Summary of H.R. 8400 (119th Congress) – DATA Act of 2026

Purpose
- The DATA Act of 2026 aims to exempt certain newly established electric utilities, called consumer-regulated electric utilities (CREUs), from Federal regulation under the Federal Power Act (FPA) and related federal statutes. It also outlines implications for PURPA, PUHCA, and facility siting within public rights-of-way.

Key Definitions
- Bulk Power System: As defined in the FPA.
- Consumer-Regulated Electric Utility (CREU): A new electric generation and supply system, created after enactment, dedicated to serving new electric loads that were not previously served by any retail electricity provider. CREUs may own/operate generation, energy storage, transmission, distribution, and retail supply to eligible CREU customers. A CREU:
- Must be physically islanded from regulated utilities, the bulk-power system, and the Bulk Electric System.
- Must operate independently of any public utility.
- May sell electricity at retail to eligible CREU customers.
- Electric Reliability Organization (ERO): As defined under the FPA.
- Eligible CREU Customer: An entity that buys retail electricity from a CREU and is served exclusively through CREU facilities, located on premises islanded from regulated utilities and the bulk-power system.

Main Provisions

1) Federal Power Act Exemption for CREUs
- CREUs are exempt from federal regulation under the FPA, including:
- Rate regulation, corporate/financial oversight, transmission or distribution regulation.
- Reliability standards under FPA §215, interconnection requirements, and participation in regional transmission planning or cost allocation.
- Merger/consolidation/disposition approvals under FPA §203.
- CREUs shall not be considered a public utility for FPA purposes.
- CREUs shall not be regarded as part of the bulk-power system or the Bulk Electric System and are not required to register with or comply with reliability standards unless they voluntarily choose to connect to the bulk-power system.

2) New CREU Regulation Beginning Operations
- For new CREUs, upon beginning operations (first generation, transmission, distribution, or retail sale), the exemption applies to FERC and DOE-regulated matters (reliability standards and other related provisions).
- If a CREU elects to connect to any portion of the bulk-power system or other electric transmission/distribution systems for primary or backup supply, it must cease being a CREU and become subject to all federal regulation applicable to CREUs’ predecessors.

3) PURPA Exemption
- PURPA (Public Utility Regulatory Policies Act) §210 is amended to explicitly exempt CREUs.
- CREUs are not required to interconnect with, purchase from, or sell to an electric utility under PURPA.

4) PUHCA Exemption
- The Public Utility Holding Company Act of 2005 (PUHCA) is amended to exclude CREUs from its holding company provisions. The intent is to prevent CREU ownership/control from triggering PUHCA requirements.

5) Rights-of-Way Facilities
- CREUs may construct and operate facilities within existing public rights-of-way, subject to the same permitting, restoration, and public-safety requirements applicable to public utilities.
- However, review of such projects is limited to adequacy of right-of-way restoration and storm-response planning.

6) Additional Provisions (General)
- Title and short name: “Decentralized Access to Technology Alternatives Act of 2026” or the “DATA Act of 2026.”

7) Interactions with Existing Law
- The bill does not alter formal definitions of CREUs beyond establishing and clarifying their exempt status.
- CREUs retain the option to voluntarily connect to the bulk-power system, which would trigger loss of CREU status and reapplication of federal regulatory requirements.

Implications and Potential Impacts

• Regulatory Landscape: CREUs would operate largely outside federal FPA regulatory controls, including rate setting and reliability standards, unless they voluntarily connect to the bulk-power system.
• Market and Consumer Impact: CREUs could enable new electric load growth with potentially different cost structures and service models, potentially increasing competition in non-axed load segments.
• Reliability and System Planning: By opting to avoid the bulk-power system, CREUs could introduce isolated reliability considerations; the bill requires rights-of-way processes to focus on restoration and storm planning.
• Public Utilities and Traditional Utilities: Traditional public utilities and the bulk-power system would maintain their existing regulatory framework; CREUs would not be treated as public utilities unless they connect to the bulk-power system.
• Transitional/Trigger Issues: A CREU that connects to the bulk-power system would become subject to all applicable federal regulations.

Who would be affected
- New electric generation and supply entities that fit the CREU definition.
- Eligible CREU customers (entities purchasing from CREUs).
- Federal energy regulators (FERC, DOE) would see changes in regulatory jurisdiction for CREUs and related statutory exemptions.
- PUHCA and PURPA regimes would be amended to exclude CREUs from certain provisions.

Note: As reported, the bill was introduced April 21, 2026, with sponsors Rep. Beghich (for himself) along with Reps. Crenshaw and Owens. It has been referred to the House Committee on Energy and Commerce.