Alabama legislature adjourns. Environmentalists see a silver lining

The Alabama legislature concluded its 2026 session, marked by intense debate over utility regulation and environmental standards. A significant outcome was the passage of the "Power to the People Act," signed by Governor Kay Ivey, which expands the Public Service Commission from three to seven members and consolidates utility oversight under a new secretary of energy. Environmental advocates expressed disappointment with this law, though they cited citizen opposition as crucial in defeating an earlier bill that would have eliminated PSC elections entirely, a move influenced by recent Georgia elections where Democrats campaigned on lowering energy prices amidst a data center boom. Lawmakers also approved Senate Bill 71, the "Sound Science" law, which restricts the state from adopting stricter environmental standards than federal ones unless a direct causal link to bodily harm is proven. Environmental groups criticized this as limiting regulators' ability to protect public health. However, a positive development for environmentalists was the passage of Senate Bill 270, which directs the Public Service Commission to consider how additional electricity costs from serving energy-intensive data centers might be passed on to residential ratepayers. This legislation acknowledges growing concerns about data center impacts, such as a proposed campus in Bessemer that could consume over ten times the electricity of Birmingham's homes. Other legislative actions included an energy tax exemption for commercial greenhouses and a bill allowing the conversion of oil and gas infrastructure for geothermal use. Several environmental bills failed, including efforts to halt a solar project in Stockton and a carbon capture project in Covington County, as well as a proposed moratorium on solar projects. Environmental leaders like John Dodd of Energy Alabama and Charles Miller of the Alabama Rivers Alliance noted increased public engagement and a shift in the political landscape, demonstrating that issues like data center impacts and utility reform can no longer be ignored, setting the stage for future legislative battles.