Federal law strips cities of power to set local energy policy

What it does

This bill prohibits states and local governments from banning or restricting the use of any energy source—including natural gas, hydrogen, renewable fuels, and electricity—in buildings or infrastructure. It overrides local zoning, building codes, and environmental policies that favor one energy type over another, preventing cities from mandating all-electric buildings or phasing out gas connections.

Why we flagged it

The bill's operative mechanism is a federal prohibition on state/local energy restrictions. Despite the title 'Energy Choice Act,' it removes choice from local governments and citizens by preempting their ability to regulate energy sources within their jurisdictions. The framing as 'choice' masks a centralized mandate.

What the text implies

• Blocks local climate action: cities cannot mandate all-electric new construction or phase out gas infrastructure, undermining state/local climate commitments and net-zero targets.
• Preempts building codes: local governments lose authority to set energy standards in building codes, even for public health, safety, or environmental reasons tied to local conditions.
• Locks in stranded assets: prevents communities from transitioning away from fossil-fuel infrastructure, potentially forcing long-term reliance on natural gas even as renewable alternatives become cheaper.
• Removes democratic accountability: energy-source decisions shift from elected local officials to federal mandate, reducing citizen input on infrastructure affecting their neighborhoods.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Citizens lose the democratic right to set local energy policy through their elected representatives. Communities that voted to transition away from fossil fuels or mandate clean energy in new construction lose that authority; the bill transfers energy-source decisions from local voters to a federal mandate favoring fuel diversity, which may lock in higher-carbon infrastructure and block climate-aligned local action.

Who stands to gain

• natural gas utilities and distributors
• fossil fuel producers and refiners
• liquified petroleum gas (LPG) suppliers
• hydrogen producers (fossil-based)
• petroleum product distributors

Named in the bill

States, local governments, regulatory agencies, natural gas utilities, renewable energy providers, fossil fuel industry, Senate Committee on Energy and Natural Resources

Where it stands

6 cosponsors: 6 Republicans.

• Jun 4, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Jun 4, 2025 — Referred to Senate Committee on Energy and Natural Resources · Congress.gov: “Read twice and referred to the Committee on Energy and Natural Resources”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

11 lobbying clients named this bill on 18 disclosure filings across 3 quarters, Dec 2025 to Jun 2026. Those filings disclosed $3,983,598 in lobbying spend. A filing names 7 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 92% of bills with at least one filing.

Jim Justice, the sponsor, reported $34,750 in PAC receipts in the 2026 cycle.

• National Association of Home Builders — $1,240,000 on 1 filing
• Washington Gas Light Company — $1,200,000 on 2 filings
• American Gas Association — $630,000 on 2 filings
• Teco Holdings Inc., Formerly Known As Energy, Inc. — $338,598 on 2 filings
• American Public Gas Association — $205,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.