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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3585 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3585
To amend the Federal Power Act to exempt consumer-regulated electric
utilities from Federal regulation, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 7, 2026
Mr. Cotton introduced the following bill; which was read twice and
referred to the Committee on Energy and Natural Resources
_______________________________________________________________________
A BILL
To amend the Federal Power Act to exempt consumer-regulated electric
utilities from Federal regulation, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Decentralized Access to Technology
Alternatives Act of 2026'' or the ``DATA Act of 2026''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Bulk-power system.--The term ``bulk-power system'' has
the meaning given the term in section 215(a) of the Federal
Power Act (16 U.S.C. 824o(a)).
(2) Consumer-regulated electric utility; creu.--The term
``consumer-regulated electric utility'' or ``CREU'' means an
electric generation and supply system that--
(A) is established--
(i) after the date of enactment of this
Act; and
(ii) exclusively for the purpose of serving
new electric loads that were not previously
served by any retail electricity supplier;
(B) may own, construct, and operate facilities
necessary for generation, energy storage, transmission,
distribution, and the retail supply of electricity;
(C) may sell electricity at retail to eligible CREU
customers, subject to the condition that the system is
physically islanded from--
(i) all regulated utilities;
(ii) the bulk-power system; and
(iii) the Bulk Electric System (as defined
by the Electric Reliability Organization);
(D) engages in any combination of--
(i) generating electricity;
(ii) transmitting electricity;
(iii) distributing electricity; or
(iv) selling electricity at retail to
consumers;
(E) is not connected to the bulk-power system or
any other electric transmission or distribution system
for primary or backup supply; and
(F) operates independently of any public utility.
(3) Electric reliability organization.--The term ``Electric
Reliability Organization'' has the meaning given the term in
section 215(a) of the Federal Power Act (16 U.S.C. 824o(a)).
(4) Eligible creu customer.--The term ``eligible CREU
customer'' means any entity that--
(A) purchases electricity at retail from a
consumer-regulated electric utility;
(B) receives electric service exclusively through
facilities owned, constructed, or operated by consumer-
regulated electric utilities; and
(C) is located within premises that are physically
islanded from--
(i) all regulated utilities;
(ii) the bulk-power system; and
(iii) the Bulk Electric System (as defined
by the Electric Reliability Organization).
(5) Reliability standard.--The term ``reliability
standard'' has the meaning given the term in section 215(a) of
the Federal Power Act (16 U.S.C. 824o(a)).
SEC. 3. FEDERAL POWER ACT EXEMPTION.
A consumer-regulated electric utility--
(1) shall be exempt from regulation under the Federal Power
Act (16 U.S.C. 791a et seq.), including with respect to--
(A) rate regulation;
(B) corporate or financial oversight;
(C) transmission or distribution regulation;
(D) reliability standards under section 215 of that
Act (16 U.S.C. 824o);
(E) interconnection requirements;
(F) participation in regional transmission planning
or cost allocation; and
(G) merger, consolidation, acquisition, or
disposition approval under section 203 of that Act (16
U.S.C. 824b);
(2) shall not be considered to be a public utility for
purposes of that Act;
(3) shall not be considered to be a part of--
(A) the bulk-power system; or
(B) the Bulk Electric System (as defined by the
Electric Reliability Organization); and
(4) shall not be required to register with the Electric
Reliability Organization or comply with reliability standards,
unless the consumer-regulated electric utility voluntarily
elects to connect to the bulk-power system.
SEC. 4. EXEMPTION OF NEW CREUS FROM FERC AND DOE REGULATION.
(a) In General.--Notwithstanding any other provision of law, a
consumer-regulated electric utility that begins operations on or after
the date of enactment of this Act shall be exempt from Federal
regulation with respect to matters under the jurisdiction of the
Federal Energy Regulatory Commission or the Secretary of Energy,
including--
(1) all reliability standards; and
(2) all other standards, rules, regulations, or other
requirements established, administered, or enforced under--
(A) section 215 of the Federal Power Act (16 U.S.C.
824o);
(B) any other provision of that Act; or
(C) any other provision of Federal law (including
regulations).
(b) Beginning of Operations.--For purposes of subsection (a), the
date on which a consumer-regulated electric utility begins operations
is the date on which the consumer-regulated electric utility first
generates, transmits, distributes, or sells electricity.
(c) Termination of Exemption.--If a consumer-regulated electric
utility elects to connect to any portion of the bulk-power system or
any other electric transmission or distribution system for primary or
backup supply, the consumer-regulated electric utility shall,
immediately on making that connection--
(1) cease being a consumer-regulated electric utility; and
(2) become subject to all Federal regulation applicable to
the consumer-regulated electric utility from which the
consumer-regulated electric utility was exempt under subsection
(a).
SEC. 5. PURPA EXEMPTION.
Section 210 of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 824a-3) is amended by adding at the end the following:
``(o) Consumer-Regulated Electric Utilities.--
``(1) In general.--Nothing in this section applies to a
consumer-regulated electric utility (as defined in section 2 of
the DATA Act of 2026).
``(2) Exemption.--A consumer-regulated electric utility (as
defined in section 2 of the DATA Act of 2026) shall not be
required to interconnect with, purchase from, or sell to an
electric utility under this section.''.
SEC. 6. PUHCA EXEMPTION.
Section 1268 of the Public Utility Holding Company Act of 2005 (42
U.S.C. 16456) is amended--
(1) in the matter preceding paragraph (1), by striking
``Except'' and inserting the following:
``(a) In General.--Except''; and
(2) by adding at the end the following:
``(b) Consumer-Regulated Electric Utilities.--No provision of this
subtitle shall apply to any holding company solely by reason of its
ownership or control of a consumer-regulated electric utility (as
defined in section 2 of the DATA Act of 2026).''.
SEC. 7. FACILITIES LOCATED WITHIN PUBLIC RIGHTS-OF-WAY.
(a) In General.--A consumer-regulated electric utility may
construct and operate facilities within existing public rights-of-way,
subject to the same permitting, restoration, and public-safety
requirements applicable to a public utility (as defined in section
201(e) of the Federal Power Act (16 U.S.C. 824(e))).
(b) Limitation.--Notwithstanding subsection (a), the review of an
application for the construction or operation of a facility within an
existing public right-of-way by a consumer-regulated electric utility
shall be confined exclusively to the adequacy of--
(1) right-of-way restoration; and
(2) storm-response planning.
<all>
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
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