The Impact of the 'One, Big Beautiful Bill' on Climate, Clean Energy, and Maine
By Ella Longacre, ClimateWork Maine UNH Sustainability Fellow
The “One Big Beautiful Bill Act” (OBBBA) was passed by the Senate on July 1, 2025, then the House on July 3, 2025, and signed into law by President Trump on July 4, 2025. The OBBBA drastically impacts climate and clean energy progress, resulting in potentially higher energy costs and greater environmental pollution. Clean energy incentives are being eliminated while the oil and gas industry is being further subsidized.
The United States is facing a surge in energy demand, and cutting clean energy incentives could lead to project cancellations, leaving the country without the capacity to meet its growing needs. In response, the Trump Administration and Congress are turning to fossil fuel development to fill the gap—an approach that risks driving up energy costs for consumers and increasing greenhouse gas emissions and criteria pollutants such as ozone (smog) and particular matter.
Additionally, cuts in initiatives from the Inflation Reduction Act that target pollution control have the possibility of leading to 430 avoidable deaths by 2030 due to increased air pollution and 930 by 2035. Overall, the OBBBA will increase greenhouse gas emissions by 310 million metric tons of carbon dioxide equivalent by 2035.
The OBBBA includes major cuts to tax incentives that support clean energy and sustainability efforts. As mentioned, these changes could slow renewable energy development and stall key climate projects. The table below outlines which incentives are being eliminated or reduced.
How does this bill and the elimination of these incentives affect Maine specifically?
Like much of the country, Maine is expected to face higher energy costs, a slowdown in renewable energy and climate action projects, and a rise in fossil fuel emissions under the OBBBA.
When the bill reached Congress, Maine’s entire delegation voted against it, with Senator Susan Collins standing out as one of only three Senate Republicans to oppose it. In explaining her decision, Collins emphasized the importance of a gradual phase-out of tax credits to ensure that ongoing projects and the work of clean energy entrepreneurs wouldn’t be lost. She also expressed concern that the bill failed to include incentives for Maine families investing in heat pumps and residential solar panels—critical tools in the state’s push toward energy efficiency and sustainability. Her concerns reflect just how much is at stake for Maine, a state whose economy and energy future are deeply tied to the success of its clean energy sector.
As of 2023, 67% of Maine’s in-state electricity was generated by renewable sources. In 2022, 15,000 jobs in the state, over 2% of the total workforce, came from the clean energy sector. Additionally, there were over 2,500 clean energy establishments, making up 4% of all businesses. Maine relies on renewable energy generation for a thriving economy. Without incentives that are allowing the industry to grow, Maine is expected to lose 1,600 jobs and average household energy costs are expected to rise by $80 per year by 2035. Already, two solar projects are being put on pause.
However, it’s not just the clean energy industry feeling the impact. Businesses across industries pursuing sustainability projects are also at risk. Whether planning to install EV charging stations or upgrade office spaces with energy-efficient technologies, many companies rely on federal incentives to make such investments feasible. Without that support, they may no longer have the funding needed to move these projects forward.
The passage of the One Big Beautiful Bill marks a major setback for clean energy and climate progress nationwide—and Maine is no exception. By eliminating vital tax credits and shifting support toward fossil fuels, the bill jeopardizes not only environmental goals but also economic stability for states like Maine that have invested heavily in sustainability. With higher energy costs, stalled projects, and job losses already beginning to take shape, the long-term consequences of the OBBBA are likely to ripple across sectors and communities. As the impacts unfold, continued support for and investment in renewables, efficiency, transportation, and electric infrastructure will be critical to protecting Maine’s clean energy future.
