Sponsors (7)
Introduced July 24, 2025 by Bernard Sanders · Last progress July 24, 2025
The bill shifts federal policy away from subsidizing fossil fuels — improving taxpayer accountability, spill preparedness, and permitting speed — but does so by cutting tax preferences and programs that raise costs for fossil producers (and potentially consumers), risk job and research losses, weaken certain environmental review protections, and remove a major carbon‑capture incentive.
Taxpayers and non‑fossil businesses: the bill ends multiple fossil‑fuel tax preferences and royalty relief, reducing federal subsidies for fossil production, leveling the competitive playing field for cleaner energy, and lowering long‑term taxpayer exposure to subsidizing high‑cost fossil projects.
Communities near pipelines and the public: increases accountability and preparedness by making certain diluted bitumen transporters financially liable under standard OPA rules and by raising per‑barrel oil‑spill financing rates and Black Lung excise collections to support response and benefits.
Project sponsors, utilities, and local governments: narrowing NEPA requirements can speed federal permitting and project approvals, potentially accelerating infrastructure and energy projects.
Utilities and companies planning carbon capture: the bill terminates the Section 45Q carbon‑capture tax credit for CO2 captured after enactment, likely delaying or cancelling carbon capture projects and slowing deployment of a climate mitigation tool.
Energy companies, workers, and consumers: ending royalty relief, removing accelerated depreciation and other fossil preferences raises tax liabilities for fossil producers, which is likely to increase costs, contribute to higher fuel prices for consumers, and risk reduced investment and jobs in fossil‑dependent regions.
Energy workers, researchers, and affected communities: terminating the Office of Fossil Energy and rescinding its funds risks job losses and cuts to fossil‑energy research (including carbon management), reducing support for technology development and transition planning.
Based on analysis of 11 sections of legislative text.
Eliminates many federal fossil‑fuel tax breaks and royalty relief, rescinds some U.S. financing for fossil projects, tightens spill liability, undoes recent permitting changes, and orders a federal subsidy inventory.
Ends a wide range of federal support for fossil‑fuel production and use, removes some special royalty and leasing terms for oil, gas, and coal, stops several tax credits and accelerated tax benefits for fossil‑fuel activities, and cuts U.S. funding to international finance institutions that back fossil‑fuel projects. It also tightens liability rules for certain oil spills, requires public reporting on a terminated carbon‑capture tax credit, undoes recent administrative changes related to energy permitting and leasing, and directs Treasury to inventory federal fossil‑fuel subsidies and to identify accelerated tax recovery periods for fossil‑fuel assets for possible elimination. The bill affects federal tax law, offshore and onshore leasing and royalties, international financing rules, environmental review authorities, and Treasury/IRS reporting and enforcement duties. Many tax and subsidy terminations apply to taxable years or transactions after enactment; several reports and inventories must be completed within 6–12 months of enactment.