The House Energy and Commerce Committee will vote on bipartisan legislation this week to shield utility customers from the costs associated with data centers, while also advancing legislation aimed at bolstering the nation’s transmission system to meet surging demand.
The Ratepayer Protection Act — which seeks to codify President Donald Trump’s ratepayer protection pledge with major technology companies — will get a full committee vote Wednesday after clearing subcommittee last week.
“We must win the race for [artificial intelligence] dominance the right way,” Energy and Commerce Chair Brett Guthrie (R-Ky.) said last week. “When a data center developer comes to town, they should do so eager to grow alongside a community, not looking for handouts at the expense of taxpayers.”
The legislation passed in subcommittee by voice vote, reflecting broad bipartisan support despite disagreements on Capitol Hill about how federal lawmakers should respond to data center energy concerns.
Energy and Commerce ranking member Frank Pallone (D-N.J.) threw a curveball during last week’s debate when he endorsed a nationwide moratorium on new data centers, making him the highest-ranking Democrat with jurisdiction over energy and the environment to back the idea.
“Americans across the country have expressed concern and opposition to the rampant construction of AI data centers, and Congress should take this political groundswell seriously with a data center moratorium,” Pallone said.
Still, Pallone and other Democrats described the Ratepayer Protection Act as a good first step toward Congress addressing data center demand worries around the country.
“I support this legislation because it’s a no-brainer,” Rep. Doris Matsui (D-Calif.) said. “American families should not be paying Big Tech’s utility bills.”
The bill would require states to consider adopting a federal standard requiring large electricity customers to pay the full cost of new generation and transmission upgrades needed to serve them. It is co-sponsored by Rep. Gabe Evans (R-Colo.) and Energy Subcommittee ranking member Kathy Castor (D-Fla.).
The Energy and Commerce Committee will also vote this week on several bills focused on bolstering the grid to meet demand from data centers and other users.
One of them, the High-Capacity Grid Act, H.R. 6633, from Rep. Julie Fedorchak (R-N.D.), would direct the Federal Energy Regulatory Commission to establish a best-available transmission conductor standard for new interstate lines and rebuilds.
Not on the agenda
Missing from the agenda is Castor’s Expediting Generator Interconnection Procedures Act, H.R. 2986, which would have FERC conduct rulemaking to accelerate the interconnection of electric generation and storage systems to the grid.
Even though the bill passed by voice vote in subcommittee, Republicans said it didn’t do enough to prioritize generation like nuclear and natural gas, making its future murky in the GOP-controlled House.
Also absent is the Pipeline Safety Authorization Act, H.R. 9338, from Rep. Randy Weber (R-Texas), which would re-up Pipeline and Hazardous Materials Safety Administration programs.
Lawmakers said last week they remained hopeful they could reach a compromise. Democrats had objected to language that would expand the Justice Department’s authority to prosecute people accused of interfering with pipeline operations.
The Energy and Commerce Committee has struggled in recent years to reach an agreement on PHMSA legislation. The House Transportation and Infrastructure Committee already passed its H.R. 5301 and the Senate its S. 2975.
Schedule: The markup is Wednesday, July 1, at 11 a.m. in 2123 Rayburn and via webcast.
Josh Siegel contributed to this report.
