S. 4772: Renewable Energy Choice Act

This bill would limit how much state and local governments can restrict renewable energy projects and related services. In plain terms, it would stop states and localities from passing or enforcing rules that directly or indirectly block the connection, reconnection, modification, installation, transportation, distribution, or expansion of renewable energy services if the restriction is based on the type or source of energy being delivered to end users.

What counts as renewable energy under this bill

The bill defines renewable energy to include:

• Wind
• Solar
• Energy storage
• Geothermal

Restrictions the bill would bar

Under the bill, state and local governments could not adopt or enforce policies that effectively prevent renewable energy projects or services in certain ways. Examples listed in the bill include:

• Permanent bans on renewable energy projects
• Moratoriums on renewable energy projects lasting more than 6 months, including extensions
• Limits on project height below 525 feet
• Setback requirements greater than 1,000 feet
• Sound limits below 50 decibels
• Refusing to enter into a road use agreement
• Permit fees that differ from the average fee charged to other energy projects of similar size

Practical effect

The overall effect would be to create a federal rule protecting access for certain renewable energy projects and services from state or local restrictions that are tied to the energy source. That could make it harder for states and local governments to stop or limit wind, solar, storage, or geothermal projects through zoning, permitting, or similar local rules when those rules are based on the energy type being used.

Relevant Companies

• NEE — NextEra Energy could be affected because it develops and operates large wind and solar projects that may face state or local permitting limits.
• DUK — Duke Energy has renewable generation and storage investments that could be impacted by changes to local permitting and siting rules.
• XEL — Xcel Energy develops wind and solar projects and could be affected by constraints on local restrictions.
• SEDG — SolarEdge provides solar equipment and could benefit indirectly if renewable project deployment becomes easier.
• ENPH — Enphase Energy supplies solar technology and could be indirectly affected by changes that influence solar project growth.
• TSLA — Tesla’s energy storage business could be affected because the bill includes energy storage within renewable energy and may support more storage deployment.
• VST — Vistra has a large energy storage business and could be affected by faster siting or deployment of storage projects.
• ORA — Ormat Technologies develops geothermal projects and could be affected by limits on local barriers.