PRICE Act

Bill Number

H.R. 6983

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Energy

Status

Introduced

Latest Action

2026-01-08: Referred to the House Committee on Energy and Commerce.

Last Updated

2026-06-30T08:06:32Z

AI-Generated Summary

Purpose

The PRICE Act aims to ensure that data centers in the United States produce their own electricity to meet their consumption needs, reducing reliance on the public grid and mitigating potential increases in energy costs for consumers. It promotes the use of clean energy sources to support environmental goals.

Key Provisions

• Electricity Generation Requirement: Starting immediately upon enactment, every data center must generate 100% of the electricity it uses each year on-site or through dedicated means.
• Clean Energy Mandates:
• From January 1, 2035, to December 31, 2039, at least 75% of the generated electricity must come from clean energy sources.
• From January 1, 2040, onward, 100% must be from clean energy sources.
• Clean Energy Definition: Includes renewable and low-emission options such as solar, wind, battery storage, green hydrogen, hydropower, and geothermal energy.
• Data Center Definition: Applies to facilities that store, manage, or process data (as defined in existing federal energy law) and consume at least 50 megawatts of power per day—equivalent to the energy needs of about 40,000 average U.S. households.
• Enforcement:
• Violations incur a civil penalty of up to $100,000 per day until corrected.
• The Secretary of Energy must create an administrative process for issuing penalties within 30 days of the Act's enactment.

Significant Changes to Existing Law

This legislation introduces a novel federal mandate requiring data centers to self-generate electricity, which does not exist in current U.S. law. It builds on the Energy Independence and Security Act of 2007 by referencing its definition of data centers but adds strict self-sufficiency and clean energy requirements, shifting from voluntary efficiency standards to enforceable obligations.

Potential Impacts

• On Government Agencies: The Department of Energy gains new enforcement responsibilities, including penalty administration, which may require additional resources for oversight and compliance monitoring.
• On Citizens: Could lower electricity rates for households and businesses by decreasing data centers' demand on the shared power grid, potentially preventing "rate inflation" from high-energy users.
• On Data Centers and Businesses: Operators (e.g., tech companies like those running cloud services) must invest heavily in on-site power generation, possibly increasing operational costs but encouraging innovation in clean energy technologies.
• On International Relations: May influence global tech investments, as U.S.-based data centers face unique regulatory burdens, potentially affecting competitiveness with countries having less stringent energy rules; it could also position the U.S. as a leader in sustainable data infrastructure.

Main Stakeholders Affected

• Data Center Operators: Primary targets, including major tech firms (e.g., Amazon, Google, Microsoft) that own or lease large facilities.
• Energy Sector: Providers of clean energy technologies (e.g., solar and wind developers) may see growth opportunities, while traditional utilities could benefit from reduced grid strain.
• Consumers and Utilities: Everyday electricity users and regional power companies, who stand to gain from stabilized or lower rates.
• Federal Government: Specifically the Department of Energy, tasked with enforcement.

Notable Legal, Constitutional, or Political Implications

• Legal: Establishes a clear federal regulatory framework with daily civil penalties, potentially leading to litigation over compliance feasibility or definitions (e.g., what qualifies as "generated" electricity). It empowers administrative enforcement without needing court involvement initially.
• Constitutional: Relies on Congress's authority under the Commerce Clause to regulate interstate energy and commerce, as data centers often support national and global digital economies; however, it could face challenges if seen as overreach into private property or state energy regulations.
• Political: Advances environmental and energy independence priorities by mandating clean energy transitions, but may spark debates on economic burdens for the tech industry versus benefits for climate goals and consumer affordability. The phased timeline allows preparation but underscores a push toward sustainability in high-energy sectors.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Menendez, Robert [D-NJ-8]

Cosponsors (4)

Rep. Casar, Greg [D-TX-35], Rep. Grijalva, Adelita S. [D-AZ-7], Rep. Larson, John B. [D-CT-1], Rep. Velázquez, Nydia M. [D-NY-7]

Recent Actions

• 2026-01-08: Referred to the House Committee on Energy and Commerce.
• 2026-01-08: Introduced in House
• 2026-01-08: Introduced in House

Bill Versions

• Preventing Rate Inflation in Consumer Energy Act — issued 2026-01-08 — PDF (3 pages)