Data Center Fair Share Act
- Bill Number
- H.R. 10322
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-09-08: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-09-25T14:53:38Z
AI-Generated Summary
Purpose The legislation establishes federal standards to ensure that large electricity users pay the full costs of any power system upgrades needed to serve their demands. It amends the Public Utility Regulatory Policies Act of 1978 and ties state compliance to the receipt of federal highway funds.
Key Provisions
- Adds a new standard (paragraph 22) to section 111(d) of the Public Utility Regulatory Policies Act of 1978 requiring electric utilities to recover from large-load customers the full incremental costs of generation, transmission, or distribution upgrades.
- Requires utilities, before making such upgrades, to obtain a contribution in aid of construction from the customer or assign the full costs to a class of large-load customers.
- Defines a large-load customer as a non-residential user requesting or entering a contract for facilities with an aggregate peak demand of 100 megawatts or more at a single site or campus.
- Mandates that state regulatory authorities and nonregulated utilities begin considering the standard within one year and complete consideration within two years of enactment.
- Withholds 100 percent of a state’s apportioned highway funds under section 104(b) of title 23, United States Code, if the state fails to implement the standard.
- Provides exceptions for states that have already implemented a comparable standard or voted on it before enactment.
Significant Changes to Existing Law
- Introduces a new mandatory cost-recovery standard under PURPA specifically targeting large-load customers.
- Creates a direct link between state utility regulation and federal highway funding by authorizing 100 percent withholding for noncompliance.
- Establishes explicit timelines and procedural requirements for state consideration of the new standard, with limited grandfathering for prior state actions.
Potential Impacts
- Government agencies: State public utility commissions must adopt or consider the standard; the Department of Transportation must withhold highway funds from noncompliant states.
- Citizens: May affect electricity rates for other customers if costs are not fully shifted; could influence infrastructure spending through reduced highway funds.
- International relations: No direct provisions affect foreign entities or relations.
Main Stakeholders Affected
- Electric utilities and their regulators
- Large-load customers (primarily data centers and similar high-demand facilities)
- State legislatures and regulatory authorities
- The Federal Highway Administration and state transportation departments
- Residential and smaller commercial electricity customers
Notable Legal, Constitutional, or Political Implications
- Uses conditional federal spending on highways to encourage state adoption of utility standards, a mechanism previously upheld in other contexts.
- Applies only to new or expanded large-load agreements after enactment.
- Preserves state flexibility by allowing prior comparable actions to satisfy the requirement.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Subramanyam, Suhas [D-VA-10]
Recent Actions
- 2026-09-08: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-09-08: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Transportation and Infrastructure, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2026-09-08: Introduced in House
- 2026-09-08: Introduced in House
Bill Versions
- Data Center Fair Share Act — issued 2026-09-08 — PDF (6 pages)