Sponsors (7)
The bill shifts federal support away from fossil fuels—reducing taxpayer subsidies and increasing transparency and spill preparedness—while raising costs and regulatory changes that could slow carbon‑capture deployment, stress fossil‑dependent jobs and communities, and weaken some environmental review and public‑input protections.
Taxpayers and the public: the bill reduces and removes several federal subsidies, royalty relief, and accelerated‑depreciation benefits for fossil‑fuel production, cutting federal outlays and limiting U.S. public financing that could support new fossil projects.
Communities near oil transport and spill‑prone areas: the bill increases oil‑spill preparedness funding and makes onshore diluted‑bitumen transport more squarely subject to standard OPA liability, improving cleanup resources and accountability.
Non‑fossil energy businesses and potential clean‑energy providers: ending many fossil tax preferences and standardizing certain tax rules improves competitive parity for non‑fossil producers and clarifies some incentives (including inflation‑adjusted guidance for clean hydrogen credit administration).
Energy workers, fossil‑fuel communities, and regional economies: removing tax preferences, royalty relief, and accelerated depreciation will raise costs for producers, likely reducing investment and risking job losses and slower economic activity in fossil‑dependent areas.
Environmental and public‑health stakeholders: narrowing NEPA, removing scientific‑integrity protections, and repealing some leasing safeguards risks weaker environmental analyses, reduced public input, more fossil leasing, and higher local pollution and climate impacts.
Utilities and companies pursuing decarbonization: terminating the Section 45Q carbon capture credit (and related changes) removes a financial incentive for carbon capture projects, which will likely slow deployment of CCS and complicate climate mitigation plans.
Based on analysis of 11 sections of legislative text.
Eliminates many fossil‑fuel royalty breaks and tax preferences, ends the 45Q carbon credit for new captures, reverses recent leasing/NEPA changes, and requires a Treasury inventory of fossil‑fuel subsidies.
Official title: Eliminate certain subsidies for fossil-fuel production.
Introduced July 24, 2025 by Bernard Sanders · Last progress July 24, 2025
The bill phases out a wide set of federal supports for fossil-fuel production and usage by repealing royalty relief, terminating tax preferences and credits for oil, gas, coal, and carbon sequestration, restricting certain federal contributions to international finance institutions that support fossil fuels, and undoing recent statutory changes that eased environmental review or expanded leasing. It also requires the Treasury to inventory federal fossil‑fuel subsidies and to identify accelerated tax recovery periods for fossil‑fuel production assets, with the power to remove accelerated depreciation for assets the Treasury deems subsidized. Many changes take effect for taxable years or activities after enactment and include new disclosure and reporting requirements for previously available credits.