Section 1 Short title
This Act may be cited as the “No Utility Junk Fees Act”.
No Utility Junk Fees Act
A BILL
To condition the granting of State energy program financial assistance on compliance with rules banning spurious charges by regulated electric utilities, and for other purposes.
Sec. 2 Findings
Congress finds the following:
Regulated electric utilities hold special privileges and obligations to serve the public interest, including keeping energy bills reasonable and affordable for residential consumers.
Spurious charges by regulated electric utilities constitute an unjustified extraction of money from residential consumers beyond the legitimate costs of electricity delivery, contradicting utilities’ fundamental obligation as stewards of public infrastructure.
Payment convenience fees and other junk fees directly increase the total cost of energy for residential consumers, making electricity less affordable and undermining efforts to expand access to reliable energy.
Many regulated electric utilities impose fees on payment channels that cost them little to nothing to process, extracting pure profit under the guise of cost recovery.
Conditioning the granting of State energy program financial assistance on the elimination of spurious charges is a reasonable exercise of the spending power of Congress to ensure Federal energy efficiency investments benefit residential consumers rather than subsidize utility fee extraction.
Sec. 3 Definitions
In this Act:
Cost of acceptance— The term cost of acceptance—
means the direct, documented cost incurred by a regulated electric utility, or its third-party service provider, for processing a payment through a payment channel, including costs incurred from interchange fees, gateway or processor fees, payment fraud prevention charges, and labor costs directly attributable to processing the payment though the payment channel; and
does not include general overhead, profit margins, or operational costs incurred by the regulated electric utility, or its third-party service provider, that are not directly tied to payment processing.
Payment channel— The term payment channel means any mechanism by which a residential consumer may make a payment for electric energy consumed by the residential consumer and includes the mail, the telephone, the internet, automated clearing houses, and in-person services provided at an office or kiosk.
Regulated electric utility— The term regulated electric utility has the meaning given the term State regulated electric utility in section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).
Residential consumer— The term residential consumer means any individual that purchases electric energy for personal, family, or household purposes.
Secretary— The term Secretary means the Secretary of Energy.
Spurious charge— The term spurious charge means any charge imposed by a regulated electric utility, or its third-party service provider, on a residential consumer as a condition of accepting a payment for electric energy made using a payment channel that—
exceeds the greater of—
the amount equal to 150 percent of the regulated electric utility’s documented cost of acceptance; or
$3.00;
is imposed on a residential consumer who used a payment channel though which the regulated electric utility incurred no documented cost of acceptance, including in-person payments at utility offices, automatic recurring payments, direct automated clearing house transfers, and mail payments; or
is imposed without affirmative, prior, and clear disclosure of—
the amount of the charge;
the reason for the charge;
the total amount due, including the charge and any other amount due; and
information about a payment channel that could be used by the residential consumer that does not include the charge.
State— The term State has the meaning given such term in section 3 of the Energy Policy and Conservation Act (42 U.S.C. 6202).
State energy program financial assistance— The term State energy program financial assistance means the financial assistance granted to a State under section 363 of the Energy Policy and Conservation Act (42 U.S.C. 6323).
Sec. 4 Condition on granting State energy program financial assistance
In general— Notwithstanding part D of the Energy Policy and Conservation Act (42 U.S.C. 6321 et seq.), beginning with the first full fiscal year following the date of enactment of this section, the Secretary shall withhold 10 percent of the amount of State energy program financial assistance to be granted to a State in a fiscal year unless the Secretary determines the State—
prohibits electric utilities regulated by the State from imposing spurious charges on residential consumers;
requires electric utilities regulated by the State to, when billing a residential consumer for the electric energy consumed by the residential consumer, disclose to such consumer—
the amount of any charge applied that reflects a cost associated with processing the payment submitted by the residential consumer;
the reason for any such charge;
information about a payment channel that could be used by the residential consumer to pay the bill that would not incur such charge; and
the total amount due, including any such charge and any other amount due;
requires electric utilities regulated by the State to makes available to residential consumers at least one fee-free payment channel that is accessible without internet access;
prohibits electric utilities regulated by the State from imposing fees on automatic recurring payments and electronic fund transfers (as such term is defined in section 903 of the Electronic Fund Transfer Act (15 U.S.C. 1693a)) by residential consumers; and
enforces the prohibitions and requirements of paragraphs (1) through (4), including by investigating complaints, imposing penalties for noncompliance, and allowing residential consumers to seek recovery of unlawfully assessed fees.
Compliance—
Submission of documentation— Not later than 18 months after the date of enactment of this section, and annually thereafter, each State shall submit to the Secretary documentation that demonstrates the State’s compliance with subsection (a).
Determination of compliance— Not later than 60 days after receiving complete documentation submitted by a State under paragraph (1), the Secretary shall determine whether the State is in compliance with subsection (a).
Restoration— If the Secretary withholds from a State financial assistance under subsection (a), the Secretary shall grant to the State the withheld financial assistance in the following fiscal year if the State is in compliance for that fiscal year.
Cure period— If the Secretary determines a State does not comply with subsection (a) for a fiscal year, the State shall have 90 days to remedy the noncompliance before the Secretary withholds financial assistance from the State under subsection (a).
Methods of compliance— A State may comply with subsection (a) through any legally binding mechanism under State law, including legislation, administrative rulemaking, or binding orders of a State regulatory authority, provided such mechanism achieves the consumer protections required under such subsection.
Administration—
In general— For purposes of carrying out this section, the Secretary shall—
establish procedures for States to submit compliance documentation under subsection (b);
maintain a public database that identifies the status of each State’s compliance with subsection (a);
provide technical assistance to States to comply with subsection (a);
issue guidance interpreting this section;
establish a process to appeal a determination by the Secretary that a State does not comply with subsection (a); and
annually report to Congress on State compliance rates.
Deadline for initial regulations— The Secretary shall promulgate regulations to carry out this section not later than 9 months after the date of enactment of this section.