S. 3585

119 S3585 IS: Decentralized Access to Technology Alternatives Act of 2026
 U.S. Senate
 2026-01-07
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  2d Session  S. 3585  IN THE SENATE OF THE UNITED STATES   January 7, 2026   Mr. Cotton  introduced the following bill; which was read twice and referred to the  Committee on Energy and Natural Resources    A BILL
To amend the Federal Power Act to exempt consumer-regulated electric utilities from Federal regulation, and for other purposes.
1.
Short title
This Act may be cited as the   Decentralized Access to Technology Alternatives Act of 2026   or the   DATA Act of 2026  .
2.
Definitions
In this Act:
(1)
Bulk-power system
The term  bulk-power system  has the meaning given the term in section 215(a) of the Federal Power Act ( 16 U.S.C. 824o(a) ).
(2)
Consumer-regulated electric utility; creu
The term  consumer-regulated electric utility  or  CREU  means an electric generation and supply system that—
(A)
is established—
(i)
after the date of enactment of this Act; and
(ii)
exclusively for the purpose of serving new electric loads that were not previously served by any retail electricity supplier;
(B)
may own, construct, and operate facilities necessary for generation, energy storage, transmission, distribution, and the retail supply of electricity;
(C)
may sell electricity at retail to eligible CREU customers, subject to the condition that the system is physically islanded from—
(i)
all regulated utilities;
(ii)
the bulk-power system; and
(iii)
the Bulk Electric System (as defined by the Electric Reliability Organization);
(D)
engages in any combination of—
(i)
generating electricity;
(ii)
transmitting electricity;
(iii)
distributing electricity; or
(iv)
selling electricity at retail to consumers;
(E)
is not connected to the bulk-power system or any other electric transmission or distribution system for primary or backup supply; and
(F)
operates independently of any public utility.
(3)
Electric Reliability Organization
The term  Electric Reliability Organization  has the meaning given the term in section 215(a) of the Federal Power Act ( 16 U.S.C. 824o(a) ).
(4)
Eligible CREU customer
The term  eligible CREU customer  means any entity that—
(A)
purchases electricity at retail from a consumer-regulated electric utility;
(B)
receives electric service exclusively through facilities owned, constructed, or operated by consumer-regulated electric utilities; and
(C)
is located within premises that are physically islanded from—
(i)
all regulated utilities;
(ii)
the bulk-power system; and
(iii)
the Bulk Electric System (as defined by the Electric Reliability Organization).
(5)
Reliability standard
The term  reliability standard  has the meaning given the term in section 215(a) of the Federal Power Act ( 16 U.S.C. 824o(a) ).
3.
Federal Power Act exemption
A consumer-regulated electric utility—
(1)
shall be exempt from regulation under the Federal Power Act ( 16 U.S.C. 791a et seq. ), including with respect to—
(A)
rate regulation;
(B)
corporate or financial oversight;
(C)
transmission or distribution regulation;
(D)
reliability standards under section 215 of that Act ( 16 U.S.C. 824o );
(E)
interconnection requirements;
(F)
participation in regional transmission planning or cost allocation; and
(G)
merger, consolidation, acquisition, or disposition approval under section 203 of that Act ( 16 U.S.C. 824b );
(2)
shall not be considered to be a public utility for purposes of that Act;
(3)
shall not be considered to be a part of—
(A)
the bulk-power system; or
(B)
the Bulk Electric System (as defined by the Electric Reliability Organization); and
(4)
shall not be required to register with the Electric Reliability Organization or comply with reliability standards, unless the consumer-regulated electric utility voluntarily elects to connect to the bulk-power system.
4.
Exemption of new CREUs from FERC and DOE regulation
(a)
In general
Notwithstanding any other provision of law, a consumer-regulated electric utility that begins operations on or after the date of enactment of this Act shall be exempt from Federal regulation with respect to matters under the jurisdiction of the Federal Energy Regulatory Commission or the Secretary of Energy, including—
(1)
all reliability standards; and
(2)
all other standards, rules, regulations, or other requirements established, administered, or enforced under—
(A)
section 215 of the Federal Power Act ( 16 U.S.C. 824o );
(B)
any other provision of that Act; or
(C)
any other provision of Federal law (including regulations).
(b)
Beginning of operations
For purposes of subsection (a), the date on which a consumer-regulated electric utility begins operations is the date on which the consumer-regulated electric utility first generates, transmits, distributes, or sells electricity.
(c)
Termination of exemption
If a consumer-regulated electric utility elects to connect to any portion of the bulk-power system or any other electric transmission or distribution system for primary or backup supply, the consumer-regulated electric utility shall, immediately on making that connection—
(1)
cease being a consumer-regulated electric utility; and
(2)
become subject to all Federal regulation applicable to the consumer-regulated electric utility from which the consumer-regulated electric utility was exempt under subsection (a).
5.
PURPA exemption
Section 210 of the Public Utility Regulatory Policies Act of 1978 ( 16 U.S.C. 824a–3 ) is amended by adding at the end the following:
(o)
Consumer-Regulated electric utilities
(1)
In general
Nothing in this section applies to a consumer-regulated electric utility (as defined in section 2 of the  DATA Act of 2026 ).
(2)
Exemption
A consumer-regulated electric utility (as defined in section 2 of the  DATA Act of 2026 ) shall not be required to interconnect with, purchase from, or sell to an electric utility under this section.
 .
6.
PUHCA exemption
Section 1268 of the Public Utility Holding Company Act of 2005 ( 42 U.S.C. 16456 ) is amended—
(1)
in the matter preceding paragraph (1), by striking  Except  and inserting the following:
(a)
In general
Except
 ; and
(2)
by adding at the end the following:
(b)
Consumer-Regulated electric utilities
No provision of this subtitle shall apply to any holding company solely by reason of its ownership or control of a consumer-regulated electric utility (as defined in section 2 of the  DATA Act of 2026 ).
 .
7.
Facilities located within public rights-of-way
(a)
In general
A consumer-regulated electric utility may construct and operate facilities within existing public rights-of-way, subject to the same permitting, restoration, and public-safety requirements applicable to a public utility (as defined in section 201(e) of the Federal Power Act ( 16 U.S.C. 824(e) )).
(b)
Limitation
Notwithstanding subsection (a), the review of an application for the construction or operation of a facility within an existing public right-of-way by a consumer-regulated electric utility shall be confined exclusively to the adequacy of—
(1)
right-of-way restoration; and
(2)
storm-response planning.