Ending Market Distorting Subsidies for Unreliable, Foreign‑Controlled Energy Sources
This presidential order aims to eliminate government subsidies for wind and solar energy, arguing that they are expensive, unreliable, and create dependence on foreign supply chains.
The order directs the Departments of the Treasury and Interior to take swift action to end these subsidies, implement stricter regulations, and conduct reviews of existing policies.
Reports on these actions are required within 45 days of the order's issuance.
Arguments For
Intended benefits: Reducing taxpayer burden, promoting energy independence, enhancing national security by decreasing reliance on foreign supply chains, and improving the fiscal health of the nation.
Evidence cited: The order cites concerns about the high cost and unreliability of wind and solar energy and the risks associated with dependence on foreign adversaries for energy resources.
Implementation methods: The order directs the Department of the Treasury and the Department of the Interior to take specific actions, including enforcing the termination of tax credits and reviewing regulations to eliminate preferential treatment for wind and solar facilities.
Legal/historical basis: The order is issued by the President under the authority vested in him by the Constitution and the laws of the United States of America.
Arguments Against
Potential impacts: The elimination of subsidies could hinder the growth of renewable energy sectors, potentially leading to job losses and impacting efforts to combat climate change.
Implementation challenges: Enforcing the termination of tax credits and revising regulations could face legal challenges and political opposition. It could also prove difficult to quickly transition from wind and solar energy with sufficient alternatives available.
Alternative approaches: A phased approach to subsidy reduction, coupled with investments in alternative, reliable energy sources and domestic supply chains might have allowed for a smoother transition.
Unintended effects: The order may disproportionately affect certain regions or industries dependent on renewable energy, and the focus on domestic energy sources might inadvertently lead to environmental challenges.
By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered:
This introductory statement asserts the President's legal authority to issue the order based on the U.S. Constitution and laws.
Section 1. Purpose. For too long, the Federal Government has forced American taxpayers to subsidize expensive and unreliable energy sources like wind and solar. The proliferation of these projects displaces affordable, reliable, dispatchable domestic energy sources, compromises our electric grid, and denigrates the beauty of our Nation’s natural landscape. Moreover, reliance on so-called “green” subsidies threatens national security by making the United States dependent on supply chains controlled by foreign adversaries. Ending the massive cost of taxpayer handouts to unreliable energy sources is vital to energy dominance, national security, economic growth, and the fiscal health of the Nation.
This section outlines the rationale behind the order.
It argues that subsidies for wind and solar energy are costly, unreliable, threaten national security due to foreign dependence on materials, and harm the environment.
The order frames ending these subsidies as crucial for several national interests.
Sec. 2. Policy. It is the policy of the United States to:
(a) rapidly eliminate the market distortions and costs imposed on taxpayers by so-called “green” energy subsidies;
(b) build upon and strengthen the repeal of, and modifications to, wind, solar, and other “green” energy tax credits in the One Big Beautiful Bill Act; and
(c) end taxpayer support for unaffordable and unreliable “green” energy sources and supply chains built in, and controlled by, foreign adversaries.
This section details the specific policy goals.
It aims to remove subsidies, build on existing legislative efforts to curtail the tax credits, and completely end taxpayer support for unreliable and foreign-controlled green energy.
Sec. 3. Tax Credits and One Big Beautiful Bill Act Implementation by the Department of the Treasury. (a) Within 45 days following enactment of the One Big Beautiful Bill Act, the Secretary of the Treasury shall take all action as the Secretary of the Treasury deems necessary and appropriate to strictly enforce the termination of the clean electricity production and investment tax credits under sections 45Y and 48E of the Internal Revenue Code for wind and solar facilities. This includes issuing new and revised guidance as the Secretary of the Treasury deems appropriate and consistent with applicable law to ensure that policies concerning the “beginning of construction” are not circumvented, including by preventing the artificial acceleration or manipulation of eligibility and by restricting the use of broad safe harbors unless a substantial portion of a subject facility has been built.
(b) Within 45 days following enactment of the One Big Beautiful Bill Act, the Secretary of the Treasury shall take prompt action as the Secretary of the Treasury deems appropriate and consistent with applicable law to implement the enhanced Foreign Entity of Concern restrictions in the One Big Beautiful Bill Act.
This section assigns responsibilities to the Department of the Treasury.
It orders the immediate enforcement of the termination of tax credits for wind and solar facilities as outlined in the 'One Big Beautiful Bill Act', and the implementation of enhanced restrictions on foreign entities within that Act.
The Treasury is given 45 days to act.
Sec. 4. One Big Beautiful Bill Act Implementation by the Department of the Interior. (a) Within 45 days following enactment of the One Big Beautiful Bill Act, the Secretary of the Interior shall conduct a review of regulations, guidance, policies, and practices under the Department of the Interior’s jurisdiction to determine whether any provide preferential treatment to wind and solar facilities in comparison to dispatchable energy sources. The Secretary of the Interior shall then revise any identified regulations, guidance, policies, and practices as appropriate and consistent with applicable law to eliminate any such preferences for wind and solar facilities.
The Department of the Interior is tasked with reviewing and revising any regulations that favor wind and solar energy over other, more reliable sources.
The department has 45 days to complete this review and make any necessary changes.
Sec. 5. Reports. Within 45 days of the date of this order, the Secretary of the Treasury and the Secretary of the Interior shall submit a report to the President, through the Assistant to the President for Economic Policy, the findings made under, and actions taken and planned to be taken to implement, this order.
This section mandates that the Treasury and Interior Secretaries provide progress reports to the President within 45 days, detailing their findings and actions related to the order's implementation.
Sec. 6. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
(d) The costs for publication of this order shall be borne by the Department of the Treasury.
This section includes general provisions clarifying that the order does not limit existing legal authority, requires adherence to existing laws and budgetary considerations, and does not create any legally enforceable rights.
It also specifies that the Treasury Department is responsible for the order’s publication costs.
DONALD J. TRUMP
THE WHITE HOUSE,
July 7, 2025.
This section contains the presidential signature and the date.