GRID Act

This bill requires data centers to use off-grid power sources to protect residential ratepayers from rate increases. It defines key terms, sets rules for existing and new data centers, and mandates public reporting on utility usage and property deals.

Sec. 3, Definitions: Defines a 'covered entity' as a private company owning or planning a data center within 5 years. A 'data center' is one with 20+ megawatts power demand, excluding federal agencies or their contractors. 'Rate Effect Credit' offsets data center impacts on ratepayer electrical rates. 'Zero Rate Effect Certificate' is issued by the Secretary of Energy.

Sec. 4, Data center requirement for off-grid power supply: Starting 180 days after enactment, covered entities cannot build or operate a data center unless all energy, including backup, comes from a captive power plant or other off-grid source. Existing data centers have 10 years to comply by obtaining a Zero Rate Effect Certificate, which requires a Secretary study showing no rate increase for ratepayers, prioritizing residential rates. Rate Effect Credits or other financial arrangements can meet certificate requirements. Power sources must follow all laws, and construction requires a project labor agreement. Violations incur a minimum $1 million daily civil penalty.

Sec. 5, Data center reporting requirements: Within 90 days, the Secretary must create national rules for covered entities to publicly disclose utility usage estimates for new and existing data centers, including 5-year projections and past 5 years of actual usage. They must also disclose any real property acquisitions for data centers, including related transactions with government entities. Additionally, covered entities and utilities must publicly disclose agreements for utility service, including any subsidies, credits, or incentives, with estimates of savings and financial affiliations.