119-hr4603

[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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