New Commonsense Solutions to Promote Energy Affordability and Reliability in Your State
These new model policies reflect a commonsense, forward-looking approach to the challenges facing today’s energy systems.
Affordable and reliable energy is essential to economic stability, household budgets, and long-term state competitiveness. As electricity demand continues to grow, state policymakers must focus on policies that deliver dependable power to communities and businesses at a reasonable cost. These policies should reflect the real-world experience and market expertise of energy producers, while meeting the unique needs of individual states.
To address these challenges, ALEC members approved new model policies at our States and Nation Policy Summit in Fort Worth, Texas designed to strengthen energy reliability, protect consumers, and reinforce the role of states in energy decision making. These trusted policy solutions account for diverse energy resources and regulatory frameworks.
State Energy Facility Siting and Permit Certainty Act
The State Energy Facility Siting and Permit Certainty Act offers states a framework for improving clarity and predictability in the permitting and siting of energy infrastructure. This model policy establishes defined timelines and processes while preserving environmental and safety standards.
This model also aligns with recent federal efforts to better permitting efficiency for energy infrastructure. The U.S. House of Representatives recently passed the Standardizing Permitting and Expediting Economic Development Act, commonly referred to as the SPEED Act, reflecting bipartisan interest in improving permitting timelines and coordination at the federal level. While the State Energy Facility Siting and Permit Certainty Act operates within state authority, it complements these federal actions by offering states a practical framework to reduce delays, improve transparency, and support timely infrastructure development without compromising environmental or safety oversight.
Several states have already demonstrated that improving permitting clarity and certainty can accelerate energy infrastructure development without weakening environmental or safety protections. States such as West Virginia and Oklahoma have made permitting reform a top policy priority, emphasizing defined timelines, coordinated reviews, and clearer siting authority.
For states experiencing delays in energy project development due to fragmented or inconsistent permitting, this policy provides an option to streamline approvals while maintaining local engagement.
Act to Allow for Consumer Regulated Electric Utilities
This model policy establishes a new category of electricity providers, known as Consumer Regulated Electric Utilities, to serve large energy users such as industrial facilities and data centers. These entities may generate or procure electricity outside traditional public utility regulation while remaining subject to safety, environmental, and siting requirements.
The framework reflects research showing that large, sophisticated energy consumers can manage their own electricity needs without relying on cost recovery from captive ratepayers. By limiting participation to customers that assume their own risks and costs, this approach expands market flexibility without shifting financial or reliability burdens to other consumers or the electric grid.
States seeking to attract energy-intensive industries or expand electricity options for major employers should view this policy as a tool to support economic growth.
Overturn Prohibitions and Establish a Nuclear Coordinator (OPEN) Act
The Overturn Prohibitions and Establish a Nuclear Coordinator (OPEN) Act provides a pathway for states interested in revisiting nuclear energy development, removing statutory prohibitions on nuclear facilities, and establishing a State Nuclear Coordinator to oversee permitting, interagency coordination, and stakeholder engagement.
For states evaluating nuclear energy as part of their long-term energy strategy, this model policy offers a first step for states to reduce administrative barriers and improve regulatory coordination in this increasingly vital segment of the energy market.
In many states, municipalities adopt varied and inconsistent requirements for residential energy backup installations, often using different versions of the state-adopted National Electric Code. This patchwork of local rules can create unnecessary bureaucratic hurdles, delay installations, and increase costs for homeowners and small businesses across a state seeking backup power, particularly in emergencies.
The Residential Reliability Act eliminates these barriers by aligning municipal requirements with the streamlined process already in place for unincorporated areas, where local permits are not required for residential backup installations. States facing frequent outages or emergency preparedness challenges should consider this simple solution to improve access to backup power without hindering safety. By preserving uniform standards under the state-adopted National Electric Code, ALEC’s approach promotes more efficient deployment of backup energy systems, helping residents access reliable power during outages without sacrificing public safety or driving up costs.
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Together, these new model policies reflect a commonsense, forward-looking approach to the challenges facing today’s energy systems. By prioritizing affordability, reliability, and regulatory clarity, states can adopt practical solutions that support dependable energy service, protect consumers, and encourage private investment while respecting the diversity of state energy resources and policy priorities. These efforts are reinforced by ALEC’s broader Essential Policy Solutions for 2026, which highlight additional options such as Affordability, Reliability, and Clean (ARC). Further insight is provided through ALEC’s Energy Affordability Report, with a new edition coming this spring, offering policymakers a state-by-state resource to guide energy policy decisions.