All my adult life, presidents have talked about energy independence. Nixon, Ford, Carter, Reagan, Clinton, and both Bush’s vowed to end dependence on foreign oil, to no avail. Even Obama and Biden, who did everything they could to stop domestic energy production, at least mouthed the same words. But on both sides, changing policies is said to be as difficult as turning an aircraft carrier.
Actually, turning an aircraft carrier is far easier than turning around decades of environmental laws and bureaucratic processes that hinder energy production. A modern aircraft carrier is over 1,000 feet long, weighs 100,000 tons, carries 5,000 people, and 75 airplanes. The four propellers are 25 feet in diameter and weigh 30 tons each, yet the ship can turn around in less than five minutes. But first, someone has to give the command. Someone has to pull the lever.
Changing energy policy is the same. The structure is huge, complicated, and many people are involved. But someone has to start it. The “One Big Beautiful Bill” signed into law on July 4 is the start. Besides broad tax relief, the bill began a dramatic shift towards securing an independent energy future, as promised during the Presidential campaign. Notably, the bill prioritizes fossil fuel development while shifting away from the prior administration’s sole focus on “green energy,” replacing that with energy independence as the primary goal.
New energy provisions included reducing tax credits for wind and solar energy, eliminating subsidies for electric vehicles (which are no longer mandated), expanding oil and gas development on public lands and offshore, loosening regulatory burdens, and maintaining federal support for nuclear power.
The bill mandates new oil and natural gas leases across federal lands and waters. That includes at least four leases annually in each of the nine major oil and gas states: Colorado, Wyoming, New Mexico, Utah, Montana, North Dakota, Oklahoma, Nevada, and Alaska. It also requires at least 30 region-wide oil and gas sales in the Gulf over the next 14 years, a ten-fold increase over the previous administration’s 5-year plan, and at least six leases in Alaska’s Cook Inlet before 2028. Further, a reduction in the royalty rate will make those projects more profitable.
The bill also rolled back renewable energy tax credits, limiting solar credits to projects under construction within a year, cutting off credits for foreign-owned projects, eliminating consumer credits for electric vehicle purchases, and phasing out the credit for battery makers.
The bill preserved existing incentives for nuclear power development, and made important changes to Energy Department loan programs. One change eliminated requirements to fund projects that reduce greenhouse gases and include emissions controls. That focuses policies on producing energy, not mitigating climate change, which was virtually the sole focus of Biden-era energy policy.
Finally, the bill made significant improvements to the permitting process that for decades has delayed, stalled, and blocked energy production. That includes statutory changes in the environmental review process, which will allow expedited review of Environmental Impact Statements, at project sponsors’ expense. The permitting process took a minimum 4–6-years, but the law now grants automatic approval if agencies take longer than a year. Most permitting agencies have already revised their procedures to comply.
That is a great start, but much more is needed. For example, a bipartisan bill called the Standardizing Permitting and Expediting Economic Development (SPEED) Act, would significantly reform procedures required by the National Environmental Policy Act (NEPA). It would reign in the power of courts to substitute their judgments for those of agency experts, and limit the time allowed for judicial interference. That would upend one of the primary abuses that hamper the creation of energy jobs – litigation. Congress should pass it as one way to shorten the interminable delays that plague virtually all infrastructure projects in recent years, not just energy projects.
The issue is important specifically to Colorado, too. The new federal law allows for much faster decisions on interstate pipelines, which are vital to Colorado producers. The state has 13,800 miles of interstate pipelines that are key to energy growth, transporting gas from the Rocky Mountains to the Midwest, Southwest, California, and Pacific Northwest. And roughly 86 Colorado industrial and power facilities are eligible for the newly enhanced federal tax credit that encourages carbon capture and storage, a financial advantage that lowers operating costs.
Energy independence is complicated. Eliminating the roadblocks is cumbersome. But like turning the carrier around, someone has to pull the lever. Congress and the Administration have at least done that.
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