Fair Allocation of Interstate Rates Act

In this subsection:

The term covered policy means a policy of a State, including any policy of a local political entity of a 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.

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.

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.

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).

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.