This bill aims to end federal support for oil, gas, and coal. It cuts many tax breaks, shuts down the Office of Fossil Energy and Carbon Management, and blocks U.S. funding for fossil projects at home and abroad. It also removes limits on what companies owe after offshore spills and raises industry fees to help pay for cleanups.

Key changes include tighter taxes and rules on fossil fuels and related activities. The oil spill fee increases, pollution taxes are extended to tar sands and coal‑to‑liquid fuels, the carbon‑capture tax credit ends for newly captured carbon, and more foreign oil income is taxed right away. U.S. agencies and international banks are barred from financing fossil projects, and some transportation and rural utility funds can’t support fossil fuel use or transport. An EPA rule to charge for wasted methane is restored.

• Who is affected

  • Oil, gas, and coal companies; offshore and pipeline operators; large lenders; and federal agencies that finance energy, development, or transportation. Ports and rail projects that move fossil fuels are also affected.

• What changes

  • Federal money: The Energy Department’s loan office and ARPA‑E could not fund fossil‑fuel or carbon‑capture projects; only tightly defined “clean hydrogen” projects using local renewable power could qualify. U.S. development and export agencies, plus international financial institutions, would be barred from backing fossil projects. Rural utility loans and some transportation funds could not support fossil fuel use or transport.
  • Taxes and fees: Many fossil‑fuel tax breaks end; the oil spill fee rises to 10 cents per barrel starting in 2026; pollution taxes would cover tar sands and other synthetic crude; refined‑coal power loses a production credit; and a new tax would apply to oil and gas from federal waters in the Gulf of Mexico.
  • Accountability: Caps on spill liability are removed for offshore and certain onshore facilities; interest is no longer paid on royalty overpayments; and rules tighten so more foreign oil income is taxed now and some foreign tax credits are limited when companies get special deals.

• When

  • Most changes begin when the bill becomes law. Some start after December 31, 2025 (for example, the 10‑cents‑per‑barrel oil spill fee), and the carbon‑capture credit ends for carbon captured after enactment.