The Energy Choice Act prohibits state and local governments from enacting regulations that restrict residents' or businesses' access to energy sources transported across state lines.
Jim Justice
Senator
WV
The Energy Choice Act aims to prevent state and local governments from enacting regulations that restrict consumer access to various energy sources, including natural gas, hydrogen, and electricity, if those sources are transported across state lines. This legislation ensures that local codes cannot ban or limit the connection or expansion of services based on the energy type or source. In essence, it protects the ability of residents and businesses to choose from energy options available through interstate commerce.
Energy Choice Act Blocks Local Governments from Banning Natural Gas Hookups
The new Energy Choice Act is short, but it packs a punch, especially if you live in a city or state that has been pushing to phase out fossil fuels in new construction. The bill essentially defines "energy" very broadly—we’re talking natural gas, hydrogen, LPG, biomass fuels, and electricity (SEC. 2). Its main purpose is to stop local and state governments from limiting or banning the use of any of these energy sources, provided that energy crosses state lines to get to you (SEC. 3).
The Fine Print: Local Control vs. Interstate Commerce
What this means in practice is that any city attempting to pass a building code that says, "No more natural gas lines in new homes or businesses, we're going all-electric," would be blocked by this federal law. The Act prohibits any local rule that "directly or indirectly block[s], restrict[s], or make[s] it harder to connect to, install, or expand service" for these energy types. This is a direct challenge to the growing trend of local electrification mandates designed to meet specific climate goals. If you’re a developer, this means you maintain flexibility in choosing your energy infrastructure, which could lower upfront costs, but if you’re a city council member, you just lost a major tool for shaping your community’s energy future.
Who’s Really Making the Choice?
While the bill is named the Energy Choice Act, the choice it protects is less about consumer preference and more about the ability of energy providers—especially those dealing in interstate fuels like natural gas—to operate without local hurdles. For a regular homeowner, this ensures you can still opt for a gas stove or furnace if you move into new construction, even if your city’s environmental plan was trying to push you toward heat pumps and induction cooktops. However, for those communities that have invested heavily in local climate action plans, this preempts their authority. Municipalities that were trying to meet specific carbon reduction targets by mandating electrification may find their local laws overturned, forcing them to rely on federal or state mandates that may not exist.
The Catch: Vague Language and Legal Headaches
The most concerning part for local governments is the vague wording in Section 3, which bans rules that "indirectly block, restrict, or make it harder" to access these energy sources. This broad language could be used to challenge a host of legitimate local regulations—like zoning rules or specific safety requirements—if a utility argues they make it "harder" to expand service. This opens the door for significant legal challenges against local governments, forcing them to spend taxpayer money defending basic building safety codes or zoning decisions against powerful energy interests. The bill is a clear win for interstate energy providers and a significant loss of regulatory power for local policymakers trying to manage their own infrastructure and environmental targets.