On July 4, 2025, President Donald Trump signed H.R. 1, dubbed the ‘One Big, Beautiful Bill’ (OBBBA) into law. Framed as a sweeping tax and spending bill, the legislation reaches far beyond its fiscal headline. It repeals or restricts dozens of clean energy provisions from the 2022 Inflation Reduction Act (IRA), reshapes the federal approach to energy and climate policy, and cuts off funding for core greenhouse gas data and planning programs.

At Greenplaces, we’ve reviewed the full bill text, nonpartisan summaries (including the Congressional Budget Office and The New York Times), and expert energy policy analysis to provide a detailed breakdown of what this means for U.S. decarbonization, corporate carbon disclosure, and your business.

Climate and energy rollbacks: A systematic unraveling

The bill represents a massive step backward for U.S. clean energy progress, with key provisions across tax, agency funding, and regulatory guidance. Here’s what’s changing:

Termination and rollback of clean energy incentives

• Electric Vehicles (EVs):
  • The EV tax credit for new and used vehicles will cease on October 1, 2025.
  • Tax credits for clean commercial vehicles and EV charging infrastructure will end June 30, 2026.
  • A proposed USPS EV fleet rollback and EV registration fee were excluded from the final bill.

• Residential and commercial energy efficiency: The energy-efficient home improvement credit (25C) and commercial building deduction (179D) are only valid for projects completed before December 31, 2025.

• Clean power (45Y and 48E):
  • The Investment Tax Credit (ITC) and Production Tax Credit (PTC) for solar and wind projects will be heavily restricted after 2026.
  • Projects that begin construction after 2025 must meet strict “foreign entity of concern” rules—effectively rendering them ineligible.
  • This change also applies to battery storage, geothermal, and other zero-emission technologies.

• Hydrogen (45V): Clean hydrogen tax credits now expire January 1, 2028. This is an extension compared to the House version, but still severely curtails long-term project financing.

Direct cuts to clean energy funding

The bill rescinds unspent funds across dozens of Inflation Reduction Act (IRA) and federal climate programs:

Shift to fossil fuel development

The bill delivers substantial wins for oil, gas, and coal:

• Increases allowances for coal mining leases and royalty relief.
• Expands onshore, offshore, and Arctic oil and gas leasing (Title V, Subtitle A).
• Alters the Energy Infrastructure Reinvestment Program, removing the requirement that projects reduce or sequester emissions. Now, it prioritizes investments in “forecastable electric supply—interpreted as fossil fuels.
• Adds $1B to fossil fuel infrastructure investment.

Impacts on carbon disclosure, ESG reporting, and emissions accountability

While the bill doesn’t repeal California’s SB 253/261, it weakens the ecosystem supporting emissions tracking and enforcement.

Key provisions that undermine carbon data infrastructure

Section 60010 repeals funding for greenhouse gas corporate reporting. This directly affects EPA’s Greenhouse Gas Reporting Program (GHGRP), a foundational tool for Scope 1 emissions disclosure.

• The Greenhouse Gas Reporting Program, established under the Clean Air Act, requires large emitters of greenhouse gases (GHGs) and suppliers of fossil fuels and industrial gases to report their emissions annually to the EPA. It provides the foundational dataset for U.S. Scope 1 emissions and supports enforcement, regulation, and transparency efforts.

• Many corporate carbon footprints and Scope 1 calculations draw directly from GHGRP-reported emissions. It also plays a role in enforcement and verification for EPA rules, and has served as the empirical basis for understanding emissions at the facility level in the U.S.

Additional funding cuts include:

• Methane emissions programs for oil and gas
• Air pollution monitoring and enforcement
• Low-embodied carbon building materials
• Environmental data collection and review technology

These changes could hamper enforcement of disclosure rules and increase the cost and complexity of carbon accounting for businesses.

What companies need to know and do

Despite federal pullbacks, climate disclosure mandates and market pressure are not going away. Companies should act now:

1. Secure federal incentives before they expire

Projects starting before December 31, 2025 still qualify for key IRA tax credits. Move fast to break ground.

2. Prepare for a fragmented compliance landscape

Federal rollback doesn’t affect SB 253, SB 261 or, of course, CSRD. If anything, these laws become more important.

3. Build independent carbon accounting systems

With EPA GHGRP funding cut, businesses may need to source or verify emissions data independently.

4. Maintain voluntary climate leadership

Science-Based Targets (SBTs), CDP, and supply chain engagement will remain critical. Don’t assume deregulation means stakeholder scrutiny will ease—it won’t.

5. Plan for increased cost of capital

Lenders and investors may penalize companies that lack clear climate plans, especially as U.S. policy reliability declines.

Our expert take

The OBBBA marks a profound pivot in federal energy policy, but it is not a death knell for corporate sustainability. In many ways, it increases the urgency for businesses to own their climate strategies, build independent systems, and align with the growing demands of customers, investors, and regulators.
We’re here to help our clients make sense of this new reality and move forward with confidence, credibility, and resilience.

Have questions about how this affects your goals, targets, or disclosures? Reach out to the Greenplaces team. Let’s shape the future for resiliency.