Congress targets data center emissions with escalating fees, protecting household electricity bills

What it does

This bill amends the Clean Air Act to require data centers and cryptocurrency mining facilities (those using more than 100 kilowatts of power) to report their annual electricity consumption and the carbon intensity of their power sources to the EPA. Starting in 2026, the bill imposes escalating fees on utilities and facility owners whose electricity exceeds regional carbon-intensity baselines, with the baseline declining 11% annually until reaching zero by 2035. Revenue from these fees (70% of collections) funds grants for zero-carbon electricity generation and long-duration energy storage; 25% supports state and local programs to offset residential electricity cost increases; and 3% covers administration.

Why we flagged it

The bill's core mechanism is a carbon-intensity fee on electricity consumed by large data centers and crypto miners, structured as a Clean Air Act amendment. The operative purpose is emissions reduction through pricing and transparency, with collected revenue explicitly dedicated to consumer energy-cost relief and clean energy deployment.

What the text implies

• The bill's baseline-reduction schedule (11% annually through 2034, then zero by 2035) creates a hard regulatory cliff that may force facility relocations or accelerate retirement of carbon-intensive power plants serving data centers, with uncertain effects on regional electricity markets and stranded assets.
• The 'behind-the-meter' electricity rules (paragraphs 2(2) and 5) create complex accounting for on-site solar/wind/battery systems, with strict 36-month windows and retrofit requirements that may disadvantage smaller operators and favor large, well-capitalized facilities with existing clean-energy infrastructure.
• The pass-through limitation on utilities (paragraph 3(3)(A)(iv)) is enforceable only through EPA monitoring and a 2x penalty; utilities may find indirect cost-recovery mechanisms (e.g., grid-modernization fees, demand-response charges) that nominally comply but shift burden to all ratepayers.
• The bill's definition of 'eligible entities' for clean-energy grants (paragraph 3(4)(C)) is left to EPA discretion, creating regulatory uncertainty about whether private developers, municipal utilities, or nonprofits will be prioritized, potentially affecting deployment speed and cost.
• Cryptocurrency mining facilities may respond by relocating to states or regions with lower baseline emissions intensity or by investing heavily in behind-the-meter renewables, creating a competitive advantage for well-funded operators and potentially concentrating mining in specific geographic areas.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary citizens benefit from transparency requirements that expose energy consumption and emissions from data centers and crypto mining, combined with fee revenue dedicated to lowering residential electricity costs and accelerating clean energy deployment. The pass-through limitation prevents utilities from shifting costs to non-data-center customers, protecting household budgets.

Who stands to gain

• renewable energy developers (solar, wind, nuclear, long-duration storage)
• energy storage manufacturers and operators
• state and local governments (grant recipients for consumer energy programs)
• electric utilities with low-carbon generation portfolios
• data center operators with existing clean-energy contracts or on-site renewables

Named in the bill

EPA (Environmental Protection Agency), EIA (Energy Information Administration), DOE (Department of Energy), FERC (Federal Energy Regulatory Commission, via balancing authority references), cryptocurrency mining industry, data center operators, electric utilities, renewable energy sector, energy storage sector

Where it stands

9 cosponsors: 9 Democrats.

• Nov 20, 2025 — Introduced · Congress.gov: “Introduced in House”
• Nov 20, 2025 — Referred to House Committee on Energy and Commerce · Congress.gov: “Referred to the House Committee on Energy and Commerce”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.