^{Photo: Rhodium Group}

A Major Realignment of U.S. Energy Policy

President Donald Trump’s sweeping new energy legislation — dubbed the “One Big Beautiful Bill Act” — marks a dramatic shift in U.S. energy priorities, offering the fossil fuel industry unprecedented access to federal lands and resources while phasing out key tax incentives for the solar and wind sectors.

Passed by the House on Thursday following a tight Senate vote on Tuesday, the bill is being hailed by fossil fuel lobbyists as a generational victory. It reflects Trump’s consistent disdain for renewable energy, expressed most recently in a June 29 interview where he called solar farms "ugly as hell" and criticized wind turbines for “destroying our place.”

What the Law Grants Fossil Fuel Producers

The new law opens millions of acres of public land and offshore waters to energy companies. Specific provisions include:

• 30 offshore lease sales in the Gulf of Mexico over 15 years
• Annual lease auctions across nine U.S. states
• Expanded access to Alaskan reserves

Producers will also benefit from reduced royalty payments to the federal government — a move that encourages greater exploration and output.

Mike Sommers, CEO of the American Petroleum Institute, called the legislation “the most transformational” energy policy in decades. “It includes almost all of our priorities,” he told CNBC.

The law also enhances carbon capture tax credits, giving companies like ExxonMobil and Chevron more financial incentive to inject carbon into oil wells — a controversial practice that boosts crude extraction under the guise of emissions mitigation.

Additionally, it extends the hydrogen tax credit until the end of 2028, allowing more time for fossil giants investing in hydrogen to secure federal support.

The coal industry is another major winner. The bill:

• Opens 4 million acres of additional land for coal mining
• Reduces royalty rates for coal extraction
• Expands eligibility of the advanced manufacturing tax credit for coal used in steelmaking

The Fallout for Solar and Wind

In contrast, the bill deals a heavy blow to America’s renewable energy sector. It initiates a phaseout of investment and production tax credits that have underpinned the expansion of wind and solar for decades.

• The Investment Tax Credit (ITC), in place since 2005, and the Production Tax Credit (PTC), dating back to 1992, will no longer be available for projects entering service after 2027.
• Projects that begin construction within 12 months of the bill’s signing can still qualify.

The rollback undercuts provisions from the Inflation Reduction Act, which extended clean energy credits until at least 2032.

Abigail Ross Hopper, CEO of the Solar Energy Industries Association, warned that the law “undermines the very foundation of America’s manufacturing comeback and global energy leadership.”

Another casualty is the tax credit for using U.S.-made solar and wind components, a policy designed to reduce reliance on Chinese imports. That credit now ends for all projects completed after 2027, with only a narrow window remaining for those in early development.

Michael Carr, Executive Director of the Solar Energy Manufacturers Association, predicted a chilling effect on clean energy investment:

“Factories that looked financially viable just weeks ago may no longer pencil out. If nothing changes, we’ll see investment slow and some facilities close.”

The Bigger Picture: Energy vs. Climate

Trump’s energy megabill is a clear repudiation of decarbonization goals set under the previous administration. It re-centers U.S. energy policy around fossil fuels, with marginal accommodations for emerging low-carbon technologies.

While fossil fuel executives and supporters tout the legislation as a job creator and a way to boost U.S. energy independence, critics warn it jeopardizes climate progress, risks stalling clean tech innovation, and creates regulatory instability for investors.

The long-term effects on America’s energy mix — and its role in global climate leadership — will depend heavily on the bill’s implementation and the possibility of future legislative reversals.

With federal backing for solar and wind now set to sunset, the future of renewables may increasingly hinge on state-level support, private-sector capital, and global competitiveness.