Policy trends
Federal
Despite favorable economic trends, pivotal changes in federal policies and tax incentives during the first half of 2025 quickly led to a series of renewable energy project cancellations. Those policy changes continue to reshape the landscape of energy investments and construction.
The House Reconciliation Bill (H.R. 1 or the “One Big Beautiful Bill Act”) paves the way for increased U.S. reliance on fossil fuels, which could lead to new power plants and transmission infrastructure, such as natural gas pipelines. However, in the near term, this bill may also boost the number of renewable energy construction projects seeking to earn tax credits: solar and wind projects that begin construction by July 5, 2026, or are operational by the end of 2027 will still qualify for commercial tax credits provided under Section 45Y and 48E of the Inflation Reduction Act of 2022. Utility-scale battery storage projects will still receive the tax credit as long as construction begins before 2034.
In September 2025, the Department of Energy launched the Speed to Power initiative to support U.S. energy dominance and leadership in artificial intelligence (AI). This initiative aims to accelerate the development of large-scale grid infrastructure for transmission and generation to meet the coming surge in data center energy demand with affordable, reliable and secure energy.
Evolving federal energy priorities
Click below to see executive orders, secretarial orders and congressional actions issued in 2025 that set national energy priorities, change regulations and direct agencies on how to implement laws.
State
At the state level, renewable energy incentives are still going strong despite facing some legal challenges. More than half of states have mandatory Renewable Portfolio Standards (RPS), which require utility companies operating within the state to source a specific percentage of electricity from renewable sources.
The “One Big Beautiful Bill Act” increases U.S. reliance on fossil fuels — but it may also generate a near-term flurry of renewable energy construction projects due to tax credit timelines. Alongside states’ renewable energy policies and corporations’ increasing energy demand, this makes land trusts’ involvement in energy and transmission siting a near-term priority.
Now you know what’s driving the development of new energy infrastructure. So, what makes a site right for meeting energy needs—and conservation goals?
Ready to learn about specific state and local policies relevant to energy siting? Visit the policy repository.