Trump created an energy crisis — states can help fix it

When President Trump retook office last year, the damage to the energy sector was immediate and relentless. Between legislation and executive orders, the administration has crippled federal agencies, jeopardized $14 billion in investments for clean energy and manufacturing, created chaos with tariffs and attacked energy relief programs .

Our organization — Third Way — has a climate and energy program that has fought back at the federal level. But we’ve also been convening governors’ offices and state agencies. Because more and more, states are proving grounds for responsible, forward-thinking energy policy — even when the federal government pulls back.

The need is urgent. This year, three-quarters of Americans have reported that their home energy costs have increased. Six months into the president’s war with Iran, gas and diesel prices have repeatedly hit record highs with no relief in sight.

In response, Trump has dismissed affordability concerns entirely . But states across the country that are trying to keep electricity affordable contend with rising demand from data centers, bringing innovative solutions to market and building more generation and transmission capacity.

States are transforming hollow promises for “ratepayer protection” into real policies that hold data centers accountable for the energy costs they impose. Arizona, Colorado, Michigan, New Jersey, North Carolina, Pennsylvania and Virginia are designing or have already implemented energy pricing rules to hold large power users accountable and ensure that residential customers are not subsidizing their costs.

In Pennsylvania, Gov. Josh Shapiro (D) has even stepped in to stop rate increases while pushing for broader reforms. Massachusetts Gov. Maura Healey (D), Arizona Gov. Katie Hobbs (D), North Carolina Gov. Josh Stein (D) and Maine Gov. Janet Mills (D) have created expert task forces to tackle utility accountability , remove red tape for energy investment and develop strategies to prevent data centers from shifting costs onto ratepayers.

Good governance and improved project permitting are essential to easing the energy cost crisis. But as these states work through existing obstacles with the tools at hand, they’re also supporting innovative solutions and technologies to get the job done.

We’ve heard from many innovation champions, investors and businesses. They are eager to fill the vacuum left by the federal government’s retreat, especially when it addresses challenges faced by their governors’ offices and state legislatures. They are focused on expanding investment and creating jobs in future-focused energy industries.

Take North Carolina’s work on enhanced rock weathering , a nascent but promising agricultural practice that can boost crop yields and remove carbon dioxide from the atmosphere . Recently, Third Way convened representatives from state agencies, Stein’s office, the mining sector, agribusiness, climate nongovernmental organizations and universities to discuss how enhanced rock weathering can benefit local businesses and farmers. North Carolina can serve as an example for other states trying to both engage local stakeholders and attract innovators.

States have stepped up during energy crises before. The Massachusetts Clean Energy Center and the New York State Energy Research and Development Authority , for instance, were created in response to the oil shocks of the 1970s. Today, we’re facing global conflict, skyrocketing energy demand, increasingly unreliable infrastructure and a slipshod federal response. States are rising to the moment and keeping their energy economies humming.

They have a deep bench of expertise and talent, can prioritize local solutions and want regional cooperation. We’ve seen them convene utility representatives, project developers, labor groups, environmental nongovernmental organizations and state government officials to produce pragmatic and durable policies.

Americans cannot wait for congressional legislation or presidential action that may take years. Advocacy organizations like Third Way shouldn’t wait either. We should work with states to sharpen each other’s ideas and elevate impactful policies. Alongside combatting the Trump administration’s worst instincts and advocating for necessary policies, this effort can deliver for voters everywhere.

Jonathan Lane is the deputy director for Innovation, Francesca Hsie is deputy director for Electricity Third Way and Nicholas Yoon is a policy advisor for Innovation at Third Way .