Artificial intelligence (AI) development, data center growth, and new domestic manufacturing heighten the need for legislation to improve permitting, facilitate
near term access to power and longer-term electric generation and transmission buildout, and improve grid oversight and electricity affordability.
In the absence of durable federal reforms, states are meeting the moment by developing new legislation to meet the energy needs of the AI race and domestic manufacturing while working to keep customer electricity costs down. Policies that states have passed include innovative state energy policies to attract data center development, create programs that promote reliability and affordability, and develop options for non-traditional generation arrangements combined with pathways to connect to local or
regional grids.
To ensure that America wins the AI race and expands economic growth while keeping rates low for customers, more innovative state energy policies are needed, along with federal policy reforms to remove regulatory and market barriers to these innovative state policies. This memo explores the most notable state level trends and specific representative legislation to guide policymakers.