The Fair Allocation of Interstate Rates Act prohibits electric transmission companies from charging customers in one state for the costs of new power lines or transmission projects built primarily to implement another state's energy policies, unless the first state explicitly agrees to pay those costs. For example, if State A builds transmission infrastructure to support its renewable energy goals, customers in neighboring State B would not automatically bear part of the bill unless State B's officials formally consent to sharing those expenses. The bill defines "covered transmission facilities" as lines and equipment used for interstate electricity transmission that are designed to carry out state-level policies, and it presumes that only residents of the state implementing the policy should pay for benefits they create. The Federal Energy Regulatory Commission must issue rules to implement the law within 180 days of enactment. The legislation affects electricity consumers across multiple states and transmission providers that operate interstate power systems.
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