HR9655119th CongressWALLET

FAIR Data Act

Sponsored By: Representative Riley, Josh [D-NY-19]

Introduced

Summary

Prohibits electric utilities from recovering the costs of grid upgrades and other expenses tied to large data centers from residential and small business electric customers. It would also set deadlines, reporting rules, and funding conditions to enforce and monitor that standard.

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  • Families and small businesses: Households and small commercial electric customers would not bear costs that a State-regulated investor-owned utility incurs to serve a "covered data center." Covered data centers are defined as sites or aggregations with peak demand over 75 megawatts.
  • State regulatory authorities: States would have to begin considering the standard within 6 months and complete their decision within 1 year while preserving prior proceedings that substantially conform to the new rules.
  • Covered utilities and data centers: Utilities could not recover data-center related upgrade costs from residential or small business rates, and owners of covered data centers must provide annual reports on community cost impacts.
  • Federal oversight and conditions: The Department of Energy funding to state regulators would require certification that costs won’t be shifted to households, and the Federal Energy Regulatory Commission must report annually to Congress on rate and reliability effects.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

No data‑center costs on home bills

If enacted, covered investor-owned utilities would be barred from recovering any costs tied to covered data centers from residential or small business electric customers. This ban would expressly include costs to upgrade generation, transmission, or distribution to meet data center demand. A 'covered data center' would mean a facility (or group of facilities at one site) with peak demand over 75 megawatts that mainly processes, stores, transmits, or hosts digital information. A 'covered utility' would mean a State‑regulated investor‑owned electric utility.

Federal grants and reports tied to data centers

If enacted, the Department of Energy would not give administrative or technical assistance funds to a State regulator for a fiscal year unless the State certifies it will not let utilities recover data‑center costs from residential or small business rates. States would also have to require covered data center owners who claimed local bill savings to provide an annual report on actual savings to residential and small business consumers. The Federal Energy Regulatory Commission would report to Congress by September 30 of the fiscal year of enactment, and each September 30 thereafter, on how covered data centers affect residential and small business electricity rates and grid reliability.

State utility review deadlines set

If enacted, each State utility regulator would have 6 months to start considering the new PURPA standard for covered utilities and 1 year to complete consideration and make a determination. If a State misses those deadlines, the standard would be considered in the first rate proceeding begun after three years from enactment. States that already implemented or considered a comparable standard in the prior three years would be exempt. Proceedings begun before enactment that substantially conform would be treated as complying.

Sponsors & CoSponsors

Sponsor

Riley, Josh [D-NY-19]

NY • D

Cosponsors

  • Rep. Van Drew, Jefferson [R-NJ-2]

    NJ • R

    Sponsored 7/13/2026

  • Rep. Vasquez, Gabe [D-NM-2]

    NM • D

    Sponsored 8/13/2026

Roll Call Votes

No roll call votes available for this bill.

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