Newsom signs executive order protecting California's access to expiring federal clean energy tax credits

Governor Gavin Newsom has signed an executive order aimed at helping California’s clean energy projects secure federal tax credits before their expiration, following the enactment of a new federal law. The move comes in response to legislation signed by President Trump earlier this year, known as the ‘One Big Beautiful Bill,’ which eliminates federal tax credits for clean energy projects that do not begin construction by July 2026 or come online by the end of 2027.

The Governor’s office stated that these changes put hundreds of clean energy projects in California at risk of delay and could lead to higher costs for consumers. These projects are expected to create thousands of jobs, supply power to homes, and increase clean electricity capacity across the state.

“No other state in the nation has built as much clean energy as fast as California – it’s why we just recently became the largest economy on the planet to be powered by two-thirds clean electricity,” said Governor Gavin Newsom. “While Trump and Republicans want to bring back the days of dirty coal powering our homes, polluting our air and increasing our electric bills, California will continue our decades of progress building our affordable, clean, reliable energy future.”

A recent study from Energy Innovation estimates that Californians may pay over $320 more per year for energy due to recent federal policy changes. Nationwide, Americans could see $170 billion in added costs on their energy bills, with significant job losses and delays in expanding electricity capacity.

The executive order designates the Energy Working Group within the Governor’s Infrastructure Strike Team to monitor eligible projects and coordinate state actions to accelerate development. It also directs state agencies to prioritize efforts supporting projects aiming to begin construction before July 4, 2026 or come online by December 31, 2027—deadlines set by expiring federal tax credits. Additionally, agencies are tasked with recommending further steps to speed up deployment.

Governor Newsom is also working with lawmakers on expanding regional energy markets in an effort to lower costs, reduce pollution, and improve grid reliability.

California reports a reduction in greenhouse gas emissions by 20% since 2000 while its gross domestic product grew by 78% during that period. In 2023, two-thirds of California’s electricity came from clean sources—the highest proportion among major economies globally—and parts of each day have seen the grid run entirely on clean power. Since Newsom took office, battery storage capacity has increased significantly and more than 25 gigawatts have been added to the electric grid.