Fair Allocation of Interstate Rates Act

Summary

Prohibits multistate transmission providers from charging consumers in other States for transmission projects that were planned, built, or operated to carry out a specific State or local policy unless the consumer’s State (or a designated public official of that State) gives clear consent. It defines what counts as a covered State policy and covered transmission facility, creates a presumption that benefits and costs stay with in‑State consumers (cost causers), and directs the Federal Energy Regulatory Commission (FERC) to adopt implementing rules within 180 days of enactment.

• Prevents multistate transmission providers from assigning costs for projects driven by a State policy to out‑of‑State consumers without their State's express consent.
• Defines "covered policy" and "covered transmission facility" to identify projects subject to the rule.
• Creates legal presumptions that benefits and costs of covered projects stay with in‑State cost causers, with an option to rebut those presumptions.
• Directs FERC to issue implementing rules within 180 days to determine procedures and standards for applying the new limitation.
• Alters the Commission’s existing allocation authority by adding a statutory restriction on cross‑state cost sharing for policy‑driven projects.
• Leaves the burden on transmission providers or proponents to demonstrate when out‑of‑State consumers should pay, subject to the new presumptions.
• Could change how regional transmission planning and cost allocation treat projects tied to state decarbonization or resource policies.
• Does not create federal funding or specify an effective date in the text; it focuses on allocation and rulemaking requirements.