Energy Cost Fairness and Reliability Act of 2026
Sponsored By: Representative Min, Dave [D-CA-47]
Introduced
Summary
A federal interconnection framework for large load facilities and colocated generation. This bill would set national rules on who pays for interconnection and upgrades, how queueing and reliability are managed, and what labor and DOE research requirements apply.
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- Large load customers and data centers: would have to prove demand flexibility and curtailability, sign binding agreements with the transmission provider, and ensure any colocated generation meets Commission technical standards. They would remain subject to ongoing ancillary and black-start charges and would be paid wholesale locational marginal price or avoided-cost rates for exported power.
- Utilities and ratepayers: the large load facility or customer would pay 100% of interconnection study costs and 100% of network upgrade costs, with payments nonrefundable. The Commission could authorize payment mechanisms and may bar interconnection or transmission service for nonpayment to enforce those obligations.
- Workers, labor, and research: queue priority could be awarded for battery backup, prevailing wages, registered apprentices, and labor peace agreements. The Department of Energy would support an AI testbed at a National Laboratory and must produce a report within 1 year, after which the Commission would have 180 days to consider the recommendations.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
Higher costs and payment rules for large loads
If enacted, a large load customer would be responsible for 100% of network upgrade costs assigned by interconnection studies and those payments would be nonrefundable. Transmission providers would require deposits that cover study costs, readiness or milestone payments, and withdrawal penalties; nonpayment could block interconnection or transmission service. Colocated large loads would be assessed ancillary and black-start charges on a gross-demand basis when interconnected, even if they withdraw zero net energy. Colocated generators that export extra energy would be paid at the wholesale locational marginal price (LMP) or at the avoided-cost rate under the applicable tariff. The bill would allow non-firm injection and as-available withdrawal without deliverability studies, but that service would be curtailable and priced as non-firm. The section would not let FERC set retail electricity rates; state retail authority would be preserved.
New rules for large-load interconnections
If enacted, FERC would have 1 year to write rules for a standard interconnection process and a load queue for large loads. After those rules take effect, a large load facility would only be permitted to interconnect after approval through the applicable load interconnection queue. A facility would have to meet minimum technical and operational rules, show it can be curtailable and flexible, sign a binding agreement with the transmission provider, and guarantee new generation or arrangements that match its capacity and timing needs. The bill would define a "large load facility" as any facility with peak demand over 50 megawatts. FERC would also have 180 days after it gets the DOE report to decide whether to act on DOE recommendations.
DOE AI testbed for data centers
If enacted, the Department of Energy would set up an AI data-center testbed at a National Lab within 180 days. The Secretary would be able to require data centers to submit energy, water, and AI training/inference energy-use data and quarterly tracking. The Secretary must report to Congress and FERC within 1 year and publish aggregated topline findings while protecting business secrets from public disclosure. The testbed would support research on energy-efficient AI, cooling and control systems, grid integration, and load flexibility.
Sponsors & CoSponsors
Sponsor
Min, Dave [D-CA-47]
CA • D
Cosponsors
Rep. Goldman, Daniel S. [D-NY-10]
NY • D
Sponsored 9/24/2026
Roll Call Votes
No roll call votes available for this bill.
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