clean energy

Last year on the campaign trail, President Trump repeatedly promised to “slash energy and electricity prices by half within 12 months.” But actions speak louder than words. Since returning to office in January, the Trump administration has instead done everything it possibly can to drive up the cost of electricity. What is going on?

The damage starts with Trump’s attempts to prevent any new clean energy generation at a time when electricity demand is growing rapidly, caused by an explosion of new data centers and new housing, the expanding fleet of electric vehicles and a resurgence in American manufacturing. The U.S. needs more energy than ever, and 96% of electricity capacity added to the U.S. grid in 2024 came from clean energy. Why? Because clean energy is both the cheapest source of electricity and the fastest to produce. If we don’t rethink our energy future quickly enough to keep up with a growth in demand, then electricity prices will only continue to rise.

Then again, maybe the recent price spikes are part of Trump’s goals, because he’s done everything he can do to block new clean energy, including:

• Raising taxes on clean energy projects by at least 30% when Trump had all the renewable energy tax credits removed from his “One Big Beautiful Bill.”
• Blocking clean energy projects on federal lands, effectively creating a bureaucratic veto by requiring Secretary of the Interior Doug Burgum to personally sign off on permitting for every proposed clean energy project.
• Issuing “stop work” orders (with no significant justification) for two offshore wind projects that were fully approved and permitted — and, in one case, where construction was already 80% complete. This not only drives up the cost of constructing new electricity resources; it also creates a business climate in which no sane company would risk investing in new projects that may be torpedoed by an arbitrary and capricious federal government simply because the President thinks wind turbines mar his view.
• Canceling a Department of Energy loan commitment for the Grain Belt Express, a major transmission project designed to carry low-cost wind and solar energy from the Great Plains to Illinois and other eastern U.S. states where electricity prices have risen rapidly. This deprives those states of new energy and undermines the ability of Great Plains states to harness natural resources and grow their economies as energy exporters.
• Gutting federal agencies, such as the Department of Energy’s Loan Programs Office, which helps finance big energy projects, especially for innovative new technologies such as geothermal and new nuclear. Without government support for first-of-their-kind projects, these initiatives simply won’t happen and promising new energy technology will be delayed for years.

It’s not just the cost of building clean energy development that Trump has sabotaged. His high and ever-changing tariffs have also scrambled supply chains and raised prices for all types of energy. New tariffs, for example, have raised the cost of steel by up to 50%, which affects the cost of pipes needed for natural gas plants as well as towers for wind turbines and racks for solar panels. Every single kind of new electricity generation is now more expensive, and those higher material costs create higher prices for electricity on our utility bills.

Trump has also raised costs of existing energy resources, including supporting the oil industry’s efforts to dramatically increase U.S. exports of natural gas. This will reduce the supply available for heating homes and running power plants in America, raising prices on electricity bills and gas bills at once. Trump has also used emergency powers to force less-than-profitable coal plants to stay open, saddling customers with the extra costs to subsidize these old plants. In one instance, it cost locals $29 million to keep the J.H. Campbell plant in West Olive, Mich., open for just five weeks of extended operations. Analysts now estimate that Trump’s push to keep coal plants open could add between $3 billion and $6 billion per year to our electricity bills.

Is this sheer economic incompetence — not difficult to fathom given the rate at which Trump has driven businesses into bankruptcy — or part of his strategy to deliberately make electricity more expensive so people won’t switch to EVs and the oil industry won’t lose its customers?

Either way, electricity prices are already rising and Trump’s actions are clearly making it worse. Doubtless, Republicans will try to point the finger at renewable energy when electricity prices spike over coming years, but the real causes should be clear: Trump’s reckless decisions to block new clean energy production, raise tariffs on the energy supply chain, export our natural gas and force customers to subsidize struggling coal plants.

Americans need abundant, affordable energy to power our homes and grow our economy, and we need leaders who know how to support the clean energy revolution, not try to stand in its way.

Josh Becker is a Democratic state senator from Menlo Park and chair of the California Senate Committee on Energy, Utilities and Communications.

SACRAMENTO — In a bid to stabilize struggling crude-oil refineries, state lawmakers on Saturday passed a last-minute bill that would allow the construction of 2,000 new oil wells annually in the San Joaquin Valley while further restricting drilling along California’s iconic coastline.

The measure, Senate Bill 237, was part of a deal on climate and environmental issues brokered behind closed doors by Gov. Gavin Newsom, state Senate President Pro Tem Mike McGuire (D-Healdsburg) and Assembly Speaker Robert Rivas (D-Hollister). The agreement aims to address growing concerns about affordability, primarily the price of gas, and the planned closure of two of the state’s 13 refineries.

California has enough refining capacity to meet demand right now, industry experts say, but the closures could reduce the state’s refining capacity by about 20% and lead to more volatile gas prices.

Democrats on Saturday framed the vote as a bitter but necessary pill to stabilize the energy market in the short term, even as the state pushes forward with the transition from fossil fuels to clean energy.

McGuire called the bills the “most impactful affordability, climate and energy packages in our state’s history.”

“We continue to chart the future, and these bills will put more money in the pockets of hard-working Californians and keep our air clean, all while powering our transition to a more sustainable economy,” McGuire said.

The planned April 2026 closure of Valero’s refinery in Benicia will lead to a loss of $1.6 billion in wages and drag down local government budgets, said Assemblymember Lori D. Wilson (D-Suisun City), who represents the area and co-authored SB 237.

Wilson acknowledged that the bill won’t help the Benicia refinery, but said that “directly increasing domestic production of crude oil and lowering our reliance on imports will help stabilize the market — it will help create and save jobs.”

Crude oil production in California is declining at an annualized rate of about 15%, about 50% faster than the state’s most aggressive forecast for a decline in demand for gasoline, analysts said this week.

The bill that lawmakers approved Saturday would grant statutory approval for up to 2,000 new wells per year in Kern County, the heart of California oil country.

That legislative fix, effective through 2036, would in effect circumvent a decade of legal challenges by environmental groups seeking to stymie drilling in the county that produces about three-fourths of the state’s crude oil.

“Kern County knows how to produce energy,” said state Sen. Shannon Grove (R-Bakersfield). “We produce 80% of California’s oil, if allowed, 70% of the state’s wind and solar, and over 80% of the in-state battery storage capacity. We are the experts. We are not the enemy. We can help secure energy affordability for all Californians while enjoying the benefits of increased jobs and economic prosperity.”

Environmentalists have fumed over that trade-off and over a provision that would allow the governor to suspend the state’s summer-blend gasoline fuel standards, which reduce auto emissions but drive up costs at the pump, if prices spike for more than 30 days or if it seems likely that they will.

Some progressive Democrats voted against the bill, including Assemblymember Alex Lee (D-San José), the chair of the Legislative Progressive Caucus. The bill, Lee said, was a “regulatory giveaway to Big Oil” that would do little to stabilize gas prices or refineries, which are struggling because demand for oil is falling.

“We need to continue to focus on the future, not the past,” Lee said.

The bill also would make offshore drilling more difficult by tightening the safety and regulatory requirements for pipelines.

Lawmakers also voted to extend cap-and-trade, an ambitious climate program that sets limits on greenhouse gas emissions and allows large polluters to buy and sell unused emission allowances at quarterly auctions. Lawmakers signed off on a 15-year extension of the program, which has been renamed “cap and invest,” through 2045.

The program is seen as crucial for California to comply with its climate goals — including reaching carbon neutrality by 2045 — and also brings in billions in revenue that helps fund climate efforts, including high-speed rail and safe drinking water programs.

Also included in the package was AB 825, which creates a pathway for California to participate in a regional electricity market. If passed, the bill would expand the state’s ability to buy and sell clean power with other Western states in a move that supporters say will improve grid reliability and save money for ratepayers.

Opponents fear that California could yield control of its power grid to out-of-state authorities, including the federal government.