The American Renewable Energy Act of 2026 establishes a federal renewable electricity standard requiring large electricity suppliers to gradually increase their renewable energy sales from 20 percent in 2027 to 70 percent by 2036, with eligible sources including wind, solar, geothermal, biogas, qualified hydropower, and marine energy. The bill creates a federal credit trading system where utilities can buy and sell renewable electricity credits (one credit per megawatt hour) to meet compliance obligations, or alternatively pay $50 per megawatt hour into state funds that must dedicate at least half their revenue to renewable energy projects and efficiency programs in economically disadvantaged and pollution-burdened communities. The Federal Energy Regulatory Commission will implement the standard by January 2027 and adjust annual increase requirements based on feasibility studies, while states, local governments, and Indian tribes retain authority to establish their own renewable standards that are equal to or stricter than federal requirements. The legislation also authorizes grants to help rural and remote communities develop electrical infrastructure to expand clean energy access beyond urban areas. Congress intends the bill to reduce greenhouse gas emissions, lower electricity costs for consumers, and address historical pollution inequities while promoting competition among clean energy producers.