[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3852 Introduced in Senate (IS)]
<DOC>
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.
<all>
GRID Act
#3852 | S Congress #119
Policy Area: Energy
Subjects:
Last Action: Read twice and referred to the Committee on Energy and Natural Resources. (2/11/2026)
Bill Text Source: Congress.gov
Summary and Impacts
Original Text