Yesterday, July 3, the House voted to pass the disastrous “Big, Beautiful Bill.” This legislation is regarded as one of the most destructive environmental bills to date. The bill contains 69 anti-environmental provisions that will have a dramatic impact on Alaska’s future – from impeding the growth of our clean energy sector, to selling lands and water to extractive industries. 

When setting his budget priorities, President Trump never offered to compromise and hear from leaders in the energy sector. Before he took office, he made it clear that he would destroy the Inflation Reduction Act (IRA), and the “Big, Beautiful Bill” does just that. It puts an end date on tax credits for wind and solar energy, and repeals millions in unspent funds for everything from pollution control to displacement assistance for those on the front lines of the climate crisis. 

Many Alaskans voiced their opposition to these cuts, but the federal delegation ultimately secured the Trump Administration’s priorities, appeasing the President over their own constituents. Senator Dan Sullivan went so far as to call the bill a “home run.”  Nonetheless, new hurdles for bringing clean energy online, laid out in the legislation, point to rising energy costs, and waning energy independence. While other components of the sweeping bill cut safety social net programs like Medicaid, utility bills will rise, doubly burdening some of Alaska’s most vulnerable residents. 

Both the energy sector and unions across the country urged representatives to protect clean energy tax cuts originally established in the IRA. These cuts will cost Alaska good-paying jobs and millions in private investment. In fact, Alaska has already begun to feel the chilling effects of the tax credit phase out, with developers pulling out of large solar projects over concerns about federal politics. 

Southcentral Alaska has an urgent need to get new energy generation online as natural gas contracts expire, but projects are likely to skyrocket in price and lose major investors as a result of the tax credit phase out. Utilities have planned on importing liquefied natural gas (LNG) in the short term, which will be expensive and send our money outside the state. Unless they can begin construction by June 2026, Alaska will be locked into reliance on unstable global fuel prices. The IRA originally gave developers until 2032 to take advantage of these credits, and this change throws a wrench in many prospective plans. These policies will cause real harm to our communities – high energy prices and potential blackouts will disproportionately impact our most vulnerable neighbors, and threaten public health during cold winter months. 

It is critical that our electric utilities take decisive action to get projects underway before the tax credits expire in order to avoid paying much more for the same necessary generation in a few years. To add your voice to the thousands of Alaskans who want swifter action toward a clean energy future, you can take local action with our clean energy team! 

In Solidarity, 

The Alaska Center