New Law Endangers 800 Clean Energy Projects, Predominantly in Republican Districts, Amid Grid Strain

Legislation recently signed into law by President Trump, dubbed the "One Big Beautiful Bill" (H.R. 1), is poised to significantly curtail clean energy development across the United States. The comprehensive bill, passed by House Republicans and subsequently the Senate, rolls back numerous clean energy tax credits established under the Inflation Reduction Act (IRA), drawing sharp criticism from clean energy advocates and some lawmakers. This comes as growing electricity demand, partly driven by artificial intelligence, places increasing strain on the nation's power grid.

Representative Ritchie Torres highlighted the potential scale of the impact on social media, stating, > "At a time when AI is straining the grid, House Republicans passed a law that endangers nearly 800 clean energy projects—enough to power 27 million homes. 75% of those projects are in GOP districts. Republicans are sabotaging jobs, investment, and electricity generation in their own backyards."

The new law accelerates the sunset of key incentives like the clean electricity Production Tax Credit (PTC) and Investment Tax Credit (ITC) for many projects, requiring them to begin construction by a tightened deadline and be placed in service by the end of 2028. It also terminates tax credits for electric vehicles and home energy efficiency improvements. According to an analysis by Rhodium Group, these changes are projected to cut the build-out of new clean power generating capacity by 53-59% from 2025 through 2035, putting over half a trillion dollars of clean energy and transportation investment at risk.

The claim that a significant majority of these projects are located in Republican districts is supported by prior analyses, with E2 reporting that over half of all IRA-backed projects were in GOP-held House districts as of August 2024. This has led to accusations from critics that the legislation undermines economic growth and job creation in areas represented by its proponents. Industry groups, including the American Clean Power Association and the Solar Energy Industries Association, have expressed dismay, warning of increased energy bills and the loss of hundreds of thousands of jobs.

While the bill largely dismantles incentives for wind and solar, it maintains tax credits for certain "clean firm" technologies such as batteries, nuclear reactors, geothermal plants, and carbon capture. However, these remaining incentives also face new restrictions, including stringent "prohibited foreign entity" requirements that could make them harder to access. The overall effect is anticipated to lead to higher household energy expenditures and increased greenhouse gas emissions in the coming years.