,,ii #aaith ,,congress #b;d ,session ,s4 #cheb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #aa1 #bjbf,mr4 ,hawley 7for himself and ,mr4 ,blumenthal7 introduced the following bill2 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 ratepayers1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,guaranteeing ,rate ,insulation from ,data ,centers ,act or the ,,grid ,act4 #b4 ,findings ,congress finds that the construction and operation of data centers and the power sources used to supply data centers with energy-- 7#a7 are matters concerning interstate commerce1 including the channels of interstate commerce1 the instrumentalities of interstate commerce1 and persons and things in interstate commerce2 and 7#b7 constitute economic activities that have a substantial effect on interstate commerce4 #c4 ,definitions ,in this ,act3 7#a7 ,covered entity ,the term covered entity means a private company1 or other private entity1 that-- 7,a7 owns1 operates1 or maintains a data center2 or 7,b7 has plans to own1 operate1 or maintain a data center within the next #e years4 7#b7 ,data center ,the term data center means a data center 7as defined in section #dec7;a7 of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agaab7;a777 with a power demand of #bj megawatts or more that is not owned1 operated1 or maintained-- 7,a7 by a covered agency 7as defined in section #hcd7;a7 of the ,carl ,levin and ,howard ,p4 ,buck ,mc,keon ,national ,defense ,authorization ,act for ,fiscal ,year #bjae 7,public ,law #aac-bia2 #dd ,u4,s4,c4 #cfja note772 or 7,b7 by a contractor on behalf of a covered agency 7as so defined74 7#c7 ,electric utility ,the term electric utility has the meaning given the term in section #c of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#af ,u4,s4,c4 #bfjb74 7#d7 ,existing data center ,the term existing data center means a data center that has already begun operations4 7#e7 ,new data center ,the term new data center means a data center or planned data center that is not yet operational4 7#f7 ,rate ,effect ,credit ,the term ,rate ,effect ,credit means a credit paid by a covered entity to an appropriate party1 as determined by the ,secretary1 that offsets the effect that a data center would otherwise have on the electrical rates paid by ratepayers4 7#g7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7#h7 ,utility ,the term utility includes1 as the ,secretary determines to be appropriate-- 7,a7 an electric utility2 7,b7 a gas utility 7as defined in section #cjb of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#ae ,u4,s4,c4 #cbjb772 7,c7 a public water system 7as defined in section #adja of the ,safe ,drinking ,water ,act 7#db ,u4,s4,c4 #cjj;f772 7,d7 a treatment works 7as defined in section #bab of the ,federal ,water ,pollution ,control ,act 7#cc ,u4,s4,c4 #abib772 and 7,e7 any other regulated utility that provides water1 energy1 or other essential services to a data center4 7#i7 ,zero ,rate ,effect ,certificate ,the term ,zero ,rate ,effect ,certificate means a certificate issued by the ,secretary under section #d7;b74 #d4 ,data center requirement for off-grid power supply 7a7 ,prohibition 7#a7 ,in general ,subject to paragraph 7#b71 beginning on the date that is #ahj days after the date of enactment of this ,act1 a covered entity may not build1 own1 operate1 or maintain a data center unless the data center derives all of its energy1 including back-up energy1 from a captive power plant1 on-site power generation1 or some other source or combination of sources separate from1 and not deriving power from1 the electric grid4 7#b7 ,existing data centers ,until the date that is #aj years after the date of enactment of this ,act1 a covered entity that owns1 operates1 or maintains an existing data center that derives any of its energy from the electric grid as of the date described in paragraph 7#a7 may comply with the prohibition under that paragraph by obtaining and maintaining an unexpired ,zero ,rate ,effect ,certificate4 7b7 ,zero rate effect certificate 7#a7 ,in general ,for the #aj-year period beginning on the date of enactment of this ,act1 a covered entity that owns1 operates1 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 center4 7#b7 ,study required ,on receipt of a request for a ,zero ,rate ,effect ,certificate1 the ,secretary shall study and determine-- 7,a7 how interconnection costs and other infrastructure costs needed to supply the data center with power from the electric grid are allocated2 7,b7 the contribution of the data center to coincident peak1 including load factors1 and any effects on capacity charges2 7,c7 the effects on the locational marginal price for-- 7i7 the local electric grid2 and 7ii7 the relevant region2 7,d7 any changes in value-cost ratios2 7,e7 any effects on the marginal cost of generation2 7,f7 any changes in line loss percentages caused by heavier loads on local distribution lines2 7,g7 any offsets in data center power infrastructure cost-sharing by ratepayers through ,rate ,effect ,credits or other financial arrangements described in subsection 7c72 and 7,h7 any other metrics or information the ,secretary determines relevant4 7#c7 ,issuance of certificate 7,a7 ,in general ,if the ,secretary determines1 based on the study conducted under paragraph 7#b71 that the relevant data center will not increase the electrical rates paid by ratepayers1 the ,secretary shall issue a ,zero ,rate ,effect ,certificate for the data center4 7,b7 ,residential ratepayer prioritization ,in making a determination under subparagraph 7,a71 the ,secretary shall prioritize the electrical rates paid by residential ratepayers over all other ratepayer classes4 7#d7 ,duration of certificate ,a ,zero ,rate ,effect ,certificate issued under paragraph 7#c7 shall expire #a year after the date of issuance4 7#e7 ,reissuance ,a covered entity may apply for the reissuance of a ,zero ,rate ,effect ,certificate as necessary4 7c7 ,rate ,effect ,credits 7#a7 ,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 that1 in the determination of the ,secretary1 would offset the effect on the electrical rates paid by ratepayers4 7#b7 ,residential ratepayer prioritization ,in making a determination under paragraph 7#a71 the ,secretary shall prioritize the electrical rates paid by residential ratepayers over all other ratepayer classes4 7d7 ,legal requirement ,any power source1 including a captive power plant1 on-site generation1 or other source described in subsection 7a77#a71 that is used to generate electricity for a data center shall comply with all applicable local1 ,state1 and ,federal laws 7including regulations7 based on the actual use and emissions of the power source4 7e7 ,labor requirement ,a covered entity seeking to construct any power source described in subsection 7a77#a7 shall enter into a project labor agreement 7as defined in section #eb4bbb-cd7;a7 of title #dh1 ,code of ,federal ,regulations 7or a successor regulation77 for the construction of the power source4 7f7 ,enforcement ,any person who violates subsection 7a7 shall be subject to a civil penalty of not less than #a1jjj1jjj per day of the violation4 7g7 ,regulations 7#a7 ,in general ,the ,secretary may promulgate such regulations as the ,secretary determines to be necessary to implement this section4 7#b7 ,residential ratepayer prioritization ,in promulgating regulations under paragraph 7#a71 the ,secretary shall prioritize the electrical rates paid by residential ratepayers over all other ratepayer classes4 #e4 ,data center reporting requirements 7a7 ,utility usage ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish a national requirement for covered entities to provide to the public-- 7#a7 for each new data center that is1 or is planned to be1 owned1 operated1 or maintained by the covered entity1 estimates of the utility usage by the new data center for-- 7,a7 the first year of planned operation of the new data center2 and 7,b7 each of the next #e years following that first year of planned operation2 and 7#b7 for each existing data center that is1 or is planned to be1 owned1 operated1 or maintained by the covered entity-- 7,a7 estimates of the utility usage by the existing data center for-- 7i7 the current year2 and 7ii7 each of the next #e years2 and 7,b7 information on the actual utility usage during each of the #e most recent previous years during which the existing data center was operational4 7b7 ,real property or possessory interests 7#a7 ,in general ,not later than #ij days after the date of enactment of this ,act1 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 7including a lease7 with the intent to build or expand a data center4 7#b7 ,requirement ,the disclosure under paragraph 7#a7 shall include-- 7,a7 any transaction or agreement relating to the acquisition described in that paragraph between-- 7i7 the covered entity2 and 7ii7 any party from which the real property or possessory interest is acquired2 7,b7 any related transaction or agreement between the covered entity and any government entity2 and 7,c7 any related transaction or agreement between a party described in subparagraph 7,a77ii7 and any government entity4 7c7 ,agreements 7#a7 ,in general ,not later than #ij days after the date of enactment of this ,act1 the ,secretary shall establish a national requirement for-- 7,a7 covered entities to publicly disclose any transaction or agreement with a utility regarding utility service for a data center1 including any financial arrangement for a ,rate ,effect ,credit2 and 7,b7 utilities to publicly disclose any transaction or agreement with a covered entity or a data center regarding utility service for a data center1 including any financial arrangement for a ,rate ,effect ,credit4 7#b7 ,requirement ,the disclosure under paragraph 7#a7 shall include-- 7,a7 a description of any subsidy1 credit1 discount1 cost-sharing arrangement1 tax benefit1 or other incentive1 financial or otherwise1 that the utility1 local government or municipality1 or ,state government provides1 or has agreed to provide1 to the covered entity regarding utility service2 and 7,b7 with respect to each subsidy1 credit1 discount1 cost-sharing arrangement1 tax benefit1 or other incentive described in subparagraph 7,a7-- 7i7 an estimate of total savings for the covered entity2 and 7ii7 a statement of whether the covered entity is financially affiliated with the applicable utility4