FAIR Act

HR 4603, the FAIR Act, prohibits state energy regulators from approving rates for electric utilities that use specific diversity, equity, and inclusion (DEI) practices or consider environmental, social, and governance (ESG) factors in rate decisions. It blocks rate approvals if a utility enforces mandatory training on race/ethnicity superiority, requires employees to sign statements about systemic bias, or uses quotas based on protected characteristics. The bill also restricts utilities from considering ESG factors like climate initiatives or supplier diversity programs unless directly required by federal or state law. Exceptions apply only for mandatory legal compliance (e.g., federal emissions rules) without discretionary ESG considerations. This directly affects state-regulated electric utilities and their rate-setting processes.