| North Dakota became the first state to outlaw local gas bans since New Hampshire passed a bill into law in August 2021. Source: 4nadia/iStock / Getty Images Plus via Getty Images |
A firewall that preserves access to natural gas now stretches from Idaho to New Hampshire and Arizona to Florida, with only a few states across the interior US allowing gas bans.
At least 24 states have passed laws that prohibit local governments from restricting gas use in buildings, according to a review of state legislation by S&P Global Commodity Insights. The passage of four bills in the first half of 2023 broke a dry spell of more than one year for the legislation, dubbed energy choice laws by their backers.
But even as supporters appeared poised to pass a 25th law, the momentum has shifted against the bills.
At least 17 states have introduced bills that preempt local gas bans in 2023. Eight have died in committee, and the prospects were uncertain for several others.
Northwest US wave brings total to 24 laws
MDU Resources Group Inc. achieved a clean sweep in the four northwestern states where the multi-utility advocated for and helped draft the legislation.
On March 17, North Dakota became the first state to pass a gas ban preemption bill into law since August 2021. Idaho and South Dakota followed suit in March, and Montana Gov. Greg Gianforte signed a preemption bill on May 4.
"Successful passage in all four states demonstrates a continued desire by policymakers in the region to ensure consumers have access to all forms of energy to reliably meet their residential and business needs," Cory Fong, director of communications and public affairs at MDU Resources, told Commodity Insights.
Each bill would block cities and counties from prohibiting or restricting new gas hookups. With the exception of South Dakota Senate Bill 174, the protections extend to electric utilities, propane distributors and other energy services. The final version of S.B. 174 narrowed the bill's focus from all energy sources to fuel gas but also expanded its scope to explicitly protect gas production and transportation in addition to end use.
Idaho House Bill 106 included additional language to prevent limits on accessing gas utility service, including through restrictions on system infrastructure. It also bars ordinances that require consumers to use particular types of energy generation sources, which would stop local governments from mandating rooftop solar, a policy often paired with electrification requirements.
Montana Senate Bill 208 also prohibited the state from incorporating restrictions on gas use into its building code, an increasingly common strategy for electrifying new construction.
North Carolina poised to be No. 25
This type of legislation was also on the cusp of becoming law in North Carolina, where it passed the House in March and the Senate on June 8. House Bill 130's supporters included Dominion Energy Inc. and Duke Energy Corp. subsidiary Piedmont Natural Gas Co. Inc.
Similar legislation failed in 2021 after several Senate Republicans defected over an amendment, allowing Democratic Gov. Roy Cooper to veto the bill. But Republicans have been united in their support for H.B. 130, and the GOP secured veto-proof majorities in both chambers after a Charlotte, NC-area House Democrat switched parties in April.
The bill also picked up support from Democrats in both chambers, with opposition collapsing in the Senate. In 2021, 17 Democratic senators voted against the bill, and two supported it. This year, eight Democrats supported it, seven were opposed and five did not vote.
Among the Democrats who switched their vote, Sen. Mike Woodard pointed to a Senate amendment to explain his vote. The provision incorporated legislation that holds utility-scale solar farm owners responsible for decommissioning equipment when operations wind down.
In addition to prohibiting restrictions on energy services based on fuel type, the final version barred cities and counties from banning appliances. A heated national debate over gas cooking erupted in January after federal agencies proposed new energy efficiency standards for cooktops and agreed to review the potential health hazards linked to gas stoves.
Several bills continue to advance
Like the North Carolina legislation, Pennsylvania Senate Bill 143 attracted more Democratic support than a previous preemption bill, helping to secure a veto-proof majority in the chamber.
Fifteen Senate Democrats opposed the bill and six were supportive in 2021, compared to opposition from nine and support from 13 in a March vote. Since then, the bill has not advanced in the Democrat-controlled House of Representatives.
Wisconsin Senate Bill 49 passed in the upper chamber on June 7 on a strictly party-line vote. Senate Republicans prevailed in securing a veto-proof majority, and S.B. 49 is moving through the Assembly, where Republicans do not have a supermajority.
WEC Energy Group Inc. and the American Gas Association expressed support for the bill, which would prohibit any state agency or political subdivision from blocking utility connections or passing policies that limit utility service based on the type of fuel or energy source.
Preemption bills in the Michigan Senate and House of Representatives have gotten little traction in 2023. A similar bill sat dormant for much of 2022 before it passed in the House on a mostly party-line vote in the fall. The bill died in the Senate. Democrats flipped both chambers in November 2022.
In Illinois, the GOP-sponsored House Bill 3839, which would prohibit cities and counties from blocking gas use in new construction, remained mostly dormant. Illinois Democrats have large majorities in both chambers.
The bill's opponents included the city of Chicago, the Illinois Municipal League and the Illinois State Association of Counties. A coalition that lobbied successfully for Illinois' Climate and Equitable Jobs Act is organizing to advocate for restrictions on gas use in the state's buildings.
Eight bills fail to pass into law
The legislation continued to face long odds in Democrat-controlled and politically divided states, as several more bills failed to advance after Colorado and Virginia Democrats killed legislation in the opening months of 2023.
In Minnesota, the legislation died in committee for the fourth year in a row. A bill in New York also saw virtually no progress as lawmakers instead voted to require all-electric new construction statewide.
Oregon Senate Bill 647 died in committee because it did not get a public hearing and work session before an April 4 deadline. Senate Republicans attempted to revive the bill through a parliamentary maneuver, but Democrats voted unanimously to block the move.
New Mexico House Bill 431 exited the House Energy, Environment and Natural Resources Committee with a favorable recommendation but stalled in the chamber's Government, Elections and Indian Affairs Committee.
It is common for bills to take multiple years to pass in New Mexico due to the short legislative session, according to the bill's proponent, Matthew Gonzales. Gonzales is the executive director for the Southwest Region at Consumer Energy Alliance, a group that often advocates for continued access to fossil fuels. The bill could reemerge during the 30-day, budget-focused 2024 session, but lawmakers are more likely to revisit it during the next 60-day session in 2025, Gonzales said.
Both the Maine House of Representatives and the Senate voted down a gas ban preemption bill, Senate Bill 894, in June. In a mostly party-line vote, Democrats edged out Republicans to kill the bill.
Nebraska Legislature Bill 636 also failed to advance despite a solid Republican majority in the unicameral statehouse. Lawmaking ground to a halt for much of the 90-day session due to a prolonged Democratic filibuster over a bill to restrict gender-affirming care for transgender youth.
H.B. 636 will carry over to the 60-day session in 2024 and will not need another hearing because it was voted out of committee to the general file, according to the bill's chief sponsor, Republican Sen. Joni Albrecht. Black Hills Corp. worked on the legislation with Albrecht.
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