Power in Flux // July 28, 2025 // Energy Executive Orders After the OBBBA
Welcome back! It’s been a little while since the last update; not because there was nothing to report, but because I was out on PTO! Now that the OBBBA has officially been signed into law, attention is shifting back to Executive Orders. Since the OBBBA’s signing, President Trump has issued three new directives that could have significant implications for the energy sector.
In this edition, we break down each regulatory action and explore what it could mean for current and future projects.
This month, Trump signed two executive orders and one proclamation focused on power and energy infrastructure. One calls for stricter rules on clean energy tax credits (allowing potential changes to the recently signed OBBBA), another speeds up permitting for AI data centers with shared energy systems, and a third gives regulatory relief to coal plants.
Executive Order // July 7, 2025
Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources
The title of this Executive Order is somewhat misleading. While it does include provisions aimed at Foreign Entities of Concern (FEOCs), its most significant impact comes from the 45-day window following the enactment of the One Big Beautiful Bill Act (OBBBA). During this period, the Executive Order directs the Secretary of the Treasury to take firm action to enforce the full termination of clean electricity tax credits under Sections 45Y and 48E, which support wind and solar energy projects.
This directive has sparked some controversy, especially among members of Congress who backed the OBBBA with the understanding that these credits would remain partially in effect through the end of 2027.
WHAT THIS MEANS FOR POWER
Continued uncertainty for renewables: After the passage of the OBBBA, many in the industry believed there was clarity around the future of Sections 45Y and 48E and how they would support wind and solar project development. However, the Executive Order has reintroduced uncertainty during the 45-day implementation window
Shift toward dispatchable generation: The EO may tilt federal policy in favor of coal, gas, and nuclear power, which are viewed as more reliable and domestically controlled (as stated in the EO)
Supply chain impacts: Restrictions tied to Foreign Entities of Concern could affect the availability and sourcing of critical components (e.g., solar panels) for renewable energy projects
Executive Order // July 23, 2025
Accelerating Federal Permitting of Data Center Infrastructure
This Executive Order focuses on accelerating the development of AI data centers and the infrastructure that supports them, specifically targeting facilities that add more than 100 megawatts of new electric load. It directs federal agencies to streamline environmental reviews, make greater use of federal and brownfield lands, and apply existing permitting tools such as FAST-41 and categorical NEPA exclusions. Notably, the order revokes Executive Order 14141, signed by President Biden in January 2025, which had required AI data centers on federal land to be powered exclusively by new, reliable clean energy sources matched to hourly demand. With this revocation, the clean energy requirement is removed, allowing data centers to be powered by any energy source. This order is part of the broader “America’s AI Action Plan” and is intended to fast-track U.S. leadership in artificial intelligence infrastructure.
WHAT THIS MEANS FOR POWER
Increased demand for large-scale, dispatchable power: AI data centers with 100+ MW loads will drive significant new demand, especially for round-the-clock, high-reliability power sources
Greater energy flexibility: With clean energy mandates removed, data centers can now be powered by any source (e.g., fossil, nuclear, renewables, etc.)
Faster permitting for supporting energy infrastructure: Streamlined reviews may accelerate the development of new generation, transmission, and grid interconnection projects tied to AI growth
Presidential Proclamation // July 17, 2025
Regulatory Relief for Certain Stationary Sources to Further Promote American Energy
This proclamation grants a two-year exemption for certain "stationary sources," specifically coal-fired power plants, from complying with the updated EPA emissions rule that tightens the Mercury and Air Toxics Standards (MATS) for coal- and oil-fired steam generating units. The rule, formally titled National Emissions Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units Review of the Residual Risk and Technology Review (NESHAP), requires advanced emissions-control technologies. The administration determined that these technologies are not yet commercially viable and that enforcing the rule as scheduled could lead to coal plant closures, grid instability, job losses, and increased national security risks due to greater dependence on foreign energy. The exemption period begins on July 8, 2027, and ends on July 8, 2029.
WHAT THIS MEANS FOR POWER
Coal facilities staying online longer: The two-year exemption allows many coal plants to defer costly emissions upgrades and avoid near-term retirement. As a result, utilities may pursue life extension and asset planning, including technical assessments, CAPEX forecasting, risk analysis, and O&M optimization to keep aging units safe, reliable, and compliant during the exemption period.
Adjusted timing for decarbonization opportunities: With coal retirements potentially delayed and emissions compliance timelines extended, there may be a shift in the pace of clean energy transitions. This could temporarily affect near-term demand for renewables, storage, and emissions-reduction solutions, while creating space to reassess long-term strategies with our clients.
The bottom line: These recent federal actions affecting clean energy tax credits, data center permitting, and coal plant compliance point to a shift in federal energy priorities toward dispatchable generation. The push to rapidly build large-scale AI data centers is driving demand for reliable power, which may temporarily slow decarbonization efforts across our client base.
Keep reading below to find out more about each Regulatory Action.
Executive Order // July 7, 2025
Ending Market Distorting Subsidies for Unreliable, Foreign-Controlled Energy Sources
The title of this Executive Order is somewhat misleading. While it does include provisions aimed at Foreign Entities of Concern (FEOCs), its most significant impact comes from the 45-day window following the enactment of the One Big Beautiful Bill Act (OBBBA). During this period, the Executive Order directs the Secretary of the Treasury to take firm action to enforce the full termination of clean electricity tax credits under Sections 45Y and 48E of the Internal Revenue Code, which support wind and solar energy projects.
This directive has sparked some controversy, especially among members of Congress who backed the OBBBA with the understanding that these credits would remain partially in effect through the end of 2027.
Key Dates & Deadlines
Within 45 days of OBBBA enactment (by August 18, 2025)
The Treasury Department must: Enforce termination of 45Y and 48E clean electricity tax credits for wind and solar Issue new/revised guidance on "beginning of construction" standards Implement the enhanced Foreign Entities of Concern (FEOCs) restrictions in the OBBBA
Department of the Interior must: Review and revise any regulations or policies that give preferential treatment to wind and solar over dispatchable energy sources
Main Agencies Involved
Department of the Treasury
Department of the Interior
Office of Management and Budget (OMB)
Risks
Regulatory unpredictability: Sudden changes in federal energy policy create uncertainty for utilities and IPPs, complicating long-term generation planning and deterring capital investment
Supply chain complications: FEOC-related restrictions could limit access to foreign-sourced components, especially in solar
Opportunities
Renewed momentum for firm resources: Coal, natural gas, and nuclear generation could benefit from policy shifts that prioritize reliability and domestic energy security
Executive Order // July 23, 2025
Accelerating Federal Permitting of Data Center Infrastructure
This Executive Order focuses on accelerating the development of AI data centers and the infrastructure that supports them, specifically targeting facilities that add more than 100 megawatts of new electric load. It directs federal agencies to streamline environmental reviews, make greater use of federal and brownfield lands, and apply existing permitting tools such as FAST-41and categorical NEPA exclusions. Notably, the order revokes Executive Order 14141, signed by President Biden in January 2025, which had required AI data centers on federal land to be powered exclusively by new, reliable clean energy sources matched to hourly demand. With this revocation, the clean energy requirement is removed, allowing data centers to be powered by any energy source. This order is part of the broader “America’s AI Action Plan” and is intended to fast-track U.S. leadership in artificial intelligence infrastructure.
Key Dates & Deadlines
This order is effective immediately.
Main Agencies Involved
Department of Energy (DOE)
Department of the Interior
Department of Commerce
Department of Defense
Environmental Protection Agency (EPA)
Office of Management and Budget (OMB)
Risks
Permitting imbalance across energy projects: Prioritizing AI-related infrastructure may divert agency attention and resources, slowing approvals for other critical power projects like transmission upgrades, storage, or renewables
Opportunities
Expanded markets for dispatchable generation: The need for round-the-clock reliability from AI data centers opens up new growth for gas, nuclear, and other firm power resources
Streamlined approvals for energy infrastructure: Transmission lines, substations, and generation assets directly tied to data center projects may benefit from faster federal permitting
Presidential Proclamation // July 17, 2025
Regulatory Relief for Certain Stationary Sources to Further Promote American Energy
This proclamation grants a two-year exemption for certain "stationary sources," specifically coal-fired power plants, from complying with the updated EPA emissions rule that tightens the Mercury and Air Toxics Standards (MATS) for coal- and oil-fired steam generating units. The rule, formally titled National Emissions Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units Review of the Residual Risk and Technology Review (NESHAP), requires advanced emissions-control technologies. The administration determined that these technologies are not yet commercially viable and that enforcing the rule as scheduled could lead to coal plant closures, grid instability, job losses, and increased national security risks due to greater dependence on foreign energy. The exemption period begins on July 8, 2027, and ends on July 8, 2029.
Key Dates & Deadlines
Original Compliance Deadline: July 8, 2027 Coal and oil units were required to meet the new, more stringent MATS standards by this date
New Compliance Window: July 8, 2027 – July 8, 2029 During this period, exempted facilities continue operating under prior MATS standards, deferring application of the tighter rule
Main Agencies Involved
Environmental Protection Agency (EPA)
Risks
Regulatory uncertainty: The two-year exemption creates a temporary reprieve but adds ambiguity to long-term compliance planning. Utilities may delay or pause investments in emissions controls or plant retirements, complicating future planning cycles
Decarbonization delay: Extended operation of coal-fired plants could slow the momentum of clean energy transition plans and reduce near-term demand for renewables and low-carbon technologies
Opportunities
Life extension services: Plant owners may take advantage of the exemption period to conduct asset life extension studies or plan retrofit/upgrade projects to support reliable performance through 2029 and potentially beyond
Advisory and compliance support: Both plant owners and developers will need guidance to navigate the exemption period, including reassessing environmental compliance pathways and updating integrated resource plans (IRPs)
That’s it for this edition of Power in Flux. Now that I’m back from PTO and you’re up to date on the latest in federal energy policy, we’ll continue tracking how these new directives take shape across permitting, power markets, and project timelines.
As always, feel free to reach out with questions or if there’s something you’d like to explore further. I’ll try to hold off on any more vacations, at least until the next round of policy surprises.