Sec. 4. Data center load queues
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Not later than 180 days after the date of enactment of this Act, the Commission shall issue a rule requiring all covered interconnection entities to create, for the purpose of addressing reliability and affordability concerns from new data center loads, regardless of whether those loads are connecting directly to the transmission system or through a distribution utility, a data center load queue system— that gives priority for interconnection to data centers (including data center owners and operators) that, by implementing each of the strategies described in subsection (b), offset their electricity demand on the electric grid, reducing costs for all ratepayers, while also mitigating local air and noise pollution and providing good-paying job opportunities; and pursuant to which data centers are connected to the electric grid in a manner that does not interfere with serving organic load growth, which may include delaying or denying interconnection for a data center if the applicable covered interconnection entity determines that such interconnection is likely to adversely affect— the reliability or resource adequacy of the electric grid; or the affordability of electricity or electric capacity for users of the electric grid that are not data centers.
The strategies referred to in subsection (a)(1) are the following: Bringing new, additional supply resources to the electric grid that— are designated for the service of, and paid for by, the data center owner or operator, including through a power purchase agreement or another bilateral contract; are deliverable to the location where the new data center is interconnecting; are maintained for the lifetime of the data center; have at least enough capacity— to fully serve the new data center; or to serve that portion of the capacity need of the new data center that is not offset by 1 or more qualifying battery energy storage systems, virtual power plants, or qualifying load flexibility agreements; have a generation output that— is substantially similar to the temporal load profile of the data center during peak demand; or is sufficient to fill any gaps in the temporal load profile of the data center during peak demand that are not offset by 1 or more qualifying battery energy storage systems, virtual power plants, or qualifying load flexibility agreements; and are low- or no-carbon forms of generation.
Incorporating low- or no-carbon backup generation, which excludes diesel generation and may include behind-the-meter battery energy storage systems. Ensuring that, in the construction of the data center and any new energy supply resource that the data center brings to the electric grid pursuant to paragraphs
(1)and (2)— all laborers and mechanics employed by the data center owner or operator and contractors and subcontractors of the data center owner or operator, in the performance of construction, shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality in which the construction project is located, as most recently determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code; and all contractors and subcontractors of the data center owner or operator use registered apprentices participating in registered apprenticeship programs. Ensuring that the operator of any new energy supply resource that the data center brings to the electric grid pursuant to paragraphs
(1)and
(2)agrees that the operator will use a labor peace agreement for the operation and maintenance of the energy supply resource. The Commission shall establish minimum standards and guidelines for qualifying load flexibility agreements. The standards and guidelines established under paragraph
(1)shall— reduce costs for ratepayers by minimizing the need for the build out of new generation and transmission; and ensure that qualifying load flexibility agreements can be effectively implemented by the covered interconnection entity. For purposes of priority in a data center load queue under subsection (a)(1), with respect to forms of generation described in paragraphs (1)(F) and
(2)of subsection (b), priority shall be determined using a sliding scale pursuant to which additional priority is given for forms of generation having lower carbon intensity, such that the lower the carbon intensity of the applicable form of generation, the higher the priority given to the applicable data center in the data center load queue. Any individual contractor or subcontractor of the data center owner or operator that is a signatory to a pre-hire collective bargaining agreement described in subsections
(e)and
(f)of section 8 of the National Labor Relations Act ( 29 U.S.C. 158 ) that covers construction work on the data center and any new energy supply resource that the data center brings to the electric grid shall be deemed to be in compliance with subsection (b)(3). If a project labor agreement is used to construct a data center and any new energy supply resource that the data center brings to the electric grid, the data center (including the data center owner and operator) shall be deemed to be in compliance with the requirements of subsection (b)(3). With respect to the labor standards specified in subsection (b)(3)(A), the Secretary of Labor shall have the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of title 40, United States Code. The Commission shall ensure compliance with the rule issued under subsection
(a)by the date that is 1 year after the date on which the rule is issued. On and after the effective date of the final rule issued under subsection (a), a data center that is not already interconnected with the electric grid may not interconnect with the electric grid unless the data center has fully advanced through the applicable data center load queue system created under that subsection.
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- 64 Stat. 1267
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