Bill Summary
The "Fair Allocation of Interstate Rates Act" is a proposed piece of legislation aimed at regulating how costs for certain electricity transmission facilities are allocated among consumers across different states. The key provisions of the bill include:
1. **Cost Allocation Prohibition**: It prohibits transmission providers from charging consumers in states that did not consent to a particular transmission facility for costs associated with that facility. This is particularly relevant when the facility was developed based on a policy from another state.
2. **Consent Requirement**: A transmission provider can allocate costs to consumers in a state only if the state or its designated public officials explicitly consent to such allocation.
3. **Presumptions About Cost Responsibility**: The bill establishes presumptions that benefits from a covered transmission facility are primarily for consumers in the state that implemented the policy leading to the facility’s development. Consumers from other states are generally not considered "cost causers" unless their state consents.
4. **Implementation Timeline**: The Federal Energy Regulatory Commission (FERC) is tasked with creating the necessary rules and regulations to implement these provisions within six months of the bill’s enactment.
5. **Definitions**: The legislation defines key terms, including "covered policy," which refers to state policies prompting the construction of transmission facilities, and "covered transmission facility," which includes any infrastructure used for interstate electricity transmission linked to such policies.
Overall, this legislation seeks to ensure that only those consumers who benefit from a transmission facility, particularly those in states that support the related policies, bear the associated costs.
Possible Impacts
The "Fair Allocation of Interstate Rates Act" can have several impacts on individuals and communities. Here are three examples:
1. **Consumer Cost Protection**: The legislation ensures that consumers from states that did not consent to the construction of a transmission facility will not bear the financial burden of its costs. This means that individuals in states without a covered policy will be protected from unexpected rate increases related to infrastructure they did not support or benefit from. For example, if a new transmission line is built in State A to support renewable energy initiatives (a covered policy) while consumers in State B are required to pay for its costs without any direct benefit, the law prevents this unfair cost allocation.
2. **State Policy Influence**: The requirement for states to expressly consent to cost allocations may incentivize state officials to be more proactive in engaging with energy policy and infrastructure developments. This could lead to increased local advocacy efforts among residents and officials in states that are impacted by interstate transmission facilities. For example, residents in a state may push their officials to negotiate better terms or oppose certain projects that could affect their utility rates, thereby enhancing community involvement in energy policy decisions.
3. **Investment in Local Infrastructure**: By limiting the allocation of costs to consumers only from states that have adopted the underlying policies for new transmission facilities, the legislation may encourage states to invest in their own energy infrastructure to ensure they can benefit from interstate transmission projects. This could lead to improved local energy systems and potentially lower electricity rates in the long run as states work to develop their policies that align with the benefits of such infrastructure. For example, a state might develop its renewable energy policies to build a transmission line that connects to a larger grid, ensuring that its consumers benefit from both lower rates and cleaner energy sources.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6336 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 6336
To prohibit the allocation of costs for a certain transmission facility
to consumers of a State the public officials of which did not expressly
consent to such transmission facility, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 1, 2025
Ms. Fedorchak (for herself and Mr. Weber of Texas) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
A BILL
To prohibit the allocation of costs for a certain transmission facility
to consumers of a State the public officials of which did not expressly
consent to such 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. RATE 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.--
``(1) In general.--Except as provided in paragraph (2), no
transmission provider providing electric service to consumers
in two or more States may allocate costs for a covered
transmission facility to any consumer of such transmission
provider if--
``(A) the basis for construction or implementation
of such covered transmission facility is, in whole or
in part, to implement a covered policy of a State; and
``(B) such consumer is not a resident of the State
the covered policy of which is the basis for
constructing or implementing such covered transmission
facility.
``(2) Exception.--A transmission provider providing
electric service to consumers in two or more States may
allocate costs for a covered transmission facility to a
consumer described in paragraph (1)(B) if the State of such
consumer, or a designated public official of such State,
expressly consents to such allocation of costs.
``(3) Presumptions.--It shall be presumed that--
``(A) the benefits of a covered transmission
facility accrue solely to the cost causers of such
covered transmission facility;
``(B) only a consumer that resides in a State that
implemented a covered policy that is, in whole or in
part, the basis for constructing or implementing such
covered transmission facility is a cost causer for
purposes of subparagraph (A); and
``(C) a consumer that does not reside in the State
described in subparagraph (B) is not a cost causer for
purposes of subparagraph (A).
``(4) Implementation.--Not later than six months after the
date of enactment of this subsection, the Commission shall
issue such rules and regulations as may be necessary to
implement this subsection.
``(5) Definitions.--In this subsection:
``(A) Covered policy.--The term `covered policy'
means a policy of a State, including policies of the
local political entities of such 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.''.
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