119-HR-8033 Journalist Public Summary
119 · HR 8033 No Harm Data Centers Act
A House bill would make very large data centers pay the full grid and generation costs they trigger and put FERC—not state regulators—in charge of the retail electricity rates those centers pay, with big penalties for violations; it also curbs NDAs around new centers and orders a fast-track study on environmental and health impacts.
Headline Summary
A federal proposal would require very large data centers to cover all grid and power-plant costs they cause and have their electricity rates set by FERC, aiming to shield households and small businesses from higher bills.
What It Does
In plain English: the bill defines “data center” as facilities (or campuses) drawing more than 50 megawatts behind one interconnection point. It gives the Federal Energy Regulatory Commission (FERC) sole authority to approve the retail electricity rates and charges that covered utilities can collect from these data centers, requiring rates to be “just and reasonable” and non-discriminatory. It also makes data centers pay the full cost of any grid or generation upgrades needed to serve them and bars utilities from shifting those costs onto other customers. The bill creates steep penalties (up to $10 million per day) for violations, limits the enforceability of pre-dispute nondisclosure agreements against public officials in data-center construction deals, and directs EPA to work with the National Academies on a quick, 180‑day study of noise, air, water, carbon, and e‑waste impacts, with recommendations to mitigate harms.
- Covers very large facilities: >50 MW behind a single interconnection.
- FERC sets retail rates for data centers; states would not, for this customer class (with an exception tied to FPA §212(k)(2)(A)).
- Full cost recovery from data centers for transmission, distribution, and generation upgrades; no cost‑shifting to other customers.
- Civil penalties up to $10,000,000 per day for violations of the new section.
- Limits NDAs that gag public officials about data‑center construction terms.
- EPA/National Academies study due 180 days after enactment on environmental and public‑health effects.
Why It Matters
Supporters say the measure prevents households and small businesses from subsidizing massive new data‑center loads, and it could speed or clarify who pays for needed grid upgrades. Opponents may warn that shifting retail‑rate authority from states to FERC could spark legal fights and planning uncertainty. In short, the bill aims to protect consumers from cost shifts while testing long‑standing state–federal lines in electricity law. (congress.gov)
Who’s For It
- Sponsor: Rep. Greg Landsman (D‑OH).
- House Energy & Commerce Committee Democrats have recently pressed FERC to prioritize affordability as data centers strain the grid—an approach aligned with this bill’s goals. (democrats-energycommerce.house.gov)
- Environmental and consumer advocates who back “make data centers pay their way” policies—for example, NRDC’s support for state bills requiring centers to fund grid build‑outs and clean power. (nrdc.org)
- Some utilities and their trade association (EEI) have signaled support for ensuring customers are protected and for collaborating with FERC and state commissions on data‑center impacts, though not necessarily endorsing this exact bill. (eei.org)
- Signs of bipartisan interest in guarding ratepayers from data‑center cost increases also exist in the Senate (e.g., the GRID Act by Sens. Hawley and Blumenthal), suggesting a broader appetite for consumer protections, even if details differ. (hawley.senate.gov)
Who’s Against It
- Data‑center operators and some pro‑business or free‑market groups may resist federal retail‑rate oversight and prefer alternatives (e.g., encouraging private or off‑grid power rather than new federal mandates). (reason.com)
- State utility regulators could object to federal preemption of retail ratemaking, a function the Federal Power Act historically leaves to states. (congress.gov)
- Some utilities may worry about added regulatory complexity or litigation risk if FERC takes over retail pricing for a single customer class, even as they agree large users should pay their fair share. (eei.org)
What’s Next
As of March 21, 2026, H.R. 8033 has been introduced and referred to the House Committee on Energy and Commerce. Next steps could include a hearing, a committee markup, and a floor vote; the Senate would then need to consider a companion measure, and any differences would have to be resolved before the bill could reach the President.
Discussion