The order aims to secure federal tax credits for clean energy projects before they expire due to HR 1, dubbed “Trump’s Big Ugly Bill,”
Governor Gavin Newsom signed an executive order Friday to safeguard California’s clean energy progress in response to federal policy changes under President Trump’s administration.
The order aims to secure federal tax credits for clean energy projects before they expire due to HR 1, dubbed “Trump’s Big Ugly Bill,” which accelerates the phase-out of credits for projects not starting construction by July 2026 or operational by December 2027.
The executive order directs the state’s Infrastructure Strike Team’s Energy Working Group to identify projects eligible for credits under the 2022 Inflation Reduction Act that are at risk due to HR 1. It mandates state agencies, including the California Public Utilities Commission (CPUC), California Energy Commission (CEC), and California Independent System Operator (CAISO), to prioritize permitting and approvals to expedite these projects.
The order also requires a report within 90 days detailing actions taken and recommendations for further support.
“California is doubling down on building more clean energy, faster,” Newsom said, emphasizing the state’s commitment to carbon neutrality by 2045 and 100% clean electricity by the same year. The state added nearly 7,000 megawatts of clean energy capacity in 2024, a record, with 67% of retail electricity sales in 2023 from renewable and zero-carbon sources.
The Trump administration’s policies, including HR 1, threaten hundreds of California projects that could create thousands of jobs and bolster grid reliability. The order instructs the CPUC to prioritize interconnection for projects expected online within three years, streamline transmission permitting, and coordinate with utilities and CAISO.
