Sponsors (8)
The bill gives states and their ratepayers stronger protection against being made to fund transmission driven by other states' policies, but at the risk of higher local costs, slower or more expensive interstate projects, weakened regional grid integration, and more litigation during implementation.
In-state electricity customers (residential and commercial ratepayers) in states that opt in are less likely to see their electricity bills increase to cover transmission costs driven by other states' policies.
State governments that adopt the covered policies avoid having their residents bear the costs of transmission built primarily to implement other states' policy choices, reducing cross‑state cost shifting.
Designated state and local public officials gain explicit control to decide whether their jurisdictions will be required to contribute to interstate transmission costs tied to outside policy decisions.
Utilities and regional planners may face reduced ability to pool costs across states, which could slow or raise the cost of new interstate transmission projects by narrowing the pool of cost‑sharing participants.
If interstate cost sharing is blocked, higher costs could be shifted onto in‑state consumers and taxpayers, potentially raising local electricity rates—especially in states that still pursue costly transmission builds internally.
The provision could discourage regional planning and integration of the interstate grid, complicating efforts to maintain reliability and integrate large amounts of renewable generation across regions.
Based on analysis of 2 sections of legislative text.
Prevents multi‑state transmission providers from charging out‑of‑state consumers for transmission built to implement a state's policy unless that consumer’s state expressly consents; adds rebuttable presumption favoring in‑state cost responsibility.
Introduced December 1, 2025 by Julie Fedorchak · Last progress December 1, 2025
Prohibits multi‑state transmission providers from allocating the costs of a transmission project built to implement a state or local policy to electricity consumers who do not live in the state that drove the project, unless the consumer’s state (or a designated state official) gives explicit consent. Creates a rebuttable presumption that benefits and cost causation of such projects stay within the state that prompted the project, and directs the Federal Energy Regulatory Commission (FERC) to issue implementing rules within six months of enactment.