H.R. 10489: American Renewable Energy Act of 2026

This bill would create a federal renewable electricity standard that requires retail electricity suppliers to increase the share of power they provide from renewable sources over time. Beginning in 2027 and continuing through 2036, suppliers would have to obtain and submit an increasing number of renewable energy credits each year to meet the standard.

The bill would allow renewable credits to be traded, so suppliers that generate or buy more renewable electricity than they need could sell extra credits to others. It would also create compliance options and enforcement tools, including penalties for suppliers that do not meet the requirements and alternative payments that can be used in some cases instead of submitting credits.

To address where renewable energy is developed, the bill would include set-asides for certain types of projects and communities. Some credits would be reserved for distributed generation, such as smaller-scale local solar or similar projects, and some would be reserved for communities affected by energy production or other related burdens.

The bill would also preserve the authority of states and tribal governments, meaning federal requirements would not be intended to eliminate or override all existing state or tribal renewable energy programs or related powers.

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