H.R. 5927: Securing Reliable Power for Advanced Technologies Act

This bill, titled the Securing Reliable Power for Advanced Technologies Act, aims to modify the Defense Production Act of 1950 to prioritize specific infrastructure projects essential for artificial intelligence (AI). Here are the main components and implications of the bill:

Key Provisions

• Definition of Covered Projects: The bill defines a covered project as any project involved in constructing, expanding, or operating critical AI infrastructure. This includes:
• Data centers or high-performance computing facilities dedicated to AI tasks.
• Electric generation facilities providing reliable energy and not primarily using intermittent renewable sources.
• Transmission facilities necessary for connecting these power sources to AI projects.
• Fuel supply infrastructures required for the generation facilities, which might include coal or natural gas operations.
• Presidential Designation: The President can designate one or more covered projects as priority national defense projects, which will be published in the Federal Register.
• Concurrent Permitting: For designated projects, federal agencies must conduct permit reviews simultaneously and adhere to a schedule established by the President, aiming to complete all federal authorizations within two years of the project's application submission.
• Environmental Review: A single federal agency will be designated to oversee environmental reviews for these projects, streamlining the process.
• Judicial Review: If there are legal challenges to project designations or authorizations, these must be filed in specific courts and will be expedited to ensure timely resolution.
• Compensation for Regulatory Impairment: If federal regulations impede a designated project, the government may need to compensate the project owners for losses incurred beyond 180 days of impairment.

Financial Assistance for Projects

• The bill allows for financial assistance, including loans and guarantees, to facilities involved in generating reliable energy to support AI projects. This assistance could cover up to 90% of project costs.
• Facilities must meet specific criteria related to their commitment to serve designated projects and improve regional reliability.

Additional Guidelines

• The bill establishes a framework for rural electric cooperatives to gain access to funding for projects related to AI infrastructure, ensuring broad participation.
• The President must issue guidance on how to apply for financial assistance and set standard terms for such support within a designated period after the bill's enactment.

National Defense Exemption

The President can exempt certain designated projects from new emissions or operational requirements if deemed necessary for national defense.

Relevant Companies

• NVDA (NVIDIA Corporation): Likely to be impacted as it develops critical AI hardware used in data centers.
• AMZN (Amazon.com, Inc.): May benefit through its AWS cloud services that depend on AI-related infrastructure.
• GOOGL (Alphabet Inc.): Directly involved in AI development and data center operations, could see changes in project timelines.