July 13, 2026
Mr. Riley of New York (for himself and Mr. Van Drew) introduced the following bill; which was referred to the Committee on Energy and Commerce
To amend the Public Utility Regulatory Policies Act of 1978 to add a standard prohibiting the recovery of costs associated with data centers by certain electric utilities, and for other purposes.
Section 1. Short title
This Act may be cited as the Fair Allocation of Infrastructure Responsibility for Data Act
or the FAIR Data Act
.
Sec. 2. PURPA standard for recovery of costs associated with covered data centers
(a) In general
Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following:
(22) Costs associated with covered data centers
(A) Cost recovery relating to covered data centers
No covered utility may recover from residential or small business electric consumers, including through rates charged by such covered utility for providing electric service, any costs of the covered utility associated with covered data centers, including any costs associated with any upgrade made to the generation, transmission, or distribution facilities of the electric grid in order to meet the demand for electric energy from covered data centers.
(B) Definitions
In this paragraph:
(i) Covered utility
The term covered utility means a State regulated electric utility that is investor owned.
(ii) Covered data center
The term covered data center means a facility, or an aggregation of facilities at a single site, with respect to which the peak demand of such facility or such aggregation of facilities exceeds 75 megawatts, that primarily contain electronic equipment used to process, store, transmit, or host digital information and the electrical, mechanical, and environmental control equipment to maintain the proper conditions for the operation of electronic equipment.
(b) Conforming amendments
(1) Consideration and determination
Section 111(a) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(a)) is amended by striking Each State
and inserting Except as otherwise provided in this section, each State
.
(2) Obligations to consider and determine
Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended—
(A)
in subsection (b), by adding at the end the following:
(9)
(A)
Not later than 6 months after the date of enactment of this paragraph, each State regulatory authority (with respect to each covered utility (as defined in paragraph (22) of section 111(d)) for which the State has ratemaking authority) shall commence consideration under section 111, or set a hearing date for consideration, with respect to the standard established by such paragraph (22) of section 111(d).
(B)
Not later than 1 year after the date of enactment of this paragraph, each State regulatory authority (with respect to each covered utility (as defined in paragraph (22) of section 111(d)) for which the State has ratemaking authority) shall complete the consideration and make the determination under section 111 with respect to the standard established by such paragraph (22) of section 111(d).;
(B)
in subsection (c)—
(i)
by striking subsection (b)(2)
and inserting subsection (b)
; and
(ii)
by inserting Each State regulatory authority (with respect to each covered utility (as defined in paragraph (22) of section 111(d)) for which it has ratemaking authority) shall undertake the consideration, and make the determination, referred to in section 111 with respect to the standard established by paragraph (22) of section 111(d) in the first rate proceeding commenced after the date three years after the date of enactment of this sentence respecting the rates of such covered utility if such State regulatory authority has not, before such date, complied with subsection (b) with respect to such standard.
after paragraph (21).
; and
(C)
by adding at the end the following:
(i) Other prior State actions
Subsections (b) and (c) shall not apply to the standard established by paragraph (22) of section 111(d) in the case of a covered utility (as defined in paragraph (22) of section 111(d)) in a State if, before the date of enactment of this subsection—
(1)
the State has implemented for the covered utility the standard (or a comparable standard);
(2)
the State regulatory authority for the State has conducted a proceeding to consider implementation of the standard (or a comparable standard) for the covered utility; or
(3)
the State legislature has voted on the implementation of the standard (or a comparable standard) for the covered utility during the 3-year period ending on that date of enactment.
(3) Prior and pending proceedings
Section 124 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2634) is amended by inserting For purposes of subtitle A and B, and this subtitle, proceedings commenced by State regulatory authorities (with respect to covered utilities (as defined in paragraph (22) of section 111(d)) for which it has ratemaking authority) before the date of the enactment of this sentence and actions taken before such date in such proceedings shall be treated as complying with the requirements of subtitles A and B, and this subtitle, if such proceedings and actions substantially conform to such requirements. For purposes of subtitles A and B, and this subtitle, any such proceeding or action commenced before the date of enactment of this sentence, but not completed before such date, shall comply with the requirements of subtitles A and B, and this subtitle, to the maximum extent practicable, with respect to so much of such proceeding or action as takes place after such date, except as otherwise provided in section 121(c).
after paragraph (21).
.
Sec. 3. Conditions on DOE funding and FERC annual report
(a) Funding conditions
Notwithstanding any other provision of law, a State regulatory authority may not receive funds provided by the Secretary for administrative or technical assistance unless the State regulatory authority submits to the Secretary, with respect to that fiscal year, a certification that—
(1)
costs associated with covered data centers, including costs for any upgrade made to the generation, transmission, or distribution facilities of the electric grid in order to meet the demand for electric energy from covered data centers, will not be recovered through increased rates for residential or small business electric consumers; and
(2)
the State regulatory authority has required each owner or operator of a covered data center that claimed in its permit applications or other statements regarding construction and operation of the covered data center that the operation of the covered data center would decrease utility bills of residential and small business electric consumers in the applicable community to provide such State regulatory authority an annual report on the actual cost savings for residential and small business electric consumers in the applicable community.
(b) Report
Not later than September 30 of the fiscal year in which this Act is enacted, and every September 30 thereafter, the Federal Energy Regulatory Commission shall submit to Congress a report on the impact of covered data center demands on residential and small business electricity rates and grid reliability.
(c) Definitions
In this section:
(1) Electric consumer
The term electric consumer has the meaning given such term in section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).
(2) Covered data center
The term covered data center means a facility, or an aggregation of facilities at a single site, with respect to which the peak demand of such facility or such aggregation of facilities exceeds 75 megawatts, that primarily contain electronic equipment used to process, store, transmit, or host digital information and the electrical, mechanical, and environmental control equipment to maintain the proper conditions for the operation of electronic equipment.
(3) Secretary
The term Secretary means the Secretary of Energy.
(4) State regulatory authority
The term State regulatory authority has the meaning given such term in section 3 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2602).