State of the States: Governors lay out their visions for lower bills and more clean energy

TO: Interested Parties
FROM: Bill Holland, VP of State Policy and Advocacy, LCV
MEMO: Governors lay out their visions to lower bills, build more clean energy and hold big tech, utilities, and major polluters accountable

Over the last month, in state capitals across the country, Governors held their State of the States. In stark contrast to Trump’s reckless war, bans on clean energy, and billions given away to big oil, eight key Governors painted a vision for the future that will lower energy bills for working families, build wind, solar, and battery storage, and hold big tech and big oil accountable. 

From Arizona to Wisconsin, Governors are doubling down on an alternative agenda pledging  ratepayer relief, ensuring data centers pay their way, and speeding up clean energy development.

Despite Trump’s pledge to cut energy prices in half, his first year in office has seen unprecedented attacks on clean energy that have raised costs across the country. Household electric bills are up 13% and natural gas prices are up nearly 60% with his war in the Middle East all but assuring they continue to rise. He has no plans to make the problem better. Our path to reducing costs and building clean affordable energy runs through state capitals. That starts with firm commitments Governors laid out in their speeches, and responding to widespread public sentiment that data centers power operations with clean energy and batteries.

Here is a look at the pledges and plans laid out by Governors in their 2026 addresses to lower costs and invest in clean energy solutions:

 

Arizona Governor Katie Hobbs – Creation of the Arizona Affordability Fund, cutting data center tax giveaways

State of the State address:

“Utility bills are now one of the largest expenses people pay every month – and too many Arizonans are falling behind. To support our fellow Arizonans, today I am proposing the creation of the Arizona Affordability Fund to help families manage the high cost of housing and utilities. The fund will help working class families pay their utility bills, weatherize their homes to lower energy costs, and build more affordable housing units. I’m starting this initiative today with a twenty-million-dollar investment.”

To pay for ongoing investments [to support a new Colorado River Protection Fund], I am proposing one key action: Make data centers pay their fair share for the water they use. The average Arizona family pays one cent for every gallon of water used in their home. If data centers were to pay the same amount, we could make a multi-million dollar deposit into the Colorado River Protection Fund every single year. 

It’s time we make the booming data center industry work for the people of our state, rather than the other way around. If we are to be successful, we must rethink our state’s approach to data centers more broadly. We must ask ourselves: should taxpayers continue subsidizing the data center industry?…My executive budget will eliminate the Data Center Tax Exemption, putting an end to a thirty-eight million dollar corporate handout. And I’m glad legislators in both parties agree with me – I can’t wait to get to work and get this done.”

 

Illinois Governor JB Pritzker – Pause on tax incentives for new data centers and speeding up clean energy projects

Combined budget address & State of the State:

“We need to think critically about our future energy usage with the needs of Illinois households at the forefront. So, in the face of rising demand and surging prices, I’m proposing a two year pause on authorization of new data center tax credits. With the shifting energy landscape, it is imperative that our growth does not undermine affordability and stability for our families.

There are also a massive number of new renewable energy projects awaiting interconnection across the region that our Northern Illinois grid operator, PJM, has moved too slowly to bring online. Together with a bipartisan coalition of all 13 governors in the PJM region, I demanded they speed it up. And now they are. We also got a price cap from PJM that will save consumers across the region $45 billion through the year 2030. Finally, PJM must force data center developers to pay for capacity resources to power their operations to protect consumers from higher rates.”

 

Maryland Governor Wes Moore: Energy rebates, investing in new clean energy, electricity grid reform, and data center accountability and regulation

State of the State address 

“Last year, we worked together to provide $200 million in direct energy rebates to help Marylanders who were struggling. This year, I’ve introduced legislation to build on that foundation with an additional $100 million in energy rebates. That’s $100 million that is going directly back into the pockets of hard-working Marylanders who need it now… 

It’s time to double down on solar, wind, and energy storage. That’s where the jobs are. That’s where many of the shovel-ready projects are. The Maryland Energy Administration’s Community Solar Program is already helping add 78 megawatts of solar to the grid. It’s going to cut utility bills for at least 10,500 low and moderate-income Marylanders. Now, we need to scale up…. 

Last month, I led a coalition of Democratic and Republican governors at the White House to sign a Statement of Principles calling for energy reform. We are calling on the [electrical] grid operator PJM to cap the price of energy for the next two years. We are also calling on them to incentivize new power generation and ensure that data centers will cover the price tag when they strain the grid.

And today, I am announcing that in order to receive my support, new data center projects must hire local workers, engage local government and communities, and cover the cost of their own power needs. We will not choose between affordability and innovation. We can, and we will, lead in both.”

• Budget proposal: Historic $306 million in funding for clean energy programs to support lower utility bills, clean energy infrastructure, and research on energy resiliency
• 2026 Legislative Agenda: Lower Bills and Local Power Act 

“Energy policy is about more than megawatts and transmission corridors—it is about whether Maryland families can afford to live in their homes. That’s why our administration is stepping up to deliver real relief, focusing on driving down the cost of utility bills for Marylanders, and investing in local projects that make energy more reliable and affordable.”

 

Massachusetts Governor Maura Healey – Energy affordability legislation and holding utilities accountable to ratepayers

State of the Commonwealth

“Now let’s talk energy. Bills are too high, and people are hurting. I want you to know I am focused on this. And here’s our plan. “First, I’ll oppose any big rate hike the utilities ask for. 

Next, I filed energy affordability legislation to get us more power, get costs down and save you $13 billion… This year, we’re going after more solar, more transmission, and more battery storage so we have the energy we need. My legislation not only gets us more power, it gets it cheaper. Did you know that the utilities aren’t required to buy energy at the lowest price? That’s crazy, and I’m changing it. We’ll make it so they can buy power at lower costs and pass those savings on to us through lower bills. 

Now about those extra fees on your bills: they got added, piece by piece, over many years; we’re the Administration that’s taking them off. I have directed the utilities to justify every single line on your bill. Anything that’s not helping you, we’ll strike it. In the meantime, we’re going to get you money back.” 

 

New Jersey Governor Mikie Sherrill – Freezing electricity rates and accelerating development of solar and battery storage

From Governor Sherrill’s inauguration remarks

“So, right now, I am going to sign my first in a series of executive orders to declare a State of Emergency on Utility Costs. First, I am issuing an Executive Order giving the New Jersey Board of Public Utilities the authority to pause new utility requests for additional rate increases, and I will freeze rate hikes to finally provide families with real relief on their energy bills.  

Second, I am issuing an Executive Order directing the Board of Public Utilities to open solicitations for new solar and storage power generation so we can lower utility costs over the long term.”  

 

Pennsylvania Governor Josh Shapiro – Using agencies to hold utilities accountable, overhaul of state energy permitting, data center development standards

Budget Address: 

Regulatory reforms

• “First, I am calling on the Public Utilities Commission (PUC) to scrutinize utility spending. I want the PUC to examine every single line of every single bill to ensure each customer dollar is being well spent. 
• Second, I’ve created a new watchdog within my Administration, a Special Counsel for Energy Affordability tasked with closely examining utility rate requests and taking legal action to stop utility companies from jacking up their rates and costing you more.
• And third, we need to have a hard conversation about the amount of profit utilities, and their investors can make on the backs of hardworking Pennsylvanians. At a time when consumers are struggling with high costs, our utilities need to be more sensitive to the reality of their customers. I’m working with the \PUC to prevent excessive utility profits this year, but the General Assembly needs to take action to lower costs for consumers going forward, by giving the PUC a set of benchmarks to follow when determining how much utilities can make. We grant these utilities a monopoly — and in exchange, they have a legal responsibility to keep their costs just and reasonable. They shouldn’t get one dollar more than what they need to meet their customers’ needs.

Together, these steps will save Pennsylvanians over $500 million on their energy bills every year. And if [the General Assembly] acts with legislation, the savings will be even greater.”

Lightning Plan legislative package

“I’ve put forward my Lightning Plan — a comprehensive plan to build more energy generation here in the Commonwealth, reform our permitting and siting laws, and diversify our energy sector to generate more renewables. My plan will save consumers an estimated $664 million and create 15,000 energy-sector jobs. And it’s supported by labor leaders, environmentalists, consumer advocates, and even energy producers.”

Data centers

“I know Pennsylvanians have real concerns about these data centers and the impact they could have on our communities, our utility bills, and our environment. So today I’m announcing GRID — the Governor’s Responsible Infrastructure Development standards — Developed by my Administration, in consultation with the community, to hold data center developers accountable to strict standards if they want our full support.

• First, developers must commit to bringing their own power generation — or paying entirely for the new generation they’ll need and not saddling homeowners and businesses with added costs because of their development.
• Second, developers must commit to strict transparency standards and direct community engagement. Too many of these projects have been shrouded in secrecy, with local communities left in the dark about who is coming in and what they’re building. That needs to change.
• Third, these projects need to hire and train local workers. They need to enter into community benefit agreements that fund important local priorities and support the towns that host them.
• And fourth, they must commit to the highest standards of environmental protection, especially water conservation.”

 

Virginia Governor Abigail Spanberger: Statewide Affordability Directive, rejoining Regional Greenhouse Gas Initiative, and investments in clean energy and efficiency

First Executive Order: Statewide Affordability Directive – Ordered the cabinet and all executive branch agencies to identify immediate actions that would reduce costs for Virginians in multiple areas including energy.

“Today, we are responding to the moment. We are setting the tone for what Virginians can expect over the next four years: pragmatic leadership focused on lowering costs and delivering results. My administration is getting to work on Day One to address the top-of-mind challenges facing families by lowering costs for Virginians in every community.”

Affordable Virginia Agenda – Address to the Virginia General Assembly 

Energy storage

“We are going to expand energy storage across the Commonwealth. Energy storage allows us to capture cheaper power and use it during peak demand — when prices are highest. That means savings for families and a more reliable grid for everyone.”  

Low-income energy efficiency programs

“We are also going to expand programs that help low-income Virginians make their homes more energy efficient. Simple improvements like better insulation and weatherization can save families hundreds — even thousands — of dollars per year.”  

Clean energy and defending offshore wind

“Virginia needs to be more energy independent. That means solar… And yes, despite what Washington might have you think, it also means offshore wind. The federal Interior Department is attempting to halt offshore wind development across the country — including one of the largest infrastructure projects in Virginia’s history. This project will create thousands of jobs and generate billions of dollars in economic activity in Hampton Roads, and as Governor, I will do everything in my power to make sure it continues to move forward.”

Rejoining the Regional Greenhouse Gas Initiative

“The Commonwealth of Virginia is rejoining the Regional Greenhouse Gas Initiative — RGGI. For me, this is about cost savings. RGGI generated hundreds of millions of dollars for Virginia — dollars that went directly to flood mitigation, energy efficiency programs, and lowering bills for families who need help most. Withdrawing from RGGI did not lower energy costs. In fact, the opposite happened — it just took money out of Virginia’s pocket. It is time to fix that mistake.”

 

Wisconsin Governor Tony Evers – 20-year commitment to purchase clean energy

State of the State address

“For years, the state has purchased renewable electricity certificates from Wisconsin utilities to power our state agencies. I want to make sure we continue to work toward our clean energy goals. Thanks to the steps I’m announcing tonight, we’re ensuring the state will continue doing so long after I’m governor. Tonight, I’m announcing that the state is going to purchase about 225,000 megawatt hours of renewable energy every year for the next 20 years. Folks, just to put that in perspective, that’s enough renewable energy to power more than half a million Wisconsin homes.”