HouseH.R. 10809119th Congress

Make Data Centers Pay Act

Full Text

Official text as published. Use Ctrl+F / Cmd+F to search within the document.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10809 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                               H. R. 10809

    To amend the Federal Power Act to protect ratepayers from costs 
    relating to the electric loads of data centers and high-density 
                         computing facilities.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 13, 2026

 Mr. Vindman introduced the following bill; which was referred to the 
                    Committee on Energy and Commerce

_______________________________________________________________________

                                 A BILL

 
    To amend the Federal Power Act to protect ratepayers from costs 
    relating to the electric loads of data centers and high-density 
                         computing facilities.

    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 ``Make Data Centers Pay Act''.

SEC. 2. RATEPAYER PROTECTION FOR DATA CENTER AND HIGH-DENSITY COMPUTING 
              LOAD.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding at the end the following:

``SEC. 224. RATEPAYER PROTECTION FOR DATA CENTER AND HIGH-DENSITY 
              COMPUTING LOAD.

    ``(a) Definitions.--In this section:
            ``(1) Commission.--The term `Commission' means the Federal 
        Energy Regulatory Commission.
            ``(2) Covered load.--The term `covered load' means electric 
        load that--
                    ``(A) is attributable to 1 or more data centers or 
                high-density computing facilities located at a single 
                site, or at multiple sites under common ownership or 
                control; and
                    ``(B) equals or exceeds 20 megawatts or, in the 
                case of data centers or high-density computing 
                facilities developed in phases, is reasonably expected 
                to equal or exceed 20 megawatts at full buildout.
            ``(3) Data center or high-density computing facility.--
                    ``(A) In general.--The term `data center or high-
                density computing facility' means a facility, or group 
                of colocated facilities, the primary purpose of which 
                is to house computing, networking, or data storage 
                equipment used to process, store, or transmit digital 
                data, including equipment used for--
                            ``(i) artificial intelligence training or 
                        inference;
                            ``(ii) cloud computing or data hosting; or
                            ``(iii) cryptocurrency mining or other 
                        distributed-ledger or digital-asset 
                        computation.
                    ``(B) Exclusion.--The term `data center or high-
                density computing facility' does not include computing 
                or data storage equipment that is ancillary to a 
                facility the primary purpose of which is a commercial 
                or industrial activity other than an activity described 
                in subparagraph (A).
            ``(4) Incremental cost.--The term `incremental cost' means 
        the cost that would be avoided had a specific covered load not 
        been served by the electric utility, including all costs to 
        construct, own, and operate power generation or storage 
        resources and electric transmission and distribution services 
        associated with serving the covered load, based on costs 
        estimated by the electric utility at or around the time that 
        the covered load becomes operational and subject to approval by 
        the Commission or a State, as appropriate.
            ``(5) State.--The term `State' includes the applicable 
        State commission and any other State authority having 
        jurisdiction over retail electric service.
    ``(b) Ratepayer Protection Floor.--
            ``(1) No subsidy of covered load.--No portion of the 
        incremental cost may be allocated to, or recovered in the rates 
        of, any customer other than a covered load.
            ``(2) Surplus permitted.--Paragraph (1) does not limit the 
        authority of the Commission or a State, under any other 
        provision of law, to recover from covered loads amounts in 
        excess of incremental cost and to credit those amounts to other 
        customers as a rebate or a reduction to the utility costs that 
        are used as a basis for the calculation of customer rates.
            ``(3) Continuing recovery on exit.--A rate, charge, or 
        agreement for service to a covered load shall be designed to 
        recover from the covered load the full incremental cost of the 
        electric utility, and such recovery shall continue 
        notwithstanding the termination by the covered load of a 
        contract or other agreement pertaining to the sale of electric 
        energy, or the cessation by the covered load of the purchase of 
        electric energy, before that incremental cost has been fully 
        recovered.
            ``(4) Financial assurance.--Before constructing, or making 
        an upgrade to, a generation, transmission, or distribution 
        facility necessary to serve a covered load, an electric utility 
        shall require the covered load to provide financial assurances 
        or contributions sufficient to cover the cost of the facility 
        or upgrade, subject to the condition that any financial 
        assurances or contributions provided by the applicable covered 
        load to a public utility or Transmission Organization for the 
        same facility or upgrade shall be credited against the 
        requirement of this paragraph.
    ``(c) Rule of Construction.--Except as expressly provided in 
subsection (b), nothing in this section expands or diminishes the 
jurisdiction of the Commission or of any State, including State 
authority over retail electric service, rate design, and resource 
planning.
    ``(d) Applicability.--
            ``(1) Prospective application.--Subsection (b) applies to a 
        covered load that interconnects on or after the date of 
        enactment of this section.
            ``(2) Existing arrangements.--An arrangement to serve a 
        covered load that was approved by the Commission or by a State 
        before the date of enactment of this section shall remain in 
        effect.''.
                                 <all>