American Renewable Energy Act of 2026

(o) Clarification of State authority To adopt renewable energy incentives

(1) Definition of State-approved production incentive program. In this subsection, the term State-approved production incentive program means a requirement imposed pursuant to State law, or by a State regulatory authority acting within its authority under State law, that an electric utility purchase renewable energy (as defined in section 609(a)) at a specified rate.

(2) State authority to adopt renewable energy incentives. Notwithstanding any other provision of this Act or the Federal Power Act (16 U.S.C. 791a et seq.), a State law or State regulatory authority may set the rates for a sale of electricity by a facility generating renewable energy (as defined in section 609(a)) pursuant to a State-approved production incentive program under which the facility voluntarily participates in the State-approved production incentive program.