[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4603 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4603
To amend the Public Utility Regulatory Policies Act of 1978 to prohibit
State regulatory authorities from approving rates charged by electric
utilities that engage in certain diversity, equity, or inclusion
practices, or that consider environmental, social, or governance
factors, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 22, 2025
Mr. McGuire introduced the following bill; which was referred to the
Committee on Energy and Commerce
_______________________________________________________________________
A BILL
To amend the Public Utility Regulatory Policies Act of 1978 to prohibit
State regulatory authorities from approving rates charged by electric
utilities that engage in certain diversity, equity, or inclusion
practices, or that consider environmental, social, or governance
factors, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fair, Affordable and Inclusive Rates
Act'' or the ``FAIR Act''.
SEC. 2. PROHIBITION ON APPROVAL OF CERTAIN RATES UNDER PURPA.
Section 111(d) of the Public Utility Regulatory Policies Act of
1978 (16 U.S.C. 2621) is amended by adding at the end the following:
``(22) Diversity, equity, or inclusion (dei) practice.--No
State regulatory authority shall approve the rate of a State
regulated electric utility if such State regulated electric
utility engages in, or retains or employs a consultant or an
advisor to promote or enforce, a diversity, equity, or
inclusion practice, such as a practice--
``(A) discriminating for or against any person on
the basis of race, color, ethnicity, religion,
biological sex, or national origin; or
``(B) requiring, as a condition of employment,
promotion, advancement, or the ability to speak, make
presentations, or submit written materials, that an
employee--
``(i) undergo training, education,
coursework, or other pedagogy asserting that
any particular race, color, ethnicity,
religion, biological sex, or national origin is
inherently or systemically superior or
inferior, oppressive or oppressed, or
privileged or unprivileged; or
``(ii) sign or assent to any statement,
code of conduct, work program, plan, or similar
device that asserts that any particular race,
color, ethnicity, religion, biological sex, or
national origin is inherently or systemically
superior or inferior, oppressive or oppressed,
or privileged or unprivileged.
``(23) Environmental, social, or governance (esg)
factors.--
``(A) In general.--Subject to subparagraph (B), no
State regulatory authority shall approve the rate of a
State regulated electric utility if such State
regulated electric utility considers environmental,
social, or governance factors in establishing rates or
making operational decisions that affect rates.
``(B) Compliance.--Nothing in this paragraph shall
be construed to prohibit a State regulated electric
utility from complying with--
``(i) a Federal law or regulation requiring
specific ESG factors if complying with such
Federal law or regulation--
``(I) is limited to fulfilling the
direct legal obligation of such Federal
law or regulation; and
``(II) does not involve
discretionary consideration of ESG
factors beyond such direct legal
obligation; or
``(ii) a State law or regulation that
require such State regulated electric utility
to purchase from certain types of generation
sources if complying with such State law or
regulation--
``(I) is limited to fulfilling the
direct legal obligation; and
``(II) does not involve
discretionary consideration of ESG
factors beyond such obligation.
``(C) Environmental, social, or governance factor
or esg factor defined.--The term `environmental,
social, or governance factor' or `ESG factor' means any
factor relating to--
``(i) environmental considerations,
including climate change policies, carbon
emissions reductions, or environmental justice
initiatives, unless directly tied to pecuniary
impacts such as cost reduction, reliability
enhancement, or compliance with Federal or
State law or regulation;
``(ii) social considerations, including--
``(I) corporate board or workforce
composition quotas based on race,
color, ethnicity, sex, or national
origin; or
``(II) supplier diversity programs
that grant preferences based on race,
color, ethnicity, sex, or national
origin, unless such programs are
required by applicable Federal or State
law; or
``(iii) governance considerations,
including the adoption of corporate governance
policies primarily for the purpose of advancing
political, ideological, or social objectives
unrelated to pecuniary outcomes relevant to
State regulated electric utility operations,
customer service, or ratepayer cost impacts.''.
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