With state legislative sessions off to a fast start in 2026, there is one common theme that has emerged within the energy sector: how to balance unprecedented load growth and economic development opportunities while maintaining system reliability and customer affordability.
The policy solutions to these challenges are not uniform; they vary based on markets, regional politics, access to resources, and end-users.
Our analysis indicates several key trends that are consistent across the states that are centered on five key policy pillars:
These pillars will guide Stateside’s analysis of the 2026 session and provide This Week in Energy subscribers with an in-depth look at current and future bills throughout their legislative processes, assessing how state-level trends are shaping the energy landscape across the states.
Generation
An emerging theme across early bill introductions is changes in generation portfolios and the recalibration of existing clean energy targets. Introductions in Hawaii seek to extend renewable and clean energy targets past their initial dates, signaling the persistent challenges of scaling distributed energy resources in oil-dependent states.
Other states are looking at how to improve baseload capacity are encouraging the development of natural gas, as seen in introductions in South Carolina and Utah.
New York (AB 10027) and Utah (HB 78) have introduced measures to establish specific offices to oversee the management and development of new nuclear facilities. The bipartisan nature of legislative support mirrors similar commitments made by Governor Spencer Cox in Utah and Governor Kathy Hochul in New York.
Affordability
Nationwide affordability concerns have centered energy affordability as pivotal for easing the economic burden. A sentiment echoed by Governors and highlighted in Stateside’s State of the State analysis on Energy and the 2026 State of the States. This is being addressed in real-time as lawmakers are introducing legislation to tackle affordability to reduce energy costs and increase regulation.
Indiana’s HB 1002 would mandate "levelized billing" requirements to prevent seasonal price shocks, while Tennessee’s HB 1843 explores rate caps specifically for seniors.
Beyond direct financial assistance, potential new offices such as New Hampshire’s Energy Efficiency Authority would ensure that state and federal funds effectively reduce the energy burden on middle-income households.
Large Load and Data Centers
Alongside affordability, large loads and data centers remains a top priority. The scale of demand, coupled with public perception regarding the impact of data centers on residential bills, has spurred a variety of strict bill introductions.
Maryland’s HB 120, Nebraska’s LB 1010, and Tennessee’s SB 1682 seek to establish stricter regulation, or outright moratoria, on data centers, with the rationale of protecting grid stability from sudden large load spikes.
Legislation in Virginia is two-pronged: continue to promote data center development while assessing large load impact on grid reliability and broader customer affordability.
Electricity and Market Issues
In many states, the focus is on consumer solar deregulation and providing "gap financing," as seen in Maryland’s Budget Bill SB 282, to offset potential reductions in federal funding. Alternatively, in West Virginia and New Hampshire, bill introductions align with federal policy and aim to sunset state renewable energy certificates and eliminate tax exemptions for non-individual renewable entities. These moves represent a broader trend of tying utility rate recovery more strictly to "actual costs" and performance metrics, as seen by Utah’s HB 224, which amongst other provisions, prohibits the recovery of political or promotional costs from ratepayers.
Permiting & Siting
Policy divergence along political ideology is also evident in discussions over local versus state control of renewable energy infrastructure permitting and siting. While Washington and Virginia have introduced bills for automated, "one-stop-shop" permitting platforms to accelerate deployment, introductions like Arizona (HB 2338) and Kentucky (SB 107) are moving in the opposite direction. These bill introductions seek to grant local districts the power to block utility-scale projects that lack community consensus or encroach on "prime farmland." Other states, like New York (SB 270) and Rhode Island (HB 7178), want to exploit state-owned land as locations for a more streamlined solar energy permitting process.
As 2026 unfolds, states serve as the primary laboratory for innovative policies to the most pressing energy sector challenges and opportunities. We will continue to track state energy policy and its impact on the future of energy and infrastructure in the United States.
