Text of US HB 4603 (2025)

I 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Fair, Affordable and 4 Inclusive Rates Act’’ or the ‘‘FAIR Act’’. 5 VerDate Sep 11 2014 22:10 Jul 29, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4603.IH H4603 ssavage on LAPJG3WLY3PROD with BILLS 2 •HR 4603 IH SEC. 2. PROHIBITION ON APPROVAL OF CERTAIN RATES 1 UNDER PURPA. 2 Section 111(d) of the Public Utility Regulatory Poli- 3 cies Act of 1978 (16 U.S.C. 2621) is amended by adding 4 at the end the following: 5 ‘‘(22) DIVERSITY, EQUITY, OR INCLUSION (DEI) 6 PRACTICE.—No State regulatory authority shall ap- 7 prove the rate of a State regulated electric utility if 8 such State regulated electric utility engages in, or 9 retains or employs a consultant or an advisor to pro- 10 mote or enforce, a diversity, equity, or inclusion 11 practice, such as a practice— 12 ‘‘(A) discriminating for or against any per- 13 son on the basis of race, color, ethnicity, reli- 14 gion, biological sex, or national origin; or 15 ‘‘(B) requiring, as a condition of employ- 16 ment, promotion, advancement, or the ability to 17 speak, make presentations, or submit written 18 materials, that an employee— 19 ‘‘(i) undergo training, education, 20 coursework, or other pedagogy asserting 21 that any particular race, color, ethnicity, 22 religion, biological sex, or national origin is 23 inherently or systemically superior or infe- 24 rior, oppressive or oppressed, or privileged 25 or unprivileged; or 26 VerDate Sep 11 2014 22:10 Jul 29, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4603.IH H4603 ssavage on LAPJG3WLY3PROD with BILLS 3 •HR 4603 IH ‘‘(ii) sign or assent to any statement, 1 code of conduct, work program, plan, or 2 similar device that asserts that any par- 3 ticular race, color, ethnicity, religion, bio- 4 logical sex, or national origin is inherently 5 or systemically superior or inferior, oppres- 6 sive or oppressed, or privileged or 7 unprivileged. 8 ‘‘(23) ENVIRONMENTAL, SOCIAL, OR GOVERN- 9 ANCE (ESG) FACTORS.— 10 ‘‘(A) IN GENERAL.—Subject to subpara- 11 graph (B), no State regulatory authority shall 12 approve the rate of a State regulated electric 13 utility if such State regulated electric utility 14 considers environmental, social, or governance 15 factors in establishing rates or making oper- 16 ational decisions that affect rates. 17 ‘‘(B) COMPLIANCE.—Nothing in this para- 18 graph shall be construed to prohibit a State 19 regulated electric utility from complying with— 20 ‘‘(i) a Federal law or regulation re- 21 quiring specific ESG factors if complying 22 with such Federal law or regulation— 23 VerDate Sep 11 2014 22:10 Jul 29, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4603.IH H4603 ssavage on LAPJG3WLY3PROD with BILLS 4 •HR 4603 IH ‘‘(I) is limited to fulfilling the di- 1 rect legal obligation of such Federal 2 law or regulation; and 3 ‘‘(II) does not involve discre- 4 tionary consideration of ESG factors 5 beyond such direct legal obligation; or 6 ‘‘(ii) a State law or regulation that re- 7 quire such State regulated electric utility 8 to purchase from certain types of genera- 9 tion sources if complying with such State 10 law or regulation— 11 ‘‘(I) is limited to fulfilling the di- 12 rect legal obligation; and 13 ‘‘(II) does not involve discre- 14 tionary consideration of ESG factors 15 beyond such obligation. 16 ‘‘(C) ENVIRONMENTAL, SOCIAL, OR GOV- 17 ERNANCE FACTOR OR ESG FACTOR DEFINED.— 18 The term ‘environmental, social, or governance 19 factor’ or ‘ESG factor’ means any factor relat- 20 ing to— 21 ‘‘(i) environmental considerations, in- 22 cluding climate change policies, carbon 23 emissions reductions, or environmental jus- 24 tice initiatives, unless directly tied to pecu- 25 VerDate Sep 11 2014 22:10 Jul 29, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4603.IH H4603 ssavage on LAPJG3WLY3PROD with BILLS 5 •HR 4603 IH niary impacts such as cost reduction, reli- 1 ability enhancement, or compliance with 2 Federal or State law or regulation; 3 ‘‘(ii) social considerations, including— 4 ‘‘(I) corporate board or workforce 5 composition quotas based on race, 6 color, ethnicity, sex, or national ori- 7 gin; or 8 ‘‘(II) supplier diversity programs 9 that grant preferences based on race, 10 color, ethnicity, sex, or national ori- 11 gin, unless such programs are re- 12 quired by applicable Federal or State 13 law; or 14 ‘‘(iii) governance considerations, in- 15 cluding the adoption of corporate govern- 16 ance policies primarily for the purpose of 17 advancing political, ideological, or social 18 objectives unrelated to pecuniary outcomes 19 relevant to State regulated electric utility 20 operations, customer service, or ratepayer 21 cost impacts.’’. 22 Æ VerDate Sep 11 2014 22:10 Jul 29, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H4603.IH H4603 ssavage on LAPJG3WLY3PROD with BILLS