American Renewable Energy Act of 2026

The American Renewable Energy Act of 2026 establishes a federal renewable electricity standard that requires large electric utilities to source an increasing percentage of their power from renewable sources, starting at 20% in 2027 and rising to 70% by 2036. To meet these targets, utilities must acquire Federal renewable electricity credits for each megawatt-hour of clean energy they purchase or generate, with specific quotas ensuring that a growing share of this energy comes from distributed generation projects and communities facing environmental or economic hardships. The bill creates a national credit trading market administered by the Federal Energy Regulatory Commission, allowing utilities to buy, sell, or bank these credits, while also permitting them to pay an alternative compliance fee if they cannot meet their obligations. Funds generated from these fees are directed to states for renewable energy deployment and efficiency programs, with a requirement that at least half of the money benefits impacted communities.