By Taylor Beis and Juan Gomez
The energy sector is rapidly evolving. Demand growth, the increased adoption of alternative resources, and federal and state policy changes are reshaping United States’ energy landscape. State energy officials are at the forefront of this change, navigating a period of unprecedented challenge and opportunity and identifying policies that promote a resilient, affordable, and secure energy system. At the National Association of State Energy Officials (NASEO) Annual Meeting, held from October 27 through 30, in Nashville, TN, state energy officials came together to discuss these challenges, share best practices, and collaborate on solutions.
A growing consensus in the United States is that to meet the proliferating energy demand, states should look to nuclear energy as a clean, reliable baseload power source. At the NASEO meeting, officials discussed state-level efforts and challenges related to the advancement of nuclear energy, particularly the inclusion and scale of advanced and yet-to-be-realized technologies like fusion.
Tennessee, through the Tennessee Valley Authority (TVA), announced recent partnerships with technology companies and nuclear developers to develop new facilities in the next decade. Tennessee is also addressing workforce concerns, investing $10 million in higher education nuclear engineering programs and technical schools. To ease the permitting backlog, Utah aims to create a “one-stop shop” framework to simplify the process for developers, hoping to “de-risk” nuclear development. Other states, like Kentucky, have established new offices, such as the Nuclear Energy Development Authority, to spur development by attracting private investment, fostering partnerships, and creating jobs. Private sector partners shared innovative developments, discussed their deployment models, manufacturing plans, and the importance of supply chain certainty.
The changing federal landscape has prompted states to develop creative solutions to address funding pitfalls and address growing affordability concerns. Minnesota is leveraging state funds to supplement federal tax credits for residents, simultaneously helping the state meet its clean energy goals and reduce consumer costs. Iowa is using revolving loan programs and state funds for weatherization. Supporting generation and transmission development was another priority. Minnesota is heavily focused on transmission, Wisconsin has developed a microgrid commission, and Iowa’s all-of-the-above energy strategy is considering idle plant recommissioning. The US Department of Energy is seeking proposals for AI data centers in Paducah, Kentucky, as part of the federal government’s initiative to identify federal sites for AI infrastructure and generation projects. Across all states, affordability, reliability, security, and energy efficiency were top of mind.
Data centers, large loads, and artificial intelligence (AI) were a prominent theme throughout the conference. State officials addressed the impacts of large loads on the grid and the need for new policies to manage demand and improve grid responsiveness. Demand response (DR) was discussed as a possible solution to help reduce strain on the grid; a study from VEIC noted that dynamic curtailment measures could free up 76 GW for data centers. A wide variety of solutions and proposed models were discussed, but state officials and partners broadly agreed on the need for greater data transparency, reducing the patchwork of local, county, and state regulations, and good grid governance. Legislation in Pennsylvania and Illinois were highlighted as successful examples that ease zoning. These laws provide models for streamlined, state-level siting and zoning by reducing local barriers, barring moratoriums and additional siting, without removing local voices in the process.
State energy officials are vital to the future success of this country’s energy sector. The NASEO Annual Meeting demonstrated that while challenges remain significant, from load growth and aging infrastructure to costs and funding complexities, states are actively developing pragmatic, multi-faceted solutions that prioritize innovation and the economic well-being of their residents. State Energy Officials will next convene at the NASEO 2026 Energy Policy Outlook Conference, February 3-6, 2026, in Washington, DC.
Policy isn't just paperwork; it’s the blueprint for tomorrow's energy market. Stateside’s dedicated energy team’s involvement with key stakeholders, regulatory commissions, and state legislatures ensures we don't just react to changes—we help you prepare for them. Ready to turn complex policy into clear strategy? Connect with Taylor Beis, VP Energy Policy today to discover how our insights can fuel your organization's competitive edge.