Revisions to legislation meant to ensure data centers doesn’t raise U.S. electricity bills rankled a key industry group, which said it supported the original version.
The House Energy and Commerce Committee approved the Ratepayer Protection Act — H.R. 9340, sponsored by Reps. Gabe Evans (R-Colo.) and Kathy Castor (D-Fla.) — on Tuesday. It sailed through committee in a 52-0 vote.
The proposal would require states to consider adopting a federal standard directing data centers to pay the full cost of new generation and transmission upgrades needed to serve them.
But ahead of the committee markup, leaders narrowed the bill to apply specifically to data centers. Previously, the proposal applied to projects with a peak electricity demand of 100 megawatts or more.
The Data Center Coalition, the primary trade group representing data center companies, told POLITICO in a statement it backed the initial version.
“However, the Energy & Commerce Committee’s changes to the bill narrow its scope to single out the data center industry, leaving everyday Americans vulnerable to the costs associated with large load growth from other industries as they continue to expand operations in the U.S.,” said coalition President Josh Levi.
Levi added that “the data center industry remains committed to working with local officials, state and federal policymakers, and the Administration to ensure the continued responsible development of this critical 21st-century industry while mitigating any impacts to households and businesses.”
The earlier version of the Ratepayer Protection Act had received endorsements from Microsoft and Google. Neither has publicly changed their stances on the legislation so far.
Other manufacturing industries, meanwhile, have welcomed the amended bill. The American Iron and Steel Institute and Industrial Energy Consumers of America both endorsed the changes.
“This important change will permit the domestic steel industry to continue investing in American manufacturing and job creation,” said Kevin Dempsey, AISI’s president.
Bill outlook
Data center bills have proliferated on Capitol Hill as the national concern about the facilities has grown. Republican Rep. Byron Donalds, who is running for Florida governor, introduced legislation this week to make data centers get their energy and water from independent sources.
Donads’ bill came as the Democratic front-runner in the Sunshine State’s race for governor, David Jolly, called for a data center moratorium, and is pointing at donations to Donalds tied to data center developers.
Energy and Commerce ranking member Frank Pallone (D-N.J.) has expressed support for a national data center moratorium — an idea still unpopular with many Democrats — but also supports the Ratepayer Protection Act. It’s become the only major data center energy bill to gain traction on Capitol Hill.
Chair Brett Guthrie (R-Ky.), who is seeing protests against data centers in his district, has made the legislation a priority and has predicted a floor vote.
“It has become clear that across the entire industry there is one entity uniquely positioned to stand up for families and communities who are the ones paying electricity bills, and that is the Committee on Energy and Commerce, and our colleagues in Congress,” he said.
Sen. Jon Husted (R-Ohio) introduced the Ratepayer Protection Act in his chamber, S. 5028, last week, amid attacks from his Democratic opponent Sherrod Brown over Husted’s support for data centers.
Energy and Natural Resources Chair Mike Lee (R-Utah) said last month that data center energy legislation was not currently “identified as a priority” for his panel.
He added Tuesday that he had not been following the Ratepayer Protection Act, but that data center energy concerns were “coming up in some of our conversations about permitting reform.”
Husted’s office said Monday that the senator “is encouraged by the bipartisan support in the House” and is working to move the bill forward in ENR.
