US House Committee approves legislative package to address data center energy demands, including grid transmission upgrades and interconnection priority.

House Republicans and Democrats united Tuesday in support of legislation aimed at shielding residential ratepayers from rising grid costs associated with data center expansion. The Ratepayer Protection Act (H.R. 9340), sponsored by Reps. Gabe Evans (R-Colo.) and Kathy Castor (D-Fla.), advanced through the House Energy and Commerce Committee with unanimous support—a 52-0 vote—alongside five additional grid modernization measures.

The energy bills are part of a broader legislative package assembled by committee Republicans. Committee Chairman Rep. Brett Guthrie (R-Ky.) released the discussion draft of the Permitting Our Way to an Energy Resurgence (POWER) Act on Wednesday, which consolidates 19 bills designed to expand grid capacity, streamline energy permitting, and address surging electricity demand from large users including data centers.

The Ratepayer Protection Act formed the centerpiece of Tuesday's markup. Lawmakers from both parties characterized it as a mechanism to ensure that data center developers and hyperscalers, rather than residential customers, bear the cost of new grid infrastructure needed to support their operations. "This legislation codifies President Trump's ratepayer protection pledge," Evans said. "It's common sense, bipartisan, and it directly responds to constituents' concerns."

H.R. 9340 would direct each state regulatory authority to consider adopting a federal standard requiring data centers and hyperscalers with a demand of 100 megawatts or greater to pay the full cost of any generation, transmission, or distribution upgrades necessary to serve them. Evans emphasized that the bill operates as guidance rather than mandate: "This bill does not impose a federal mandate. Instead, it offers a thoughtful federal standard for states to consider as they evaluate how best to integrate large loads."

Several states—Minnesota, Michigan, Virginia, Ohio, Texas, California, Wisconsin, and Tennessee—have already adopted or advanced policies aimed at ensuring large loads absorb more of the costs associated with grid connection and expansion.

Before the markup, committee leadership narrowed the ratepayer bill's scope to target specifically large data centers, removing broader language that would have covered any non-residential electricity customer demanding 100 megawatts or more, including industrial facilities, manufacturing plants, and large commercial operations. The Data Center Coalition, the industry's leading trade group, criticized the amendment, arguing that the committee's changes leave everyday Americans vulnerable to costs stemming from large load growth in other sectors.

A companion provision, H.R. 6529, would direct the Federal Energy Regulatory Commission to convene a conference with regulators, utilities, consumer advocates, and large electricity users to examine how costs of serving new large users should be allocated.

The package included four additional bills focused on grid reliability, planning, and infrastructure. H.R. 6633, the High-Capacity Grid Act, passed 49-0 and would require FERC to mandate that certain transmission projects utilize advanced, high-capacity conductors designed to increase electricity carrying capacity on existing transmission infrastructure. H.R. 9332, the Load Forecasting Enhancement Act, passed 47-0 and would require FERC to establish regional boards to develop best practices for improving electricity demand forecasts, including accounting for growth from large new electricity users. H.R. 9335, the Advanced Transmission Technology to Reduce Rates Act, passed 39-10 and would direct the Department of Energy to establish a public clearinghouse on advanced transmission technologies and provide technical assistance to utilities and grid operators seeking deployment. H.R. 9339, the Affordable Innovation for the Grid Act, passed 44-0 and would require DOE to assess how artificial intelligence and high-performance computing could improve grid operations, including by accelerating generator and large-load interconnection studies and identifying adoption barriers.

Democratic committee members expressed concern that additional measures would be necessary to address broader community impacts of data centers, including water consumption, noise, and environmental effects. "I am deeply concerned about the impact that unrestricted data center growth is having on our communities," said Ranking Member Frank Pallone, Jr. (D-N.J.). "We need to be putting real, substantial guardrails in place to restrict their impacts on our air, our water, our power grid." Rep. Paul Tonko (D-N.Y.) similarly urged lawmakers to establish environmental standards: "I would encourage everyone to commit to working on meaningful federal standards that address these facilities' air emissions, water usage, and much more that can impact our communities and our people."

The House Energy and Commerce Committee advanced 17 of 29 bills scheduled for consideration during the markup, leaving several measures incomplete.