The FAIR Act would prohibit state utility regulators from approving electric utility rates if the utility engages in certain diversity, equity, and inclusion (DEI) practices or considers environmental, social, and governance (ESG) factors in their business decisions. The bill specifically bars utilities from using DEI programs that discriminate based on protected characteristics like race or religion, or requiring employees to undergo DEI training that asserts certain groups are inherently superior or inferior. The legislation also blocks utilities from considering ESG factors—including climate change initiatives, workforce diversity quotas, or supplier diversity programs—when setting rates, though it carves out exceptions for utilities simply complying with existing federal or state laws without discretionary choices. This bill would affect electric utilities and their customers in states where regulators would lose authority to approve rate increases from companies engaged in these practices, potentially limiting how utilities operate but with no specified funding or implementation timeline included in the legislation.
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