,,ii #aaith ,,congress #b;d ,session ,s4 #deei ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ah1 #bjbf,mr4 ,schiff introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to amend the ,federal ,power ,act to require the ,federal ,energy ,regulatory ,commission to issue a final rule relating to the interconnection of large load facilities with the transmission system1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,energy ,cost ,fairness and ,reliability ,act of #bjbf4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 the ,united ,states has long been a global leader in science1 technology1 and innovation1 which are essential to economic growth1 national security1 and global competitiveness2 7#b7 artificial intelligence requires substantial computing power1 storage1 and networking capacity to train models and process data at scale2 7#c7 the rapid and significant increase in load growth driven by data centers1 growing electrification1 the onshoring of domestic manufacturing1 and other changes in industry and the economy poses serious challenges to grid resource adequacy and reliability2 7#d7 responsible and sustainable investments in energy infrastructure to account for a significant increase in load growth can strengthen the energy security of the ,united ,states and ensure that technological growth is compatible with long-term sustainability2 7#e7 7,a7 electricity prices in various regions across the ,united ,states have surged in recent years due to the need for network upgrades and new energy infrastructure to serve large loads2 and 7,b7 therefore1 increasing load growth threatens to significantly increase electricity rates for ratepayers2 and 7#f7 due to the unprecedented proliferation of large load facilities1 such as data centers seeking to interconnect with the transmission system1 and because of the implications this proliferation poses to the reliability and stability of the interstate transmission system1 the energy and national security of the ,united ,states1 the affordability of electricity for residential consumers1 and the global technological leadership of the ,united ,states1 it is necessary for ,congress to address this proliferation and provide direction to the ,commission and the ,department4 #c4 ,management of large load facilities ,part ,,ii of the ,federal ,power ,act 7#af ,u4,s4,c4 #hbd et seq47 is amended by adding at the end the following3 #bbd4 ,management of large load facilities 7a7 ,definitions ,in this section3 7#a7 ,colocated ,the term colocated1 with respect to a large load facility1 means that the large load facility is physically connected to1 and has contractual arrangements to be served by1 the facilities of an existing or planned generating facility on the generating facility's side of the point of interconnection to the interstate transmission system4 7#b7 ,commission ,the term ,commission means the ,federal ,energy ,regulatory ,commission4 7#c7 ,curtailable 7,a7 ,in general ,the term curtailable1 with respect to a large load customer1 means that the large load customer is capable of reducing or shifting electrical demand at the applicable large load facility in response to a request from the applicable electric utility or transmission provider-- 7i7 to maintain grid reliability2 7ii7 to manage transmission congestion2 7iii7 to meet the operational needs of the transmission provider2 or 7iv7 for other reasons1 as the transmission provider determines necessary4 7,b7 ,methods of reducing or shifting demand ,the reduction or shifting of electrical demand as described in subparagraph 7,a7 may be accomplished through-- 7i7 the deployment of on-site energy storage or other technologies that allow continued operations while reducing grid draw2 or 7ii7 voluntary reduction of operations1 including shifting operations to facilities in other regions1 during requested periods4 7#d7 ,demand flexibility ,the term demand flexibility means the capability of the electrical load or on-site distributed energy resources of a large load customer to reduce1 shed1 shift1 or modulate electricity consumption or generation in response to external signals1 including price changes1 grid reliability needs1 or energy availability4 7#e7 ,department ,the term ,department means the ,department of ,energy4 7#f7 ,generator interconnection queue ,the term generator interconnection queue means the ordered list of valid interconnection requests maintained by a transmission provider1 pursuant to a tariff approved by the ,commission1 for purposes of studying1 processing1 and deciding whether to approve the interconnection of generating facilities to the transmission system4 7#g7 ,labor organization ,the term labor organization has the meaning given the term in section #b of the ,national ,labor ,relations ,act 7#bi ,u4,s4,c4 #aeb74 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 ,large load customer ,the term large load customer means the #a or more entities using power at a large load facility4 7#aj7 ,large load facility ,the term large load facility means-- 7,a7 a facility the peak demand of which exceeds #ej megawatts2 or 7,b7 an aggregation of facilities the peak demand of which exceeds #ej megawatts at a single site 7as determined by the ,commission1 taking into consideration ownership of the facilities74 7#aa7 ,load interconnection queue ,the term load interconnection queue means the ordered list of valid interconnection requests maintained by a transmission provider1 pursuant to a tariff approved by the ,commission1 for purposes of studying1 processing1 and deciding whether to approve the interconnection of large load facilities to the transmission system4 7#ab7 ,national ,laboratory ,the term ,national ,laboratory has the meaning given the term in section #b of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja74 7#ac7 ,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 seq474 7#ad7 ,secretary ,the term ,secretary means the ,secretary of ,energy4 7#ae7 ,transmission provider ,the term transmission provider means the applicable provider of transmission services1 which may include an ,independent ,system ,operator1 a ,regional ,transmission ,organization1 or a public utility that provides transmission services4 7b7 ,standard interconnection procedures ,not later than #a year after the date of enactment of this section1 the ,commission1 in order to establish a formal interconnection queue system for large loads to be regulated by the ,commission1 shall issue #a or more final rules to establish standard interconnection procedures for large loads requesting to interconnect to the interstate transmission system1 which shall require the following3 7#a7 ,costs of interconnection studies ,with respect to the costs of interconnection studies-- 7,a7 any large load customer seeking interconnection to the interstate transmission system shall pay #ajj percent of the costs of interconnection studies2 and 7,b7 any large load customer that fails to satisfy the payment obligations described in subparagraph 7,a7 shall be prohibited from interconnection or receiving transmission service until full compliance with that subparagraph4 7#b7 ,network upgrades ,network upgrades shall be assigned to large load customers through the interconnection study process that is part of the load interconnection queue system established under this subsection4 7#c7 ,reliability standards ,interconnection to the interstate transmission system for a large load facility shall not proceed until the applicable transmission provider determines that the interconnection would not cause a violation of any applicable ,commission-approved reliability standards 7as defined in section #bae7;a774 7#d7 ,requirements for interconnection 7,a7 ,in general ,interconnection to the transmission system shall not be approved for a large load customer unless the large load customer satisfies the following criteria3 7i7 ,demand flexibility and curtailability ,the large load customer-- 7,i7 is technically capable of exercising demand flexibility and being curtailable1 as evidenced by satisfaction of-- 7aa7 the minimum criteria established under subparagraph 7,b72 and 7bb7 any minimum technical standards established or approved under subparagraph 7,c72 and 7,,ii7 enters into a binding agreement with the transmission provider to exercise demand flexibility and be curtailable4 7ii7 ,new generating resources ,the large load customer demonstrates and guarantees that the large load customer or the operator of the applicable new large load facility will construct1 arrange to have constructed1 or otherwise arrange for new generating facilities1 which may include power produced or made available by distributed energy resources 7including virtual power plants7 that the large load customer has created or has worked with the transmission provider to arrange or coordinate1 to supply the power needed by the new large load facility1 with such power being deliverable to the large load facility and temporally matching its capacity needs4 7,b7 ,minimum criteria for demand flexibility and curtailability ,the ,commission shall issue standards or guidelines1 or otherwise approve standards proposed by the applicable transmission provider through a tariff to be reviewed by the ,commission1 to establish minimum criteria necessary for a large load facility or category of large load facilities to qualify as sufficiently capable of exercising demand flexibility and sufficiently curtailable for purposes of subparagraph 7,a77i77,i74 7,c7 ,minimum technical standards ,if the ,commission determines necessary1 the ,commission shall establish minimum technical standards1 or approve minimum technical standards established by transmission providers1 for system-protection facilities and automated load-shedding equipment necessary to verify and execute the capabilities to exercise demand flexibility and be curtailable1 as described in subparagraph 7,a77i77,i74 7#e7 ,prioritization within load interconnection queues 7,a7 ,in general ,within a load interconnection queue1 an interconnection request from a large load customer shall be prioritized if the large load customer satisfies any #a or more of the following criteria3 7i7 ,battery backup ,the large load customer demonstrates and guarantees that the large load customer or the operator of the applicable new large load facility will implement a battery energy storage system to use as primary backup generation for the large load facility1 with sufficient capacity to meet the backup needs of the large load facility during periods of outages or curtailments4 7ii7 ,construction ,the large load customer demonstrates and guarantees that1 in the construction of the applicable new large load facility and any new energy supply resource that the large load facility brings to the electric grid-- 7,i7 all laborers and mechanics employed by the large load customer and contractors and subcontractors of the large load customer in the performance of construction are 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,,ii7 all contractors and subcontractors of the large load customer use registered apprentices participating in registered apprenticeship programs4 7iii7 ,labor peace agreement ,the large load customer ensures that each owner or operator of a new energy supply resource that the applicable new large load facility brings to the electric grid has agreed to enter into a labor peace agreement with respect to the operation and maintenance of the energy supply resource4 7,b7 ,requirement ,a transmission provider shall endeavor to complete the interconnection study process for a large load customer that satisfies the criteria for prioritization under this paragraph before other large load customers that do not satisfy the criteria for such prioritization4 7#f7 ,non-firm transmission access on an as-available basis ,transmission providers shall provide to colocated large load facilities non-firm transmission access to the transmission system for the purpose of withdrawing electric energy from the transmission network on an as-available basis1 subject to the condition that such non-firm transmission service shall be-- 7,a7 subject to curtailment or interruption before firm network or point-to-point transmission service1 in accordance with the open access and reliability standards of the ,commission2 and 7,b7 priced to reflect the non-firm nature of such service4 7#g7 ,injection rights on a non-firm basis ,transmission providers offer to colocated large load facilities injection rights without the need for deliverability studies if the injection will occur on a non-firm basis4 7c7 ,protection of grid reliability ,the ,commission shall require transmission provider tariffs provided to the ,commission to specify the following3 7#a7 ,an existing generating facility operated by an interconnection customer may not1 as a result of any request of the interconnection customer to modify its interconnection service level for such existing generating facility1 withdraw any of its capacity to begin serving a large load facility if the withdrawal of capacity from the existing generating facility to serve a large load facility would result in a loss of capacity to serve customers other than the large load facility without a new generation resource being interconnected to the grid to compensate for such loss of capacity4 7#b7 ,an existing generating facility operated by an interconnection customer may not1 as a result of any request of the interconnection customer to modify its interconnection service level for such existing generating facility1 withdraw any of its capacity to begin serving a large load facility until all modifications to interconnection facilities and network upgrades that the transmission provider determines to be necessary to maintain reliability for existing customers are carried out and placed in commercial operation4 7d7 ,cost recovery 7#a7 ,network upgrades 7,a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,commission shall issue a final rule requiring transmission providers to ensure that a large load customer seeking interconnection to the interstate transmission system shall be responsible for #ajj percent of the network upgrades that are assigned to the large load customer pursuant to #a or more interconnection studies1 including any additions1 modifications1 or upgrades to the interstate transmission system at or beyond the point of interconnection that1 in the determination of the transmission provider1 are required-- 7i7 to accommodate the interconnection2 or 7ii7 to maintain the reliability or operational integrity of the transmission system4 7,b7 ,nonrefundable payments ,all payments made by a large load customer to cover the costs of network upgrades described in subparagraph 7,a7 shall be nonrefundable4 7,c7 ,prohibition ,the ,commission shall not approve any tariff submitted to the ,commission for review to include any crediting mechanism1 refund1 or offset that allows for the costs of network upgrades described in subparagraph 7,a7 to be-- 7i7 recovered from any transmission customer other than the applicable large load customer described in that subparagraph2 or 7ii7 credited against future transmission or retail service charges4 7,d7 ,commission-jurisdictional payment mechanism 7i7 ,in general ,the costs of network upgrades described in subparagraph 7,a7 shall be directly assigned to the applicable large load customer through a ,commission-jurisdictional payment mechanism1 such as-- 7,i7 a non-refundable upfront payment2 7,,ii7 a structured surcharge that may be paid over time2 or 7,,iii7 any other cost-assignment mechanism that is within the jurisdiction of the ,commission4 7ii7 ,inclusion in open access transmission tariff ,the ,commission may require that payments to cover costs described in clause 7i7 be included in each applicable open access transmission tariff4 7iii7 ,savings provision ,the payment of network upgrade costs described in clause 7i7 through a ,commission-jurisdictional payment mechanism described in that clause shall not preempt the authority of a ,state commission to regulate the retail rates1 terms1 or conditions of electric service provided to the applicable load by a retail utility4 7#b7 ,colocated large load facilities ,for a colocated large load facility-- 7,a7 the applicable large load customer shall be assessed charges on a gross-demand basis for ancillary services and black start service provided through the interstate transmission system if the colocated generating facility is interconnected to the interstate transmission system1 even if the colocated large load facility withdraws zero net energy from the interstate transmission system2 and 7,b7 the existence of on-site generation1 energy storage1 or other behind-the-meter resources shall not relieve a colocated large load facility of cost responsibility under subparagraph 7,a7 if the facility remains interconnected with1 synchronized to1 or reliant upon the interstate transmission system for reliability1 backup service1 or ancillary services4 7#c7 ,review of cost allocation methodologies ,in determining the justness and reasonableness of any rate1 charge1 term1 or condition of a tariff or tariff amendment filed under section #bje1 the ,commission shall1 consistent with ,state authority1 review the cost allocation methodologies to ensure that the costs of transmission services1 network upgrades1 or related facilities necessitated by the interconnection or operation of large load facilities are not shifted to other customers1 including by taking into account the ultimate impact of rates under the jurisdiction of the ,commission on downstream retail ratepayers4 7#d7 ,compensation for certain generation ,energy generated by a colocated generating facility that is in excess of the amount consumed by the colocated large load facility and that is injected into the interstate transmission system shall be compensated at the applicable wholesale locational marginal price or the avoided cost rate1 in accordance with the relevant tariff of the transmission provider that has been filed with and approved by the ,commission4 7e7 ,queue management best practices 7#a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,commission shall initiate a rulemaking to revise the pro forma ,large ,generator ,interconnection ,procedures promulgated pursuant to section #ce4bh7;f7 of title #ah1 ,code of ,federal ,regulations 7or a successor regulation71 to require public utility transmission providers to share and employ1 as appropriate1 queue management best practices with respect to the use of computing technologies1 such as artificial intelligence1 machine learning1 or automation1 in evaluating and processing generating facility interconnection requests within a generator interconnection queue1 in order to expedite study results with respect to those requests4 7#b7 ,technical assistance ,subject to the availability of appropriations1 the ,secretary shall provide to transmission providers technical assistance with respect to the implementation of any best practices established by the ,commission under paragraph 7#a71 as the ,secretary determines to be appropriate4 7f7 ,large load forecasting ,the ,commission shall require that1 in at least #a category of load forecast utilized by a transmission provider for estimating future energy demand or making grid planning decisions1 a large load facility may be included in the forecast only if the large load facility is able to provide proof of viable demonstration of commercial or operational commitment pursuant to objective criteria set forth in a ,commission-approved tariff1 which may include-- 7#a7 an energy or transmission service agreement2 7#b7 credit or collateral support2 7#c7 significant infrastructure investment2 7#d7 a long-term generation supply commitment2 or 7#e7 any other comparable demonstration of commitment approved by the ,commission4 7g7 ,interconnection and study process discipline 7#a7 ,in general ,notwithstanding any other provision of law1 the ,commission shall require each transmission provider1 as a condition of accepting and processing an interconnection request1 transmission service request1 or comparable request from a large load facility1 to impose-- 7,a7 study deposits sufficient to cover the costs of system impact1 facilities1 or comparable studies2 7,b7 readiness or milestone payments tied to progression through the study and interconnection process2 and 7,c7 withdrawal penalties designed to ensure that a large load facility that withdraws from such process bears an appropriate share of the costs imposed on the transmission provider and other customers4 7#b7 ,requirement ,the requirements established under paragraph 7#a7 shall be designed-- 7,a7 to discourage speculative requests2 and 7,b7 to reduce study delays and restudies4 7h7 ,tariff revisions2 transition period 7#a7 ,tariff revisions ,not later than #ahj days after the effective date of each final rule issued under subsection 7b71 each transmission provider subject to the jurisdiction of the ,commission shall submit to the ,commission for approval any tariff amendments necessary to effectuate the rule4 7#b7 ,transition period ,as part of each rulemaking proceeding required of the ,commission under this section1 the ,commission shall ensure that there is a reasonable transition period for affected entities 7as determined by the ,commission71 while seeking to avoid disruptions to existing projects or projects that are significantly underway4 7#c7 ,requirement ,on and after the effective date of the final rules issued under subsection 7b7 to establish the load interconnection queue system described in that subsection1 a large load facility may only interconnect with the interstate transmission system once it has been approved through the applicable load interconnection queue system4 7i7 ,,doe ,data collection 7#a7 ,in general ,the ,secretary1 in accordance with section #ac of the ,federal ,energy ,administration ,act of #aigd 7#ae ,u4,s4,c4 #ggb71 may require owners or operators of data centers to submit to the ,secretary such data as is necessary to enable the ,secretary-- 7,a7 to identify trends in new data center requests and commissioning2 7,b7 to identify trends in energy and water performance1 including cooling and on-site generation1 and flexibility in operations2 7,c7 to assess actual energy use associated with artificial intelligence activities1 including the training of artificial intelligence models and inference operations2 7,d7 to establish benchmarks of-- 7i7 current data center energy and water use by data center type and function2 and 7ii7 the operational flexibility of load by data center type2 7,e7 to engage in quarterly tracking of trends in data center energy demand relating to artificial intelligence2 and 7,f7 to support the development of refined models for projecting future energy needs and load shapes associated with data center workloads4 7#b7 ,data protection 7,a7 ,in general ,the ,secretary shall protect any confidential business information that is submitted by a data center owner as required under paragraph 7#a74 7,b7 ,,foia exemption ,information described in subparagraph 7,a7 shall be exempt from disclosure under-- 7i7 section #eeb7;b77#d7 of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act72 and 7ii7 any provision of ,state1 ,tribal1 or local freedom of information law1 open government law1 open meetings law1 open records law1 sunshine law1 or similar law requiring disclosure of information or records4 7j7 ,,doe artificial intelligence testbed 7#a7 ,establishment ,not later than #ahj days after the date of enactment of this section1 the ,secretary shall establish a data-center-scale artificial intelligence testbed at a ,national ,laboratory that shall be complementary to1 but distinct from1 the current set of high-performance computing facilities operated by ,department4 7#b7 ,requirement ,the testbed established under paragraph 7#a7 shall allow researchers from the ,national ,laboratories1 academia1 and industry to collaborate in the development and assessment of various aspects of artificial intelligence1 including-- 7,a7 algorithms for energy-efficient or energy-flexible artificial intelligence training and inference to advance the artificial intelligence capabilities of the ,united ,states and build on the success of comparable public-private efforts that have accelerated advances in high-performance computing2 7,b7 technology hardware and control systems relating to power supply1 cooling1 and computing system configuration2 7,c7 grid integration1 load flexibility1 efficient grid management1 and strategies for protecting or enhancing grid reliability1 resource adequacy1 or energy affordability2 and 7,d7 advancing or de-risking new technologies to advance the efforts described in subparagraphs 7,a7 through 7,c74 7#c7 ,report 7,a7 ,in general ,not later than #a year after the date of enactment of this section1 the ,secretary shall submit to ,congress and the ,commission a report compiled using knowledge gained and lessons learned from-- 7i7 the testbed established under paragraph 7#a72 and 7ii7 any other relevant projects that are ongoing at the ,department and the ,national ,laboratories4 7,b7 ,collaboration ,in compiling the report under subparagraph 7,a71 the ,secretary shall work with-- 7i7 the ,national ,laboratories2 7ii7 ,federal partners1 such as the ,commission2 7iii7 academia2 and 7iv7 industry4 7,c7 ,assessments ,the report under subparagraph 7,a7 shall assess-- 7i7 the scale of load growth being driven by the proliferation of data center infrastructure1 including significant regional differences2 7ii7 how that load growth will affect grid reliability1 resource adequacy1 and national security2 7iii7 how electric utilities and regulators obtain information to verify when and whether prospective large load facilities will reach commercial operation2 7iv7 7,i7 how utilities and regulators determine and apply consistent and objective screening criteria for interconnection requests2 and 7,,ii7 how utilities and regulators are attempting to deter speculative or duplicative interconnection requests for large loads2 7v7 innovative technologies for-- 7,i7 the reduction of power and water utilized by data centers2 7,,ii7 the utilization of waste heat1 including for heating residential homes2 and 7,,iii7 facility-level electricity supply2 and 7vi7 the usage and ability of demand response and demand flexibility by data center facilities to alleviate stresses on grid resource adequacy4 7,d7 ,recommendations ,the report under subparagraph 7,a7 shall provide recommendations for-- 7i7 how load forecasting can be improved to more accurately determine how the actual electricity consumption of a large load facility will compare to its requested level of interconnection service2 7ii7 how to ensure that large load interconnection requests-- 7,i7 are subject to consistent and objective screening criteria2 and 7,,ii7 are not double-counted2 7iii7 hardware and algorithmic improvements to further reduce energy consumption relating to artificial intelligence1 including for developing energy-efficient methods for training and inference of large language models and other large artificial intelligence models2 7iv7 policy changes or actions that the ,federal ,government may take to ensure quick and efficient buildout of data infrastructure while ensuring a buildout that maintains grid reliability and energy affordability2 and 7v7 how the ,national ,laboratories can facilitate collaboration and information-sharing to accelerate innovation4 7,e7 ,commission consideration ,not later than #ahj days after receiving the report under subparagraph 7,a71 the ,commission shall-- 7i7 decide whether to implement any recommendations or act on any findings in that report2 and 7ii7 initiate a rulemaking proceeding or take other appropriate action1 if applicable4 7,f7 ,publication of topline data 7i7 ,in general ,the ,secretary shall publish on the website of the ,department aggregated topline data and conclusions from the report under subparagraph 7,a74 7ii7 ,requirement ,in carrying out clause 7i71 the ,secretary shall ensure that no data that could be attributed to a single private entity is made available to the public4 7k7 ,savings provision ,nothing in this section shall be construed to authorize the ,commission to regulate retail electricity rates1 charges1 or terms of service1 which shall remain subject to the jurisdiction of the ,states4 4