Ending Market Distorting Subsidies For Unreliable, Foreign Controlled Energy Sources
Summary
This executive order directs federal agencies to eliminate subsidies for "unreliable, foreign controlled energy sources" like wind and solar. It aims to enforce the termination of clean energy tax credits under sections 45Y and 48E of the Internal Revenue Code, as modified by the "One Big Beautiful Bill Act.
The order also instructs the Department of the Interior to review and revise regulations that provide preferential treatment to wind and solar facilities compared to dispatchable energy sources. It mandates reports from the Secretary of the Treasury and the Secretary of the Interior to the President on the implementation of the order.
The stated goals are to promote energy dominance, national security, economic growth, and fiscal health by reducing reliance on foreign supply chains and supporting domestic energy sources.
Expected Effects
The executive order will likely lead to a reduction in federal subsidies for wind and solar energy projects. This could result in decreased investment in these renewable energy sources and a shift towards greater reliance on traditional energy sources.
It could also lead to increased scrutiny of renewable energy projects and potentially slower development of renewable energy infrastructure. The order aims to bolster domestic energy production and reduce dependence on foreign energy sources.
Potential Benefits
- Reduced taxpayer burden by eliminating subsidies for certain energy sources.
- Potential boost to domestic energy production and reduced reliance on foreign supply chains.
- Possible economic benefits from increased investment in traditional energy sectors.
- Could lead to a more stable electric grid by prioritizing dispatchable energy sources.
- Aims to improve national security by reducing dependence on foreign adversaries for energy.
Potential Disadvantages
- Potential slowdown in the development and deployment of renewable energy technologies.
- Possible negative impacts on efforts to combat climate change and reduce carbon emissions.
- Could lead to job losses in the renewable energy sector.
- May increase the cost of energy for consumers if renewable energy sources become less competitive.
- Potential for environmental damage from increased reliance on traditional energy sources.
Most Disadvantaged Areas:
Constitutional Alignment
The executive order cites the President's authority under the Constitution and laws of the United States. The order's focus on energy policy and national security falls within the broad scope of executive power.
However, the order's implementation must be consistent with existing laws and subject to the availability of appropriations, as stated in Section 6(b). The order does not appear to infringe on any specific constitutional rights or provisions.
It is important to note that Congress has the power to legislate in the area of energy policy, and this executive order could be subject to legal challenges or legislative action.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).