Ratepayer Affordability and Transparency in Energy Act of 2026
- Sponsor
- Sen. Cotton, Tom [R-AR]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Feb 11, 2026
Bottom line
This bill seeks to federally preempt state-level renewable energy mandates, arguing it will protect electric grid reliability and ensure affordable energy by removing state-imposed requirements.
What it actually does
This bill establishes federal preemption over state laws that mandate specific percentages or quantities of electricity derived from renewable, zero-emission, or carbon-free energy resources. It explicitly voids any state law inconsistent with this preemption, aiming to prevent states from enforcing renewable energy portfolio standards or similar climate mandates on electricity generation, sales, or market participation.
Proponents argue
Supporters argue that state-level climate mandates, such as Renewable Portfolio Standards (RPS), can destabilize the electric grid by forcing reliance on intermittent energy sources, leading to reliability issues and increased electricity costs for consumers. They contend that this bill protects grid stability and ensures affordable energy by removing these mandates, allowing for a more market-driven approach to energy generation.
Opponents contend
Opponents would likely argue that this bill undermines state authority to address climate change and promote clean energy, hindering efforts to transition away from fossil fuels. They might contend that such preemption would slow renewable energy development, increase pollution, and ultimately harm public health and the environment, while potentially increasing long-term energy costs by delaying investment in cheaper renewables.
The bill is very short and easy to read, allowing ample time for detailed consideration of its implications.
Section 4(a)
Federal Preemption of State Renewable Energy Mandates
This section prohibits states, their political subdivisions, or regulatory authorities from creating or enforcing any law, standard, or program that requires a specific percentage or amount of electricity to come from renewable, zero-emission, or carbon-free sources. It also prevents states from making participation in electricity markets or cost recovery dependent on meeting such mandates.
Supporters argue
Supporters argue this provision is crucial for protecting grid reliability and affordability by preventing states from imposing mandates that can lead to an unstable energy supply and higher consumer costs. They contend it allows for a more market-driven approach to energy generation.
Critics contend
Opponents would argue this provision is a federal overreach that strips states of their ability to pursue clean energy goals and address climate change. They would contend it hinders the transition to sustainable energy sources and could lead to increased reliance on fossil fuels.
Tradeoffs
The provision balances state autonomy in energy policy and environmental protection against federal concerns about grid reliability and energy affordability. It creates a tension between climate action and perceived grid stability/cost concerns.
Section 4(b)
Inconsistent State Laws Voided
This subsection explicitly states that any state law or requirement that conflicts with the federal preemption established in subsection (a) is immediately preempted and will no longer have any legal effect. This reinforces the federal government's intent to override state-level mandates.
Section 4(c)
State Ownership of Clean Energy Facilities Permitted
This clause clarifies that while states cannot mandate specific renewable energy percentages, they are still permitted to own or operate their own generation facilities that use renewable, zero-emission, or carbon-free energy resources. This means states can still pursue clean energy through direct ownership, just not through mandates imposed on others.