Fair Allocation of Interstate Rates Act

Senate Bill

S. 3287

119th Congress

Fair Allocation of Interstate Rates Act

In Committee

Introduced:Dec 1, 2025

Primary Sponsor

Kevin Cramer

R - ND

Cosponsors

1

Quick Stats

Policy Area

Energy

Summary

The Fair Allocation of Interstate Rates Act prohibits electric transmission providers from charging consumers in one state for transmission infrastructure built primarily to implement another state's energy policies, unless the affected state expressly consents. The bill presumes transmission costs should be borne by states whose policies drive the need for new infrastructure.

Latest Action

Read twice and referred to the Committee on Energy and Natural Resources.

AI Summary

Plain-English explanation of this bill

The Fair Allocation of Interstate Rates Act prohibits electric transmission providers from charging consumers in one state for transmission infrastructure built primarily to implement another state's energy policies, unless the affected state expressly consents. The bill presumes transmission costs should be borne by states whose policies drive the need for new infrastructure.

Last updated: 12/27/2025

Key Points

Main provisions of the bill

Prohibits cross-state cost allocation for policy-driven transmission
Requires express state consent before allocating transmission costs to consumers
Presumes benefits accrue solely to states implementing the policy
Applies to transmission facilities serving consumers in 2+ states
FERC must issue implementing regulations within 180 days
Sponsored by North Dakota Senators Cramer and Hoeven

How This Impacts Americans

Potential effects on citizens and communities

Protects electric ratepayers in fossil fuel-reliant states from subsidizing transmission lines built to carry renewable energy for other states' clean energy mandates. Would benefit consumers in states without aggressive renewable portfolio standards. May slow regional transmission development for renewable energy projects. Creates tensions between states with different energy policies in regional transmission organizations.

Policy Areas

Primary Policy Area

Energy

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

3287, 119th Congress (2025). "Fair Allocation of Interstate Rates Act". Source: Voter's Right Platform. https://votersright.org/bills/119-s-3287