WeVote
Log In

Bill

JR

Bill

HR 9655

FAIR Data Act

119th Congress Introduced by Josh Riley and 2 co-sponsors

Prohibits residential and small-business electric customers from bearing costs for data-center infrastructure by adding a PURPA standard that bars cost recovery for covered data ce

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 9655

Overview

  • Bill: H.R. 9655
  • Session: 119th Congress
  • Title: FAIR Data Act (Full name: Fair Allocation of Infrastructure Responsibility for Data Act)
  • Introduced: July 13, 2026 by Rep. Riley (NY) with Rep. Van Drew as a cosponsor
  • Referral: House Committee on Energy and Commerce

Purpose and intent

The FAIR Data Act amends the Public Utility Regulatory Policies Act of 1978 (PURPA) to prohibit certain electric utilities from recovering costs related to covered data centers from residential or small business electric customers. The core aim is to prevent ratepayers from bearing the costs of data-center-related infrastructure or upgrades that serve data centers.

Key provisions

1) PROHIBITION ON COST RECOVERY (PURPA standard)

  • The act adds a new standard to PURPA (Section 111(d)(22)):
    • No “covered utility” may recover from residential or small business electric consumers, through rates, any costs associated with covered data centers.
    • This includes costs tied to upgrades to generation, transmission, or distribution facilities needed to meet demand from covered data centers.

2) DEFINITIONS

  • Covered utility: A state-regulated investor-owned electric utility.
  • Covered data center: A facility (or aggregation at a single site) with peak demand exceeding 75 megawatts, primarily housing electronic equipment for processing, storing, transmitting, or hosting digital information, plus the supporting electrical, mechanical, and environmental systems.

3) STATE REVIEW AND TIMING (Conforming amendments)

  • Requires state regulatory authorities to consider or hold hearings on the PURPA standard within specified timelines:
    • Beginning within 6 months after enactment, for each covered utility with ratemaking authority.
    • Complete consideration and make a determination within 1 year after enactment.
  • Adjusts several PURPA provisions to align with the new standard and clarifies applicability to covered utilities.

4) PROVISIONS RELATED TO AN ENERGY AGENCY FUNDING AND REPORTING

  • DOE funding conditions: State regulatory authorities must certify to the Secretary of Energy that costs associated with covered data centers will not be recovered via residential/small business rates. They must also report on actual cost savings claimed by data centers in their permits.
  • FERC annual report: The Federal Energy Regulatory Commission must report to Congress on the impact of covered data center demands on residential/small business electricity rates and grid reliability.

5) ADDITIONAL DEFINITIONS FOR IMPLEMENTATION

  • Electric consumer: As defined in PURPA.
  • Secretary: Secretary of Energy.
  • State regulatory authority: As defined in PURPA.

Who is affected

  • Covered utilities: State-regulated investor-owned electric utilities.
  • Covered data centers: Facilities with peak demand > 75 MW that house digital processing/storage equipment.
  • Electric consumers: Residential and small business customers who would otherwise be responsible for data-center-related costs via utility rates.
  • State regulatory authorities: Must conduct proceedings, make determinations, and collaborate with data-center operators.
  • Federal entities: DOE (funding conditions) and FERC (annual impact reporting).

Procedural and timeline aspects

  • Enactment triggers new state review requirements:
    • Start of consideration: Within 6 months of enactment.
    • Completion of consideration and determination: Within 1 year of enactment.
  • Some prior-state actions may be exempted if a state had already implemented a comparable standard or is actively considering such changes prior to enactment.
  • Funding and reporting requirements:
    • States must certify annually to the Secretary of Energy regarding cost-recovery prohibitions and data-center cost savings reporting.
    • FERC must issue an annual report starting in the first September after enactment.

Potential impacts

  • Financial: Aims to shift potential cost-recovery burdens away from residential/small-business customers onto data-center operators and potentially their customers or investors.
  • Infrastructure planning: States must evaluate whether data-center-related grid investments are being paid for by non-data-center customers, potentially altering approved rate designs and cost allocations.
  • Data-center industry: Could influence siting and operating decisions if rate protections for consumers are strengthened.
  • Grid reliability and economics: FERC reporting will assess how data-center demand affects rates and reliability, informing future policy discussions.

Summary

The FAIR Data Act seeks to ensure that data-center-driven infrastructure costs are not recovered from residential or small-business electric customers. It establishes a clear PURPA standard prohibiting such cost recovery for covered data centers, defines relevant terms, outlines requirements for state regulatory processes and timing, and imposes funding and reporting conditions to monitor effects on rates and grid reliability.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.