H.R. 4603

[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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