One Big Beautiful Bill Act (OBBBA) Energy Policy Changes

planned

The One Big Beautiful Bill Act (OBBBA) signed into law in the U.S. introduces significant changes to energy policy affecting various sectors including renewable energies, oil and gas industry, battery energy storage systems, electric vehicles, nuclear and geothermal energy, and carbon capture and storage. The bill curtails tax credits for wind and solar projects, maintains tax credits for battery energy storage systems through 2030 but imposes restrictions on Chinese battery cells, ends electric vehicle tax credits by September 30, 2025, revises funding for small nuclear reactors and mandates annual lease sales for geothermal energy, boosts carbon capture and storage linked to oil production, and provides direct benefits to the oil and gas industry such as quarterly lease sales, reduced royalty rates, opening of Arctic National Wildlife Refuge to leasing, and extended tax benefits.