H.R. 8241 — Power for the People Act of 2026

This section states the sense of Congress that households and businesses are subsidizing data center development through rising energy bills due to current energy policies and electricity market structures; data centers are projected to more than double electricity consumption to 6.7-12% of total U.S. energy demand by 2028, increasing electricity prices for ratepayers; ratepayers should not bear the financial risks and costs of new infrastructure for data center energy demands; data center owners and operators should be accountable for associated energy costs; data center energy demands threaten grid reliability and electricity affordability, impact interstate commerce, and necessitate increased Federal Energy Regulatory Commission (FERC) oversight of interconnections; the Commission has authority under sections 205, 206, and 215 of the Federal Power Act (16 U.S.C. 824d, 824e, 824o) to require grid operators to create data center "load queues" incentivizing payments for system upgrades and load flexibility; grid operators may delay or deny data center interconnections via such queues without undue discrimination; and States should broadly adopt data center-specific rate classes to protect ratepayers, with solutions minimizing climate impacts and creating jobs.

This section defines terms for purposes of the Act, including (1) Commission (i.e., the Federal Energy Regulatory Commission); (2) covered interconnection entity (i.e., an independent system operator, regional transmission organization, or transmitting utility responsible for managing data center load interconnection requests); (3) data center (i.e., a facility or group of facilities with the same owner in the same utility area that primarily hosts information systems, has an energy demand greater than 50 megawatts, and meets Commission criteria); (4) data center load queue; (5) data center owner or operator; (6) facility used to mine cryptocurrency (i.e., a facility or group of facilities meeting Commission criteria such as minimum peak electricity demand); (7) labor organization; (8) labor peace agreement; (9) load growth; (10) load interconnection request; (11) organic load growth (excluding data centers and cryptocurrency mining facilities); (12) project labor agreement; (13) qualifying battery energy storage system (i.e., a utility-scale system connected to the grid and paid for by a data center owner or operator); (14) qualifying load flexibility agreement (i.e., an agreement allowing data center interruptions before other grid users); and (15) registered apprenticeship program.

This section directs the Commission, not later than 180 days after enactment, to issue a rule requiring covered interconnection entities to establish a data center load queue system that prioritizes interconnection for data centers offsetting their electricity demand through specified strategies—(1) bringing new dedicated low- or no-carbon supply resources matching the data center's load profile; (2) incorporating low- or no-carbon backup generation excluding diesel; (3) paying prevailing wages determined by the Secretary of Labor under the Davis-Bacon Act and using registered apprentices; and (4) requiring labor peace agreements for operation and maintenance of new supply resources—while permitting delay or denial of interconnection if it adversely affects grid reliability, resource adequacy, or affordability for non-data center users. The section further requires the Commission to establish standards for qualifying load flexibility agreements that reduce ratepayer costs and enable effective implementation; provides priority in the queue on a sliding scale favoring lower-carbon generation; deems data centers using pre-hire collective bargaining agreements under NLRA sec. 8(e)-(f) (29 U.S.C. 158(e)-(f)) or project labor agreements compliant with prevailing wage and apprenticeship requirements; grants the Secretary of Labor enforcement authority under specified statutes; and ensures compliance with the rule within one year of issuance.

This section directs the Federal Energy Regulatory Commission (FERC), not later than 120 days after enactment, to require each public utility to file tariff amendments under FPA §205 that (1) allocate to each interconnecting data center the costs of local transmission upgrades needed solely due to the data center, and (2) require data centers to pay transmission rates for their rate class reflecting embedded costs of the integrated grid, excluding those local upgrade costs. (Thus, data centers bear direct responsibility for their incremental connection costs while contributing to overall grid costs.)

This section establishes a new standard under section 111(d)(22) of the Public Utility Regulatory Policies Act of 1978 (PURPA), requiring each state with at least one data center (or proposed via load interconnection request, legal filing, or public announcement) to consider (1) creating a rate class specific to data centers to ensure data center owners and operators cover the full cost of generation, transmission, and distribution upgrades needed to serve them; and (2) incorporating requirements such as minimum demand charges based on requested peak demand (if monthly usage is lower), extended minimum utility contract lengths, increased up-front interconnection study costs or collateral, permissible multiyear "load ramp" periods (without undermining grid reliability), "clean transition tariffs" for zero-emissions technologies, and contribution in aid of construction (CIAC) payments. (As background, PURPA requires state regulatory authorities and nonregulated electric utilities to consider each of its listed ratemaking and service standards and determine whether to implement them consistent with state law.) This section further accelerates PURPA compliance for this standard by directing commencement of consideration (or hearing date) within one year of enactment and completion of the determination within two years (from no prior deadline); deems prior state implementation, proceedings, or legislative votes on comparable standards as satisfying compliance requirements; and adjusts related noncompliance and judicial review provisions to reference this standard's enactment date.

This section directs the Secretary of Energy to establish, not later than 180 days after enactment, a program to provide grants and technical assistance to state regulatory authorities (i.e., commissions with authority to set electric utility rates) and nonregulated electric utilities—considering the ratemaking standard established by section 111(d)(22) of the Public Utility Regulatory Policies Act of 1978 (PURPA)—to assist in creating rate classes that ensure data center energy costs, including generation, transmission, and distribution network upgrades, are not subsidized by non-data center customers. The section authorizes appropriations of such sums as are necessary.

This section directs the Secretary of Energy, not later than 180 days after enactment, to establish a program providing technical assistance to covered interconnection entities (i.e., typically regional transmission organizations and independent system operators) for forecasting long-term electricity load projections, particularly data center interconnection requests, and authorizes such sums as necessary for that purpose. It further directs the Federal Energy Regulatory Commission (FERC), not later than 180 days after enactment, to establish transparency and disclosure requirements for data center load interconnection requests at both transmission and distribution levels, including new information-sharing mandates for utilities and covered interconnection entities to reduce duplicative and speculative requests that hinder accurate forecasting.