Sponsors (7)
Introduced July 24, 2025 by Bernard Sanders · Last progress July 24, 2025
The bill redirects federal policy and money away from fossil‑fuel production—raising revenue, strengthening environmental reviews, and increasing liability—while raising energy and compliance costs and slowing some carbon‑management investments, creating a trade‑off between climate/accountability goals and near‑term economic and infrastructure impacts for energy‑dependent workers, businesses, and consumers.
Taxpayers and the federal budget benefit from eliminating multiple fossil‑fuel tax preferences and certain accelerated depreciation rules, raising federal revenue and reducing direct subsidies to producers.
Communities and future generations gain reduced incentives for fossil‑fuel expansion (including repeal of some fossil‑favoring tax provisions) and restored environmental review and emissions rules, which can slow growth of emissions‑intensive projects and better protect natural resources and public health.
Owners/operators of oil transport and large site owners face stronger liability rules (full OPA liability for diluted bitumen transporters and narrower lender exclusions under CERCLA), increasing financial accountability for spills and contamination.
Middle‑class families, businesses, and energy workers may face higher energy and fuel costs and reduced employment as removal of tax preferences and other incentives raises producer costs and reduces fossil‑sector investment.
Ending incentives and rescinding funds for carbon capture, carbon‑management R&D, and related tax credits (including repeal of section 45Q and restrictions on DOE/ARPA‑E/Loan Program support) is likely to reduce private investment, slow deployment of decarbonization technologies, and cost jobs in those industries.
Infrastructure and permitting impacts — including bans on DOT/FRA support for rail/port projects moving fossil fuels and repeal of NEPA streamlining changes — could strand planned investments, delay projects, and raise costs for consumers and local governments.
Based on analysis of 11 sections of legislative text.
Ends many federal fossil‑fuel supports: repeals offshore royalty relief, removes tax credits and accelerated depreciation, terminates carbon‑capture credits, restricts international finance, and restores prior NEPA language.
Ends a wide range of federal financial supports and legal advantages for fossil-fuel production and use. The legislation repeals or bars royalty relief and production incentives for offshore oil and gas, removes multiple tax credits and accelerated depreciation for fossil‑fuel activities, terminates certain carbon capture credits, restricts U.S. contributions to international financial institutions that back fossil‑fuel projects, restores prior NEPA language, and directs Treasury and agency reporting and rule changes to identify and stop other fossil‑fuel subsidies. The bill shifts liability rules for certain oil products, requires public reporting of carbon‑sequestration credit recipients, and gives agencies authority to remove accelerated tax recovery for property types the Treasury later determines are fossil‑fuel subsidies. Most changes take effect for items, taxable years, property placements, or credits after enactment or on dates set by later agency determinations.