforts to coordinate regulations between federal and state energy authorities from 2024 – 2025 appear to have been reduced. Both in the organization of frequency of meetings, the coordination of these highly technical, and legal regulations is a maze for anyone. Trade associations have had impact as well as individual companies in appeals on these regulations. The major problem is the distinction between power generation and distribution. This is particular acute with the rapid expansion of AI data centers across the country.
Federal and state legislation and regulations basically control the operations of energy-producing and generating companies. In the rapidly changing technology of the industry, it is a complex operation. Never mind trying to include the data on the rapid changes in world climate. It is hard to know where we stand.
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