Fair Allocation of Interstate Rates Act

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.

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.

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).

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.

In this subsection:

The term covered policy means a policy of a State, including policies of the local political entities of such State.

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.