Power for the People Act of 2026
- Bill Number
- H.R. 8241
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-04-09: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-06-19T08:06:54Z
AI-Generated Summary
Summary of H.R. 8241: Power for the People Act of 2026
Purpose
The legislation aims to address rising electricity costs and grid reliability issues caused by data centers by requiring grid operators to prioritize certain data center connections and directing states to create separate electricity rate classes for data centers. This seeks to ensure data center owners and operators cover the full costs of their energy use, rather than passing those costs to other electricity consumers.
Key Provisions
- Data center load queues: Directs the Federal Energy Regulatory Commission (FERC) to require grid operators to establish separate queues for data center connections. These queues prioritize projects that bring new low- or no-carbon energy sources, use battery storage, allow load interruptions during grid stress, and meet labor standards such as prevailing wages and registered apprenticeship programs. Connections may be delayed or denied if they threaten grid reliability or raise costs for non-data center users.
- Local transmission cost allocation: Requires FERC to direct utilities to assign upgrade costs caused by data centers directly to those facilities, while data centers pay standard transmission rates for the broader grid.
- Data center-specific rate classes: Amends the Public Utility Regulatory Policies Act of 1978 to require states with data centers to consider rate classes that include minimum demand charges, longer contract terms to avoid stranded costs, higher upfront fees for studies, gradual power ramp-up periods, and options for data centers to fund zero-emissions technologies.
- Support programs: Authorizes the Department of Energy to provide grants and technical assistance to states for developing these rate classes and to improve long-term electricity demand forecasting for data centers.
- Definitions and scope: Applies to facilities with over 50 megawatts of demand (excluding federal government-owned sites) and includes provisions for cryptocurrency mining facilities. Excludes organic load growth from hospitals, homes, and similar uses from these new rules.
Significant Changes to Existing Law
- Adds new requirements under the Federal Power Act for FERC to oversee data center interconnections and cost allocation, building on existing authority for just and reasonable rates and grid reliability.
- Introduces a new standard (paragraph 22) to the Public Utility Regulatory Policies Act of 1978, mandating state consideration of data center rate classes with specific consumer-protection features.
- Establishes timelines for states to evaluate these standards (consideration within one year, determination within two years) and includes provisions for states that have already acted.
- Creates FERC rules for load flexibility agreements and transparency in interconnection requests to reduce speculative projects.
Potential Impacts
- On government agencies: Expands FERC's role in reviewing data center connections and directing cost rules; increases Department of Energy responsibilities for grants and forecasting support; requires state utility regulators to review and potentially adopt new rate structures.
- On citizens: Aims to limit electricity bill increases for households and businesses by shifting data center-related costs to data center owners and operators.
- On international relations: No direct provisions address international matters, though the focus on grid reliability and interstate commerce could indirectly affect cross-border energy considerations.
Main Stakeholders Affected
- Data center owners and operators, who face new queue priorities, cost responsibilities, and potential rate class requirements.
- Electricity consumers and ratepayers outside data centers, intended to benefit from cost protections.
- Electric utilities, independent system operators, regional transmission organizations, and transmitting utilities, which must implement new queues, cost allocations, and forecasting.
- State regulatory authorities and nonregulated utilities, required to consider data center rate classes.
- Labor organizations, due to requirements for prevailing wages, apprenticeships, and labor peace agreements in construction and operations.
Notable Legal, Constitutional, or Political Implications
- Relies on FERC's existing authority under the Federal Power Act to regulate transmission and ensure nondiscriminatory practices, while arguing that data centers form a distinct class justifying separate treatment.
- Involves federal direction to states on energy policy through amendments to the Public Utility Regulatory Policies Act, potentially raising questions about federal-state roles in electricity regulation.
- Incorporates labor and environmental standards into interconnection priorities, linking energy access to workforce and emissions considerations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (23)
Rep. Castor, Kathy [D-FL-14], Rep. Cohen, Steve [D-TN-9], Rep. Elfreth, Sarah [D-MD-3], Rep. Dexter, Maxine [D-OR-3], Rep. Foushee, Valerie P. [D-NC-4], Rep. Garamendi, John [D-CA-8], Rep. Goldman, Daniel S. [D-NY-10], Rep. Lynch, Stephen F. [D-MA-8], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Ivey, Glenn [D-MD-4], Rep. McClain Delaney, April [D-MD-6], Rep. McClellan, Jennifer L. [D-VA-4], Rep. Mfume, Kweisi [D-MD-7], Rep. Olszewski, Johnny [D-MD-2], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Quigley, Mike [D-IL-5], Rep. McCollum, Betty [D-MN-4], Rep. Latimer, George [D-NY-16], Rep. Escobar, Veronica [D-TX-16], Rep. DeSaulnier, Mark [D-CA-10], Rep. Balint, Becca [D-VT-At Large], Rep. Pingree, Chellie [D-ME-1], Rep. Levin, Mike [D-CA-49]
Recent Actions
- 2026-04-09: Referred to the House Committee on Energy and Commerce.
- 2026-04-09: Introduced in House
- 2026-04-09: Introduced in House
Bill Versions
- Power for the People Act of 2026 — issued 2026-04-09 — PDF (26 pages)