ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES

The document argues that states can lead the energy transition by attracting clean industrial projects and supporting the electrification of industrial process heat. It highlights the economic risks of the federal OBBBA—projecting $170 billion in higher energy bills and a $1.1 trillion GDP shrink by 2035—and proposes specific state-level policy actions, such as clean heat production tax credits, streamlined permitting for industrial parks, and targeted support for clean hydrogen in heavy industry.

• The One Big Beautiful Bill Act (OBBBA) is projected to have severe negative economic consequences for the United States by 2035, including a $1.1 trillion reduction in GDP, the loss of 790,000 jobs, and $170 billion in increased energy costs for businesses and households.
• Industrial process heating accounts for 84 percent of industrial fossil fuel use, and most of this can be transitioned to electric technologies. Thermal batteries are identified as a promising tool for converting low-cost wind and solar electricity into stored heat for industrial use.
• State governments can fill a gap left by the federal government, which recently cancelled cost-sharing grants for 18 out of 28 clean industry projects, by providing funding, technical assistance, and regulatory support to attract or relocate these projects.
• The document recommends several specific state policy actions to support clean industry, including implementing clean heat production tax credits, creating co-manufacturing hubs for prototyping, streamlining permitting for industrial parks, and providing targeted support for clean hydrogen in sectors like steel, chemicals, and marine shipping.

APA

Energy Innovation (n.d.). ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES. https://energyinnovation.org/wp-content/uploads/Stimulate-Investments-in-New-Clean-Industries_Blueprint-for-States_August-2025.pdf

Chicago

Energy Innovation. ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES. n.d. https://energyinnovation.org/wp-content/uploads/Stimulate-Investments-in-New-Clean-Industries_Blueprint-for-States_August-2025.pdf.

Wikipedia

{{cite report |author=Energy Innovation |title=ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES |url=https://energyinnovation.org/wp-content/uploads/Stimulate-Investments-in-New-Clean-Industries_Blueprint-for-States_August-2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{energyinnovationndenergy, author = {{Energy Innovation}}, title = {{ENERGY LEADERSHIP IN A TIME OF NEED: A BLUEPRINT FOR STATES}}, institution = {Energy Innovation}, url = {https://energyinnovation.org/wp-content/uploads/Stimulate-Investments-in-New-Clean-Industries_Blueprint-for-States_August-2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }