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The policy brief outlines seven critical functions that U.S. states perform to advance clean energy and climate goals, emphasizing that state-level action is resilient to federal political swings and provides scalable models for emissions reductions and economic development.

The report examines New York State's progress toward the climate requirements of the Climate Leadership and Community Protection Act (CLCPA), noting that the state is not on track to meet these goals and has cited costs as a reason for infeasibility.

In Q4 2025, U.S. clean energy investments were characterized by significant uncertainty driven by a record 43-day government shutdown, the One Big Beautiful Bill Act (OBBBA), and Department of Energy (DOE) funding cuts. While utility-scale solar and storage remained strong, with $18 billion in actual investments, other sectors like wind, hydrogen, and sustainable aviation fuel (SAF) faced substantial project cancellations. Nuclear energy showed signs of growth through large-scale partnerships and DOE loans, while the manufacturing sector saw $8.4 billion in EV supply chain cancellations, partly due to shifting federal incentives and corporate pivots toward gas and hybrid vehicles.

The brief supports the reversal of a district court decision that dismissed claims against the EPA for failing to regulate PFAS in sewage sludge. It asserts that PFAS are highly toxic 'forever chemicals' commonly found in sewage sludge used as fertilizer, which contaminates soil, water, and food chains. The authors argue that local governments in Pennsylvania and New York face significant technical, fiscal, and legal hurdles—including state preemption and 'Right to Farm' laws—that prevent them from protecting residents. Legally, the brief contends that CWA Section 405(d)(2)(C) requires the EPA to not only review but also promulgate regulations for newly identified toxic pollutants at least every two years.

The report examines the impact of New York's CLCPA greenhouse gas accounting method, which differs from the UNFCCC standard. It finds that the CLCPA approach increases the distance to statutory targets and alters cost-effective abatement strategies, though substantial reductions remain necessary regardless of the method used. The authors argue that marginal abatement cost data for different gases and sectors is essential for evaluating the 2025 New York State Energy Plan.

RMI proposes five policies to accelerate heat pump adoption in Illinois: increasing incentives for heat pumps and weatherization while phasing out gas equipment subsidies, providing 0% financing, reforming electric and gas rate designs, implementing an AC-to-heat pump replacement policy, and adopting electric-friendly standards for new construction. The brief notes that while heat pumps can reduce energy bills for most Illinois households—particularly those using propane or electric resistance heat—high up-front costs remain a primary barrier.

The report defines clean firm generation as dispatchable, low-emission electricity sources that do not rely on weather, including nuclear fission, fusion, geothermal, and carbon-capture-enabled fossil or bioenergy. It argues that integrating these technologies can significantly lower the total amount of wind, solar, and storage capacity needed, thereby reducing land use, critical mineral requirements, and overall system costs. The authors identify a 'missing middle' or 'valley of death' in financing for these capital-intensive projects and propose a multi-layered policy approach—combining RD&D, direct procurement, and technology-neutral targets—to achieve systemic bankability.

RMI's analysis of more than 200 utility PIMs reveals a strong preference for 'upside-only' reward structures over penalties, with Return on Equity (ROE) and shared savings being the most common and highest-paying designs. While utilities consistently achieve targets for percentage adder-based and equity-focused PIMs, the report suggests that targets may be set too low. Most PIMs are short-term experiments lasting two to three years, except for fuel cost-sharing and distributed energy resource mechanisms, which often lack end dates to provide regulatory certainty.

The report argues that European security of supply planning and clean procurement policies have been uncoordinated, often resulting in capacity mechanisms that favor fossil fuels and contracts that distort short-term market signals. It proposes a shift toward 'market-aligned' contracting—such as index REC structures—and co-optimized multi-product markets that separately value energy, capacity, and clean attributes to attract clean investment without sacrificing operational efficiency.

The Private Equity Manufactured Housing Tracker identifies 23 private equity firms and hedge funds owning over 1,900 manufactured home parks and 400,000 lots in the U.S. It argues that institutional investors capitalize on the limited mobility of residents to increase rents and fees, often with financing from Fannie Mae and Freddie Mac. The report details specific instances of rent hikes, poor maintenance, and unjust evictions, while calling for government intervention to preserve affordability and protect residents' rights.

The review finds that neonicotinoid seed treatments (NSTs) often fail to provide statistically significant increases in yield or profitability for North American farmers, particularly in colder regions like the Midwest and Northern U.S. where early-season pest pressure is lower. While some positive returns on investment (ROI) were observed in the U.S. South due to milder winters and higher pest pressure, these results were inconsistent year-to-year. The document highlights significant ecological harms, including the reduction of predator insect populations, damage to pollinators, and disruption of soil decomposition. It argues that a shift from prophylactic use to an 'assess-and-decide' approach based on actual pest pressure would save farmers money without reducing yields.

The EPA has proposed a significant rollback of the Greenhouse Gas Reporting Program (GHGRP), which would remove reporting requirements for 46 of 47 source categories and suspend subpart W reporting until 2034. This proposal threatens the viability of over 270 carbon capture projects and $77.5 billion in capital investment because the 45Q tax credit relies on GHGRP for monitoring, reporting, and verification (MRV). Specifically, the loss of subparts PP, RR, and VV would prevent carbon capture and storage (CCS) and enhanced oil recovery (EOR) projects from claiming 45Q credits. For hydrogen projects, the delay of subpart W would reduce the reliability of upstream methane leak rate measurements used in the 45VH2-GREET tool for 45V tax credits, potentially forcing taxpayers to rely on an inaccurate 0.9% national average and increasing legal risks for high performers. Internationally, the rollback could disadvantage U.S. exporters in markets requiring verified data, such as those under the EU Carbon Border Adjustment Mechanism (CBAM). Domestically, at least ten states, including California and Colorado, have embedded GHGRP into their legal frameworks; removing it would force these states to create costly patchwork substitutes to maintain emissions inventories.

The report identifies 5,500 hazardous facilities along US coastlines at risk of 100-year coastal flooding by 2100 under a high-emissions scenario (RCP 8.5). It highlights that marginalized populations—including renters, non-voters, and those in poverty—are 15-41% more likely to live within 1 kilometer of these sites. The risk is heavily concentrated, with nearly 80% of at-risk facilities located in seven states, and specific infrastructure like fossil fuel ports and terminals are particularly vulnerable, with over 40% expected to be at risk.

The briefing examines the grid constraints facing electric truck charging depots, which often require 5–10 MW per site and have shorter development timelines than traditional large loads. It proposes 'flexible service connections'—agreements where utilities provide higher power capacity during off-peak periods in exchange for managed consumption—as a solution to avoid costly and slow infrastructure upgrades. RMI analysis indicates that many fleets in California and New York can shift charging to overnight or solar-peak hours without altering operations, potentially reducing capital costs by 40% to 70%. The document highlights pilots by National Grid, Southern California Edison, and PG&E, noting that PG&E's Flex Connect program enabled PepsiCo to expand its electric fleet 18 months faster than conventional planning, saving an estimated $1 million in fuel costs.

The policy brief argues that gas utilities in the U.S. spend between $3.5 billion and $7 billion annually to replace aging service lines. It proposes a service line NPA framework where utilities offer customers financial incentives to electrify and disconnect from the gas system instead of replacing the pipe. This approach aims to reduce ratepayer costs, lower emissions, and avoid stranded assets. The brief highlights Con Edison's Energy Exchange Program as a developed example and discusses design considerations such as participant incentives, utility support, and customer outreach.

The report analyzes cost allocation strategies for distribution grid investments driven by the electrification of buildings and transportation and the growth of distributed energy resources. It compares three state-level approaches—Minnesota's standardized fees, Massachusetts's Proactive Hosting Capacity Fee, and New York's project-level justification—while outlining the trade-offs between uniform, incremental, traditional, and proactive cost allocation models.

New York State Attorney General Letitia James secured a settlement requiring JBS to reform deceptive marketing practices, report progress to the state for three years, and pay $1.1 million toward climate-smart agriculture in New York. The settlement follows allegations that JBS falsely marketed a trajectory toward net-zero emissions by 2040 while expanding meat processing. Mighty Earth has also initiated a lawsuit in Washington, DC, for violations of the Consumer Practices Protection Act and a case with the UK Financial Conduct Authority regarding Barclays' underwriting of $3 billion in Sustainability-Linked Bonds for JBS. The document asserts that JBS excludes the vast majority of its climate footprint—over 95%—from its net-zero calculations by reporting only Scope 1 and 2 operational emissions. Additionally, the text highlights JBS's expansion into Nigeria with a $2.5 billion investment in six slaughterhouses, alongside its history of Amazon deforestation and Clean Water Act violations in the US.

The Private Equity Stakeholder Project and a group of residents are calling on Brookfield Asset Management to implement strict standards for resident protections—including a 3% annual rent cap and the allowance of window A/C units—should it acquire Yes! Communities. The letter highlights a pattern of rent hikes and poor maintenance at Yes! Communities parks in Michigan, Florida, Tennessee, Indiana, Iowa, and Texas, and expresses concern over the management record of RHP, a previous Brookfield partner, citing issues in New York, Colorado, and North Carolina.

The briefing proposes a dual-metric approach to track methane emissions in the oil and gas sector, noting that a single metric cannot fairly assess the diverse physical and chemical makeups of petroleum resources. It highlights the economic viability of capturing wasted gas and calls for policy-driven demand to incentivize low-methane production.

The document argues that fusion energy is transitioning from laboratory research to commercial viability, with many U.S. startups projecting grid connection by the first half of the 2030s. It outlines how states can create competitive advantages by implementing specific regulatory reforms, such as becoming an NRC Agreement State to manage radiological licensing, and by adopting legislative tools like explicitly defining fusion as a clean energy source in state statutes. The brief also suggests financial mechanisms including state-level investment tax credits, the creation of dedicated fusion energy funds, and the repurposing of retired fossil fuel sites—termed "fusion brightfields"—to leverage existing grid infrastructure. Additionally, it emphasizes the importance of developing specialized workforces and innovation hubs around universities and national laboratories to support the industry's growth.