Kristen Cheriegate | ICAST Policy Manager
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Federal Pause Issued on Clean Energy Funding
On Monday, January 20, President Trump issued an Executive Order that paused all disbursement of any funds related to the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL). The executive order, “Unleashing American Energy,” impacts any funds still in control of the Federal Government, and directs Agency heads to “review their processes, policies, and programs for issuing grants, loans, contracts, or any other financial disbursements of such appropriated funds for consistency with the law” over the course of the next 90 days. Within this time period, they are to submit a review of the findings, along with their recommendations.
Until the Director of Office of Management and Budget (OMB) and the Director of the National Economic Council (NEC) have determined that disbursements are consistent with their Administration’s new policy moving forward, IRA and IIJA-related funds that have not yet been received by States will be on hold. Although a full IRA repeal has not previously held bipartisan support within Congress, many of the energy and decarbonization programs tied to IRA and IIJA will remain at a standstill. Additionally, many of the offices established by IRA and IIJA have collapsed, as Departments such as the DOE are currently being restructured.
However, the Biden Administration told reporters that $96.7 billion in clean energy grants, or about 84% of grant funding from the IRA, has already been allocated. This includes tens of billions in loans and loan guarantees ( electric vehicle charging projects, distributed solar and battery deployments, electric vehicle and battery factories, etc.). In addition, many states have already received funds for IRA’s $8.8 billion in home efficiency and electrification rebates/incentives.
On January 21, The White House OMB clarified in a memo that Trump’s order only applies to funds that contravene a list of stated policy aims, which include encouraging more energy production on federal lands and eliminating support for EVs; funds going to other programs, such as bridges, transit, and highways, will not be affected.
Maine Releases State Energy Plan
The Governor’s Energy Office of Maine released its Energy Plan, which aims to achieve the office’s goal of 100% clean electricity by 2040. The report finds that Maine’s electricity demand is expected to more than double between now and 2050. The primary objectives are to deliver affordable energy, maintain reliable energy systems, and expand clean energy career opportunities. The state is required to update the Maine Energy Plan every two years. Governor Mills has also proposed elevating the state energy office to a cabinet-level department.
Most States Enacted Distributed Solar Policy Measures in 2024
The NC Clean Energy Technology Center (NCCETC) has released its 2024 annual review and fourth-quarter edition of “The 50 States of Solar.” Tracking US state regulatory and legislative discussions and actions on distributed solar policy, the updated report found that 47 states, plus the District of Columbia and Puerto Rico, took some type of distributed solar policy action during 2024. The greatest number of actions were related to net metering policies, residential fixed charge increases, and community solar. Some of the highlights include:
- Connecticut – Regulators made changes to the state’s net metering and community solar programs, including integrating multifamily buildings into the Residential Renewable Energy Solutions Program.
- Colorado – Lawmakers completely overhauled its Community Solar Garden program, dedicating the new iteration to inclusive community solar development.
- Maryland – The Commission implemented a permanent community solar program, as required by a 2023 bill. Facilities can begin to apply for interconnection under the permanent program rules starting January 1, 2025, though formal regulatory approval is not expected until later in the first quarter of 2025.
- Virginia – Lawmakers expanded Dominion Energy’s shared solar program, increasing the program cap by 50 MW and adding an additional 150 MW under a potential second phase. Lawmakers also directed Appalachian Power to create a similar 50 MW program.