Power for the People Act of 2026

[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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