This bill, titled the Guaranteeing Rate Insulation from Data Centers Act or GRID Act, seeks to ensure that the construction and operation of large data centers do not adversely affect the electrical rates paid by residential consumers. It establishes new requirements for data centers with a power demand of 20 megawatts or more, excluding those operated by federal agencies.

A core provision mandates that, within 180 days of enactment, new data centers must derive all their energy, including backup power, from off-grid sources such as captive power plants or on-site generation. Existing data centers are granted a 10-year grace period, during which they can continue to use the electric grid if they obtain a Zero Rate Effect Certificate from the Secretary of Energy.

To receive a Zero Rate Effect Certificate, a data center must demonstrate, through a study, that its operations will not increase electrical rates for ratepayers, with a specific prioritization for residential ratepayers. Data centers can achieve this by paying Rate Effect Credits or through other financial arrangements designed to offset any potential rate increases. Certificates are valid for one year and can be reissued.

The bill also imposes significant public reporting requirements on covered entities. These include disclosing estimated and actual utility usage for both new and existing data centers, as well as publicizing any acquisitions of real property intended for data center development. Furthermore, data centers and utilities must disclose all agreements regarding utility services, including any subsidies, credits, or financial incentives provided.

Any power sources built for data centers must comply with all applicable local, State, and Federal laws, and their construction must utilize project labor agreements. Non-compliance with the off-grid requirement for data centers carries a substantial civil penalty of not less than $1,000,000 per day of violation, underscoring the bill's intent to strictly enforce residential ratepayer protection.