Senior Associate Astrika Adams (Washington, DC) recently spoke with Trellis on the implications of the newly enacted budget law, known as the "One Big Beautiful Bill Act," on renewable energy projects and carbon capture projects.
In "A cheat sheet on the GOP budget law and Trump's latest shot at solar and wind," Astrika said that "the question isn't who [the Act] will affect, it's who will [the Act] not affect," noting that the Act will have dramatic impacts on the renewable energy industry. She added that, "we are looking at a very different marketplace here."
Astrika goes on to discuss how the Act will affect green energy tax credits, especially following President Trump's July 7 Executive Order, which calls on the U.S. Treasury to "build upon and strengthen the repeal of, and modifications to, wind, solar and other 'green' energy tax credits." She remarked, "it's a signal to the solar and wind project developers that there likely will be more bad news," indicating the potential for increased complexity in qualifying for incentives.
Despite these challenges, Adams acknowledged that viable pathways still exist for certain projects, stating, "the market is still strong and valid."
Moving forward, solar and wind developers should expect the U.S. Treasury to issue more regulatory guidance in the foreseeable future that will determine eligibility for clean energy tax credits over the next two years. Stakeholders in the sustainable aviation fuel (SAF) and direct air capture (DAC) sectors can also expect further regulatory guidance to clarify how they should document SAF feedstock sourcing and further clarification on how they should quantify and validate carbon removals.