S. 3585: Decentralized Access to Technology Alternatives Act of 2026

This proposed legislation is called the Decentralized Access to Technology Alternatives Act of 2026, or the DATA Act of 2026. The bill primarily aims to amend the Federal Power Act to create exemptions for specific types of electric utilities known as consumer-regulated electric utilities (CREUs). Here is a breakdown of what the bill would do:

Definitions

• Consumer-regulated electric utility (CREU): This refers to a new type of electric utility that would be created after the enactment of this Act, specifically established to provide electricity to new electric loads that are not currently being served by any existing electricity retailers. These utilities can generate, transmit, distribute, and sell electricity but must remain independent from existing public utilities and the larger bulk-power system.

Exemptions from Federal Regulation

The bill outlines several specific exemptions for CREUs from federal regulation under the Federal Power Act:

• CREUs would not be subject to rate regulation or corporate oversight.
• They would not have to comply with reliability standards or interconnection requirements.
• They would not participate in regional transmission planning or cost allocation.
• CREUs would not have to apply for approvals related to mergers or acquisitions as typically required under federal law.

Electricity Sales and Operations

CREUs would have the ability to sell electricity directly to eligible customers who are served exclusively through their systems and are physically separated from regulated utilities and larger power grids. They could also construct and operate facilities needed for electricity generation and distribution within public rights-of-way, adhering to the same public safety standards applicable to traditional utilities.

Commencement of Operations

For a CREU to qualify for these exemptions, it must begin operations after the enactment of the act, meaning it must start generating, transmitting, or distributing electricity. If a CREU later decides to connect to the bulk-power system or any other larger electrical network, it would lose its exemptions and become subject to federal regulation.

Public Utility Regulatory Policies Act (PURPA) Exemption

• The bill adds a provision to the Public Utility Regulatory Policies Act, clarifying that none of its requirements apply to consumer-regulated electric utilities.

Impact on Public Utility Holding Companies (PUHCA)

Similar to PURPA, the bill modifies the Public Utility Holding Company Act, ensuring that holding companies are not penalized or subjected to regulation solely for owning or controlling a consumer-regulated electric utility.

Facilities and Public Rights-of-Way

Finally, the bill permits CREUs to construct and operate facilities within public rights-of-way but limits the review of applications for such facilities to aspects like right-of-way restoration and planning for storm responses.

Relevant Companies

• None found