As retail energy competition for residential and small commercial customers faces policy challenges in Northeastern and Mid-Atlantic states, one bright spot for energy choice has been municipal or Community Choice Aggregation (CCA). CCA programs allow local governments to procure electricity for their residents, businesses, and municipal accounts[1]. The CCAs procure electricity in a competitive procurement process, so suppliers are still serving the customers.
According to LEAN Energy US[2], an association of CCAs, the states with authorized CCA programs are California, Illinois, Massachusetts, Maryland, New Jersey, New York, New Hampshire, Ohio, Rhode Island, and Virginia. Arizona, Colorado, Connecticut, and Michigan are exploring enabling CCA legislation.
To continue delivering affordable and clean energy-sourced electricity, CCAs depend on stable and supportive state and federal policies. This includes long-term access to clean energy tax credits, grid modernization, and technology development. CCAs also rely on incentives for distributed energy resources and energy storage[3]. Without this support, regulatory uncertainty could limit the ability of CCAs to meet their clean energy goals.
Important tax credits for CCA Programs:
- Clean Energy Production and Investment Tax Credit (PTC, ITC) – support financing for wind, solar, and storage projects;
- Residential Clean Energy Credit (25D) – offsets the cost of residential clean energy systems;
- Electric Vehicle Tax Credits (30D and 45W) – promote adoption of clean transportation;
- Home Energy Efficiency Credit (25C) – helps reduce household energy use;
- Manufacturing Credit (45X) – supports the domestic clean energy supply chain.
In addition, direct pay (also called elective pay) and transferability provisions are vital for CCAs. Elective pay makes certain clean energy tax credits refundable while transferability allows entities who do not qualify for elective pay to transfer a specific portion of the credit for cash[4]. Overall, these credits are imperative to the continued success of CCA programs.
The One Big Beautiful Bill Act, passed on July 3rd, brings extensive changes to federal energy and climate policy. Among its most significant impacts are changes to Community Choice Aggregation (CCA) programs nationwide. The bill delays the phase-out of wind and solar tax credits, allowing projects that begin construction before July 2025 or become operational by the end of 2027 to remain eligible. However, it also repeals many clean energy incentives established under the 2022 Inflation Reduction Act, including tax credits for electric vehicles, home electric vehicles chargers, and energy efficiency improvements. This includes the discontinuation of the Greenhouse Gas Reduction Fund, which had supported pollution reduction initiatives in disadvantaged communities.
The electric vehicle tax credit rollback for new, used, and commercial electric vehicles ends by September 30, 2025, while credits for installing charging stations expire by June 30, 2025. Despite these changes, the bill retains tax credits for battery storage, hydropower, nuclear, geothermal energy, and advanced manufacturing, available to projects beginning construction through 2033. This is critical for the continued expansion of CCA programs.
In a further shift away from emissions-focused policy, the bill modifies the Energy Infrastructure Reinvestment (EIR) program, removing the requirement that loan-supported projects must “avoid, reduce, utilize, or sequester” greenhouse gas emissions. This change broadens the types of projects that can qualify for federal loan support, regardless of their environmental impact[5].
As the energy landscape adjusts to this new legislation, stakeholders across the public and private sectors are now reexamining strategies for advancing clean energy as the federal policy framework changes.
[1] Community Choice Aggregation (EPA, 2025).
[2] CCA By State (LEAN Energy, 2025).
[3] Community Choice Aggregation: Challenges, Opportunities, and Impacts on Renewable Energy Markets (National Renewable Energy Laboratory, 2019).
[4] Elective Pay and Transferability (IRS, 2025).
[5] Congress passes ‘Big Beautiful Bill,’ spilling disaster for clean energy (Canary Media, 2025).
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