S. 3287 — Fair Allocation of Interstate Rates Act

This section establishes in the Federal Power Act (16 U.S.C. 824d) a prohibition on transmission providers serving consumers in two or more states from allocating costs of a covered transmission facility—defined as any interstate transmission facility planned, constructed, or operated in whole or in part to implement a covered policy of a state (including local entities)—to out-of-state consumers whose state policy served as the basis for the facility, absent express consent from that consumer's state or designated public official. It creates presumptions that benefits of such facilities accrue solely to cost causers (i.e., residents of the policy state) and directs the Federal Energy Regulatory Commission to issue implementing regulations within 180 days of enactment.