Data Center Fairness Fee Act of 2026

This bill amends the Clean Air Act to require the Environmental Protection Agency (EPA) to impose and collect charges on the total annual electricity consumption of certain large data centers and cryptocurrency mining facilities, starting in 2027. The funds collected are allocated to states and Indian tribes for energy assistance and efficiency programs.

Sec. 2, Charge on data center electricity use: The EPA Administrator must impose a charge of $0.01 per kilowatt-hour on the total electricity consumed by an applicable facility each calendar year, beginning in 2027. This includes electricity from behind-the-meter generation.

Sec. 2(b), Additional charge for high-pollution applicable facilities: Starting in 2028, an extra charge of $0.05 per kilogram of carbon dioxide equivalent emissions is imposed on facilities whose electricity has an average carbon intensity greater than 0.10. The Administrator sets rules for monitoring and calculating emissions, including from on-site generation, power purchase agreements, and grid electricity. If data is unverified, the highest U.S. carbon intensity is assumed.

Sec. 2(c), Reporting: Within one year of enactment, the EPA must issue regulations for a reporting program requiring owners and operators to monitor and report electricity consumption, water use, greenhouse gas emissions, and other metrics.

Sec. 2(d), Use of funds: Collected charges are allocated to states and Indian tribes using the formula under part D of title III of the Energy Policy and Conservation Act. Funds must be used for programs under the Low-Income Home Energy Assistance Act, certain Inflation Reduction Act programs, the Energy Conservation and Production Act, or approved programs that reduce peak demand, improve energy efficiency, or lower residential utility bills.

Sec. 2(e), Definitions: An applicable facility is a U.S. facility (or multiple facilities within 10 miles of each other owned by the same entity) with over 50 megawatts of installed information technology nameplate capacity, primarily containing electronic equipment for processing, storing, and transmitting digital information, or used for cryptocurrency or blockchain mining. Carbon dioxide equivalent emissions, carbon intensity, and greenhouse gas are defined, with greenhouse gases including carbon dioxide, hydrofluorocarbons, methane, nitrous oxide, perfluorocarbons, and sulfur hexafluoride.