Policy Briefs

Artificial Intelligence (AI) data centers and large industrial manufacturing plants are seeking quick ways to supply reliable power. Right now, existing generations sources that are critical to bulk power system reliability are bypassing utility interconnections process, working directly with large load customers to provide power solutions known as “behind-the-meter. These alternative solutions allow customers to directly control their power consumption, increasing flexibility and decreasing variable costs.” This is crucial for driving economic development and ensuring that transmission capacity is not pushed past the maximum threshold.

Our domestic power grid combines a vast web of transmission lines, energy generation sources, and locally operated infrastructure to distribute power to customers reliably and efficiently. The energy grid has a wide variety of actors that all require consistent and reliable communication streams and market mechanisms to ensure the successful delivery of power. Transmission governance is about meeting rising energy demand by expanding capacity increasing efficiency and reliability. Energy policy is in the spotlight as rapid development of data centers, domestic manufacturing trends, and consumer electricity usage push our grid infrastructure to its limits.

The One Big Beautiful Bill Act (OBBBA) ushers in a new era of energy policy, where both parties have a vision for a clean energy future. The conservative vision centers domestic supply chains, baseload energy and investment in nascent technology. Our new brief explores how advocates and policymakers can navigate this new landscape.

The Big Beautiful Bill opened the door for EPA Administrator Zeldin to re-align $7 billion in existing contracts with Trump Administration priorities while cutting electricity bills for a million American families. On July Fourth, President Trump signed his “One Big Beautiful Bill Act” into law, solidifying his Administration’s energy priorities as part of this sweeping legislation. Among its provisions, the legislation repealed the Greenhouse Gas Reduction Fund and rescinded all unobligated funds associated with the program.

The section 45X Advanced Manufacturing Credit is a federal tax incentive which was established under the Inflation Reduction Act (IRA) in 2022. The goal of 45X is to push for the domestic manufacturing of clean energy goods. It provides economic incentives for innovation and investment in a broad-based “America First” energy policy. American manufacturers are rewarded by this production-based tax credit for each eligible clean energy component they produce and sell, which encourages the development of domestic renewable energy technology. Eligible components are solar, wind, battery, inverters, and critical minerals.