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 companies to hurry allowing of fresh vitality tasks to allow them to qualify for disappearing federal tax credit. 

His Aug. 29 govt order follows enactment of the federal finances reconciliation regulation in July that rolled again provisions of the Inflation Discount Act and shortened eligibility timelines for clear energy venture tax incentives. “California will proceed our many years of progress,” Newsom mentioned in issuing the order. “No different state … has constructed as a lot clear vitality as quick.” 

Underneath new federal tax steerage, tasks above 1.5 MW should present “vital bodily work” by July 4, 2026 and be positioned in service earlier than the top of 2027 to qualify. 

Newsom tasked California’s Infrastructure Strike Group and its Power Working Group to determine qualifying photo voltaic and wind vitality tasks and battery storage tasks, and help companies to fast-track approvals. He gave companies 90 days to report again on which tasks can meet the compressed federal deadlines.

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

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

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

Newsom’s order is the newest salvo within the struggle between Washington and Sacramento over renewable vitality coverage. 

Final month, the U.S. Dept. of Transportation canceled almost $700 million in U.S. port venture funding, largely however not completely associated to offshore wind growth. The revoked funds embrace $427 million supplied to the Humboldt Bay Heavy Elevate Terminal in northern California. 

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