California Speeds Renewables Projects To Get US Tax Credits Before They Expire

With billions in federal incentives at stake, California Gov. Gavin Newsom (D) ordered state businesses to hurry allowing of unpolluted power initiatives to allow them to qualify for disappearing federal tax credit. 

His Aug. 29 government order follows enactment of the federal funds reconciliation legislation in July that rolled again provisions of the Inflation Discount Act and shortened eligibility timelines for clear energy mission tax incentives. “California will proceed our a long time of progress,” Newsom mentioned in issuing the order. “No different state … has constructed as a lot clear power as quick.” 

Below new federal tax steering, initiatives above 1.5 MW should present “vital bodily work” by July 4, 2026 and be positioned in service earlier than the tip of 2027 to qualify. 

Newsom tasked California’s Infrastructure Strike Group and its Vitality Working Group to establish qualifying photo voltaic and wind power initiatives and battery storage initiatives, and help businesses to fast-track approvals. He gave businesses 90 days to report again on which initiatives can meet the compressed federal deadlines.

“Because the federal authorities slashes funds meant to construct power infrastructure that’s needed for grid reliability, Governor Newsom is assembly the second,” mentioned David Hochschild, chairman of the California Vitality Fee, the state’s major power coverage and planning company. It’s “already expediting a number of large-scale clear power and storage initiatives via the state Choose-In Certification program and appears ahead to accelerating our work,” he mentioned.

California added practically 7 GW of unpolluted power capability to the grid in
2024, the most important single-year enhance in clear power
capability growrh in state historical past, the chief order
mentioned. Almost 4.9 GW got here from photo voltaic since Newsom took workplace, mentioned the
Photo voltaic Vitality Industries Affiliation.

However advocacy teams mentioned California nonetheless is behind many different states in creating smaller scale solar-plus-storage initiatives which might be interconnected to the state energy distribution system, In a letter to Newsom, they provided suggestions to repair gaps in mission connection.

Newsom’s order is the most recent salvo within the battle between Washington and Sacramento over renewable power coverage. 

Final month, the U.S. Dept. of Transportation canceled practically $700 million in U.S. port mission funding, largely however not completely associated to offshore wind growth. The revoked funds embody $427 million offered to the Humboldt Bay Heavy Raise Terminal in northern California. 

The state has invested greater than $30 million to develop the Eureka, Calif., port as an meeting hub for floating wind generators that might be staged 20 miles offshore in water as much as 2,500 ft deep.