No official summary available for this bill.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3682 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3682
To promote the creation of data center load queues and data center-
specific rate classes to mitigate the impact of data centers on other
electricity consumers, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 15, 2026
Mr. Van Hollen (for himself, Mr. Durbin, Mr. Blumenthal, Mr. Booker,
Ms. Duckworth, Ms. Smith, Mr. Welch, and Ms. Alsobrooks) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
A BILL
To promote the creation of data center load queues and data center-
specific rate classes to mitigate the impact of data centers on other
electricity consumers, 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 ``Power for the People Act of 2026''.
SEC. 2. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) because of current energy policies and electricity
market structures, households and businesses are subsidizing
data center development, paying the way for data centers
through rising energy bills;
(2) recent analysis indicates that data centers are set to
more than double their electricity consumption, accounting for
6.7 percent to 12 percent of all energy demand by 2028, which
is causing electricity prices to increase for ratepayers;
(3) ratepayers should not be forced to take on the
financial risks and costs of new infrastructure investments
needed to support projected data center energy demands;
(4) data center owners and operators should be held
accountable for the increased energy costs that data centers
are causing;
(5)(A) the uniquely large size, rapidly increasing pace,
and uncertain nature of projected energy demand from data
centers are impacting both grid reliability and the
affordability of electricity;
(B) energy demand from data centers is also significantly
impacting interstate commerce by putting a strain on the
electric grid and causing reliability issues and energy costs
to rise across State lines; and
(C) therefore, increased Federal oversight is necessary to
ensure that the interconnection of data centers to the electric
grid does not create reliability or affordability risks;
(6) data centers directly affect the transmission system
and can increase transmission costs, regardless of whether they
are connected directly to transmission facilities;
(7) any policy solutions seeking to hold data center owners
and operators accountable as described in paragraph (4) should
also seek to minimize the climate and environmental impacts of
data center development while creating good-paying jobs;
(8) the Commission has authority, pursuant to the mandates
to ensure just and reasonable and not unduly discriminatory
rates (as established under sections 205 and 206 of the Federal
Power Act (16 U.S.C. 824d, 824e) (including the standards
developed under those sections)) and grid reliability (as
established under section 215 of that Act (16 U.S.C. 824o)
(including the standards developed under that section)), to
require grid operators to create ``load queues'' for data
centers that incentivize certain practices, including payment
for required system upgrades and voluntary load flexibility;
(9) grid operators, as part of their mandate to provide
reliable transmission service, have the authority to create
load queues specific to data centers that delay or deny
interconnection in order to ensure reliability, and it is not
``unduly discriminatory'' to do so under the Federal Power Act
(16 U.S.C. 791a et seq.) because data centers, as a single
customer class, constitute enough new load to overwhelm the
electric grid if their interconnection to the electric grid is
left unchecked; and
(10)(A) some States are implementing processes to create
rate classes specific to data centers, which are necessary to
protect ratepayers from unfair costs and unnecessary risk,
given the uncertain nature of data center energy demand
projections and the high costs associated with the energy
demands of data centers; and
(B) rate classes specific to data centers should be adopted
more broadly across all States to help ensure that, across the
United States, energy system cost increases caused by data
centers are paid for by data center owners and operators.
SEC. 3. DEFINITIONS.
In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Covered interconnection entity.--The term ``covered
interconnection entity'' means--
(A) an Independent System Operator (as defined in
section 3 of the Federal Power Act (16 U.S.C. 796));
(B) a Regional Transmission Organization (as
defined in that section); and
(C) a transmitting utility (as defined in that
section) that is responsible for managing data center
load interconnection requests (or the appropriate
regional grid planning entity for the transmitting
utility (as determined by the Commission)).
(3) Data center.--The term ``data center'' means any
facility, or group of facilities with the same owner located in
the same utility area, that--
(A) primarily contains electronic equipment used to
host information and information systems accessed by
other systems or by users on other devices both in and
outside of the State in which the facility or group of
facilities is located;
(B) may be--
(i) a free-standing structure; or
(ii) a facility that--
(I) is within a larger structure;
and
(II) uses environmental control
equipment to maintain the proper
conditions for the operation of
electronic equipment;
(C) has an energy demand greater than 50 megawatts;
(D) meets such other criteria as the Commission
determines to be appropriate for purposes of this Act,
including anticircumvention provisions; and
(E) is not owned by the Federal Government.
(4) Data center load queue.--The term ``data center load
queue'' means a load queue that--
(A) relates specifically to data center load
interconnection requests; or
(B) relates to requests made by distribution
utilities or load-serving entities (as those terms are
defined in section 217(a) of the Federal Power Act (16
U.S.C. 824q(a))) to study impacts on the transmission
system caused by the interconnection of data centers.
(5) Data center owner or operator.--The term ``data center
owner or operator'' means any person, including a corporation,
that owns, builds, or operates a data center.
(6) Facility used to mine cryptocurrency.--The term
``facility used to mine cryptocurrency'' means any facility, or
group of facilities with the same owner located in the same
utility area, that--
(A) is used to mine or create cryptocurrencies or
other blockchain-based digital assets;
(B) may be--
(i) a free-standing structure; or
(ii) a facility that--
(I) is within a larger structure;
and
(II) uses environmental control
equipment to maintain the proper
conditions for the operation of
electronic equipment; and
(C) meets such other criteria, such as a minimum
peak electricity demand, as the Commission determines
to be appropriate for purposes of this Act.
(7) Labor organization.--The term ``labor organization''
means a labor organization (as defined in section 2 of the
National Labor Relations Act (29 U.S.C. 152)) of which building
and construction employees are members.
(8) Labor peace agreement.--The term ``labor peace
agreement'' means a written agreement between an employer and a
labor organization through which the employer guarantees that--
(A) the employer will be neutral regarding any of
the employees of the employer seeking to be represented
by the labor organization; and
(B) if employees seek to be represented by a labor
organization, the employer shall recognize the labor
organization as the exclusive bargaining representative
on a showing that a majority of the employees choose to
be represented by the labor organization.
(9) Load growth.--The term ``load growth'' means increasing
demand for electricity.
(10) Load interconnection request.--The term ``load
interconnection request'' means the request of a data center
owner or operator to connect, or study the feasibility of
connecting, a data center to the electric grid, whether at the
transmission or distribution level.
(11) Organic load growth.--
(A) In general.--The term ``organic load growth''
means load growth that is attributable to increases in
demand associated with economic or population growth,
including with respect to hospitals, educational
institutions, advanced manufacturing facilities,
residential homes, electric vehicles, and other
facilities, as determined by the Commission.
(B) Exclusion.--The term ``organic load growth''
does not include load growth that is attributable to--
(i) data centers; or
(ii) facilities used to mine
cryptocurrency.
(12) Project labor agreement.--The term ``project labor
agreement'' means a pre-hire collective bargaining agreement
with 2 or more labor organizations that--
(A) establishes the terms and conditions of
employment for a specific construction project; and
(B) is an agreement described in subsections (e)
and (f) of section 8 of the National Labor Relations
Act (29 U.S.C. 158).
(13) Qualifying battery energy storage system.--The term
``qualifying battery energy storage system'' means a utility-
scale battery energy storage system that is connected to the
electric grid and paid for by a data center owner or operator,
including through a power purchase agreement or other bilateral
contract, regardless of whether the battery energy storage
system is onsite or offsite with respect to the data center.
(14) Qualifying load flexibility agreement.--The term
``qualifying load flexibility agreement'' means an agreement
between a covered interconnection entity and 1 or more data
center owners or operators--
(A) that--
(i) is implemented by the covered
interconnection entity; and
(ii) complies with the minimum standards
and guidelines established by the Commission
under section 4(c); and
(B) pursuant to which--
(i) data centers may be interrupted by the
covered interconnection entity; and
(ii) to the extent that the covered
interconnection entity determines that load
shedding, curtailments, or other grid
protection is needed, data center service
interruptions shall occur--
(I) before service interruptions
for other grid users; and
(II) before emergency conditions
occur, as defined in the emergency
procedures established by the
interconnection entity.
(15) Registered apprenticeship program.--The term
``registered apprenticeship program'' means an apprenticeship
program registered under the Act of August 16, 1937 (commonly
known as the ``National Apprenticeship Act'') (50 Stat. 664,
chapter 663; 29 U.S.C. 50 et seq.), that meets the standards of
parts 29 and 30 of title 29, Code of Federal Regulations (as in
effect on the date of enactment of this Act).
(16) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 4. DATA CENTER LOAD QUEUES.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Commission shall issue a rule requiring all
covered interconnection entities to create, for the purpose of
addressing reliability and affordability concerns from new data center
loads, regardless of whether those loads are connecting directly to the
transmission system or through a distribution utility, a data center
load queue system--
(1) that gives priority for interconnection to data centers
(including data center owners and operators) that, by
implementing each of the strategies described in subsection
(b), offset their electricity demand on the electric grid,
reducing costs for all ratepayers, while also mitigating local
air and noise pollution and providing good-paying job
opportunities; and
(2) pursuant to which data centers are connected to the
electric grid in a manner that does not interfere with serving
organic load growth, which may include delaying or denying
interconnection for a data center if the applicable covered
interconnection entity determines that such interconnection is
likely to adversely affect--
(A) the reliability or resource adequacy of the
electric grid; or
(B) the affordability of electricity or electric
capacity for users of the electric grid that are not
data centers.
(b) Strategies Described.--The strategies referred to in subsection
(a)(1) are the following:
(1) Bringing new, additional supply resources to the
electric grid that--
(A) are designated for the service of, and paid for
by, the data center owner or operator, including
through a power purchase agreement or another bilateral
contract;
(B) are deliverable to the location where the new
data center is interconnecting;
(C) are maintained for the lifetime of the data
center;
(D) have at least enough capacity--
(i) to fully serve the new data center; or
(ii) to serve that portion of the capacity
need of the new data center that is not offset
by 1 or more qualifying battery energy storage
systems, virtual power plants, or qualifying
load flexibility agreements;
(E) have a generation output that--
(i) is substantially similar to the
temporal load profile of the data center during
peak demand; or
(ii) is sufficient to fill any gaps in the
temporal load profile of the data center during
peak demand that are not offset by 1 or more
qualifying battery energy storage systems,
virtual power plants, or qualifying load
flexibility agreements; and
(F) are low- or no-carbon forms of generation.
(2) Incorporating low- or no-carbon backup generation,
which excludes diesel generation and may include behind-the-
meter battery energy storage systems.
(3) Ensuring that, in the construction of the data center
and any new energy supply resource that the data center brings
to the electric grid pursuant to paragraphs (1) and (2)--
(A) all laborers and mechanics employed by the data
center owner or operator and contractors and
subcontractors of the data center owner or operator, in
the performance of construction, shall be paid wages at
rates not less than those prevailing on projects of a
character similar in the locality in which the
construction project is located, as most recently
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States
Code; and
(B) all contractors and subcontractors of the data
center owner or operator use registered apprentices
participating in registered apprenticeship programs.
(4) Ensuring that the operator of any new energy supply
resource that the data center brings to the electric grid
pursuant to paragraphs (1) and (2) agrees that the operator
will use a labor peace agreement for the operation and
maintenance of the energy supply resource.
(c) Qualifying Load Flexibility Agreements.--
(1) In general.--The Commission shall establish minimum
standards and guidelines for qualifying load flexibility
agreements.
(2) Requirements.--The standards and guidelines established
under paragraph (1) shall--
(A) reduce costs for ratepayers by minimizing the
need for the build out of new generation and
transmission; and
(B) ensure that qualifying load flexibility
agreements can be effectively implemented by the
covered interconnection entity.
(d) Priority.--For purposes of priority in a data center load queue
under subsection (a)(1), with respect to forms of generation described
in paragraphs (1)(F) and (2) of subsection (b), priority shall be
determined using a sliding scale pursuant to which additional priority
is given for forms of generation having lower carbon intensity, such
that the lower the carbon intensity of the applicable form of
generation, the higher the priority given to the applicable data center
in the data center load queue.
(e) Effect of Certain Agreements.--
(1) Contractor or subcontractor.--Any individual contractor
or subcontractor of the data center owner or operator that is a
signatory to a pre-hire collective bargaining agreement
described in subsections (e) and (f) of section 8 of the
National Labor Relations Act (29 U.S.C. 158) that covers
construction work on the data center and any new energy supply
resource that the data center brings to the electric grid shall
be deemed to be in compliance with subsection (b)(3).
(2) Project labor agreement.--If a project labor agreement
is used to construct a data center and any new energy supply
resource that the data center brings to the electric grid, the
data center (including the data center owner and operator)
shall be deemed to be in compliance with the requirements of
subsection (b)(3).
(f) Labor Standards.--With respect to the labor standards specified
in subsection (b)(3)(A), the Secretary of Labor shall have the
authority and functions set forth in Reorganization Plan Numbered 14 of
1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40,
United States Code.
(g) Deadline for Compliance.--The Commission shall ensure
compliance with the rule issued under subsection (a) by the date that
is 1 year after the date on which the rule is issued.
(h) Prohibition.--On and after the effective date of the final rule
issued under subsection (a), a data center that is not already
interconnected with the electric grid may not interconnect with the
electric grid unless the data center has fully advanced through the
applicable data center load queue system created under that subsection.
SEC. 5. LOCAL TRANSMISSION COST ALLOCATION.
Not later than 120 days after the date of enactment of this Act,
the Commission shall direct each public utility (as defined in section
201(e) of the Federal Power Act (16 U.S.C. 824(e))) to file 1 or more
tariff amendments pursuant to section 205 of that Act (16 U.S.C. 824d)
that--
(1) allocate to each interconnecting data center local
transmission upgrade costs that, but for the existence of the
data center, would not be needed; and
(2) require data centers to pay transmission rates
applicable to their rate class that reflect the embedded cost
of the integrated grid, not including those local transmission
upgrade costs that are required to be allocated to specific
data centers under paragraph (1).
SEC. 6. DATA CENTER-SPECIFIC RATE CLASSES.
(a) In General.--Section 111(d) of the Public Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the
end the following:
``(22) Data centers.--
``(A) Definitions.--In this paragraph, the terms
`data center', `data center owner or operator', and
`load interconnection request' have the meanings given
those terms in section 3 of the Power for the People
Act of 2026.
``(B) Standard.--Each State in which at least 1
data center is located or has been proposed via load
interconnection request, legal filing, or public
announcement shall consider--
``(i) establishing a rate class specific to
data centers to ensure that data center owners
and operators are covering the full cost of the
generation, transmission, and distribution
upgrades necessary to serve data centers; and
``(ii) including as requirements for the
data center rate class, in addition to any
other potential requirements the State chooses
to examine--
``(I) minimum demand charges for
data center owners and operators based
on requested peak electricity demand if
the monthly usage of a data center is
less than its requested demand to
ensure that ratepayers are not paying
increased costs for generation and
transmission built to serve data
centers;
``(II) an extension of minimum
utility contract lengths for data
center customers to ensure that data
center load does not leave utilities
and ratepayers with stranded costs;
``(III) an increase in up-front
interconnection study costs, deposit
amounts, or collateral requirements for
data center projects to ensure that the
interconnection queue is not slowed
down by projects that are unlikely to
come to fruition;
``(IV) permissible `load ramp'
periods for data centers that allow
data center customers to start service
with a lower-than-requested capacity
and gradually increase their power
demand over a period of multiple years
to reach their full requested capacity,
subject to the condition that flexible
load interconnection pursuant to this
subclause does not undermine grid
reliability;
``(V) a `clean transition tariff'
that allows data center customers to
financially support novel zero-
emissions energy technologies to meet
their electricity demand in cooperation
with intermediaries, such as a utility
company; and
``(VI) the use of contribution in
aid of construction (commonly referred
to as `CIAC') as a tool to have the
data center customer pay upfront for
the utility investment determined to be
the responsibility of that data
center.''.
(b) Compliance.--
(1) Time limitation.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is
amended--
(A) in paragraph (8), by indenting subparagraph (B)
appropriately; and
(B) by adding at the end the following:
``(9)(A) Not later than 1 year after the date of enactment
of this paragraph, each State regulatory authority (with
respect to each electric utility for which the State has
ratemaking authority) and each nonregulated electric utility
shall commence consideration under section 111, or set a
hearing date for consideration, with respect to the standard
established by paragraph (22) of section 111(d).
``(B) Not later than 2 years after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which the State has ratemaking
authority), and each nonregulated electric utility shall
complete the consideration and make the determination under
section 111 with respect to the standard established by
paragraph (22) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding at the end the following: ``In the case of
the standard established by paragraph (22) of section 111(d),
the reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to the
date of enactment of that paragraph (22).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is
amended--
(i) in subsection (h), in the subsection
heading, by striking ``Other''; and
(ii) by adding at the end the following:
``(i) Prior State Actions.--Subsections (b) and (c) shall not apply
to the standard established by paragraph (22) of section 111(d) in the
case of any electric utility in a State if, before the date of
enactment of this subsection--
``(1) the State has implemented the standard (or a
comparable standard) for the electric utility;
``(2) the State regulatory authority for the State or the
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard (or a
comparable standard) for the electric utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the electric
utility.''.
(B) Cross reference.--Section 124 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2634) is amended by adding at the end the following:
``In the case of the standard established by paragraph
(22) of section 111(d), the reference contained in this
section to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of
that paragraph (22).''.
SEC. 7. CREATION OF APPROPRIATE RATE CLASSES.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a program to
provide grants and technical assistance to State regulatory authorities
(as defined in section 3 of the Public Utility Regulatory Policies Act
of 1978 (16 U.S.C. 2602)) and nonregulated electric utilities (as
defined in that section) considering the standard established by
paragraph (22) of section 111(d) of that Act (16 U.S.C. 2621(d)) to
assist in the creation of appropriate rate classes to ensure that costs
relating to the energy demands of data centers, including costs of
generation, transmission, and distribution network upgrades, are not
borne or subsidized by customers that are not data centers.
(b) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out this section.
SEC. 8. LOAD AND INTERCONNECTION FORECASTING.
(a) Technical Assistance.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall establish a program
to provide technical assistance to support the forecasting by
covered interconnection entities of long-term load projections,
particularly with respect to improving forecasting associated
with data center load interconnection requests.
(2) Authorization of appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
subsection.
(b) Transparency and Disclosure.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, to improve the forecasting of
electricity demand and data center load interconnection
requests by covered interconnection entities across the United
States, the Commission shall establish transparency and
disclosure requirements for data center load interconnection
requests, including load interconnection requests occurring at
the transmission level and load interconnection requests
occurring at the distribution level.
(2) Requirement.--The requirements established under
paragraph (1) shall seek to reduce duplicative, speculative,
and other requests that impede accurate forecasting, including
by imposing new transparency and information-sharing
requirements for utilities and covered interconnection entities
to implement with respect to data center load interconnection
requests, as the Commission determines to be appropriate.
<all>
Introduced in Senate
Read twice and referred to the Committee on Energy and Natural Resources.
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