The POWER ON Act of 2026 extends the funding authorization for the Department of Energy's Grid Resilience and Innovation Partnerships program. Originally set to expire in 2026, the bill updates the timeline so that this funding will now run through 2031. This legislative change directly affects the Department of Energy and the private sector partners that receive grants to improve the reliability of the electric grid. By reauthorizing these specific provisions, the bill ensures continued financial support for projects aimed at strengthening the nation's power infrastructure without altering the program's existing scope or requirements.
The POWER Up Act expands the authority of the Federal Energy Regulatory Commission to oversee the connection of large electricity users to the national power grid. This change specifically affects facilities with a projected peak demand of 100 megawatts or more, requiring them to follow federal rules similar to those for power generators. The bill mandates that the Commission create standardized procedures for these connections within 18 months and includes provisions to ensure reliable power delivery. While the federal government gains oversight of these interconnections, the law explicitly preserves state and local control over building permits, retail rates, and local distribution systems.
The Affordable Innovation for the Grid Act directs the Department of Energy to study how artificial intelligence and high-performance computing can improve the reliability and efficiency of the national power grid. This assessment will specifically examine how these technologies can speed up the process of connecting new power sources to the grid and identify any technical or cybersecurity barriers to their use. Within one year of passing, the Department of Energy must submit a report to Congress outlining its findings and offering recommendations to overcome identified limitations and encourage wider adoption of these tools. The bill primarily affects federal agencies responsible for energy oversight and the electric power industry, aiming to gather data rather than immediately changing laws.
The Advanced Transmission Technology to Reduce Rates Act directs the Department of Energy to create a public clearinghouse that lists projects, funding options, and analyses regarding advanced transmission technologies. This resource is designed to assist electric utilities, transmission organizations, and state regulators in planning deployments and understanding the potential impacts on grid efficiency and costs. Additionally, the bill allows certain funding actions for these technologies to be exempt from standard environmental review requirements and requires the Department to establish best practices for reducing wildfire risks from power lines. Crucially, the legislation explicitly states that these measures are informational and do not grant the government authority to force utilities to adopt specific technologies or follow the new wildfire safety guidelines.
The Load Forecasting Enhancement Act requires the Federal Energy Regulatory Commission to create regional joint boards made up of state commission representatives and a commission member to study how electric utilities predict energy demand. These boards will investigate methods to improve the accuracy and transparency of these forecasts to ensure reliable and affordable electricity service, then report their findings to Congress within a year. Once the report is submitted, the law mandates that state regulators incorporate these recommended forecasting standards into their oversight of electric utilities, while exempting nonregulated utilities from certain requirements. Additionally, the bill updates existing energy laws to include procedures for improving the accuracy and transparency of load forecasting in state energy conservation plans.
The Better Energy Storage and Safety Act expands federal efforts to improve the safety and reliability of energy storage systems used in homes and on the electrical grid. It directs government agencies to develop standardized testing methods, including stress tests that push systems to failure, to better predict how these technologies degrade and to mitigate risks like fires or explosions. The legislation also increases funding for demonstration projects and grants, requiring a focus on safer battery chemistries and advanced diagnostic tools. Additionally, it updates the program's goals to include the use of artificial intelligence and digital modeling to enhance the safety of installed energy storage units.
This bill, known as the Lowering Utility Bills Act, aims to reduce electricity and natural gas costs by regulating how utility companies calculate their profits and what expenses they can pass on to customers. It requires transmission providers and investor-owned utilities to determine a reasonable profit range based on historical stock market returns from academics, large financial institutions, and major global banks, then generally limits their authorized profit to the lowest point in that range. Additionally, the legislation bans utilities from recovering specific costs in customer rates, including lobbying fees, political contributions, executive travel, and entertainment expenses. The bill also mandates that utilities prioritize lower-cost grid technologies in their planning and requires them to publicly justify any decision to use a higher profit rate than the standard minimum.
The Energy Cost Fairness and Reliability Act of 2026 establishes new federal rules to manage the connection of large energy users, specifically data centers and other facilities with peak demand exceeding 50 megawatts, to the national power grid. Under this bill, these large load customers must pay the full cost for any grid upgrades required to accommodate their connection and must demonstrate the ability to reduce or shift their electricity usage when the grid is stressed. The legislation also creates a formal queue system for interconnection requests, prioritizes facilities that use battery backup or hire apprentices, and requires owners to provide proof of financial commitment before proceeding. Additionally, the Department of Energy is tasked with collecting data on data center energy use to track trends and establish a research testbed for developing more efficient artificial intelligence technologies.
The DATA Act of 2026 creates a new category of electric utilities called consumer-regulated electric utilities (CREUs) that can operate independently from the traditional public utility system. These CREUs must be physically isolated from the main power grid and serve only customers who receive electricity exclusively from them, allowing them to own and operate their own generation, storage, and distribution facilities. The bill exempts these independent utilities from most federal regulations, including oversight by the Federal Energy Regulatory Commission and the Department of Energy, as well as restrictions on rates and corporate structure. CREUs can only lose this exemption if they choose to connect to the main power grid, at which point they would become subject to standard federal utility regulations. The legislation also clarifies that CREUs may use public rights-of-way for their facilities but only face limited review focused on safety and restoration.
The "Build More Power Act" expands and extends a federal loan guarantee program to support electric generating facilities, particularly those critical for energy reliability. It makes power plants that are required by government orders to continue generating electricity during emergencies eligible for these loan guarantees, even if they might otherwise cease operations, and mandates the Secretary of Energy to solicit applications from them. The bill extends the program's authority until 2032 and sets aside at least $20 billion in loan guarantee capacity specifically for projects at facilities operating under such emergency directives. This impacts owners and operators of power plants, especially those under emergency orders, and the Department of Energy, which must also report to Congress on the program's impact and recommendations for upgrading aging coal facilities.
