ENERGY SECURITYStates Fast-Track Wind, Solar Permits and Contracts to Beat Trump’s Deadline
Since taking office, the Trump administration has pursued a number of policies aimed at dismantling support for renewable energy, particularly targeting wind and solar power, which President Trump described as a “scam.” Federal tax credits have brought project costs down 30-50%, advocates say.
Across the country, state leaders are racing to fast-track wind and solar projects before the expiration of federal tax credits to support clean energy.
Colorado is directing state agencies to prioritize permits for projects that might qualify for the credits. Maine regulators are moving up timelines to purchase new power, hoping to give developers a head start on construction.
And renewable industry leaders are pressing governors and lawmakers to clear bureaucratic backlogs and connect projects to the grid in the narrow window that remains.
Federal clean energy tax credits have been essential to the financing of wind and solar projects across the country, and a key part of states’ plans to transition to wind and solar power.
Following President Donald Trump’s moves to quickly phase out those credits, pending projects have a tight time frame to start construction before their eligibility expires. But states have long struggled to speed up permitting decisions, reduce regulatory hurdles and add new power to the grid. And the clock is running out.
“Every month counts,” said Patty O’Keefe, Midwest regional director at Vote Solar, a clean energy advocacy nonprofit. “[The tax credits] are the financial backbone of nearly every renewable energy project that’s currently in the pipeline.”
Over the past few weeks, some governors have directed state agencies to fast-track permits for wind and solar projects. They have also urged utilities and regulators to ensure new power can quickly connect to the grid. Some state regulators have accelerated their timelines to sign contracts for new energy, in hopes of getting more projects started before the fast-approaching construction deadline.
But it’s unclear how quickly states can clear up the bureaucratic backlogs that have frustrated them for years. And any projects that don’t meet the deadlines will face significant additional costs, likely increasing consumers’ electricity bills.
“There are billions of dollars in tax credits that are part of [state regulators’] financial analysis,” said Will Toor, executive director of the Colorado Energy Office. “If every project was unable to access those tax credits, that would be a substantial additional cost to utility ratepayers.”
Permitting
The Inflation Reduction Act, signed by President Joe Biden in 2022, extended the federal government’s clean energy tax credits into the 2030s. The policy offered developers a 30% tax credit for investments in energy projects that don’t produce carbon emissions. A separate production credit for projects in operation offered money for every unit of clean electricity they generated.
