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Energy Legislation to Watch
HB2456 in Arizona if passed would prohibit counties from blocking the development of small modular nuclear reactors (SMRs) if they are co-located with a large industrial energy user, such as data centers or other large load customers.
The bill directs the Arizona Corporation Commission to adopt rules defining key terms such as “co-located with” and “large industrial energy user,” including specifying distance or interconnection requirements and energy demand thresholds. It states that the definition for industrial energy users may not discriminate between different industries, sectors, or end users, or the proposed locations of end users.
SB240 has been sent to the Indiana governor’s desk that if signed would require an analysis of whether surplus interconnection service can meet immediate capacity and energy needs at utility-owned facilities. On February 25, 2026 the Senate concurred with House amendments.
Among other things this bill defines “surplus interconnection service” (SIS), with respect to established interconnection service connecting an electric generating facility with an electric transmission system, as any portion of that service that:
(1) has not been used; and
(2) is not reasonably expected to be needed; the use of which would result in the total amount of interconnection service at the point of interconnection remaining the same. Provides that an electric utility that is required to file integrated resource plans (IRPs) with the Indiana utility regulatory commission (IURC) must include in any IRP filed after December 31, 2029, an analysis of the potential for SIS to meet immediate needs for capacity and energy at utility owned facilities.
Provides that with respect to any petition filed with the IURC after December 31, 2029, for a certificate of public convenience and necessity for the construction, purchase, or lease of an electric generation facility, the IURC shall consider whether:
(1) the petitioner has conducted an analysis of the use of SIS as an alternative to, or in conjunction with, the proposed construction, purchase, or lease of the facility; and
(2) the proposed construction, use, or lease of the facility will make use of, or allow for the use of, SIS. Requires the IURC to conduct a study to evaluate the potential use of SIS by electric utilities. Sets forth specific topics that the IURC must evaluate as part of the study. Requires the IURC to include in its 2027 annual report its findings with respect to the topics evaluated in the study.
In Virginia HB590 passes its house of origin, creating an automated solar permitting platform to streamline the approval of eligible residential solar energy systems.
HB0238 in the State of Utah advances through one chamber that if passed would enacts provisions establishing requirements for Public Service Commission participation in regional transmission organizations and independent system operators.
Among other things this bill:
- requires notice of community clean energy programs to include a simple opt-out method and submission instructions;
- requires the commission to participate in regional transmission organizations and independent system operators where Utah utilities are members;
- authorizes the commission to contract for independent analysis of market data;
- requires annual reporting to the Legislature on impacts to Utah customers; and
- requires notification to the Legislature if the commission is denied access or participation.
In Virginia HB369 in entitled “Electric utilities; renewable energy portfolio standard; zero-carbon electricity; accelerated clean energy buyers.”
Revises the conditions under which accelerated clean energy buyers, defined in existing law as accelerated renewable energy buyers, may contract with Appalachian Power or Dominion Energy Virginia to obtain renewable energy certificates (RECs).
The bill if passed would also exempt an accelerated clean energy buyer obtaining capacity, energy, or RECs from qualifying resources or facilities from the assignment of non-bypassable costs associated with compliance with the renewable portfolio standard program based on the amount and type of renewable energy certificates obtained in proportion to such accelerated clean energy buyer’s total electric energy consumption.
In Illinois HB5513 amends the Environmental Protection Act, Energy Efficient Building Act, Illinois Power Agency Act, Public Utilities Act, and related statutes to establish comprehensive environmental, energy regulations for hyperscale data centers.
In the Environmental Protection Act, prohibits nondisclosure agreements; and creates the Data Center Community Intervenor Compensation Fund and Hyperscale Data Center Public Benefits and Affordability Fund funded by annual fees based on peak demand.
Expands renewable energy procurement programs, establishes a hyperscale data center self-direct program, and strengthens equity, transparency, and labor standards in clean energy initiatives.
Creates the Residential Automated Solar Permitting Platform Act to require municipalities and counties to adopt a residential automated solar permitting platform on or before July 1, 2027, and authorizes persons to file a civil action against a municipality or county in violation.

