The Fair Allocation of Interstate Rates Act prohibits electric utilities from charging consumers in one state for new transmission infrastructure built to meet another state's energy policies unless those consumers' home state explicitly agrees to pay. The bill primarily affects electricity ratepayers and utility companies operating across multiple states, particularly in cases where states pursue renewable energy mandates or other policies requiring new transmission lines. Under the legislation, costs for transmission facilities built to implement a state's policy would be borne only by that state's residents, unless other states voluntarily consent to share the financial burden. The Federal Energy Regulatory Commission (FERC) must develop implementing rules within six months of the bill's enactment. The bill contains no specific funding allocation but effectively shifts cost-sharing decisions from utilities and regulators to state governments.
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