Schumer moves to block Husted data center ratepayer bill as Senate vote nears

The Ratepayer Protection Act passed the House 417-3; Majority Leader Thune is expected to file cloture Monday for a Wednesday procedural vote, while Senate Democrats remain divided.

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Photo: Architect of the Capitol / aoc.gov (Public domain), via Wikimedia Commons (source)

Senate Democratic Leader Chuck Schumer is working to defeat a bill by Republican Sen. Jon Husted of Ohio that would push large data centers to cover more of their own power-infrastructure costs, The Hill reported on Monday, even as some Democrats favor at least opening floor debate.

The Ratepayer Protection Act (S.5028) passed the House on Sept. 16 by a 417-3 vote, CBS News, CNBC and Husted’s office reported. Senate Majority Leader John Thune plans to file cloture on the bill Monday, which would set a first procedural vote for Wednesday, The Hill reported.

What the bill does

According to CNBC, the bill would create a framework states could adopt under which AI data centers drawing 100 megawatts or more would cover costs of new generation, transmission and related infrastructure rather than shifting those costs to other ratepayers. Husted, in floor remarks quoted by his office, said state utility regulators would have to weigh standards under which “large load customers pay the full, incremental cost of the infrastructure needed to serve them.”

On Sept. 17, Husted sought unanimous consent to pass the House-passed bill; New Mexico Sen. Martin Heinrich, ranking member on Energy and Natural Resources, objected, CBS News and CNBC reported. Heinrich said the bill “falls short” and relies on voluntary steps, and promoted his own GRID Savings Act. Sen. Bernie Moreno, Ohio’s other Republican senator, then objected to Heinrich’s unanimous-consent request for that alternative, CBS News reported.

Democratic split

Schumer on Wednesday called Husted’s bill a “fraud,” saying it is “voluntary, no company has to do it,” and contrasting it with a Democratic alternative he described as “mandatory,” The Hill reported. Heinrich told The Hill the Ratepayer Protection Act “does nothing to meaningfully address the rising costs of AI data center development” and “relies on a voluntary framework.”

Other Democrats are more open to a floor debate. Sen. Chris Van Hollen of Maryland told The Hill the bill is “a tiny step forward” favoring a vote to open debate so members can offer amendments, while making clear they would not allow final passage without stronger protections, The Hill reported. His own Power for the People Act would push states toward separate rate classes for data centers and ask FERC to make large loads cover the transmission upgrades they trigger.

Sen. Tina Smith of Minnesota described the push as “kind of a political bailout” for Husted, The Hill reported. Husted is in a competitive race against former Sen. Sherrod Brown, who has made data centers a central campaign issue; Absecon Group figures cited by The Hill put Brown’s online advertising about data centers above $430,000. A YouGov poll of 1,000 likely Ohio voters earlier this month found 75 percent opposed or strongly opposed local data center construction, The Hill reported.

Husted’s spokesperson, Olivia Tripodi, told The Hill the bill would “force” data centers “to pay their own way” by setting a federal standard for states to weigh. Husted said House Democrats, including Minority Leader Hakeem Jeffries, backed the House bill, and argued Senate Democrats who block it would show “they don’t really care about affordability,” The Hill reported.

What's next

Thune’s planned Monday cloture filing would tee up a Wednesday procedural vote. The immediate test is whether Schumer can hold enough Democrats to sink the motion to proceed, The Hill reported. Senate Democratic Whip Dick Durbin told The Hill he had not yet taken a position.

Sources

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