S. 3852

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3852 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 3852

To impose certain requirements on data centers to ensure the 
prioritization of residential ratepayers, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

February 11, 2026

Mr. Hawley (for himself and Mr. Blumenthal) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
Natural Resources

_______________________________________________________________________

A BILL

To impose certain requirements on data centers to ensure the 
prioritization of residential ratepayers, 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 ``Guaranteeing Rate Insulation from 
Data Centers Act'' or the ``GRID Act''.

SEC. 2. FINDINGS.

Congress finds that the construction and operation of data centers 
and the power sources used to supply data centers with energy--
(1) are matters concerning interstate commerce, including 
the channels of interstate commerce, the instrumentalities of 
interstate commerce, and persons and things in interstate 
commerce; and
(2) constitute economic activities that have a substantial 
effect on interstate commerce.

SEC. 3. DEFINITIONS.

In this Act:
(1) Covered entity.--The term ``covered entity'' means a 
private company, or other private entity, that--
(A) owns, operates, or maintains a data center; or
(B) has plans to own, operate, or maintain a data 
center within the next 5 years.
(2) Data center.--The term ``data center'' means a data 
center (as defined in section 453(a) of the Energy Independence 
and Security Act of 2007 (42 U.S.C. 17112(a))) with a power 
demand of 20 megawatts or more that is not owned, operated, or 
maintained--
(A) by a covered agency (as defined in section 
834(a) of the Carl Levin and Howard P. ``Buck'' McKeon 
National Defense Authorization Act for Fiscal Year 2015 
(Public Law 113-291; 44 U.S.C. 3601 note)); or
(B) by a contractor on behalf of a covered agency 
(as so defined).
(3) Electric utility.--The term ``electric utility'' has 
the meaning given the term in section 3 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
(4) Existing data center.--The term ``existing data 
center'' means a data center that has already begun operations.
(5) New data center.--The term ``new data center'' means a 
data center or planned data center that is not yet operational.
(6) Rate effect credit.--The term ``Rate Effect Credit'' 
means a credit paid by a covered entity to an appropriate 
party, as determined by the Secretary, that offsets the effect 
that a data center would otherwise have on the electrical rates 
paid by ratepayers.
(7) Secretary.--The term ``Secretary'' means the Secretary 
of Energy.
(8) Utility.--The term ``utility'' includes, as the 
Secretary determines to be appropriate--
(A) an electric utility;
(B) a gas utility (as defined in section 302 of the 
Public Utility Regulatory Policies Act of 1978 (15 
U.S.C. 3202));
(C) a public water system (as defined in section 
1401 of the Safe Drinking Water Act (42 U.S.C. 300f));
(D) a treatment works (as defined in section 212 of 
the Federal Water Pollution Control Act (33 U.S.C. 
1292)); and
(E) any other regulated utility that provides 
water, energy, or other essential services to a data 
center.
(9) Zero rate effect certificate.--The term ``Zero Rate 
Effect Certificate'' means a certificate issued by the 
Secretary under section 4(b).

SEC. 4. DATA CENTER REQUIREMENT FOR OFF-GRID POWER SUPPLY.

(a) Prohibition.--
(1) In general.--Subject to paragraph (2), beginning on the 
date that is 180 days after the date of enactment of this Act, 
a covered entity may not build, own, operate, or maintain a 
data center unless the data center derives all of its energy, 
including back-up energy, from a captive power plant, on-site 
power generation, or some other source or combination of 
sources separate from, and not deriving power from, the 
electric grid.
(2) Existing data centers.--Until the date that is 10 years 
after the date of enactment of this Act, a covered entity that 
owns, operates, or maintains an existing data center that 
derives any of its energy from the electric grid as of the date 
described in paragraph (1) may comply with the prohibition 
under that paragraph by obtaining and maintaining an unexpired 
Zero Rate Effect Certificate.
(b) Zero Rate Effect Certificate.--
(1) In general.--For the 10-year period beginning on the 
date of enactment of this Act, a covered entity that owns, 
operates, or maintains an existing data center that derives any 
of its energy from the electric grid shall submit to the 
Secretary a request for the issuance of a Zero Rate Effect 
Certificate for that data center.
(2) Study required.--On receipt of a request for a Zero 
Rate Effect Certificate, the Secretary shall study and 
determine--
(A) how interconnection costs and other 
infrastructure costs needed to supply the data center 
with power from the electric grid are allocated;
(B) the contribution of the data center to 
coincident peak, including load factors, and any 
effects on capacity charges;
(C) the effects on the locational marginal price 
for--
(i) the local electric grid; and
(ii) the relevant region;
(D) any changes in value-cost ratios;
(E) any effects on the marginal cost of generation;
(F) any changes in line loss percentages caused by 
heavier loads on local distribution lines;
(G) any offsets in data center power infrastructure 
cost-sharing by ratepayers through Rate Effect Credits 
or other financial arrangements described in subsection 
(c); and
(H) any other metrics or information the Secretary 
determines relevant.
(3) Issuance of certificate.--
(A) In general.--If the Secretary determines, based 
on the study conducted under paragraph (2), that the 
relevant data center will not increase the electrical 
rates paid by ratepayers, the Secretary shall issue a 
Zero Rate Effect Certificate for the data center.
(B) Residential ratepayer prioritization.--In 
making a determination under subparagraph (A), the 
Secretary shall prioritize the electrical rates paid by 
residential ratepayers over all other ratepayer 
classes.
(4) Duration of certificate.--A Zero Rate Effect 
Certificate issued under paragraph (3) shall expire 1 year 
after the date of issuance.
(5) Reissuance.--A covered entity may apply for the 
reissuance of a Zero Rate Effect Certificate as necessary.
(c) Rate Effect Credits.--
(1) In general.--A covered entity may meet the requirements 
for the issuance of a Zero Rate Effect Certificate by paying 
Rate Effect Credits or through some other financial arrangement 
that, in the determination of the Secretary, would offset the 
effect on the electrical rates paid by ratepayers.
(2) Residential ratepayer prioritization.--In making a 
determination under paragraph (1), the Secretary shall 
prioritize the electrical rates paid by residential ratepayers 
over all other ratepayer classes.
(d) Legal Requirement.--Any power source, including a captive power 
plant, on-site generation, or other source described in subsection 
(a)(1), that is used to generate electricity for a data center shall 
comply with all applicable local, State, and Federal laws (including 
regulations) based on the actual use and emissions of the power source.
(e) Labor Requirement.--A covered entity seeking to construct any 
power source described in subsection (a)(1) shall enter into a project 
labor agreement (as defined in section 52.222-34(a) of title 48, Code 
of Federal Regulations (or a successor regulation)) for the 
construction of the power source.
(f) Enforcement.--Any person who violates subsection (a) shall be 
subject to a civil penalty of not less than $1,000,000 per day of the 
violation.
(g) Regulations.--
(1) In general.--The Secretary may promulgate such 
regulations as the Secretary determines to be necessary to 
implement this section.
(2) Residential ratepayer prioritization.--In promulgating 
regulations under paragraph (1), the Secretary shall prioritize 
the electrical rates paid by residential ratepayers over all 
other ratepayer classes.

SEC. 5. DATA CENTER REPORTING REQUIREMENTS.

(a) Utility Usage.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a national 
requirement for covered entities to provide to the public--
(1) for each new data center that is, or is planned to be, 
owned, operated, or maintained by the covered entity, estimates 
of the utility usage by the new data center for--
(A) the first year of planned operation of the new 
data center; and
(B) each of the next 5 years following that first 
year of planned operation; and
(2) for each existing data center that is, or is planned to 
be, owned, operated, or maintained by the covered entity--
(A) estimates of the utility usage by the existing 
data center for--
(i) the current year; and
(ii) each of the next 5 years; and
(B) information on the actual utility usage during 
each of the 5 most recent previous years during which 
the existing data center was operational.
(b) Real Property or Possessory Interests.--
(1) In general.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a national 
requirement for covered entities to publicly disclose any 
acquisition of real property or a possessory interest in real 
property (including a lease) with the intent to build or expand 
a data center.
(2) Requirement.--The disclosure under paragraph (1) shall 
include--
(A) any transaction or agreement relating to the 
acquisition described in that paragraph between--
(i) the covered entity; and
(ii) any party from which the real property 
or possessory interest is acquired;
(B) any related transaction or agreement between 
the covered entity and any government entity; and
(C) any related transaction or agreement between a 
party described in subparagraph (A)(ii) and any 
government entity.
(c) Agreements.--
(1) In general.--Not later than 90 days after the date of 
enactment of this Act, the Secretary shall establish a national 
requirement for--
(A) covered entities to publicly disclose any 
transaction or agreement with a utility regarding 
utility service for a data center, including any 
financial arrangement for a Rate Effect Credit; and
(B) utilities to publicly disclose any transaction 
or agreement with a covered entity or a data center 
regarding utility service for a data center, including 
any financial arrangement for a Rate Effect Credit.
(2) Requirement.--The disclosure under paragraph (1) shall 
include--
(A) a description of any subsidy, credit, discount, 
cost-sharing arrangement, tax benefit, or other 
incentive, financial or otherwise, that the utility, 
local government or municipality, or State government 
provides, or has agreed to provide, to the covered 
entity regarding utility service; and
(B) with respect to each subsidy, credit, discount, 
cost-sharing arrangement, tax benefit, or other 
incentive described in subparagraph (A)--
(i) an estimate of total savings for the 
covered entity; and
(ii) a statement of whether the covered 
entity is financially affiliated with the 
applicable utility.
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