On January 7, 2026, Senator Tom Cotton (R-AR) introduced the Decentralized Access to Technology Alternatives Act (DATA Act) (S.3585), that if adopted, would exempt isolated large loads from regulation under the Federal Power Act (FPA) and the implementing regulations of FERC and the Department of Energy (DOE).  Specifically, the DATA ACT would amend the FPA to create the consumer-regulated electric utilities (CREU) category and then broadly remove qualifying CREUs from federal energy regulation.

The proposed legislation would create CREUs, which are certain new electric generation and supply systems. Qualifying CREUs must serve new electric loads, must not be connected to the bulk power system, and shall operate independently from any public utilities.  Under the proposed legislation, CREUs may sell electricity at retail to consumers or qualifying CREU customers.  Additionally, the bill allows CREUs to construct and operate facilities within existing public rights-of-way, subject to the same permitting, restoration, and public-safety requirements applicable to public utilities.  The proposed legislation exempts CREUs from the FPA, including rate regulation and reliability standards.  Similarly, CREUs would be exempt from regulation of the FERC and the DOE.  However, the bill does not exempt the CREU or its customers from environmental and zoning laws and permitting requirements. 

The proposed legislation also exempts CREU from the Public Utility Regulatory Policies Act (PURPA) and the Public Utility Holding Company Act (PUCHA).  Under PURPA, CREUs would not be subject to PURPA section 210’s interconnection, purchase, or sale requirements, meaning a CREU would not be required to interconnect with or buy from other electric utilities under that provision.  Under PUHCA 2005, a holding company would not become subject to PUHCA regulation solely because it owns or controls a CREU.  The bill contains a bright line rule that if a CREU chooses to connect to any part of the bulk-power system, it forfeits being a CREU and thus becomes subject to federal regulation.

The Act will be considered before the Senate Committee on Energy and Natural Resources.  The full text of the DATA Act is available here.