Tanish Doshi, while in high school, urged the Tucson Unified School District to embark on a transformative $900 million plan, aiming for net-zero emissions and zero waste by 2040, and integrating a climate curriculum. In Oct. 2024, spurred by federal tax credits, the district embraced this ambitious initiative. However, with these funds vanishing, Tucson and numerous school districts nationwide scramble to finance clean energy projects.
Initially, the Arizona school district avoided burdening its low-income community with increased taxes by planning to utilize federal funds from the Inflation Reduction Act. However, HR1, the “one big, beautiful bill,” passed on July 4, restricts Tucson from accessing these anticipated funds for its upcoming projects. This legislation eliminates many clean energy tax credits, including those for solar power and electric vehicles, initially granted by the IRA as direct cash reimbursements.
Districts like Tucson, aiming to implement solar and wind power projects, now face the dilemma of accelerating efforts to meet the June 2026 “commence construction” deadline or seeking alternative funding. Tina Cook, energy project manager for Tucson schools, mentioned potential scaling back of projects if local funding isn’t secured.
“Phasing out the tax credits for wind and solar energy is going to make a huge, huge difference,” said Doshi, now a college freshman. “It ends a lot of investments in poor and minority communities. You really get rid of any notion of environmental justice that the IRA had advanced.”
The IRA, a historic legislative move for climate projects, offered schools a chance to reduce environmental impact. U.S. educational facilities, particularly K-12 schools, contribute significantly to climate change, with emissions from infrastructure, buses, and meals. IRA-backed projects aided schools in lowering their carbon footprint and saving on energy costs while boosting student health.
Despite the setbacks, many students and sustainability advocates remain committed to pursuing clean energy initiatives. Sara Ross of UndauntedK12 described HR1’s impact on schools as the good, the bad, and the ugly. Schools can still receive up to 50% off for ground source heat pumps, but electric vehicles acquired after Sept. 30 lose tax credit eligibility, hastening the IRA’s phase-out. Solar projects face the most severe impact, with districts like Los Angeles Unified unable to rely on expected funds.
Los Angeles Unified School District planned solar installations and electric vehicle charging sites, hoping for $25 million in tax credits for a $90 million contract. With HR1 deadlines, the district must explore alternative funding sources like a $9 billion bond measure, utility rebates, and grants from the California Energy Commission.
California State University campuses, striving for carbon neutrality by 2045, find solar project costs prohibitive due to tariffs and early tax credit phase-outs. Labor shortages may also slow construction, raising costs, according to Lindsey Rowell, CSU’s chief energy officer.
New Treasury guidelines complicate tax credit qualifications, demanding significant physical work before eligibility. Schools, without extensive legal support, may struggle to navigate these changes, threatening future clean energy projects.
Universities like the University of Wisconsin, Eau-Claire, planning solar installations, face uncertainty regarding tax credit deadlines. Rick Brown of TerraVerde Energy noted potential decreases in new projects due to rising equipment costs.
Youth activists, like Emma Weber, find HR1’s impact disheartening, having advocated for clean energy awareness. Their efforts include pushing for a climate superfund where polluters fund sustainability initiatives. Despite challenges, the demand for renewable energy persists, with solar remaining the most cost-effective energy source.
—
Read More Kitchen Table News
