Today, Senator Patty Murray brought together leaders from clean energy and climate action to address a critical threat to Washington’s energy future. The roundtable brought urgent attention to cuts to clean energy tax credits and their far-reaching impacts on the region’s environment, economy, and energy security.
These cuts threaten clean energy goals and could also impact the reliability of Washington’s power grid at a time when energy demand is growing rapidly.
How key changes to federal policy affect Washington state
Recent federal law changes removed clean energy tax credits that were part of the 2022 Inflation Reduction Act. These cuts are expected to heavily impact Washington residents and businesses. The roundtable focused on examining the consequences of cuts to clean energy tax credits outlined in recent federal legislation.
According to data presented at the roundtable, the cuts could cost Washington over $8.7 billion in clean energy investments. The U.S. Climate Alliance estimates that 21,800 Washington residents will lose their jobs by 2030 due to these policy changes. Additionally, households face a 12% increase in electricity costs, or about $115 more per year by 2029.
Voices from the roundtable
Senator Patty Murray
Senator Murray highlighted that Washington families could lose between $390 to $900 in annual energy bill savings.
“The typical household in Washington state could have saved anywhere from $390 to $900 on their annual energy bill because of the clean energy tax credits Democrats passed,” Murray explained. “Those are gone. Energy prices for families are going to go up.”
“Clean energy is absolutely essential for our families, for our businesses, and for our state,” Murray stated. “It makes our energy system more sustainable, more affordable, and it brings jobs to our state.”
Joe Nguyen, State of Washington Commerce Director
Joe pointed to immediate impacts on communities, especially in rural areas.
“When you look at the impacts that this is having in our communities today, not later, but today, it is that we’re seeing projects get frozen. We’re seeing jobs get lost.”
He noted that rural communities face particular challenges. “This has a multiplier effect that impacts us in Washington state and ironically, it happens generally in rural communities that probably need this help the most.”
Dawn Lindell, Seattle City Light General Manager and CEO
Dawn explained how the cuts affect utility planning and costs.
“We have a near-term need to double our nameplate capacity in the next nine years to meet growing load.” (Nameplate capacity is the maximum amount of electricity a power plant is built to produce when operating under perfect conditions.)
The elimination of tax credits makes this expansion more expensive. “Every new megawatt of generation that we add now will cost significantly more than the cost of our current energy portfolio for City Light.” She estimates a 10 to 20 percent increase in costs to procure new resources.
Christine Reid, Political Director for IBEW Local 77
Christine described immediate job losses.
“Overnight construction on solar energy projects has been cancelled. 100 construction electricians are unemployed in Seattle right now.”
She emphasized how project delays affect worker training: “From a workforce perspective, it definitely affects our apprenticeship model, which you have to have the work in order to go through the apprenticeship program.”
Gregg Small, Executive Director of Climate Solutions
Gregg provided context about energy trends.
“In 2024 in the United States, 93% of all new energy that got on the grid was either solar or wind or battery storage.”
He stressed the timing concerns: “We are expecting price increases. When supply and demand are battling each other out the way that they are right now, we’re going to have increases.” Small noted that energy demand is expected to increase by 25 percent, making new supply crucial.
Brandon Provalenko, General Manager of Western Solar
Brandon described the direct business impacts, stating how policy uncertainty affects both commercial projects and residential solar adoption.
“Innovation, jobs, and energy is what we’re talking about here. That’s what’s at risk. That’s what we lost, really.”
Washington’s Clean Energy Future
Despite these challenges, the roundtable participants emphasized their commitment to continuing clean energy development. Senator Murray noted her ongoing efforts: “I’m using every bit of leverage I have as Vice Chair of the Appropriations Committee to fight back and reject these cuts.”
City Light and other utilities continue planning for clean energy expansion, though at higher costs. Labor unions and solar companies are adapting, ready to resume work as soon as projects move forward.
While federal policy changes create significant obstacles, Washington leaders continue working toward a sustainable energy future for families and businesses. Working together, they aim to solve these challenges and keep Washington at the forefront of clean energy innovation.