No Harm Data Centers Act

The bill defines a “data center” as one large facility, or a group of facilities behind one connection, that mainly holds computers for processing and storing digital information and uses more than 50 megawatts of power at peak times. It gives the Federal Energy Regulatory Commission (FERC) sole power to approve retail electricity rates that certain electric utilities charge to these data centers, starting 90 days after the bill becomes law. When FERC sets or approves these rates, the rates must be “just and reasonable” and not unfairly favor or hurt anyone. If FERC finds a rate for a data center is not fair or reasonable, it must set a new one. The bill requires that data center power rates include the full costs of building, upgrading, and expanding power lines and related equipment needed to connect data centers to the grid and keep the grid reliable as their power use grows. It also requires including the full costs of any new or upgraded power plants needed to keep the bulk-power system reliable as data center demand rises. Utilities covered by this bill are not allowed to pass these specific costs on to other types of customers; they must charge them to data centers instead. The bill excludes certain electric providers from this new FERC authority, such as electric cooperatives, publicly owned utilities, the Tennessee Valley Authority, and federal power marketing administrations. It also says this section does not apply in a specific area already described in existing law. The bill changes enforcement rules under the Federal Power Act so FERC can oversee retail sales of power to data centers and related pricing inputs. It sets a special civil penalty—up to $10 million for each day of violation—for breaking the new section on data center rates or rules under it, and keeps existing penalty rules for other parts of the law. The bill limits how far certain nondisclosure agreements can go. For contracts made before any dispute, companies cannot use nondisclosure clauses to stop public officials from talking about the construction of data centers. This applies to lawsuits under federal, state, or Tribal law that are filed on or after the date the bill becomes law, and it does not override state laws unless they block this protection. Finally, the bill tells the Environmental Protection Agency (EPA) to seek an agreement with the National Academies of Sciences, Engineering, and Medicine. Under this agreement, the National Academies would study how data centers affect the environment and public health, including noise, air pollution, water use and supply, carbon emissions, and waste such as electronic waste. They must provide recommendations to reduce these impacts and submit a report with their findings and recommendations to key House and Senate committees within 180 days of enactment.