Maine’s opportunity to lead on clean energy and good jobs – mecep.org

Report on the Impact of Federal Legislation on Maine’s Clean Energy Sector and Sustainable Development Goals

Executive Summary

This report analyzes the effects of recent federal legislative changes on Maine’s progress toward key Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), and SDG 13 (Climate Action). The Inflation Reduction Act (IRA) of 2022 significantly advanced these goals by linking renewable energy development with strong labor standards. However, the subsequent One Big Beautiful Bill Act (OBBBA) of 2025 has terminated critical incentives, jeopardizing Maine’s sustainable energy transition, economic stability in the green sector, and climate objectives. This document outlines the quantitative impact and proposes state-level strategies to mitigate these challenges and maintain momentum toward SDG targets.

Assessment of Federal Legislative Impact on SDG Progress

The Inflation Reduction Act (IRA) as a Catalyst for Sustainable Development

The IRA created a framework that directly supported the achievement of multiple SDGs in Maine. By incentivizing renewable energy projects, the legislation was instrumental in advancing:

• SDG 7 (Affordable and Clean Energy): The act spurred rapid development in clean energy generation, expanding access to renewable power sources.
• SDG 8 (Decent Work and Economic Growth): Federal tax credits were explicitly tied to fair wage provisions and the utilization of registered apprenticeship programs, promoting high-quality, family-supporting jobs within the green economy.
• SDG 9 (Industry, Innovation, and Infrastructure): The legislation fostered significant investment in building modern, sustainable energy infrastructure.

The One Big Beautiful Bill Act (OBBBA) as a Deterrent to SDG Achievement

The OBBBA, signed in July 2025, reverses key provisions of the IRA by terminating incentives for wind and solar energy projects five years ahead of schedule. This policy shift presents a significant setback to Maine’s sustainable development agenda, with primary negative impacts on:

• SDG 7: The abrupt change destabilizes the clean energy project pipeline, threatening the state’s ability to meet its 2040 goal of 100% clean electricity and potentially increasing household electricity rates by up to 10% by 2035.
• SDG 8: The loss of incentives directly threatens over 9,100 clean energy jobs for skilled trade workers and undermines the critical training and apprenticeship programs essential for a just transition and a skilled green workforce.
• SDG 13 (Climate Action): The slowdown in renewable energy development directly impedes progress on state and national climate targets.

Quantitative Analysis of Maine’s Clean Energy Sector

Progress Under the Inflation Reduction Act

By May 2025, the IRA had facilitated substantial growth in Maine’s renewable energy sector, aligning with key SDG indicators:

• Total Projects: 145 utility-scale projects were in planning, construction, or recently completed.
• Clean Power Generation: Nearly 5,000 megawatts of power generation or storage capacity were developed.
• Economic Investment (SDG 8 & 9): Associated investment reached $6.9 billion.
• Job Creation (SDG 8): More than 9,100 jobs were created for electricians, laborers, and other trade workers.

The passage of the OBBBA has resulted in a reported slowdown in project development, placing these gains at risk.

Strategic Recommendations for State-Level Action to Uphold SDG Commitments

Policy Measures to Ensure Continued Progress

In response to federal policy changes, Maine lawmakers can implement targeted strategies to safeguard the state’s progress on its sustainable development agenda. The following actions are recommended:

1. Develop Successor Programs for Renewable Energy: Create new state-level incentive programs to replace the phased-out net energy billing system. These programs must be designed to directly support SDG 7 by controlling costs for ratepayers and SDG 8 by integrating high-road labor standards for workers.
2. Streamline Permitting for Sustainable Infrastructure: Expedite the permitting and interconnection processes for clean energy and storage projects to accelerate the transition to renewable sources (SDG 7, SDG 9, SDG 13). This expedited process must be linked to strong, enforceable labor standards to protect worker rights (SDG 8).
3. Utilize Public Financing to Lower Costs: Employ the state’s bonding authority to provide low-cost capital for clean energy development and grid modernization. This approach advances SDG 7 by reducing costs for consumers and reinforces SDG 8 by enabling the attachment of robust labor requirements to publicly financed projects.
4. Enhance Data Transparency and Coordination: Implement a public database of renewable energy projects, as proposed in LD 1850. This measure supports SDG 17 (Partnerships for the Goals) by improving coordination among state agencies and stakeholders to more effectively advance renewable energy objectives.
5. Enforce Existing Labor Standards Proactively: Mandate proactive enforcement by the Department of Labor to ensure developers comply with existing prevailing wage laws and commitments to Project Labor Agreements. This is critical for upholding the principles of decent work under SDG 8.
6. Invest in Green Workforce Development: Increase state investment in pre-apprenticeship and apprenticeship programs. This action directly supports SDG 8 by creating a skilled workforce pipeline necessary to build and maintain the sustainable infrastructure required to meet SDG 7 and SDG 9.

Analysis of the Article in Relation to Sustainable Development Goals

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 7: Affordable and Clean Energy

   • The article’s primary focus is on the development of renewable energy, specifically wind and solar projects in Maine. It discusses the generation of “clean power,” the state’s goal of “100% clean or renewable electricity by 2040,” and the impact of federal legislation on this sector. It also touches upon the affordability of energy for consumers, noting that terminating tax credits could “significantly raise the cost of energy for ratepayers.”

2. SDG 8: Decent Work and Economic Growth

   • A central theme is the creation of “high-quality, family-supporting jobs” in the clean energy industry. The article highlights the role of the Inflation Reduction Act (IRA) in linking federal tax credits to “fair wages” and “registered apprenticeship programs.” The potential loss of “thousands of clean energy jobs” due to new legislation (OBBBA) is a major concern discussed.

3. SDG 9: Industry, Innovation, and Infrastructure

   • The article discusses the build-out of “renewable energy infrastructure” and “grid modernization upgrades.” It mentions the significant investment associated with these projects (“$6.9 billion in associated investment”) and the need to “streamline and expedite the permitting and interconnection of clean energy and storage projects.”

4. SDG 13: Climate Action

   • While the term “climate change” is not used, the entire context of the article—promoting renewable energy (wind and solar) and phasing out other forms of energy—is a fundamental strategy for climate action. The legislation discussed (IRA) is a landmark climate law, and Maine’s goal of 100% clean electricity is a direct climate mitigation measure.

5. SDG 17: Partnerships for the Goals

   • The article illustrates the interplay between different levels of government and policy. It analyzes the conflict between federal laws (the supportive IRA and the detrimental OBBBA) and calls for state-level action (“Maine lawmakers must take bold action”) to ensure policy coherence and maintain progress towards sustainable development goals. It also mentions the role of various state agencies like the Public Utilities Commission and the Department of Labor.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. SDG 7: Affordable and Clean Energy

   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article directly relates to this by discussing Maine’s commitment “to achieving 100% clean or renewable electricity by 2040” and tracking the growth of wind and solar projects.
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article highlights the “$6.9 billion in associated investment” spurred by the IRA and advocates for using the “state’s bonding authority to provide cheaper capital to clean energy development.”

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. This is addressed through the emphasis on creating “high-quality, family-supporting jobs” and ensuring projects pay “fair wages” and “prevailing wages.”
   • Target 8.6: By 2020, substantially reduce the proportion of youth not in employment, education or training. The article’s focus on investing in “registered apprenticeship programs” and “pre-apprenticeship programs” directly supports this target by providing pathways to skilled careers for workers.

3. SDG 9: Industry, Innovation, and Infrastructure

   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… with a focus on affordable and equitable access for all. The article discusses building out “renewable energy infrastructure” and “grid modernization upgrades” to “deliver affordable energy to the grid more quickly.”
   • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable… with greater adoption of clean and environmentally sound technologies. The development of “145 utility-scale projects” for wind and solar power is a direct example of upgrading infrastructure to be sustainable and clean.

4. SDG 13: Climate Action

   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. The article analyzes two major federal policies (IRA and OBBBA) and state-level commitments (“100% clean or renewable electricity by 2040”) that directly impact climate goals.

5. SDG 17: Partnerships for the Goals

   • Target 17.14: Enhance policy coherence for sustainable development. The core conflict presented in the article between the IRA’s incentives and the OBBBA’s termination of those incentives is a clear example of a lack of policy coherence at the federal level, prompting the need for state-level policies to compensate.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for SDG 7

   • Share of renewable energy: The goal of “100% clean or renewable electricity by 2040” serves as a long-term indicator.
   • Renewable energy capacity: The article provides specific figures like “more than 4,000 megawatts of clean power” and “nearly 5,000 megawatts of power generation or storage.”
   • Financial flows/Investment: The article mentions “$6.9 billion in associated investment” in clean energy projects.
   • Energy cost for consumers: The projection that eliminating credits could increase household electricity rates “by up to 10% or $400 per year” is a key indicator of affordability.

2. Indicators for SDG 8

   • Number of jobs created: The article quantifies job creation with figures like “more than 8,000 jobs” and “more than 9,100 jobs” in the clean energy sector.
   • Adherence to wage standards: The requirement for projects to pay “prevailing wages” is a measurable indicator of decent work.
   • Participation in training programs: The utilization of “registered apprenticeships and pre-apprenticeship programs” can be tracked to measure investment in the workforce.

3. Indicators for SDG 9

   • Number of infrastructure projects: The article cites “129 incentive-eligible projects” growing to “145 utility-scale projects” as a measure of infrastructure development.
   • Public and private investment in infrastructure: The article mentions both private investment (“$6.9 billion”) and proposed public financing through the “state’s bonding authority.”

4. Indicators for SDG 13

   • Adoption of national/sub-national strategies: The existence of the IRA, OBBBA, and Maine’s 2040 clean energy law are indicators of policy integration.

5. Indicators for SDG 17

   • Existence of coordination mechanisms: The proposal for a “public database of renewable energy projects” to break down “information siloes and improves coordination” among state agencies is an indicator of efforts to improve policy coherence.

4. Summary Table of SDGs, Targets, and Indicators

Source: mecep.org