S.Amdt. 6845

SA 6845. Mr. MARKEY submitted an amendment intended to be proposed by
him to the bill H.R. 9340, to amend the Public Utility Regulatory
Policies Act of 1978 to establish a Federal standard relating to the
recovery of the full, incremental costs of upgrades that serve large-
load customers, and for other purposes; which was ordered to lie on the
table; as follows:

On page 2, line 4, strike ``2'' and insert ``4''.

On page 2, between lines 3 and 4, insert the following:

SEC. 2. SENSE OF CONGRESS.

It is the sense of Congress that the high level of
electricity usage by data centers constitutes interstate
commerce.

SEC. 3. DEFINITIONS.

In this Act:
(1) Commission.--The term ``Commission'' means the Federal
Energy Regulatory Commission.
(2) Data center.--The term ``data center'' includes any
facility, or group of facilities with the same owner located
in the same utility area, that--
(A) primarily contains electronic equipment used to host
information and information systems accessed by other systems
or by users on other devices both in and outside of the State
in which the facility or group of facilities is located;
(B) is a free-standing structure or a facility within a
larger structure that uses environmental control equipment to
maintain the proper conditions for the operation of
electronic equipment; and

[[Page S5275]]

(C) has an energy demand greater than 50 megawatts.
(3) Data center corporation.--The term ``data center
corporation'' means any corporation, joint-stock company,
partnership, association, business trust, organized group of
persons, whether incorporated or not, or a receiver or
trustee of such, that owns or proposes to own a data center.
(4) Distributed clean energy resource.--The term
``distributed clean energy resource'' means any small-scale,
modular electricity generation, storage, or demand-side
management technology that--
(A) is located on the distribution system, on a subsystem,
or behind a customer meter; and
(B) generates or stores renewable energy and storage or
manages demand for electricity.
(5) Fund.--The term ``Fund'' means the Distributed
Renewable Energy Fund established under section 5(b)(4).
(6) Independent system operator.--The term ``Independent
System Operator'' has the meaning given the term in section 3
of the Federal Power Act (16 U.S.C. 796).
(7) Labor organization.--The term ``labor organization''
has the meaning given the term in section 2 of the National
Labor Relations Act (29 U.S.C. 152).
(8) Labor peace agreement.--The term ``labor peace
agreement'' means a written agreement between an employer and
a labor organization through which the employer guarantees
that--
(A) the employer will be neutral regarding any of the
employees of the employer seeking to be represented by the
labor organization; and
(B) if employees seek to be represented by a labor
organization, the employer shall recognize the labor
organization as the exclusive bargaining representative on a
showing that a majority of the employees choose to be
represented by the labor organization.
(9) Project labor agreement.--The term ``project labor
agreement'' means a pre-hire collective bargaining agreement
with 2 or more labor organizations that--
(A) establishes the terms and conditions of employment for
a specific construction project; and
(B) is an agreement described in subsections (e) and (f) of
section 8 of the National Labor Relations Act (29 U.S.C.
158).
(10) Regional transmission organization.--The term
``Regional Transmission Organization'' has the meaning given
the term in section 3 of the Federal Power Act (16 U.S.C.
796).
(11) Renewable energy and storage.--The term ``renewable
energy and storage'' means any 1 or more of wind, solar,
geothermal, hydropower, or battery energy.
(12) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(13) Transmission planning region.--The term ``Transmission
Planning Region''--
(A) when used in a geographical sense, means a region for
which the Commission determines that electric transmission
planning is appropriate, such as a region established in
accordance with Order No. 1000 of the Commission, entitled
``Transmission Planning and Cost Allocation by Transmission
Owning and Operating Public Utilities'' (76 Fed. Reg. 49842
(August 11, 2011)); and
(B) when used in a corporate sense, means the Regional
Transmission Organization, Independent System Operator, or
other entity responsible for planning or operating electric
transmission facilities within a region described in
subparagraph (A).

On page 6, after line 7, add the following:

SEC. 5. ESTABLISHMENT OF DATA CENTER INTERCONNECTION
REQUIREMENTS.

(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Commission shall issue 1 or more
rules requiring that--
(1) each Transmission Planning Region shall establish a
distinct data center interconnection queue; and
(2) with respect to each such interconnection queue, a data
center corporation shall--
(A) pay a fee to join the interconnection queue;
(B) pay a fee to exit the interconnection queue, if the
decision to exit the interconnection queue is made by the
data center owner or operator;
(C) pay the full cost of any new or upgraded
infrastructure, including generation infrastructure and
transmission infrastructure, needed to serve the data center,
directly or indirectly;
(D) enter into a binding agreement with the Transmission
Planning Region to reduce or shift their electricity usage
during peak demand periods and other periods of grid stress
in response to a request from the applicable electric utility
or Transmission Planning Region;
(E) utilize project labor agreements and labor peace
agreements; and
(F) meet the renewable energy and storage requirements
described in subsection (b).
(b) Renewable Energy and Storage Requirements.--
(1) Requirement for data centers interconnected at the
transmission level.--
(A) In general.--Beginning on the applicable date described
in subparagraph (B), 100 percent of the peak megawatt demand
of each data center that is interconnected at the
transmission level shall be--
(i) derived from new renewable energy and storage described
in subparagraph (A) or (B) paragraph (3);
(ii) energy for which the data center makes a contribution
to the Fund in accordance with subparagraph (C) of that
paragraph; or
(iii) offset with efficiency improvements by using grid-
enhancing technologies or alternative transmission
technologies that increase delivery of power over
transmission networks, including--

(I) dynamic line ratings;
(II) topology optimization;
(III) power flow control; or
(IV) advanced conductors and superconductors.

(B) Date described.--The date referred to in subparagraph
(A) is--
(i) the date that is 2 years after the date of enactment of
this Act, with respect to a data center interconnecting at
the transmission level on or after that date; and
(ii) the date that is 20 years after the date of enactment
of this Act, with respect to a data center that is already
interconnected at the transmission level as of the day before
the date described in clause (i).
(C) Phase-in for certain data centers.--With respect to a
data center described in subparagraph (B)(ii), the applicable
data center corporation shall ensure that--
(i) by January 1, 2030, not less than 40 percent of the
peak megawatt demand of the data center is in compliance with
subparagraph (A); and
(ii) by January 1, 2035, not less than 70 percent of the
peak megawatt demand of the data center is in compliance with
that subparagraph.
(2) Rules for determinations.--For purposes of this
subsection, any determination of the peak megawatt demand of
a data center, the megawatts required by a data center, or
the monetary value of any megawatts in the applicable
Transmission Planning Region shall be--
(A) made by the data center, in partnership with the
applicable Transmission Planning Region, on an annual basis;
and
(B) subject to approval by the Commission, with the burden
of proof on the data center.
(3) Compliance strategies.--A data center corporation shall
ensure compliance with paragraph (1) through a combination of
the following approaches, as determined by the data center
corporation:
(A) Adding renewable energy and storage to the electric
grid, subject to the conditions that--
(i) the renewable energy and storage--

(I) comes from new renewable energy and storage sources
built specifically to support the data center;
(II) is not existing renewable energy and storage diverted
from the electric grid; and
(III) is generated or stored in the same Transmission
Planning Region as the data center; and

(ii) the electricity consumed by the data center is
matched, on an hour-by-hour basis, by the renewable energy
and storage described in clause (i).
(B) Adding on-site renewable energy and storage, which may
account for not more than 20 percent of the total megawatts
required to meet the peak megawatt demand of the data center.
(C) Contributing to the Fund an amount equal to the
monetary value, in the applicable Transmission Planning
Region, of the megawatts required by the data center for the
applicable year, which shall account for a minimum of 10
percent of the total megawatts required to meet the peak
megawatt demand of the data center.
(4) Distributed renewable energy fund.--
(A) Establishment.--The Secretary shall establish a fund,
to be known as the ``Distributed Renewable Energy Fund''.
(B) Deposits.--
(i) In general.--There shall be deposited in the Fund such
amounts as are contributed by data centers pursuant to
paragraph (2)(C).
(ii) Requirement.--Deposits under paragraph (2)(C) shall be
made on an annual basis.
(C) Administration.--
(i) Fund segregation.--The Secretary shall segregate
amounts in the Fund based on the Transmission Planning
Regions in which the data centers for which those funds were
deposited are located.
(ii) Uses.--The Secretary shall use amounts segregated for
a Transmission Planning Region under clause (i) to provide
grants to States in that Transmission Planning Region or
relevant nonprofit organizations in those States for the
purposes of providing grants, loans, or other forms of
financial assistance to enable low-income and disadvantaged
communities to deploy or benefit from distributed clean
energy resources that utilize renewable energy, such as
rooftop solar.
(c) Prohibition.--No new diesel storage facility may be
constructed to serve a data center constructed on or after
the date of enactment of this Act.
(d) Enforcement.--The Commission shall establish fines for
noncompliance with this section.

SEC. 6. STATE CONSIDERATION OF STANDARDS.

(a) In General.--Section 111(d) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) (as
amended by section 4(a)) is amended by adding at the end the
following:
``(23) Data centers.--Each State shall consider
establishing frameworks and requirements consistent with the
frameworks and requirements described in section 5 of the
Ratepayer Protection Act.''.

[[Page S5276]]

(b) Compliance.--
(1) Time limitation.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) (as
amended by section 4(b)(1)(A)) is amended--
(A) by indenting paragraphs (4) through (9), and any
subparagraphs within those paragraphs, appropriately; and
(B) by adding at the end the following:
``(10)(A) Not later than 180 days after the date of
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which the State
has ratemaking authority) and each nonregulated electric
utility shall commence consideration under section 111, or
set a hearing date for consideration, with respect to the
standard established by paragraph (23) of section 111(d).
``(B) Not later than 1 year after the date of enactment of
this paragraph, each State regulatory authority (with respect
to each electric utility for which the State has ratemaking
authority), and each nonregulated electric utility shall
complete the consideration and make the determination under
section 111 with respect to the standard established by
paragraph (23) of section 111(d).''.
(2) Failure to comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c))
(as amended by section 4(b)(1)(B)) is amended by adding at
the end the following: ``In the case of the standard
established by paragraph (23) of section 111(d), the
reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference to
the date of enactment of that paragraph (23).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) (as amended
by section 4(b)(1)(C)) is amended--
(i) in each of subsections subsection (h) and (i), in the
subsection heading, by striking ``Other''; and
(ii) by adding at the end the following:
``(j) Prior State Actions.--Subsections (b) and (c) shall
not apply to the standard established by paragraph (22) of
section 111(d) in the case of any electric utility in a State
if, before the date of enactment of this subsection--
``(1) the State has implemented the standard (or a
comparable standard) for the electric utility;
``(2) the State regulatory authority for the State or the
relevant nonregulated electric utility has conducted a
proceeding to consider implementation of the standard (or a
comparable standard) for the electric utility; or
``(3) the State legislature has voted on the implementation
of the standard (or a comparable standard) for the electric
utility during the 3-year period ending on that date of
enactment.''.
(B) Cross-reference.--Section 124 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2634) (as amended
by section 4(b)(2)) is amended by adding at the end the
following: ``In the case of the standard established by
paragraph (23) of section 111(d), the reference contained in
this section to the date of enactment of this Act shall be
deemed to be a reference to the date of enactment of that
paragraph (23).''.
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