Senator Lisa Mukrowski felt betrayed after securing Alaska wind and solar tax credits in the new spending law. To support critical clean energy projects across Alaska, Mukrowski negotiated a one-year tax credit extension for renewable energy.
She viewed the concession as a lifeline for wind projects needed to address Alaska’s energy crisis, especially along the Railbelt. Despite the win, President Trump issued an executive order days later to restrict renewable energy tax credit eligibility.
The order emphasized equal treatment for oil, gas, and hydropower and discouraged preference for intermittent sources like wind and solar power. Soon after, the Interior Department released a directive that required routine renewable energy actions to receive personal approval from Secretary Doug Burgum.
Murkowski believes these moves could freeze wind and solar development, especially projects needing federal access despite being on state land. She said the administration’s actions contradict the signed legislation and threaten the success of urgently needed renewable energy solutions.
Two major wind projects, Shovel Creek near Fairbanks and Little Mount Susitna near Anchorage, may now face increased risk and deployment delays. Though both remain viable, developers must move quickly to qualify under the reduced 12-month tax credit window secured by Murkowski.
She warned that if these signals persist, utilities may abandon clean projects and rely on expensive imported natural gas. Murkowski also expressed frustration, suggesting the administration may have secretly agreed to these rollbacks to win conservative House Votes.
Alaska’s energy grid, reliant on Cook Inlet natural gas, faces a looming supply shortage that wind and solar projects could ease. She plans to urge Interior and Energy leaders to prioritize these projects and recognize their impact on Alaska’s rural communities.
