Condition on granting State energy program financial assistance

(a) 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— (1) prohibits electric utilities regulated by the State from imposing spurious charges on residential consumers; (2) 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— (A) the amount of any charge applied that reflects a cost associated with processing the payment submitted by the residential consumer; (B) the reason for any such charge; (C) information about a payment channel that could be used by the residential consumer to pay the bill that would not incur such charge; and (D) the total amount due, including any such charge and any other amount due; (3) 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; (4) 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 (5) 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. (b) Compliance (1) 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). (2) 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). (c) 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. (d) 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). (e) 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. (f) Administration (1) In general For purposes of carrying out this section, the Secretary shall— (A) establish procedures for States to submit compliance documentation under subsection (b); (B) maintain a public database that identifies the status of each State’s compliance with subsection (a); (C) provide technical assistance to States to comply with subsection (a); (D) issue guidance interpreting this section; (E) establish a process to appeal a determination by the Secretary that a State does not comply with subsection (a); and (F) annually report to Congress on State compliance rates. (2) 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.