Federal Legislation
Congress Passes Energy Choice Act
February 04, 2026
Congress has passed the Energy Choice Act (H.R. 3699), which prohibits state and local governments from enacting laws or regulations that restrict access to energy services based on the type or source of energy sold in interstate commerce. This legislation specifically targets bans on natural gas in new construction and aims to preserve consumer choice in energy sources nationwide. Procurement professionals involved in energy infrastructure, construction, and utility services should note that this federal law limits regulatory barriers at the state and local levels, potentially expanding opportunities for energy service installations and modifications that include natural gas and other energy sources.
- Why this matters: The Act restricts state and local restrictions on energy sources, reducing regulatory uncertainty for contractors and suppliers in energy-related construction and retrofit projects.
- Agencies and contractors can anticipate fewer local prohibitions on natural gas installations, impacting project planning and compliance requirements.
- This federal preemption may influence procurement strategies by broadening allowable energy options in new construction and renovation contracts.
- Organizations should evaluate how this legislation affects regional procurement policies, especially in states like California, New York, and Washington where energy source restrictions have been more common.
H.R. 3699 restricts state and local governments from issuing any rule or taking any action that would even indirectly limit an energy source in any way.
— Frank Pallone, Jr., Ranking Member (Minority Views)
Agencies
U.S. Department of Energy, American Gas Association, Association of Home Appliance Manufacturers, Patriot Homes Inc, Appliance Standards Awareness Project
Locations
Sources
- H. Rept. 119-482 - ENERGY CHOICE ACT · congress · Feb 04
- H. Rept. 119-482 - ENERGY CHOICE ACT · congress · Feb 04