Florida’s Enactment of H. 1645 Furthers its Anti-Climate Change Crusade, but does not Expand Retirement Investment Restrictions

On May 15, 2024, Florida Gov. Ron DeSantis signed into law H. 1645, furthering the Governor’s ongoing campaign to oppose the role of climate change and ESG factors in state policymaking. According to the Governor’s post on the social media platform, X (formerly known as Twitter), “We’re restoring sanity in our approach to energy and rejecting the agenda of the radical green zealots.”  

Set to take effect on July 1, 2024, H. 1645 reformulates Florida’s energy policy by stating that it is intended “to ensure an adequate, reliable, and cost-effective supply of energy for the state in a manner that promotes the health and welfare of the public and economic growth.” Notably, H. 1645 does not impose additional restrictions on how state pension assets are invested, but it does make major changes in state energy policy, including: 

• Erasing the “Florida Climate-Friendly Preferred Products List” and state agencies’ corresponding need to consult the List prior to purchasing products for state term contracts; 
• Erasing state agencies’ requirement to prioritize fuel-efficiency when purchasing vehicles; 
• Erasing state agencies’ requirement to book “Green Lodging” facilities; and
• Banning power-generating wind turbines offshore or near Florida’s coastline.

The legislation also removes certain pro-environmental objectives from the state’s energy policy such as: (i) mitigating the impacts of global climate change through the reduction of greenhouse gas emissions, (ii) instituting energy management programs aimed at promoting energy conservation and (iii) implementing alternative energy technologies. The law makes clear that Florida’s political leaders are prioritizing the promotion of cost-effective development and use of a diverse supply of domestic energy resources in the state—without regard or consideration for energy conservation or the reduction of greenhouse gas emissions. 

H. 1645 represents the latest in a series of actions limiting the role that environmental, social, and corporate governance considerations should play in state policymaking, as we previously discussed here and here.

For further insights or information on what is happening on the ground in Florida or other states, please reach out to one of us, or any other member of the Ropes & Gray state ESG team; consult our November 2023 white paper that focuses on the current trends in ESG regulation with respect to the investment of state retirement plan assets; or visit our award-winning Navigating State Regulation of ESG website.

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