HR3699-119

What This Bill Does

The Energy Choice Act creates a Federal preemption rule for energy-service access. It bars a State or local government, instrumentality, or regulatory agency from adopting, implementing, or enforcing any law, regulation, ordinance, building code, standard, or policy that prohibits or directly or indirectly limits the connection, reconnection, modification, installation, transportation, distribution, expansion, or access to an energy service based on the type or source of energy sold in interstate commerce and delivered to an end user. The introduced text defines energy to include natural gas, renewable natural gas, hydrogen, liquefied petroleum gas, renewable liquefied petroleum gas, other liquid petroleum products, biomass-based diesel fuels, renewable fuels, and electricity.

Who Benefits and How

Natural gas distribution utilities benefit because State and local governments could not ban or limit gas service based on fuel type. Propane fuel dealers and heating oil dealers benefit from Federal protection against local building-code or energy-choice restrictions. Gas appliance manufacturers benefit if jurisdictions cannot use energy-source rules to block gas connections or installations. Biomass diesel suppliers and renewable fuel sellers benefit because covered fuels receive the same preemption protection. Consumers who want gas, propane, heating oil, hydrogen, or renewable fuels benefit from fewer State or local restrictions on access.

Who Bears the Burden and How

State energy regulators lose authority to enforce energy-source restrictions on covered services. Local building-code officials lose authority to adopt or apply building codes that indirectly prohibit covered energy connections or installations. Electric appliance manufacturers and heat-pump manufacturers may lose market advantages created by local electrification mandates. Environmental advocacy organizations bear a policy burden because State and local fuel-switching restrictions would be preempted. Local governments must review existing ordinances and policies for conflicts with the Federal rule.

Key Provisions

• Establishes Federal preemption against State and local rules that limit covered energy-service access based on energy type or source.
• Prohibits restrictions affecting connection, reconnection, modification, installation, transportation, distribution, expansion, or access.
• Limits State and local use of laws, regulations, ordinances, building codes, standards, or policies that indirectly block covered energy services.
• Provides a covered-energy list including natural gas, renewable natural gas, hydrogen, liquefied petroleum gas, renewable fuels, liquid petroleum products, biomass-based diesel, and electricity.