The Trump administration escalated its efforts on renewable energy this week when it announced the cancellation of projects in 16 states, including California.
The U.S. Department of Energy said it was terminated because 223 cancelled projects (all states that supported Kamala Harris in the 2024 presidential election were not economically viable as they did not properly advance the country’s energy needs and did not provide a positive return on investment in taxpayer dollar investments.”
But while the cuts were aimed at blue states, they also have an impact on Trump’s base. The finished project spans districts represented by 108 Democrats and 28 Republicans in Congress. California includes the large strip of the Central Valley and the Inland Empire, which had largely leaned towards Trump in 2024.
Russell Vert, director of the White House’s Office of Management and Budget and the Trump administration’s chief executive, said the cancelled project “uses green new fraud funds to fuel the climate agenda on the left.”
The biggest cut was $ for California’s ambitious project, developing clean hydrogen, known as the Alliance of Renewable Clean Hydrogen Energy Systems. It was awarded by the Biden administration as part of a competitive national effort to develop hydrogen projects. The idea is that hydrogen, which burns at very high temperatures, can replace fossil fuels that warm the planet in some industries and transportation uses.
The Arches project, which creates at least 10 hydrogen production sites within the state, primarily in the Central Valley. It will also migrate two large gas-fired power plants at Spattergood in Los Angeles and Lodi Energy Center in San Joaquin County to 100% renewable hydrogen, helping to develop more than 60 hydrogen-fueled fuel stations in areas such as Fresno, Riverside, Orange and San Joaquin counties.
Overall, it would provide an estimated 220,000 jobs, including 130,000 construction jobs and 90,000 permanent jobs, according to the state. In addition to renewable energies such as offshore wind, solar and geothermal energy, California will help diversify supply, helping to meet and achieve the growing demand driven by artificial intelligence data centers.
The Trump administration said it would save taxpayers money by terminating clean energy projects.
One district with the cut project is north of the San Joaquin Valley, represented by Tom McClintock (R-Elk Grove). McClintock said it strongly supports the Energy sector’s decision.
“$7.5 billion is about $60 on the average revenue of every family in America,” McClintock said. “I call me old fashioned, but I think businesses should make money by pleaseding their customers, not using government to take the money their families have made.”
The Times also contacted Vince Von (R-Bakersfield), Doug Lamalfa (R-Richvale), Keven Killie (R-Rocklin), Ken Calvert (R-Corona), Young Kim (R-Anaheim Hill) and Jay Obernolt (R-Bigbear Lake).
A representative for Fong said he could not comment as his office addresses the issues related to it. None of the others responded.
Jesse Lee, senior advisor to Climate Power, a nonprofit group, said cancellations may not save taxpayers money, but they cost money. This year’s administration needs to help low-income households install solar panels in their homes and other efforts.
“To make these projects come true is our only chance to insulate people from the surge in utility bills each year,” Lee said. “The only way to pray for that demand is through these types of clean energy projects.”
Lee believes that actions could come back to plague the party in the midterm elections. Since Trump took office in January, at least 142 clean energy projects have been cancelled, with his group’s estimates of at least 80,500 jobs, not including the latest round of cuts announced this week. According to Clean Power, about 47% of these jobs were in Congressional districts represented by Republicans.
California Democratic officials said the latest cuts in the energy sector amount to political retaliation. They were announced on the first day of the closure.
“The cancellation of the Arch is vindictive and short-sighted, proving that this administration is not serious about American energy control,” California Sens. Adam Schiff and Alex Padilla co-written to Energy Secretary Chris Wright, who dated Thursday.
“The cancellation of this award threatens the future promise of hydrogen energy and leaves us in other parts of the world,” the senator said. “Arches Hub is a key strategic investment in America’s energy domination, energy technology excellence, manufacturing employment growth and reducing energy costs for American families.”
The Trump administration facilitates the path to producing fossil fuels, such as oil, gas and coal, resulting in cuts, including this week’s announcement that it would open 13 million acres of federal land and provide $625 million to recommend or modernize coal-fired power plants. Coal is increasingly less competitive in either natural gas or solar power.
Large-scale renewable energy and carbon capture projects in red states such as Wyoming, Ohio, Texas, Louisiana and North Dakota that received funding from the energy sector were not subject to reductions.
Other cancelled awards in California include $630 million to the California Energy Commission for Grid Resilience upgrades. $500 million for California’s National Cement Company for carbon-neutral cement production facilities. $87 million to the Redwood Coast Energy Agency for grid updates that benefit tribal communities. $50 million to Edison, Southern California, for a battery energy storage project. It modernizes the $18 million electric grid for Imperial irrigation districts, strengthens resilience to blackouts and catalyzes the use of renewable energy.
“They’re excited to be able to get a better sense of their ability to get away with,” said Robert Schettler, a spokesman for the Imperial Irrigation District in southeastern California. “Even with this set-off, we’ll reevaluate the scope as we need a project.”
An arched official called the administration’s decision “a shortsighted move to abandon America’s opportunities to lead the world’s clean energy transition.” They said they hope to continue moving forward with the project even without federal grants. Arches also secures private funding agreements of over $10 billion.
“Even with the loss of federal funds, we will move forward with state, private and international partners to build infrastructure, train our workforce and establish a supply chain that will drive a modern, resilient energy economy.”
