The U.S. is facing a significant shift in its climate policy landscape as the Senate has approved President Trump’s ambitious bill, dubbed the “One Big Beautiful Bill.” This legislation, which has already passed the Senate and is expected to clear the House, brings sweeping changes to federal support for renewable energy sources.
The bill’s implications extend beyond energy policy, affecting areas such as Medicaid and student loan relief, while also increasing funding for deportations. However, it is the bill’s impact on climate policies that has drawn significant attention. By dismantling federal support for solar and wind power, the bill effectively reverses President Biden’s historic climate initiatives.
Key Changes in Renewable Energy Support
A noteworthy component of the bill is the removal of tax credits for new solar and wind projects not completed by the end of 2027. This deadline poses a challenge for many projects that require extensive time for permitting, financing, and construction. The legislation also threatens existing projects, including factories for clean energy technologies such as solar panels, wind turbines, and lithium-ion batteries.
There is a concession in the bill allowing projects that start construction by June 2026 to receive tax credits, regardless of their completion date. However, Republican leaders have included significant tax credits for metallurgical coal, a fossil fuel with high pollution levels primarily used in steel production abroad.
The legislation further ends tax incentives for rooftop solar installations, electric vehicles, and energy-efficient home improvements while reducing royalty rates for coal extraction on public lands and mandating increased oil and gas leasing.
Bill McKibben, a prominent climate author and activist, expressed concern, stating, “The fossil fuel industry helped pay for this government, and now they’re getting their reward,” in his newsletter A Sense of Duty.
Public Perception and Economic Implications
Public awareness of these changes remains limited, despite widespread support for clean energy solutions. Polls indicate that while a majority of Americans favor cleaner energy and climate initiatives, these issues rank low among their priorities. This lack of focus allows Trump’s administration to target renewable energy by promoting misleading narratives about its costs and reliability.
President Trump has publicly criticized renewable energy tax credits, labeling them a “giant SCAM” on social media. He argued that wind turbines and similar technologies are “10 times more costly than any other energy,” a statement refuted by sources like investment bank Lazard, which identifies solar and wind as the most affordable electricity sources in the U.S.
Despite the current growth of renewable energy — with solar, wind, and batteries comprising 94% of new power capacity in 2024 — the bill could reverse this trend. Research firm Energy Innovation predicts household energy costs could rise by $130 annually by 2030, with 760,000 jobs at risk.
John Ketchum, president of NextEra Energy, has warned that reducing support for renewables could significantly increase electricity prices. Abigail Ross Hopper, president of the Solar Energy Industries Association, echoed these concerns, stating, “Families will face higher electric bills, factories will shut down, Americans will lose their jobs, and our electric grid will grow weaker.”
Challenges and Future Outlook
The reduction in renewable energy support raises questions about the reliability of the U.S. power grid. Senator Thom Tillis of North Carolina, one of the few Republicans to oppose the bill, highlighted the importance of renewables and batteries for grid stability, especially amid a global turbine shortage affecting gas plant construction.
While renewable energy requires substantial initial investments, solar and wind projects ultimately benefit from free fuel sources, unlike gas plants, which can expose consumers to fluctuating utility bills during geopolitical or climate-induced crises.
Fossil fuel subsidies remain entrenched in U.S. tax policy, with coal, oil, and gas industries benefiting from substantial financial support. These subsidies, along with the environmental costs of fossil fuel use, contribute to the ongoing need for renewable energy incentives.
The “One Big Beautiful Bill” represents a step backward for U.S. climate policy, threatening progress on reducing greenhouse gas emissions. As the nation grapples with these changes, public engagement and advocacy for climate action remain crucial.
Original Story at www.latimes.com