Keep the Lights Local Act
- Bill Number
- H.R. 5487
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2025-09-18: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2025-11-18T17:59:10Z
AI-Generated Summary
Purpose of the Legislation
The "Keep the Lights Local Act" (H.R. 5487) aims to prevent foreign entities from owning or controlling public utility holding companies in the United States, promoting domestic control over essential energy infrastructure like electricity and gas distribution.
Key Provisions
- Prohibition on Foreign Ownership: Adds a new section (SEC. 16464) to 42 U.S. Code Chapter 149, Subchapter XII, Part D, stating that no foreign corporation or foreign government can serve as a public utility holding company. (A public utility holding company is a parent entity that owns or controls companies providing essential services like power generation or transmission.)
- Effective Date: The ban takes effect 180 days after the Act becomes law, allowing time for compliance transitions.
Significant Changes to Existing Law
- Amends the repeal provisions of the Public Utility Holding Company Act of 1935 (which was previously dismantled to reduce federal oversight on utility mergers) by inserting this new restriction.
- Introduces a targeted ban on foreign involvement in utility holding structures, which was not explicitly prohibited before, shifting from a deregulated framework to one with nationality-based limits on ownership.
Potential Impacts
- On Government Agencies: The Federal Energy Regulatory Commission (FERC) and other regulators may need to enforce compliance, monitor ownership transfers, and handle divestitures, potentially increasing administrative workload.
- On Citizens: Could enhance national energy security by keeping control of critical infrastructure domestic, reducing risks from foreign influence, but might lead to higher costs if it limits investment and forces sales to U.S. buyers.
- On International Relations: May strain ties with countries whose companies own U.S. utilities, potentially sparking trade disputes or retaliatory measures against American firms abroad.
Main Stakeholders Affected
- Public Utility Holding Companies: U.S.-based firms could benefit from reduced foreign competition but may face disruptions if they have international partners.
- Foreign Corporations and Governments: Directly restricted, requiring them to divest holdings within the 180-day window.
- U.S. Utilities and Consumers: Domestic energy providers gain protection, while ratepayers might see indirect effects on service reliability and pricing.
- Investors and Regulators: Financial markets could see shifts in utility stock values; agencies like FERC must oversee enforcement.
Notable Legal, Constitutional, or Political Implications
- Legal: The ban could face challenges under international trade agreements (e.g., WTO rules on non-discrimination) or U.S. laws against arbitrary restrictions on commerce, potentially requiring court clarification on what qualifies as a "foreign" entity.
- Constitutional: Raises questions about equal protection under the Fifth Amendment if it discriminates based on nationality, though it may be justified as a national security measure for critical infrastructure.
- Political: Reflects a push for economic nationalism in the energy sector, aligning with broader debates on foreign investment in strategic industries, but could polarize views on globalization versus protectionism.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Rep. Deluzio, Christopher R. [D-PA-17]
Recent Actions
- 2025-09-18: Referred to the House Committee on Energy and Commerce.
- 2025-09-18: Introduced in House
- 2025-09-18: Introduced in House
Bill Versions
- Keep the Lights Local Act — issued 2025-09-18 — PDF (2 pages)