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-
tives 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’’. 
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SEC. 2. PROHIBITION ON APPROVAL OF CERTAIN RATES 
UNDER PURPA. 
Section 111(d) of the Public Utility Regulatory Poli-
cies 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 ap-
prove 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 pro-
mote or enforce, a diversity, equity, or inclusion 
practice, such as a practice— 
‘‘(A) discriminating for or against any per-
son on the basis of race, color, ethnicity, reli-
gion, biological sex, or national origin; or 
‘‘(B) requiring, as a condition of employ-
ment, 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 infe-
rior, oppressive or oppressed, or privileged 
or unprivileged; or 
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‘‘(ii) sign or assent to any statement, 
code of conduct, work program, plan, or 
similar device that asserts that any par-
ticular race, color, ethnicity, religion, bio-
logical sex, or national origin is inherently 
or systemically superior or inferior, oppres-
sive 
or 
oppressed, 
or 
privileged 
or 
unprivileged. 
‘‘(23) ENVIRONMENTAL, SOCIAL, OR GOVERN-
ANCE (ESG) FACTORS.— 
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (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 oper-
ational decisions that affect rates. 
‘‘(B) COMPLIANCE.—Nothing in this para-
graph shall be construed to prohibit a State 
regulated electric utility from complying with— 
‘‘(i) a Federal law or regulation re-
quiring specific ESG factors if complying 
with such Federal law or regulation— 
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‘‘(I) is limited to fulfilling the di-
rect legal obligation of such Federal 
law or regulation; and 
‘‘(II) does not involve discre-
tionary consideration of ESG factors 
beyond such direct legal obligation; or 
‘‘(ii) a State law or regulation that re-
quire such State regulated electric utility 
to purchase from certain types of genera-
tion sources if complying with such State 
law or regulation— 
‘‘(I) is limited to fulfilling the di-
rect legal obligation; and 
‘‘(II) does not involve discre-
tionary consideration of ESG factors 
beyond such obligation. 
‘‘(C) ENVIRONMENTAL, SOCIAL, OR GOV-
ERNANCE FACTOR OR ESG FACTOR DEFINED.— 
The term ‘environmental, social, or governance 
factor’ or ‘ESG factor’ means any factor relat-
ing to— 
‘‘(i) environmental considerations, in-
cluding climate change policies, carbon 
emissions reductions, or environmental jus-
tice initiatives, unless directly tied to pecu-
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niary impacts such as cost reduction, reli-
ability 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 ori-
gin; or 
‘‘(II) supplier diversity programs 
that grant preferences based on race, 
color, ethnicity, sex, or national ori-
gin, unless such programs are re-
quired by applicable Federal or State 
law; or 
‘‘(iii) governance considerations, in-
cluding the adoption of corporate govern-
ance 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.’’. 
Æ 
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