With billions in federal incentives at stake, the governor of California Gavin Newsom (D) ordered state agencies to speed up clean energy projects so that they could accommodate federal tax credits.
Its executive order of August 29 follows the promulgation of the Federal Budget Reconciliation Law in July, which set a decline in the provisions of the Inflation Reduction Law and which reduced the eligibility periods for network tax incentives. “California will continue our decades of progress,” Newsom said when issuing the order. “No other state … has created so much clean energy so fast.”
By virtue of the new federal tax guidelines, projects greater than 1.5 MW must show a “major physical work” on July 4, 2026, and to the service before completing by 2027 to obtain the rating.
Newsom commissioned the California infrastructure strike and its energy working group to identify solar and wind energy projects and battery storage projects, and attending agencies to approve quick approvals. He gave the agencies 90 days to report on which projects can meet the compressed federal deadlines.
“As the federal government reduces funds for building energy infrastructures necessary for network reliability, Governor Newsom is fulfilling the moment,” said David Hochschild, chairman of the California Energy Commission, the State Policy Policy and Planning Agency. “Several large -scale energy and storage projects are achieved through the state deactivation certification program and hopes to accelerate our work,” he said.
California added about 7 GW of clean energy capacity to the network by 2024, the greatest increase in a unique year in the networking capacity of Growrh in the history of the State, said the executive order. About 4.9 GW came from a plot since Newsom took office, said the Solar Energy Industries association.
But lawyers said that California is still behind many other states in the development of small-scale sole-scale storage projects that are interconnected in the state energy distribution system, in a letter to Newsom, they offered recommendations for solving the lagoons in the connection of the project.
Newsom’s order is the last saving in the struggle between Washington and Sacramento for renewable energy policy.
Last month, the United States Department of Transport has canceled about $ 700 million in funding from the North -American Port Project, largely, but not completely related to the out -of -sea wind development. Revocated funds include $ 427 million provided to the Humboldt Bay Heavy Lift terminal north of California.
The state has invested more than $ 30 million to expand the port of Eureka, California, as a mounting center for floating wind turbines that would be staged 20 kilometers on the coast in water up to 2,500 feet deep.
