THE OBBB UNLEASHES AMERICA’S ENERGY POTENTIAL

Despite what you might have heard, the One Big Beautiful Bill could help lower your energy costs and unleash American energy production.

How?

The bill reverses much of President Biden’s green energy scam, increases federal offshore oil and gas lease sales, and promotes an all-of-the-above energy strategy that drives competition and consumer choice.

Biden’s energy boondoggle

The Biden administration’s energy policy was built on costly green energy tax credits and subsidies that drive up prices and distort the market.

Specifically, the poorly named Inflation Reduction Act offered an estimated $369 billion in green energy tax credits to encourage clean energy use and production. But the tax credits were uncapped, and the law contained so many loopholes that recent estimates place their costs closer to $1.2 trillion by 2032.

Many of these tax subsidies lined the pockets of wealthy families and well-connected cronies, leaving you to foot the bill as energy prices continued to climb.

For instance, the law provides generous subsidies to people who purchase an electric vehicle — $7,500 for new cars or $4,000 for used models. But a recent Gallup Poll found that only 5% of EV-owning households make $40,000 to $100,000, while 42.6% of EV owners make over $200,000 annually.

Additionally, the Inflation Reduction Act set aside billions of dollars to build EV charging stations (only seven were ever installed), train climate activists, and bankroll other wasteful projects.

The wind and solar industries — which have been receiving federal subsidies for decades — raked in even more taxpayer dollars. The IRA extended and expanded lucrative tax credits for building and operating wind and solar projects, guaranteeing them a stream of taxpayer funds through the next decade.

While indulging in these high-cost projects, the IRA also imposed heavy restrictions on how federal land could be leased or sold for energy production. The United States has immense energy potential, but oil and gas lease sales were cut in favor of less reliable and more expensive wind and solar leasing.

What’s wrong with subsidies?

Government subsidies for “green” energy and electric vehicles distort markets, pushing consumers toward favored products rather than the most efficient or cost-effective solutions. Despite substantial incentives, uptake remains concentrated among high-income households, and traditional energy sources continue to dominate.

Here are the facts:

• Federal subsidies encourage purchases of government-preferred products rather than the most cost-effective or efficient options.
• The incentives are costly. $7,500 federal tax credit for new EVs ($4,000 for used) — yet adoption remains low among middle-income Americans.
• Tax credits were mostly going to Americans already interested in purchasing an EV.
• Green energy has serious limitations. Wind, solar, and other renewables remain unreliable and unable to replace traditional energy.
• The reality is that traditional energy still dominates. In 2023, 80% of U.S. energy consumption still came from oil, coal, natural gas, and other traditional fuels.

How the OBBB repairs the IRA’s mistakes

The OBBB removed tax credits for most solar and wind projects entering production after 2027 and ended the federal tax credits for electric vehicles.

At the same time, the bill strengthens America’s energy backbone by increasing federal offshore oil and gas lease sales in the Gulf from just three to 30 over the next 15 years and expanding lease sales in Alaska.

Additionally, the bill requires that at least 4 million acres of federal land be set aside for coal mining.

Importantly, the OBBB doesn’t ban alternative forms of energy but allows the market to select the most effective and preferred forms among the many options available.

By promoting an all-of-the-above approach in the energy sector, these changes allow the U.S. economy to work with the free market rather than against it. This could help lower your energy costs and cuts wasteful federal spending.

Consumer choice and entrepreneurship drive successful economies, while central planning chokes innovation and rewards only the politically connected.

The OBBB does more to embrace these principles.

And members of Congress who supported the bill deserve our thanks.

Click here to send a thank-you letter.