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Bill

S 3682

Power for the People Act of 2026

119th Congress Introduced by Angela Alsobrooks and 8 co-sponsors

The bill would create data center load queues and data-center-specific rate classes to ensure data centers bear appropriate costs and that interconnections, reliability, and grid c

Introduced in Senate
1
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Bill Summary · S 3682

Overview

  • Bill: S. 3682, the Power for the People Act of 2026
  • Purpose: Promote the creation of data center load queues and data center-specific rate classes to mitigate the impact of data centers on other electricity consumers, improve grid reliability, and ensure that data centers bear appropriate energy costs.
  • Introduced in the Senate January 15, 2026; sponsors include Van Hollen, Blumenthal, Booker, Duckworth, Durbin, Welch, Alsobrooks, Smith, Warner, and others. Referred to the Committee on Energy and Natural Resources.

Main Purpose and Intent (Section 2: Sense of Congress)

  • Aims to address rising energy costs and grid impacts associated with data centers.
  • Argues data centers currently impose energy costs on ratepayers through higher bills and infrastructure needs.
  • Projects data center electricity demand could rise substantially (6.7%–12% of all energy demand by 2028).
  • Seeks increased Federal oversight to ensure data center interconnections do not threaten reliability or affordability.
  • Proposes that data centers be held financially responsible for their energy demand and related costs.
  • Supports data center load queues and data-center-specific rate classes as mechanisms to manage interconnection, reliability, and cost allocation.
  • Recognizes transmission cost implications and potential environmental considerations; favors low-/no-carbon generation when feasible.

Key Provisions

Section 3. Definitions

  • Establishes terms for the bill, including:
    • Data center, data center load queue, data center owner/operator.
    • Covered interconnection entity (ISO/RTO, transmitting utility, etc.).
    • Various other terms (data center load interconnection requests, qualifying battery storage, load flexibility agreements, etc.).

Section 4. Data Center Load Queues

  • Requires the Federal Energy Regulatory Commission (FERC) to issue a rule within 180 days establishing data center load queues.
  • Data center load queues must:
    • Prioritize interconnection for data centers that offset grid costs via strategies described in subsection (b).
    • Allow interconnection decisions that do not interfere with organic load growth.
    • Permit delaying or denying interconnection if it would impair reliability or affordability for non-data-center customers.
  • Subsection (b) outlines strategies to qualify for priority, including:
    • New, dedicated supply resources funded by data centers (PPA or bilateral contracts); aligned capacity with data center needs; low- or no-carbon generation.
    • Low/no-carbon backup generation (behind-the-meter storage allowed).
    • Labor standards and fair construction practices (prevailing wages and registered apprenticeships), and labor peace agreements for energy supply resources.
  • Qualifying Load Flexibility Agreements:
    • FERC to set minimum standards/guidelines to reduce costs and enable implementation by covered interconnection entities.
    • Data centers may be interrupted by the grid operator when needed, with priority given to grid reliability and other customers.
  • Priority mechanics:
    • Sliding scale prioritizes lower-carbon generation forms.
  • Compliance and enforcement:
    • Data centers and contractors using project labor agreements are deemed in compliance with certain labor standards.
    • Compliance deadline: 1 year after final rule issuance.
    • Data centers interconnecting after the rule takes effect must use the load queue process.

Section 5. Local Transmission Cost Allocation

  • Within 120 days of enactment, the Commission must direct filings to allocate local transmission upgrade costs to interconnecting data centers and to require data centers to pay transmission rates reflecting embedded grid costs (excluding certain local upgrades allocated to data centers).

Section 6. Data Center-Specific Rate Classes (Public Utility Regulatory Policies Act amendments)

  • States with data centers must consider:
    • Establishing a data center rate class to cover full generation, transmission, and distribution upgrade costs.
    • Specific rate-class requirements, including:
    • Minimum demand charges based on peak demand if monthly usage is less than requested peak.
    • Longer utility contract terms to avoid stranded costs.
    • Higher upfront interconnection study costs or collateral to prevent speculative projects.
    • Load ramp periods to gradually reach full capacity without compromising grid reliability.
    • Clean transition tariffs or contributions to aid of construction (CIAC) to fund novel low-emission energy technologies.
  • Compliance timeline and processes for state regulators to consider and decide on the standard within set timeframes.

Section 7. Creation of Appropriate Rate Classes (Grants and Technical Assistance)

  • Secretary to create a grant/technical assistance program within 180 days to help State regulators and utilities implement data center rate classes.
  • Authorized appropriations to fund these efforts.

Section 8. Load and Interconnection Forecasting

  • Technical assistance program within 180 days to improve long-term load forecasting for data center interconnections.
  • Establish transparency and disclosure requirements for data center load interconnection requests across transmission and distribution levels.
  • Aims to reduce duplicative or speculative requests and improve forecasting accuracy.

Who Would Be Affected

  • Data center owners and operators (primary impact: interconnection priorities, rate classifications, and potential costs).
  • Covered interconnection entities (ISOs/RTOs, transmitting utilities, and regional grid planning entities) responsible for implementing load queues and coordination.
  • Public utilities and nonregulated electric utilities (through rate-class reforms and cost-allocation requirements).
  • State regulatory authorities and utility regulators (through rate-class design, hearings, and implementation of standards).
  • Labor organizations, contractors, and workers on data center construction and energy projects (due to wage, apprenticeship, and labor peace requirements).

Procedural/Timeline Aspects

  • Rulemaking timeline: FERC must issue the data center load queue rule within 180 days of enactment; compliance deadline for rule: 1 year after issuance.
  • Transmission cost allocation and rate-class design actions to begin within 120–180 days, with ongoing state/regulator processes.
  • State regulators to consider or set hearings within 1–2 years for the data center rate-class standard.
  • Authorization of appropriations for grants/assistance and forecasting/transparency programs; funding to be provided as needed.

Potential Impacts and Considerations

  • Could shift some cost burden for electricity infrastructure onto data centers, reducing cross-subsidization by non-data-center customers.
  • Data centers may face higher up-front and long-term costs but could benefit from clearer interconnection processes and potentially quicker access when meeting standards.
  • Grid reliability and affordability for non-data-center customers could be enhanced through load queues, load flexibility, and targeted generation resources.
  • Environmental considerations: emphasis on low- or no-carbon generation options and a sliding-scale priority for lower-carbon interconnection resources.
  • Administrative complexity: requires coordination among FERC, States, utilities, data center operators, and labor groups; significant regulatory changes at multiple levels.

If you’d like, I can provide a section-by-section briefing with potential pros/cons or compare this bill to existing data center policies.

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

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