H.R. 8241

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8241 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8241

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 HOUSE OF REPRESENTATIVES

April 9, 2026

Mr. Tonko (for himself, Ms. Castor of Florida, Mr. Cohen, Ms. Elfreth, 
Ms. Dexter, Mrs. Foushee, Mr. Garamendi, Mr. Goldman of New York, Mr. 
Lynch, Ms. Norton, Mr. Ivey, Mrs. McClain Delaney, Ms. McClellan, Mr. 
Mfume, Mr. Olszewski, Ms. Schakowsky, and Mr. Quigley) introduced the 
following bill; which was referred to the Committee on Energy and 
Commerce

_______________________________________________________________________

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 union 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 union; and
(B) if employees seek to be represented by a labor 
union, the employer shall recognize the labor union 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.
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