NCSL 2026: States Are Leading the Next Chapter of American Fuel Security
- origin house
- 4 days ago
- 3 min read
Across the country, states are advancing policies that strengthen domestic fuel production, attract investment, and build more resilient American supply chains.
By Derek Phelps, Head of Governmental Affairs at Twelve
Fuel Security Is Economic Security
As lawmakers gather for the 2026 National Conference of State Legislatures Legislative Summit, one lesson from recent years has become increasingly difficult to ignore: supply chains matter.
Whether the challenge is geopolitical instability, transportation disruptions, trade uncertainty, or volatile commodity markets, Americans have gained a renewed appreciation for the value of producing critical resources closer to home. Energy is no exception. For decades, conversations about fuel policy often centered on prices or environmental goals.
Americans have gained a renewed appreciation for the value of producing critical resources closer to home.
Today, a broader set of priorities is driving the discussion. Economic competitiveness. Domestic manufacturing. Agricultural opportunity. Industrial resilience. Energy security. Increasingly, states are recognizing that advanced fuels sit at the intersection of all of them.
States Are Leading the Next Generation of Fuel Production
Across the country, policymakers are taking steps to attract investment in next-generation fuel production, particularly sustainable aviation fuel (SAF). While the technologies and feedstocks may vary, the underlying objective is remarkably consistent: strengthen domestic fuel production, create high-quality jobs, and build the industrial capacity needed to support America's long-term economic growth.
Across the country, policymakers are taking steps to attract investment in next-generation fuel production, particularly sustainable aviation fuel (SAF).
This trend was on full display during this year’s state legislative sessions. Kentucky and Massachusetts joined a growing list of states that have enacted policies supporting the emerging SAF industry, building on efforts already underway in states such as Illinois, Minnesota, Nebraska, and Washington.
These actions reflect a growing recognition that advanced fuels can represent far more than an energy policy initiative. They can serve as economic development policy. Kentucky's approach is particularly noteworthy. The Commonwealth's SAF legislation emerged from a coalition that brought together agriculture, aviation, business leaders, and policymakers around a shared economic vision.
The Kentucky Chamber of Commerce publicly supported the effort, emphasizing its potential to strengthen the state's agriculture and transportation sectors, attract investment, create jobs, and establish Kentucky as a leader in a growing domestic industry.
The Chamber also highlighted the importance of cross-industry collaboration in advancing the policy. That partnership model deserves attention.
Public Policy Can Unlock Private-Sector Investment
The most successful energy policies are often those that align public objectives with private-sector innovation. Government can establish the policy framework. Businesses can deploy capital, scale technologies, create jobs, and build markets. When those interests align, states can compete for investment while strengthening broader economic resilience. The emerging SAF sector is a case study in that dynamic.
Advanced Fuels Create Opportunity Across the Economy
New fuel production facilities can create demand for American feedstocks, support domestic manufacturing, strengthen transportation infrastructure, and drive investment throughout local supply chains. For rural communities, they can open new markets. For manufacturers, they can create new customers.
New fuel production facilities can create demand for American feedstocks, support domestic manufacturing, strengthen transportation infrastructure, and drive investment throughout local supply chains.
For states, they represent an opportunity to compete for a share of a rapidly growing industry. And increasingly, that opportunity carries strategic importance as well.
Domestic Production Builds Long-Term Resilience
A stronger domestic fuel production base means greater resilience against future disruptions. It means more production capacity located in the United States. It means shorter, more reliable supply chains. And it means that critical sectors of the economy have more options when uncertainty arises.
In that sense, the conversation around advanced fuels is becoming less about any single technology and more about a broader question: How can America build a stronger, more resilient energy future? States are helping answer that question.
States Can Lead the Next Chapter of American Fuel Production
As legislators convene at NCSL in Chicago, they should view advanced fuels not simply as an energy topic, but as a manufacturing, workforce, agriculture, infrastructure, and economic competitiveness opportunity. The states that move early are helping build the industries, supply chains, and partnerships that could define the next generation of American fuel production.
As legislators convene at NCSL in Chicago, they should view advanced fuels not simply as an energy topic, but as a manufacturing, workforce, agriculture, infrastructure, and economic competitiveness opportunity.
Recent events have reminded us of the value of producing critical resources at home. The states leading on fuel innovation are taking that lesson to heart—and helping position America for a stronger, more resilient future.
