DATA Act of 2026
- Bill Number
- H.R. 8400
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Energy
- Status
- Introduced
- Latest Action
- 2026-04-21: Referred to the House Committee on Energy and Commerce.
- Last Updated
- 2026-05-04T14:09:21Z
AI-Generated Summary
H.R. 8400: Decentralized Access to Technology Alternatives Act of 2026 (DATA Act of 2026)
Purpose
The legislation aims to promote independent, decentralized electric power systems by exempting new "consumer-regulated electric utilities" (CREUs)—standalone, "islanded" systems not connected to the main U.S. power grid—from most federal regulations. This enables large new electricity users, like data centers, to build and operate their own self-contained power networks.
Key Provisions
- Defines CREUs: New electric systems created after enactment to serve only previously unserved loads. They must be physically separated ("islanded") from the national "bulk-power system" (high-voltage interstate grid), regulated utilities, and the "Bulk Electric System" (critical grid components overseen for reliability). CREUs can generate, store, transmit, distribute, and sell power at retail but operate independently.
- Eligible Customers: Entities buying power solely from CREUs within islanded premises.
- Full Exemptions:
- From the Federal Power Act (FPA): No federal rate setting, financial oversight, transmission rules, reliability standards (mandatory grid safety rules), interconnection mandates, or merger approvals. CREUs are not "public utilities" under FPA.
- From Federal Energy Regulatory Commission (FERC) and Department of Energy (DOE) rules, including all reliability standards.
- Exemption ends if a CREU connects to the grid for primary or backup power.
- PURPA Exemption: Amends the Public Utility Regulatory Policies Act (PURPA) so CREUs are not required to connect with, buy from, or sell to other utilities.
- PUHCA Exemption: Amends the Public Utility Holding Company Act (PUHCA) to exclude holding companies that own CREUs from federal oversight.
- Public Rights-of-Way: CREUs can build facilities in public rights-of-way (e.g., roadsides), subject to basic state/local permits limited to restoration and storm-response plans.
Significant Changes to Existing Law
- Creates a new category of unregulated utilities (CREUs) outside FPA, PURPA, and PUHCA.
- Removes FERC/DOE jurisdiction over new islanded systems, shifting them from federal to state/consumer control.
- Overrides prior requirements for grid interconnection, reliability compliance, and holding company reporting.
Potential Impacts
- Government Agencies: Reduces FERC and DOE workload/enforcement on CREUs; limits their role in regional grid planning.
- Citizens/Businesses: Enables large consumers (e.g., tech firms) to build custom power systems without federal red tape, potentially lowering costs and speeding deployment for high-demand uses like AI data centers. Existing grid users unaffected unless CREUs connect.
- Electric Sector: Encourages off-grid microgrids, reducing strain on the national grid but risking isolated reliability issues.
- No direct international relations impact noted.
Main Stakeholders Affected
- CREUs and Owners: Primarily new entrants like tech companies or industrial sites building private power.
- Eligible Customers: Large-scale buyers (e.g., data centers) in islanded facilities.
- Federal Agencies: FERC, DOE (lose regulatory authority).
- Existing Utilities: Protected from forced dealings with CREUs; may face competition for new loads.
- Holding Companies: Freed from PUHCA if owning CREUs.
- States/Localities: Gain permitting role for rights-of-way.
Notable Legal, Constitutional, or Political Implications
- Legal: Introduces "opt-out" from federal grid rules via physical isolation; exemptions could face challenges under interstate commerce authority if CREUs indirectly affect markets.
- Constitutional: Advances federalism by deferring to states/consumers on intrastate, islanded systems, potentially aligning with 10th Amendment limits on federal power.
- Political: Supports deregulation for innovation in energy/tech sectors; may spark debate on grid reliability vs. private autonomy. No partisan bias in text; introduced by bipartisan sponsors (Begich, Crenshaw, Owens).
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Begich, Nicholas J. [R-AK-At Large]
Cosponsors (2)
Rep. Crenshaw, Dan [R-TX-2], Rep. Owens, Burgess [R-UT-4]
Recent Actions
- 2026-04-21: Referred to the House Committee on Energy and Commerce.
- 2026-04-21: Introduced in House
- 2026-04-21: Introduced in House
Bill Versions
- Decentralized Access to Technology Alternatives Act of 2026 — issued 2026-04-21 — PDF (8 pages)