[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3682 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 3682
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 SENATE OF THE UNITED STATES
January 15, 2026
Mr. Van Hollen (for himself, Mr. Durbin, Mr. Blumenthal, Mr. Booker,
Ms. Duckworth, Ms. Smith, Mr. Welch, and Ms. Alsobrooks) introduced the
following bill; which was read twice and referred to the Committee on
Energy and Natural Resources
_______________________________________________________________________
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 organization 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 organization; and
(B) if employees seek to be represented by a labor
organization, the employer shall recognize the labor
organization 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--