Fair Allocation of Interstate Rates Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3287 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                S. 3287

 To prohibit the allocation of costs for certain electric transmission 
 facilities to consumers in a State the public officials of which did 
   not expressly consent to the transmission facility, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            December 1, 2025

Mr. Cramer (for himself and Mr. Hoeven) introduced the following bill; 
   which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
 To prohibit the allocation of costs for certain electric transmission 
 facilities to consumers in a State the public officials of which did 
   not expressly consent to the transmission facility, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Allocation of Interstate Rates 
Act''.

SEC. 2. RATES AND CHARGES.

    Section 205 of the Federal Power Act (16 U.S.C. 824d) is amended by 
adding at the end the following:
    ``(h) Prohibition on Allocation of Certain Costs.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Covered policy.--The term `covered policy' 
                means a policy of a State, including any policy of a 
                local political entity of a State.
                    ``(B) Covered transmission facility.--The term 
                `covered transmission facility' means any facility, 
                line, equipment, or system used for the transmission of 
                electric energy in interstate commerce that is planned, 
                constructed, or operated in whole or in part to 
                implement a covered policy.
            ``(2) Prohibition.--Except as provided in paragraph (3), a 
        transmission provider providing electric service to consumers 
        in 2 or more States may not allocate costs for a covered 
        transmission facility to a consumer served by that transmission 
        provider if--
                    ``(A) the basis for construction or implementation 
                of the covered transmission facility is, in whole or in 
                part, to implement a covered policy of a State; and
                    ``(B) the consumer is not a resident of the State 
                the covered policy of which is the basis for 
                constructing or implementing the covered transmission 
                facility.
            ``(3) Exception.--A transmission provider providing 
        electric service to consumers in 2 or more States may allocate 
        costs for a covered transmission facility to a consumer 
        described in paragraph (2)(B) if the State in which that 
        consumer is a resident, or a designated public official of that 
        State, expressly consents to such allocation of costs.
            ``(4) Presumptions.--It shall be presumed that--
                    ``(A) the benefits of a covered transmission 
                facility accrue solely to the cost causers of that 
                covered transmission facility;
                    ``(B) any consumer who is a resident of a State 
                that implements a covered policy that is, in whole or 
                in part, the basis for constructing or implementing a 
                covered transmission facility is a cost causer for 
                purposes of subparagraph (A); and
                    ``(C) any consumer that does not reside in the 
                State described in subparagraph (B) is not a cost 
                causer for purposes of subparagraph (A).
            ``(5) Implementation.--Not later than 180 days after the 
        date of enactment of this subsection, the Commission shall 
        issue such rules and regulations as are necessary to implement 
        this subsection.''.
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