Unlocking Clean Energy Abundance in the West: Five Pragmatic Policy Recommendations for Western Governors 

Energy demand growth in the American West is rising faster than any other region in the U.S., driven by electrification, industrial reshoring, and the rise of AI data centers. Western states have large clean energy resource potential that remains untapped due to outdated policies, but Western governors are uniquely positioned to lead a new era of energy policy modernization. CATF offers a pragmatic roadmap to help states meet this moment with resilience, innovation, and affordability. 

Here are five recommendations for Western governors to consider as they shape the region’s energy future. 

1. Champion clean firm energy technologies 

To meet growing electricity needs while maintaining reliability and reducing emissions, Western states can prioritize the deployment of clean firm energy sources. These are non-weather-dependent, always-available, zero-carbon power sources such as advanced nuclear energy, superhot rock geothermal, and fusion. These technologies offer dispatchable, energy-dense power with flexible siting, reducing land and transmission requirements. 

For example, CATF modeling shows that just 1% of U.S. superhot rock geothermal potential would generate 4.3 terawatts of power—and the West has abundant geothermal potential. Yet only a handful of next-generation geothermal projects are under development. Governors can accelerate progress for geothermal and other clean firm energy sources by modernizing permitting, setting procurement targets, supporting exploratory grants and mapping initiatives, and incorporating these resources into long-term energy planning processes. 

2. Accelerate interstate transmission buildout 

Transmission is key to achieving a reliable and affordable clean energy system, but the West suffers from fragmented planning and permitting processes. Nearly 700 GW of solar, wind, and storage projects are stuck in interconnection queues, in part due to transmission bottlenecks. 

Governors can lead by harmonizing transmission permitting rules across state lines, creating joint cost allocation frameworks, and establishing state transmission authorities (like New Mexico and Colorado have done) with the power to plan, finance, and build critical infrastructure. Proactive coordination with federal agencies is also essential given the high proportion of federally owned or managed lands in the region. Additionally, states can evaluate the potential for public financing of transmission infrastructure to lower ratepayer impacts. 

3. Foster policy innovation and private investment 

Western states can create a level playing field for emerging technologies by avoiding de facto bans and ensuring new technologies are regulated predictably and without additional permitting and financial hurdles compared to existing resources. The Western Governors Association (WGA) has committed to utilizing an all-of-the-above approach in a 2024 energy resolution. Innovative policies—like California’s 1 GW clean firm procurement target or Nevada’s Clean Transition Tariff—can spur early deployment of new energy resources and attract private capital. 

Governors can also enable public-private partnerships, coordinate between large energy buyers and producers, and support creative financing mechanisms to reduce ratepayer impacts. Structured “orderbooks” for technologies like advanced nuclear energy can drive down costs through replication and learning-by-doing. 

4. Plan for multi-use public lands and community engagement 

Energy development on state and federal public lands in the West must be balanced with conservation and community needs. CATF recommends multi-state energy and land use plans that identify lands suitable for clean energy infrastructure, minimize environmental conflicts, and support compensatory mitigation. 

Early and meaningful community engagement is critical to avoid local opposition and ensure equitable outcomes. States can support local governments with model ordinances, education, and funding to facilitate responsible development and maximize local benefits and with increased federal coordination to maximize permitting efficiency. 

5. Modernize regulatory frameworks and federal coordination 

Outdated permitting processes and regulatory fragmentation are major barriers to energy deployment, and Western governors can lead efforts to modernize them. For example, Colorado recently passed a bill (HB25-1165) that updates regulations around geothermal permitting, acknowledging the differences between conventional and next-gen geothermal technologies and eliminating unnecessary permitting steps for certain technologies. For advanced nuclear and other clean firm energy resources, states can modernize public service commission frameworks to consider system-wide benefits like reliability and emissions reductions.  

For fusion energy, states can ensure regulatory responsiveness for developers by accepting regulatory authority over byproduct materials as an “Agreement State” and adequately resourcing the implementing office to support industry throughout the licensing process. In addition, Western governors and affiliated groups like WGA can urge reforms that empower the Federal Energy Regulatory Commission (FERC) to lead transmission permitting, streamline environmental reviews, and eliminate duplicative processes.  

Western states have some of the cleanest energy resources and are politically powerful when they work together. With bold, bipartisan leadership, Western governors can unlock a future of energy abundance that is clean, reliable, and affordable. By embracing innovation, fostering collaboration, and modernizing policy frameworks, the region can become a national model for smart, clean energy development and support constructive federal action. 

CATF supports this vision by providing technical expertise, policy insights, and a commitment to pragmatic solutions. Learn more about CATF’s state-level work at https://www.catf.us/us/state-policy/.