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Assembly hearing warns billions at risk as federal clean‑energy tax credits face new deadlines
Summary
California lawmakers heard agency and industry witnesses say interconnection, permitting and transmission delays threaten projects’ ability to claim expiring federal clean‑energy tax credits, and agencies described a mix of new transparency tools and coordination efforts intended to speed deliveries.
The California State Assembly Committee on Utilities and Energy held an oversight hearing on accelerating clean‑energy projects so they remain eligible for federal tax incentives that recent congressional actions shortened.
Lawmakers were told the window for many projects to qualify is narrowing under HR 1. Sarah Fitzsimon, policy director at the Independent Energy Producers Association, summarized the federal change: for projects that began construction before Dec. 31, 2025 the placed‑in‑service deadline is Dec. 31, 2029; projects with construction starts in early 2026 have until Dec. 31, 2030; projects beginning after July 4, 2026 face an earlier deadline that is infeasible for most utility‑scale projects. Fitzsimon said the rule changes remove a previous 5% safe‑harbor test and rely instead on a physical‑work test for the start of construction.
Why it matters: witnesses said billions of dollars and electricity affordability for Californians are at stake. Molly (CPUC) told the…
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