Fair Allocation of Interstate Rates Act
Summary
The "Fair Allocation of Interstate Rates Act" (H.R. 6336) aims to prevent the allocation of costs for interstate electricity transmission facilities to consumers in states that did not expressly consent to the facility. This bill amends Section 205 of the Federal Power Act, introducing a prohibition on cost allocation unless the state or its public officials have given explicit consent. The bill also establishes presumptions regarding who benefits from and causes the costs of such facilities.
Expected Effects
If enacted, this bill would require transmission providers to obtain explicit consent from states before allocating costs for new transmission facilities. It would likely shift the financial burden of these projects, potentially impacting energy costs for consumers in different states. The Federal Energy Regulatory Commission (FERC) would be required to issue rules and regulations to implement the new provisions within six months.
Potential Benefits
- Potentially lower electricity costs for consumers in states that do not consent to new transmission facilities.
- Increased state control over energy infrastructure development and associated costs.
- Greater transparency and accountability in the allocation of costs for interstate transmission projects.
- May incentivize states to carefully consider the implications of energy policies on neighboring states.
- Could foster more localized energy solutions and reduce reliance on large-scale interstate projects.
Potential Disadvantages
- Potential for increased costs for consumers in states that do consent to new transmission facilities.
- May hinder the development of necessary interstate transmission infrastructure, impacting grid reliability.
- Could lead to disputes between states regarding the allocation of costs and benefits of energy projects.
- May create disincentives for states to cooperate on regional energy solutions.
- Potential for increased regulatory burden and administrative complexity.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) by regulating interstate commerce related to electricity transmission. However, the Tenth Amendment, which reserves powers not delegated to the federal government to the states, could be relevant if the federal government's regulation unduly infringes upon state authority. The requirement for state consent could be viewed as respecting state sovereignty.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).