Despite federal rollbacks, states push forward on climate policies
Businesses can use their influence to advocate for state climate change. Read More
- Despite federal rollbacks, many state-level climate policies advanced in 2025.
- Top advocacy opportunities for states this year center on data center expansion, clean energy deployment, electric vehicles, and energy affordability.
- Corporate political responsibility is critical, requiring business leaders to advocate and leverage their influence.
The opinions expressed here by Trellis expert contributors are their own, not those of Trellis.
In 2025, climate policies moved forward at the state level despite headwinds, with many states releasing updated climate plans, setting new targets, improving transmission planning, and streamlining clean energy projects and permits.
At least eight states released updated climate plans, with many updating greenhouse gas inventories and setting more ambitious greenhouse gas emissions reduction goals. There was also movement in clean energy policies at the state level, transmission planning and, of course, AI and data centers. Below, we break down a few key state climate policy issues to keep an eye on this year.
Clean energy expansion
Despite clean energy being the least expensive and quickest power generation source, its permitting and siting trends went in two directions this past year: many states continued work to streamline clean energy projects and permits, while others worked to slow clean energy deployment.
Policies to improve transmission planning and modernization also moved forward, with many states passing advanced transmission and grid enhancing technologies that improve the capacity of existing electrical transmission and distribution systems. Legislation to accelerate community solar programs also continued and ‘plug-in solar’ bills are now on the rise across the country.
In 2025, Utah passed a first-of-its-kind bipartisan bill to enable plug-in solar, which are small, affordable panels that anyone with outdoor space can plug-in and use to generate electricity. Twenty-plus states are following Utah’s lead by introducing bills in this legislative cycle, providing an important bipartisan opportunity that will address energy affordability concerns, while also expanding clean energy and reducing emissions.
Plug-in solar democratizes clean energy and is a low-cost, low-barrier way for renters and homeowners alike to use clean energy at home, while reducing energy bills. This is a key state policy advocacy opportunity to watch this year, with massive potential to influence clean energy accessibility and energy affordability throughout the country.
Clean transportation and EVs
Though federal policy eliminated consumer tax credits for electric vehicles and paused EV charging infrastructure funding, states are continuing to power the U.S. electric vehicle transition. In 2026, advocates will push for policies that expand EV incentives and tax credits rather than slash them, and push for policies that build out charging infrastructure and grid preparedness.
The Affordable Clean Cars Coalition, which includes 13 states, is working to develop solutions to make cleaner vehicles more affordable and accessible via state clean vehicle program goals. States part of this coalition include Colorado, Delaware, Maryland, Massachusetts, New Jersey, New Mexico, New York, Oregon, Rhode Island, and Washington — with Hawai’i and Wisconsin joining last fall.
A key advocacy opportunity is in California, where the state is pushing ahead on EV mandates, launching a $200 million electric vehicle incentive program meant to offset federal EV tax credit losses.
AI and data centers
Finally, a top policy issue that will continue to press forward will be AI and data center buildouts, which face mounting public pushback and puts corporate climate targets increasingly at risk. Addressing massive energy and water consumption, backtracking on fossil fuel dependence, straining local resources along with increased harmful greenhouse gas emissions and hazardous electronic waste begs the question of whether the perceived economic benefits for a very few are worthwhile.
Clean energy investments need to scale to mitigate the demands of AI and data center expansion. Doing so will reduce emissions while also driving down market costs of energy. Strong environmental standards (especially per water and energy usage and impacts) will be a high priority — along with addressing community, environmental justice and public health impacts.
As such, a growing number of states are floating legislation focused on data centers, with at least six states calling for a pause in data center construction. A Colorado bill released in February aims to ensure data centers pay for grid investments, requiring renewable energy for new data centers to guard against rising energy bills. Virginia, home to one of the world’s largest concentrations of data centers, has dozens of bills underway, with the data center building boom stirring pushback from local communities.
As state-level policies continue to accelerate coupled with increased pushback at the community level, a ‘humans first’ policy approach should be front and center and is urgently needed in AI and data center-related policy advocacy this year.
Business leaders, sustainability professionals and employees need to elevate corporate political responsibility, especially given regulatory rollbacks at the federal level such as this month’s repeal of the landmark endangerment finding. With the absence of government leadership at the national level, there’s even more of an imperative for businesses to act.
