The bill protects state residents from subsidizing other states' transmission projects and forces faster federal rulemaking, but at the risk of fragmenting regional market coordination and slowing or raising the cost of interstate transmission needed for reliability and clean‑energy integration.
Residents and taxpayers in a State are less likely to be forced to pay for another State's transmission projects unless their State consents, reducing unexpected cross‑state cost shifts.
Requires FERC to issue implementing rules within six months, giving clearer regulatory deadlines and speeding resolution of disputes about cost allocation.
Limits cross‑subsidies so consumers in a State are less likely to bear costs for another State's policy-driven projects without consent, protecting consumer choice and state fiscal autonomy.
Could discourage interstate transmission projects and regional planning by raising cost‑recovery uncertainty for multi‑state providers, slowing needed transmission for reliability and renewables integration across many States.
May fragment regional electricity markets if States refuse to consent to cost sharing, reducing efficiency gains from coordinated planning and potentially increasing systemwide costs.
Residents of a State that adopts the policy could face higher electricity rates because that State's consumers would bear a larger share of project costs.
Based on analysis of 2 sections of legislative text.
Prohibits multi‑state electric transmission providers from assigning the costs of an interstate transmission facility to customers in other states when those costs were driven, in whole or in part, by a policy adopted by the customer’s state or its local governments — unless the customer’s state or an authorized state official expressly agrees. It creates legal presumptions that benefits and cost responsibility for such projects belong to the state whose policy prompted the project and requires the Federal Energy Regulatory Commission (FERC) to write implementing rules within six months. The change narrows the ability of regional transmission planning and cost allocation to spread costs across states for projects tied to one state’s laws or local policies. Utilities, regional transmission organizations, state and local governments, and retail electricity consumers would be the main parties affected; FERC must issue regulations to implement the rule.
Introduced December 1, 2025 by Julie Fedorchak · Last progress December 1, 2025