🕒 Last updated on September 6, 2025
California’s governor has signed an executive order to speed up clean energy projects that could lose billions of dollars in federal support.
A race against time for clean energy progress
The order is designed to make sure solar, wind, and battery storage projects can qualify for special tax credits before they expire at the end of the year.
The executive order tells state agencies to move faster on permits, approvals, and other paperwork that often delays projects. Without this step, many projects could miss the chance to claim money from the Inflation Reduction Act, a program that provides tax credits for renewable energy. The credits were put at risk by a recent law passed in Washington called the One Big Beautiful Bill Act.
Under the new rules, projects must begin construction by July 2026 or be finished and online by December 2027. To make this happen, the state’s Infrastructure Strike Team will identify which projects are most at risk and give them priority. Within 90 days, the team must report back with progress updates and advice on what more can be done.
The governor called the order an important way to protect jobs and keep California on track with its clean energy goals. He said the state would not allow federal rollbacks to undo years of progress in fighting pollution and building a modern energy system.
Agencies asked to move quickly
The order gives direct instructions to many state agencies. The California Public Utilities Commission (CPUC) was asked to make a list of critical power and storage projects expected to start working in the next three years. Utilities under its control are expected to give these projects special attention so they can connect to the grid without delay.
The CPUC was also asked to speed up project reviews by using new rules that make transmission line approvals faster. This step is seen as key since many renewable projects often get stuck waiting to connect to transmission lines.
The California Independent System Operator (CAISO), which manages much of the state’s grid, was asked to find ways to use existing transmission capacity better. For example, they can repower clean projects on sites where older power plants are shutting down.
The California Energy Commission and the California Environmental Protection Agency were also asked to support projects quickly. These agencies play an important role in reviewing environmental impacts and setting energy rules.
Community solar projects, which let families and small businesses share in local solar power, were also highlighted. Advocates said the order should be used to strengthen the Community Renewable Energy Program. They warned that unless the program becomes fully scalable by early 2026, California may miss a narrow window to bring cheaper bills and local clean power to thousands of households.
Public interest groups raise more ideas
Soon after the order, a group of environmental and public interest organizations sent a letter with more recommendations. They suggested that the CPUC should issue a new procurement order to meet reliability needs between 2028 and 2032. Demand for electricity is expected to grow quickly during this time as more cars, buildings, and data centers rely on clean power.
They also urged CAISO to accelerate projects on sites where old plants are closing and asked the CPUC to give clear market signals that encourage clean projects to support battery storage. Local agencies, such as water and power districts, were asked to focus on areas outside of the main transmission network to avoid congestion in the interconnection process.
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The letter also said California should increase the value of community solar projects by including their contributions in state energy forecasts sooner. This would help utilities and other energy providers plan more effectively. They suggested a new incentive for distributed energy resources, such as rooftop solar plus batteries, to make deployment faster.
The coalition also asked the state to shift funds away from extending fossil fuel plants and instead spend the money on programs that cut peak demand with zero-emission solutions. These changes, they argued, would improve reliability and reduce pollution at the same time.
Experts warn that the One Big Beautiful Bill Act could cause serious harm to California’s economy and environment. A recent analysis estimated that the law could lead to over 70,000 lost jobs by 2030, reduce annual state GDP by $14 billion, and increase pollution by more than 1.8 million metric tons. The study also noted that higher emissions could cause around 20 extra premature deaths each year by 2030.
The state, however, has made strong gains in recent years. In 2024 alone, nearly 7 gigawatts of clean energy capacity were added to the grid, the highest single-year increase ever. About 4.9 gigawatts of that came from solar projects. Battery storage has also grown by over 1,900 percent since 2019, reaching more than 15,000 megawatts.
Other states are moving in a similar direction. Colorado recently ordered its agencies to prioritize renewable projects so they too can qualify for federal incentives. Like California, Colorado wants to remove unnecessary delays and ensure projects are built in time.