Fair Allocation of Interstate Rates Act

Term Dictionary

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The gist

Blocks interstate power-line costs from being charged to residents of states that didn't approve the project, when the lines exist to meet another state's policy goals.

Who wins, who loses

  • Wins: ratepayers in states like North Dakota that reject neighbors' clean-energy mandates.
  • Loses: states like California or New York pushing renewable goals that need long-distance transmission lines.

What it does

  • Amends Section 205 of the Federal Power Act to restrict cost-sharing across state lines.
  • Presumes only residents of the policy-driving state are 'cost causers' who pay.
  • Allows cost-sharing only if the other state's officials expressly consent.
  • Orders the Federal Energy Regulatory Commission (FERC) to write rules within 180 days.

Why should I care?

Electricity bills depend on who pays for the grid. Supporters say it's unfair to force red-state families to subsidize blue-state climate policies. Critics argue the grid is interconnected — everyone benefits from new lines, and this rule could block renewable energy expansion nationwide. Where do you land? Vote below and use "Tell Your Rep" to make sure your voice reaches Congress.

What do you think about this bill?

Vote to see who sponsored it!

Bill ID: s3287-119
Congress Session: 119
Date Processed: 2026-04-30 15:03:18 (UTC)
Introduced: 2025-12-01
Status: Introduced