,,ii #aaith ,,congress #b;d ,session ,s4 #cfhb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #ae1 #bjbf,mr4 ,van ,hollen 7for himself1 ,mr4 ,durbin1 ,mr4 ,blumenthal1 ,mr4 ,booker1 ,ms4 ,duckworth1 ,ms4 ,smith1 ,mr4 ,welch1 and ,ms4 ,alsobrooks7 introduced the following bill2 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 consumers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,power for the ,people ,act of #bjbf4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 because of current energy policies and electricity market structures1 households and businesses are subsidizing data center development1 paying the way for data centers through rising energy bills2 7#b7 recent analysis indicates that data centers are set to more than double their electricity consumption1 accounting for #f4g percent to #ab percent of all energy demand by #bjbh1 which is causing electricity prices to increase for ratepayers2 7#c7 ratepayers should not be forced to take on the financial risks and costs of new infrastructure investments needed to support projected data center energy demands2 7#d7 data center owners and operators should be held accountable for the increased energy costs that data centers are causing2 7#e7 7,a7 the uniquely large size1 rapidly increasing pace1 and uncertain nature of projected energy demand from data centers are impacting both grid reliability and the affordability of electricity2 7,b7 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 lines2 and 7,c7 therefore1 increased ,federal oversight is necessary to ensure that the interconnection of data centers to the electric grid does not create reliability or affordability risks2 7#f7 data centers directly affect the transmission system and can increase transmission costs1 regardless of whether they are connected directly to transmission facilities2 7#g7 any policy solutions seeking to hold data center owners and operators accountable as described in paragraph 7#d7 should also seek to minimize the climate and environmental impacts of data center development while creating good-paying jobs2 7#h7 the ,commission has authority1 pursuant to the mandates to ensure just and reasonable and not unduly discriminatory rates 7as established under sections #bje and #bjf of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbd;d1 #hbd;e7 7including the standards developed under those sections77 and grid reliability 7as established under section #bae of that ,act 7#af ,u4,s4,c4 #hbdo7 7including the standards developed under that section771 to require grid operators to create load queues for data centers that incentivize certain practices1 including payment for required system upgrades and voluntary load flexibility2 7#i7 grid operators1 as part of their mandate to provide reliable transmission service1 have the authority to create load queues specific to data centers that delay or deny interconnection in order to ensure reliability1 and it is not unduly discriminatory to do so under the ,federal ,power ,act 7#af ,u4,s4,c4 #gia;a et seq47 because data centers1 as a single customer class1 constitute enough new load to overwhelm the electric grid if their interconnection to the electric grid is left unchecked2 and 7#aj7 7,a7 some ,states are implementing processes to create rate classes specific to data centers1 which are necessary to protect ratepayers from unfair costs and unnecessary risk1 given the uncertain nature of data center energy demand projections and the high costs associated with the energy demands of data centers2 and 7,b7 rate classes specific to data centers should be adopted more broadly across all ,states to help ensure that1 across the ,united ,states1 energy system cost increases caused by data centers are paid for by data center owners and operators4 #c4 ,definitions ,in this ,act3 7#a7 ,commission ,the term ,commission means the ,federal ,energy ,regulatory ,commission4 7#b7 ,covered interconnection entity ,the term covered interconnection entity means-- 7,a7 an ,independent ,system ,operator 7as defined in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif772 7,b7 a ,regional ,transmission ,organization 7as defined in that section72 and 7,c7 a transmitting utility 7as defined in that section7 that is responsible for managing data center load interconnection requests 7or the appropriate regional grid planning entity for the transmitting utility 7as determined by the ,commission774 7#c7 ,data center ,the term data center means any facility1 or group of facilities with the same owner located in the same utility area1 that-- 7,a7 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 located2 7,b7 may be-- 7i7 a free-standing structure2 or 7ii7 a facility that-- 7,i7 is within a larger structure2 and 7,,ii7 uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment2 7,c7 has an energy demand greater than #ej megawatts2 7,d7 meets such other criteria as the ,commission determines to be appropriate for purposes of this ,act1 including anticircumvention provisions2 and 7,e7 is not owned by the ,federal ,government4 7#d7 ,data center load queue ,the term data center load queue means a load queue that-- 7,a7 relates specifically to data center load interconnection requests2 or 7,b7 relates to requests made by distribution utilities or load-serving entities 7as those terms are defined in section #bag7;a7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbdq7a777 to study impacts on the transmission system caused by the interconnection of data centers4 7#e7 ,data center owner or operator ,the term data center owner or operator means any person1 including a corporation1 that owns1 builds1 or operates a data center4 7#f7 ,facility used to mine cryptocurrency ,the term facility used to mine cryptocurrency means any facility1 or group of facilities with the same owner located in the same utility area1 that-- 7,a7 is used to mine or create cryptocurrencies or other blockchain-based digital assets2 7,b7 may be-- 7i7 a free-standing structure2 or 7ii7 a facility that-- 7,i7 is within a larger structure2 and 7,,ii7 uses environmental control equipment to maintain the proper conditions for the operation of electronic equipment2 and 7,c7 meets such other criteria1 such as a minimum peak electricity demand1 as the ,commission determines to be appropriate for purposes of this ,act4 7#g7 ,labor organization ,the term labor organization means a labor organization 7as defined in section #b of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeb77 of which building and construction employees are members4 7#h7 ,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-- 7,a7 the employer will be neutral regarding any of the employees of the employer seeking to be represented by the labor organization2 and 7,b7 if employees seek to be represented by a labor organization1 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 organization4 7#i7 ,load growth ,the term load growth means increasing demand for electricity4 7#aj7 ,load interconnection request ,the term load interconnection request means the request of a data center owner or operator to connect1 or study the feasibility of connecting1 a data center to the electric grid1 whether at the transmission or distribution level4 7#aa7 ,organic load growth 7,a7 ,in general ,the term organic load growth means load growth that is attributable to increases in demand associated with economic or population growth1 including with respect to hospitals1 educational institutions1 advanced manufacturing facilities1 residential homes1 electric vehicles1 and other facilities1 as determined by the ,commission4 7,b7 ,exclusion ,the term organic load growth does not include load growth that is attributable to-- 7i7 data centers2 or 7ii7 facilities used to mine cryptocurrency4 7#ab7 ,project labor agreement ,the term project labor agreement means a pre-hire collective bargaining agreement with #b or more labor organizations that-- 7,a7 establishes the terms and conditions of employment for a specific construction project2 and 7,b7 is an agreement described in subsections 7e7 and 7f7 of section #h of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeh74 7#ac7 ,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 operator1 including through a power purchase agreement or other bilateral contract1 regardless of whether the battery energy storage system is onsite or offsite with respect to the data center4 7#ad7 ,qualifying load flexibility agreement ,the term qualifying load flexibility agreement means an agreement between a covered interconnection entity and #a or more data center owners or operators-- 7,a7 that-- 7i7 is implemented by the covered interconnection entity2 and 7ii7 complies with the minimum standards and guidelines established by the ,commission under section #d7;c72 and 7,b7 pursuant to which-- 7i7 data centers may be interrupted by the covered interconnection entity2 and 7ii7 to the extent that the covered interconnection entity determines that load shedding1 curtailments1 or other grid protection is needed1 data center service interruptions shall occur-- 7,i7 before service interruptions for other grid users2 and 7,,ii7 before emergency conditions occur1 as defined in the emergency procedures established by the interconnection entity4 7#ae7 ,registered apprenticeship program ,the term registered apprenticeship program means an apprenticeship program registered under the ,act of ,august #af1 #aicg 7commonly known as the ,national ,apprenticeship ,act7 7#ej ,stat4 #ffd1 chapter #ffc2 #bi ,u4,s4,c4 #ej et seq471 that meets the standards of parts #bi and #cj of title #bi1 ,code of ,federal ,regulations 7as in effect on the date of enactment of this ,act74 7#af7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 #d4 ,data center load queues 7a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,commission shall issue a rule requiring all covered interconnection entities to create1 for the purpose of addressing reliability and affordability concerns from new data center loads1 regardless of whether those loads are connecting directly to the transmission system or through a distribution utility1 a data center load queue system-- 7#a7 that gives priority for interconnection to data centers 7including data center owners and operators7 that1 by implementing each of the strategies described in subsection 7b71 offset their electricity demand on the electric grid1 reducing costs for all ratepayers1 while also mitigating local air and noise pollution and providing good-paying job opportunities2 and 7#b7 pursuant to which data centers are connected to the electric grid in a manner that does not interfere with serving organic load growth1 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-- 7,a7 the reliability or resource adequacy of the electric grid2 or 7,b7 the affordability of electricity or electric capacity for users of the electric grid that are not data centers4 7b7 ,strategies described ,the strategies referred to in subsection 7a77#a7 are the following3 7#a7 ,bringing new1 additional supply resources to the electric grid that-- 7,a7 are designated for the service of1 and paid for by1 the data center owner or operator1 including through a power purchase agreement or another bilateral contract2 7,b7 are deliverable to the location where the new data center is interconnecting2 7,c7 are maintained for the lifetime of the data center2 7,d7 have at least enough capacity-- 7i7 to fully serve the new data center2 or 7ii7 to serve that portion of the capacity need of the new data center that is not offset by #a or more qualifying battery energy storage systems1 virtual power plants1 or qualifying load flexibility agreements2 7,e7 have a generation output that-- 7i7 is substantially similar to the temporal load profile of the data center during peak demand2 or 7ii7 is sufficient to fill any gaps in the temporal load profile of the data center during peak demand that are not offset by #a or more qualifying battery energy storage systems1 virtual power plants1 or qualifying load flexibility agreements2 and 7,f7 are low- or no-carbon forms of generation4 7#b7 ,incorporating low- or no-carbon backup generation1 which excludes diesel generation and may include behind-the-meter battery energy storage systems4 7#c7 ,ensuring that1 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 7#a7 and 7#b7-- 7,a7 all laborers and mechanics employed by the data center owner or operator and contractors and subcontractors of the data center owner or operator1 in the performance of construction1 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 located1 as most recently determined by the ,secretary of ,labor in accordance with subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code2 and 7,b7 all contractors and subcontractors of the data center owner or operator use registered apprentices participating in registered apprenticeship programs4 7#d7 ,ensuring that the operator of any new energy supply resource that the data center brings to the electric grid pursuant to paragraphs 7#a7 and 7#b7 agrees that the operator will use a labor peace agreement for the operation and maintenance of the energy supply resource4 7c7 ,qualifying load flexibility agreements 7#a7 ,in general ,the ,commission shall establish minimum standards and guidelines for qualifying load flexibility agreements4 7#b7 ,requirements ,the standards and guidelines established under paragraph 7#a7 shall-- 7,a7 reduce costs for ratepayers by minimizing the need for the build out of new generation and transmission2 and 7,b7 ensure that qualifying load flexibility agreements can be effectively implemented by the covered interconnection entity4 7d7 ,priority ,for purposes of priority in a data center load queue under subsection 7a77#a71 with respect to forms of generation described in paragraphs 7#a77;,f7 and 7#b7 of subsection 7b71 priority shall be determined using a sliding scale pursuant to which additional priority is given for forms of generation having lower carbon intensity1 such that the lower the carbon intensity of the applicable form of generation1 the higher the priority given to the applicable data center in the data center load queue4 7e7 ,effect of certain agreements 7#a7 ,contractor or subcontractor ,any individual contractor or subcontractor of the data center owner or operator that is a signatory to a pre-hire collective bargaining agreement described in subsections 7e7 and 7f7 of section #h of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeh7 that covers construction work on the data center and any new energy supply resource that the data center brings to the electric grid shall be deemed to be in compliance with subsection 7b77#c74 7#b7 ,project labor agreement ,if a project labor agreement is used to construct a data center and any new energy supply resource that the data center brings to the electric grid1 the data center 7including the data center owner and operator7 shall be deemed to be in compliance with the requirements of subsection 7b77#c74 7f7 ,labor standards ,with respect to the labor standards specified in subsection 7b77#c77;,a71 the ,secretary of ,labor shall have the authority and functions set forth in ,reorganization ,plan ,numbered #ad of #aiej 7#fd ,stat4 #abfg2 #e ,u4,s4,c4 ,app47 and section #cade of title #dj1 ,united ,states ,code4 7g7 ,deadline for compliance ,the ,commission shall ensure compliance with the rule issued under subsection 7a7 by the date that is #a year after the date on which the rule is issued4 7h7 ,prohibition ,on and after the effective date of the final rule issued under subsection 7a71 a data center that is not already interconnected with the electric grid may not interconnect with the electric grid unless the data center has fully advanced through the applicable data center load queue system created under that subsection4 #e4 ,local transmission cost allocation ,not later than #abj days after the date of enactment of this ,act1 the ,commission shall direct each public utility 7as defined in section #bja7;e7 of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbd7;e777 to file #a or more tariff amendments pursuant to section #bje of that ,act 7#af ,u4,s4,c4 #hbd;d7 that-- 7#a7 allocate to each interconnecting data center local transmission upgrade costs that1 but for the existence of the data center1 would not be needed2 and 7#b7 require data centers to pay transmission rates applicable to their rate class that reflect the embedded cost of the integrated grid1 not including those local transmission upgrade costs that are required to be allocated to specific data centers under paragraph 7#a74 #f4 ,data center-specific rate classes 7a7 ,in general ,section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfba7;d77 is amended by adding at the end the following3 7#bb7 ,data centers 7,a7 ,definitions ,in this paragraph1 the terms data center1 data center owner or operator1 and load interconnection request have the meanings given those terms in section #c of the ,power for the ,people ,act of #bjbf4 7,b7 ,standard ,each ,state in which at least #a data center is located or has been proposed via load interconnection request1 legal filing1 or public announcement shall consider-- 7i7 establishing a rate class specific to data centers to ensure that data center owners and operators are covering the full cost of the generation1 transmission1 and distribution upgrades necessary to serve data centers2 and 7ii7 including as requirements for the data center rate class1 in addition to any other potential requirements the ,state chooses to examine-- 7,i7 minimum demand charges for data center owners and operators based on requested peak electricity demand if the monthly usage of a data center is less than its requested demand to ensure that ratepayers are not paying increased costs for generation and transmission built to serve data centers2 7,,ii7 an extension of minimum utility contract lengths for data center customers to ensure that data center load does not leave utilities and ratepayers with stranded costs2 7,,iii7 an increase in up-front interconnection study costs1 deposit amounts1 or collateral requirements for data center projects to ensure that the interconnection queue is not slowed down by projects that are unlikely to come to fruition2 7,,iv7 permissible load ramp periods for data centers that allow data center customers to start service with a lower-than-requested capacity and gradually increase their power demand over a period of multiple years to reach their full requested capacity1 subject to the condition that flexible load interconnection pursuant to this subclause does not undermine grid reliability2 7,v7 a clean transition tariff that allows data center customers to financially support novel zero-emissions energy technologies to meet their electricity demand in cooperation with intermediaries1 such as a utility company2 and 7,,vi7 the use of contribution in aid of construction 7commonly referred to as ,,ciac7 as a tool to have the data center customer pay upfront for the utility investment determined to be the responsibility of that data center4 4 7b7 ,compliance 7#a7 ,time limitation ,section #aab7;b7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;b77 is amended-- 7,a7 in paragraph 7#h71 by indenting subparagraph 7,b7 appropriately2 and 7,b7 by adding at the end the following3 7#i7 7,a7 ,not later than #a year after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which the ,state has ratemaking authority7 and each nonregulated electric utility shall commence consideration under section #aaa1 or set a hearing date for consideration1 with respect to the standard established by paragraph 7#bb7 of section #aaa7;d74 7,b7 ,not later than #b years after the date of enactment of this paragraph1 each ,state regulatory authority 7with respect to each electric utility for which the ,state has ratemaking authority71 and each nonregulated electric utility shall complete the consideration and make the determination under section #aaa with respect to the standard established by paragraph 7#bb7 of section #aaa7;d74 4 7#b7 ,failure to comply ,section #aab7;c7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7;c77 is amended by adding at the end the following3 ,in the case of the standard established by paragraph 7#bb7 of section #aaa7;d71 the reference contained in this subsection to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of that paragraph 7#bb744 7#c7 ,prior state actions 7,a7 ,in general ,section #aab of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfbb7 is amended-- 7i7 in subsection 7h71 in the subsection heading1 by striking ,other2 and 7ii7 by adding at the end the following3 7i7 ,prior ,state actions ,subsections 7b7 and 7c7 shall not apply to the standard established by paragraph 7#bb7 of section #aaa7;d7 in the case of any electric utility in a ,state if1 before the date of enactment of this subsection-- 7#a7 the ,state has implemented the standard 7or a comparable standard7 for the electric utility2 7#b7 the ,state regulatory authority for the ,state or the relevant nonregulated electric utility has conducted a proceeding to consider implementation of the standard 7or a comparable standard7 for the electric utility2 or 7#c7 the ,state legislature has voted on the implementation of the standard 7or a comparable standard7 for the electric utility4 4 7,b7 ,cross reference ,section #abd of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfcd7 is amended by adding at the end the following3 ,in the case of the standard established by paragraph 7#bb7 of section #aaa7;d71 the reference contained in this section to the date of enactment of this ,act shall be deemed to be a reference to the date of enactment of that paragraph 7#bb744 #g4 ,creation of appropriate rate classes 7a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall establish a program to provide grants and technical assistance to ,state regulatory authorities 7as defined in section #c of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfjb77 and nonregulated electric utilities 7as defined in that section7 considering the standard established by paragraph 7#bb7 of section #aaa7;d7 of that ,act 7#af ,u4,s4,c4 #bfba7;d77 to assist in the creation of appropriate rate classes to ensure that costs relating to the energy demands of data centers1 including costs of generation1 transmission1 and distribution network upgrades1 are not borne or subsidized by customers that are not data centers4 7b7 ,authorization of appropriations ,there are authorized to be appropriated such sums as are necessary to carry out this section4 #h4 ,load and interconnection forecasting 7a7 ,technical assistance 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall establish a program to provide technical assistance to support the forecasting by covered interconnection entities of long-term load projections1 particularly with respect to improving forecasting associated with data center load interconnection requests4 7#b7 ,authorization of appropriations ,there are authorized to be appropriated such sums as are necessary to carry out this subsection4 7b7 ,transparency and disclosure 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 to improve the forecasting of electricity demand and data center load interconnection requests by covered interconnection entities across the ,united ,states1 the ,commission shall establish transparency and disclosure requirements for data center load interconnection requests1 including load interconnection requests occurring at the transmission level and load interconnection requests occurring at the distribution level4 7#b7 ,requirement ,the requirements established under paragraph 7#a7 shall seek to reduce duplicative1 speculative1 and other requests that impede accurate forecasting1 including by imposing new transparency and information-sharing requirements for utilities and covered interconnection entities to implement with respect to data center load interconnection requests1 as the ,commission determines to be appropriate4