[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9655 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 9655
To amend the Public Utility Regulatory Policies Act of 1978 to add a
standard prohibiting the recovery of costs associated with data centers
by certain electric utilities, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 13, 2026
Mr. Riley of New York (for himself and Mr. Van Drew) introduced the
following bill; which was referred to the Committee on Energy and
Commerce
_______________________________________________________________________
A BILL
To amend the Public Utility Regulatory Policies Act of 1978 to add a
standard prohibiting the recovery of costs associated with data centers
by certain electric utilities, 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 ``Fair Allocation of Infrastructure
Responsibility for Data Act'' or the ``FAIR Data Act''.
SEC. 2. PURPA STANDARD FOR RECOVERY OF COSTS ASSOCIATED WITH COVERED
DATA CENTERS.
(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) Costs associated with covered data centers.--
``(A) Cost recovery relating to covered data
centers.--No covered utility may recover from
residential or small business electric consumers,
including through rates charged by such covered utility
for providing electric service, any costs of the
covered utility associated with covered data centers,
including any costs associated with any upgrade made to
the generation, transmission, or distribution
facilities of the electric grid in order to meet the
demand for electric energy from covered data centers.
``(B) Definitions.--In this paragraph:
``(i) Covered utility.--The term `covered
utility' means a State regulated electric
utility that is investor owned.
``(ii) Covered data center.--The term
`covered data center' means a facility, or an
aggregation of facilities at a single site,
with respect to which the peak demand of such
facility or such aggregation of facilities
exceeds 75 megawatts, that primarily contain
electronic equipment used to process, store,
transmit, or host digital information and the
electrical, mechanical, and environmental
control equipment to maintain the proper
conditions for the operation of electronic
equipment.''.
(b) Conforming Amendments.--
(1) Consideration and determination.--Section 111(a) of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2621(a)) is amended by striking ``Each State'' and inserting
``Except as otherwise provided in this section, each State''.
(2) Obligations to consider and determine.--Section 112 of
the Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622) is amended--
(A) in subsection (b), by adding at the end the
following:
``(9)(A) Not later than 6 months after the date of
enactment of this paragraph, each State regulatory authority
(with respect to each covered utility (as defined in paragraph
(22) of section 111(d)) for which the State has ratemaking
authority) shall commence consideration under section 111, or
set a hearing date for consideration, with respect to the
standard established by such paragraph (22) of section 111(d).
``(B) Not later than 1 year after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each covered utility (as defined in paragraph (22) of
section 111(d)) for which the State has ratemaking authority)
shall complete the consideration and make the determination
under section 111 with respect to the standard established by
such paragraph (22) of section 111(d).'';
(B) in subsection (c)--
(i) by striking ``subsection (b)(2)'' and
inserting ``subsection (b)''; and
(ii) by inserting ``Each State regulatory
authority (with respect to each covered utility
(as defined in paragraph (22) of section
111(d)) for which it has ratemaking authority)
shall undertake the consideration, and make the
determination, referred to in section 111 with
respect to the standard established by
paragraph (22) of section 111(d) in the first
rate proceeding commenced after the date three
years after the date of enactment of this
sentence respecting the rates of such covered
utility if such State regulatory authority has
not, before such date, complied with subsection
(b) with respect to such standard.'' after
``paragraph (21).''; and
(C) by adding at the end the following:
``(i) Other 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 a covered utility (as defined in paragraph (22) of
section 111(d)) in a State if, before the date of enactment of this
subsection--
``(1) the State has implemented for the covered utility the
standard (or a comparable standard);
``(2) the State regulatory authority for the State has
conducted a proceeding to consider implementation of the
standard (or a comparable standard) for the covered utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the covered
utility during the 3-year period ending on that date of
enactment.''.
(3) Prior and pending proceedings.--Section 124 of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634)
is amended by inserting ``For purposes of subtitle A and B, and
this subtitle, proceedings commenced by State regulatory
authorities (with respect to covered utilities (as defined in
paragraph (22) of section 111(d)) for which it has ratemaking
authority) before the date of the enactment of this sentence
and actions taken before such date in such proceedings shall be
treated as complying with the requirements of subtitles A and
B, and this subtitle, if such proceedings and actions
substantially conform to such requirements. For purposes of
subtitles A and B, and this subtitle, any such proceeding or
action commenced before the date of enactment of this sentence,
but not completed before such date, shall comply with the
requirements of subtitles A and B, and this subtitle, to the
maximum extent practicable, with respect to so much of such
proceeding or action as takes place after such date, except as
otherwise provided in section 121(c).'' after ``paragraph
(21).''.
SEC. 3. CONDITIONS ON DOE FUNDING AND FERC ANNUAL REPORT.
(a) Funding Conditions.--Notwithstanding any other provision of
law, a State regulatory authority may not receive funds provided by the
Secretary for administrative or technical assistance unless the State
regulatory authority submits to the Secretary, with respect to that
fiscal year, a certification that--
(1) costs associated with covered data centers, including
costs for any upgrade made to the generation, transmission, or
distribution facilities of the electric grid in order to meet
the demand for electric energy from covered data centers, will
not be recovered through increased rates for residential or
small business electric consumers; and
(2) the State regulatory authority has required each owner
or operator of a covered data center that claimed in its permit
applications or other statements regarding construction and
operation of the covered data center that the operation of the
covered data center would decrease utility bills of residential
and small business electric consumers in the applicable
community to provide such State regulatory authority an annual
report on the actual cost savings for residential and small
business electric consumers in the applicable community.
(b) Report.--Not later than September 30 of the fiscal year in
which this Act is enacted, and every September 30 thereafter, the
Federal Energy Regulatory Commission shall submit to Congress a report
on the impact of covered data center demands on residential and small
business electricity rates and grid reliability.
(c) Definitions.--In this section:
(1) Electric consumer.--The term ``electric consumer'' has
the meaning given such term in section 3 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2602).
(2) Covered data center.--The term ``covered data center''
means a facility, or an aggregation of facilities at a single
site, with respect to which the peak demand of such facility or
such aggregation of facilities exceeds 75 megawatts, that
primarily contain electronic equipment used to process, store,
transmit, or host digital information and the electrical,
mechanical, and environmental control equipment to maintain the
proper conditions for the operation of electronic equipment.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(4) State regulatory authority.--The term ``State
regulatory authority'' has the meaning given such term in
section 3 of the Public Utility Regulatory Policies Act of 1978
(16 U.S.C. 2602).
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