This week’s summary

• EPA chief Lee Zeldin unveiled plans to overturn the GHG endangerment finding—hailed by conservatives as the “largest deregulatory action in U.S. history.” thebulwark.com
• Senate Republicans stripped a proposed wind-and-solar excise tax from OBBB after bipartisan backlash, but kept repeal of most Inflation Reduction Act (IRA) clean-energy tax credits. Politico Pro
• A Princeton ZERO Lab study estimates OBBB could add 7 billion tons of CO₂ by 2050, jeopardizing Paris commitments. Carbon Credits

Core analysis

• IRA rollback impact. Eliminating production tax credits stalls 18 GW of solar projects—40 % in Latino-majority counties of Arizona, Nevada, and California. natlawreview.com
  
• Grid reliability narrative. GOP messaging resonates in Asian-American suburbs of Houston and Dallas that endured 2024 blackouts, reinforcing Republican gains among affluent Asian voters. Reuters
  
• State counter-moves. Democratic governors (NM, NJ, WA) announced state-level tax credits to keep offshore-wind and battery plants alive.
  

Geopolitical Implication

Slowing U.S. clean-energy deployment could cede market share in EV batteries and solar panels to China and South Korea, reshaping supply-chain geopolitics.

Strategic implications

• Renewable developers face financing gaps; expect higher weighted-average cost of capital (WACC) until policy certainty returns.
  
• Carbon-border adjustment proposals in the EU could penalize U.S. exports with higher embedded emissions.

Insider Insight

Moderate House Republicans from coastal districts are negotiating a “Clean-Resilience” carve-out—limited PTC/ITC reinstatement for microgrids and grid-hardening projects that benefit hurricane-prone Latino communities.

Strategic Recommendation

Energy investors should pivot toward grid-storage and transmission plays eligible for FEMA and DOE resiliency grants, while advocacy groups quantify local job losses to influence potential year-end tax-extenders.