No Harm Data Centers Act
- Bill Number
- H.R. 8033
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-03-20: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-06-30T08:07:05Z
AI-Generated Summary
Purpose of the Legislation
The "No Harm Data Centers Act" (H.R. 8033) aims to protect residential and small commercial electricity customers from the financial burdens caused by data centers' high energy demands. It ensures that data centers fully cover the costs they impose on the electric grid, while addressing environmental, public health, and transparency issues related to their operations and construction.
Key Provisions
- Definition of Data Center: A data center is defined as a single facility or group of facilities connected to the electric grid at one point, primarily used for processing, storing, and transmitting digital information, with a peak electricity demand exceeding 50 megawatts (a measure of power usage, equivalent to the needs of about 40,000 average U.S. homes).
- Federal Oversight of Electricity Rates:
- The Federal Energy Regulatory Commission (FERC) gains exclusive authority to approve rates for electricity sold at retail (directly to end-users) by certain utilities to data centers.
- These rates must be "just and reasonable" (fair and not overly burdensome or favoritist) and include the full costs of building, upgrading, or expanding power lines, distribution systems, and generation facilities needed for data center connections and grid reliability.
- Utilities are prohibited from passing these costs to other customers, such as homes or small businesses.
- This authority does not apply in specific regions, such as parts of Texas regulated under state law (per Federal Power Act section 212(k)(2)(A)).
- "Covered electric utilities" include most private sellers of electricity but exclude rural cooperatives, government-owned utilities, the Tennessee Valley Authority, and federal power marketing administrations.
- Penalties for Violations: FERC can impose civil penalties up to $10 million per day for violations related to data center electricity pricing or rules, expanding existing enforcement powers under the Federal Power Act.
- Limits on Nondisclosure Agreements: In contracts for data center construction, clauses that prevent disclosure of information before a lawsuit (predispute nondisclosure clauses) cannot be enforced against public officials (elected federal, state, or local government representatives). This applies to claims filed after the law's enactment and does not override state laws unless they conflict.
- Environmental and Health Assessment: The Environmental Protection Agency (EPA) must contract with the National Academies of Sciences, Engineering, and Medicine to study data centers' impacts on noise pollution, air quality, water use and supply, carbon emissions, and waste (including electronic waste). The study must include mitigation recommendations and a report to congressional committees within 180 days of enactment.
Significant Changes to Existing Law
- Amendments to the Federal Power Act (1935):
- Adds a new definition for "data center" and a section (224) granting FERC unprecedented authority over retail electricity sales to data centers, which traditionally fall under state jurisdiction rather than federal wholesale regulation.
- Expands FERC's penalty provisions to cover retail sales to data centers, increasing maximum fines and specifying enforcement for these transactions.
- Updates conforming language to integrate the new section with existing rules.
- New Federal Restrictions on Contracts: Introduces limits on enforcing nondisclosure clauses in data center construction contracts against public officials, promoting transparency without broadly altering contract law.
- EPA Mandate: Requires a new, time-bound study by an independent scientific body, which did not previously exist under federal law for data centers specifically.
Potential Impacts
- On Government Agencies: FERC will handle increased regulatory workload, including rate approvals and enforcement, potentially straining resources. The EPA will oversee a contracted study, leading to short-term administrative costs but possible long-term policy guidance.
- On Citizens: Residential and small commercial electricity users could see lower or stabilized bills by preventing cost shifts from data centers, benefiting households in areas with growing data center presence. Public officials gain freer ability to discuss construction issues, enhancing local oversight.
- On Data Centers and Utilities: Data center operators may face higher electricity costs, potentially slowing expansion or increasing operational expenses. Utilities must comply with federal rate-setting and cost allocation rules, limiting flexibility but ensuring fair burden-sharing.
- On International Relations: Minimal direct impact, though the law could indirectly affect U.S. tech competitiveness if higher costs deter foreign investment in data centers; no explicit international provisions.
Main Stakeholders Affected
- Data Center Operators: Bear full grid-related costs and face stricter federal pricing oversight, potentially increasing expenses for companies like those running cloud services or AI facilities.
- Electricity Customers: Primarily residential and small businesses, protected from higher rates; large industrial users may see indirect benefits if costs are not shifted.
- Electric Utilities: Private utilities (non-exempt) must adhere to FERC approvals and cost prohibitions, altering business practices.
- Public Officials and Communities: Elected leaders can more openly address construction concerns, aiding local advocacy on environmental or health issues.
- Federal Agencies: FERC (regulation and enforcement), EPA (study coordination), and congressional committees (receiving reports).
- Scientific and Environmental Groups: National Academies conduct the assessment, influencing future mitigation efforts.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Shifts some retail electricity regulation from states to federal control, which could lead to lawsuits challenging FERC's expanded role under the Federal Power Act. The nondisclosure provision promotes transparency but raises questions about federal interference in private contracts, balanced by deference to state laws.
- Constitutional Implications: Potential tension with the 10th Amendment (states' rights), as the bill federalizes aspects of intrastate retail sales traditionally managed locally; exceptions for certain utilities and regions mitigate this. No direct free speech or due process issues, but enhanced penalties could invite due process challenges if deemed excessive.
- Political Implications: Addresses growing concerns over data centers' energy demands amid tech boom and climate goals, appealing to consumer protection advocates while possibly facing opposition from tech industry lobbies. The required study could inform bipartisan environmental policies, but implementation depends on FERC's capacity and potential state-federal conflicts.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-03-20: Referred to the House Committee on Energy and Commerce.
- 2026-03-20: Introduced in House
- 2026-03-20: Introduced in House
Bill Versions
- No Harm Data Centers Act — issued 2026-03-20 — PDF (10 pages)