FAIR Act

The FAIR Act (H.R. 4603) would amend the Public Utility Regulatory Policies Act of 1978 (PURPA) to bar state regulatory authorities from approving the rates charged by state-regulated electric utilities if those utilities engage in diversity, equity, or inclusion (DEI) practices or consider environmental, social, or governance (ESG) factors in setting rates or in operational decisions that affect rates. The bill defines DEI practices in a way that prohibits discrimination and certain forms of training or conduct that promote or enforce DEI beliefs. It also restricts the consideration of ESG factors in rate-making, with limited allowances for compliance with specific federal or state laws that require certain actions only as direct legal obligations (not discretionary considerations). The act is titled the “Fair, Affordable and Inclusive Rates Act” (FAIR Act) and was introduced in the House in July 2025. In effect, the measure would limit utilities’ use of DEI training, codes of conduct, and ESG-led decision-making when determining customer rates, and it would constrain related corporate practices unless they are strictly required by law in a non-discretionary way. The bill would transform how some regulatory decisions are made by prioritizing traditional, ratepayer-cost considerations over DEI/ESG-based objectives in rate-setting.