Data Center Tax Accountability and Disclosure Act of 2026

of title 26, Code of Federal Regulations (as in effect on the date of enactment of this subsection).''. (c) Effective Date.--The amendments made by this section shall apply to property placed in service after the date of enactment of this Act. SEC. 3. DATA CENTER DISCLOSURES. (a) Definitions.--In this section: (1) Administrator.--The term ``Administrator'' means the Administrator of the Environmental Protection Agency. (2) Affected community.--The term ``affected community'' means a community that-- (A) is subject to the jurisdiction of the same unit of local government as a covered data center; or (B) is served by the same electric utility, water authority, or drinking water utility as a covered data center. (3) Affected unit of local government.--The term ``affected unit of local government'' means any unit of local government within the jurisdiction of which a covered data center or affected community is located. (4) Applicable recipient.--The term ``applicable recipient'', with respect to a disclosure under subsection (b) or a report under subsection (c), means-- (A) if the applicable covered data center is located in an electing State, the electing State; and (B) if the applicable covered data center is not located in an electing State, the Secretary and the Administrator. (5) Covered data center.-- (A) In general.--The term ``covered data center'' means a data center, including a dual-use data center and a data center that is co-located or otherwise shares commercial space with a dedicated Federal data center, the power demand of which is 25 megawatts or more. (B) Exclusion.--The term ``covered data center'' does not include a dedicated Federal data center. (6) Data center.--The term ``data center'' has the meaning given the term in section 453(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112(a)). (7) Data center operator.--The term ``data center operator'' means any person that operates a covered data center. (8) Dedicated federal data center.--The term ``dedicated Federal data center'' means a data center that is owned and operated exclusively by or for the Federal Government (including any element of the intelligence community (as defined in section 3 of the National Security Act of 1947 (50 U.S.C. 3003))). (9) Dual-use data center.--The term ``dual-use data center'' means a data center that provides services to both the Federal Government and 1 or more non-Federal interests. (10) Director.--The term ``Director'' means the Director of the Office of Management and Budget. (11) Electing state.--The term ``electing State'' means a State that-- (A) has elected to receive disclosures and reports under this section; (B) has established a system for receiving those disclosures and reports; and (C) has notified the Secretary and the Administrator that the State will-- (i) receive those disclosures and reports; and (ii) submit to the Secretary and the Administrator an annual compilation of those disclosures and reports under subsection (d)(1). (12) Power usage effectiveness.--The term ``power usage effectiveness'' has the meaning given the term in the document published in 2026 by the International Organization for Standardization and the International Electrotechnical Commission entitled ``Information technology -- Data centres key performance indicators -- Part 2: Power usage effectiveness (PUE)'' and numbered ISO/IEC 30134-2:2026 (or a successor document). (13) Secretary.--The term ``Secretary'' means the Secretary of Energy. (14) State.--The term ``State'' means-- (A) each of the several States of the United States; (B) the District of Columbia; (C) the Commonwealth of Puerto Rico; (D) the United States Virgin Islands; (E) Guam; (F) American Samoa; (G) the Commonwealth of the Northern Mariana Islands; (H) an Indian tribe included on the list published by the Secretary of the Interior under section 104 of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131); (I) the Federated States of Micronesia; (J) the Republic of the Marshall Islands; and (K) the Republic of Palau. (15) Water usage effectiveness.--The term ``water usage effectiveness'' has the meaning given the term in the document published in 2022 by the International Organization for Standardization and the International Electrotechnical Commission entitled ``Information technology -- Data centres key performance indicators -- Part 9: Water usage effectiveness (WUE)'' and numbered ISO/IEC 30134-9:2022 (or a successor document). (b) Initial Disclosures.-- (1) In general.--Not later than 180 days before the date on which a covered data center commences operations, the data center operator shall submit to the applicable recipient an initial disclosure that includes an estimate of the information described in paragraphs (1) through (4) of subsection (c) for the 1-year period beginning on the date on which the covered data center is expected to commence operations. (2) Existing data centers.--Not later than 180 days after the date of enactment of this Act, each covered data center operating as of that date of enactment shall submit to the applicable recipient an initial disclosure that includes the information required to be included in an annual mandatory report under subsection (c) for the most recent calendar year ending before that date of enactment. (3) Federal data centers.-- (A) Dual-use data centers.--With respect to a dual- use data center-- (i) this subsection and subsection (c) shall only apply to the extent prescribed by the Director under subsection (e)(1)(D); and (ii) in providing initial disclosures under this subsection or submitting an annual report under subsection (c) as so prescribed, the data center operator shall comply with all applicable requirements established under subsection (e), including the standards established under paragraph (1)(D) of that subsection and any exemptions from disclosure established under paragraph (2)(C) of that subsection. (B) Dedicated federal data centers.--This subsection and subsection (c) shall not apply to a dedicated Federal data center. (c) Annual Mandatory Report.--Not later than December 31 of each year, each data center operator shall submit to the applicable recipient an annual report that describes, for the most recent preceding calendar year, the following information for each applicable covered data center operated by the data center operator: (1) Water access and usage.-- (A) The total number of gallons of water withdrawn or consumed each month by the covered data center during the year covered by the report. (B) The source of the water so withdrawn or consumed by the covered data center, such as a municipal drinking water system, groundwater, surface water, or reclaimed water. (C) The annual average water usage effectiveness of the covered data center. (D) Any water rights, permits, or long-term supply agreements held by a data center operator for a covered data center, including the term and quantity of water subject to those rights, that permit, or that agreement. (2) Electricity access and usage.-- (A) The total electricity contracted for or consumed by the covered data center each month during the year covered by the report, measured in megawatt- hours, and the peak electricity demand of the covered data center during that year, measured in megawatts. (B) If the covered data center uses behind-the- meter power generation, the method used to generate that power, including the percentage of total electricity consumed by the covered data center from each behind-the-meter generation source type, calculated on an actual-dispatch basis. (C) The total greenhouse gas emissions of the covered data center in carbon dioxide-equivalent metric tons (calculated on the basis of energy consumption). (D) The annual average power usage effectiveness of the covered data center. (E) Any long-term power purchase agreements or utility service agreements to which the covered data center operator was a party during the year covered by the report, including-- (i) the term of the power purchase agreement; and (ii) the quantity of power covered by the power purchase agreement. (3) Backup power.-- (A) The types of backup power maintained for the covered data center, including generators, batteries, and all other sources of backup power. (B) The total backup capacity maintained for the covered data center. (C) The quantity of fuel stored on-site for backup power. (D) The total hours that the covered data center operated using backup power during the year covered by the report. (E) The annual emissions of carbon dioxide, and criteria pollutants for which there are national ambient air quality standards under section 109 of the Clean Air Act (42 U.S.C. 7409), from backup power during the year covered by the report. (4) Property setback.--The setback requirements for data center facilities in the State in which the covered data center is located, including any zoning variances, special use permits, or conditional approvals relating to the use of a facility or setback by the data center operator. (d) Reports to EPA and DOE.-- (1) In general.--Each electing State shall annually submit to the Secretary and the Administrator a compilation of-- (A) the disclosures submitted to the electing State under subsection (b); and (B) the reports submitted to the electing State under subsection (c). (2) Publication.--The Secretary and the Administrator shall make publicly available on the website of the Department of Energy and the Environmental Protection Agency, respectively, an annual report that includes each of-- (A) the disclosures submitted directly to the Secretary and the Administrator under subsection (b); (B) the reports submitted directly to the Secretary and the Administrator under subsection (c); (C) the compilations submitted to the Secretary and the Administrator under paragraph (1); and (D) any information submitted to the Secretary and the Administrator under subsection (e)(3), in accordance with any standards established under subsection (e)(1)(C). (e) Disclosures for Federal Data Centers.-- (1) In general.--Not later than 180 days after the date of enactment of this Act, the Director shall establish standards for-- (A) the compilation by appropriate Federal officials, as determined by the Director, of information relating to each dedicated Federal data center and dual-use data center utilized by the Federal Government; (B) the submission of that information to the committees of Congress with jurisdiction over those Federal officials; (C) the publication of that information pursuant to subsection (d)(2)(D), if applicable; and (D) with respect to dual-use data centers, disclosure and reporting by the applicable data center operator under subsections (b) and (c). (2) Requirements.--The standards established under paragraph (1) shall-- (A) to the maximum extent practicable, require the disclosure of information consistent with the information required to be disclosed under subsection (c) with respect to covered data centers; (B) simultaneously-- (i) promote data center accountability and transparency; and (ii) protect national security; and (C) include exemptions from disclosure to protect national security, as appropriate. (3) Submission of information for publication.--If the Director determines appropriate, the standards established under paragraph (1) may require appropriate Federal officials, as determined by the Director, to submit to the Secretary and the Administrator for publication under subsection (d)(2)(D) such information as is appropriate for publication under that subsection. (4) Coordination.--In carrying out this subsection, including the development of exemptions under paragraph (2)(C), the Director shall coordinate with appropriate officials of-- (A) the Office of the Director of National Intelligence; (B) the Central Intelligence Agency; (C) the Department of Defense; (D) the Department of Homeland Security; (E) the Department of Justice; (F) the Department of Energy; (G) the Department of Commerce; (H) the Department of the Treasury; and (I) any other relevant Federal agency, as determined by the Director, including any Federal agency utilizing a data center for purposes relating to national security. (f) Prohibition on Use of Nondisclosure Agreements or Confidentiality Agreements To Conceal Information or Avoid Required Disclosures.-- (1) In general.--Notwithstanding any provision of State contract law or any agreement to the contrary, no nondisclosure agreement, confidentiality agreement, or similar contract or agreement shall operate-- (A) to prevent, limit, delay, or penalize disclosure by any party to the contract or agreement to the Secretary, the Administrator, or an electing State of any information required to be disclosed to the Secretary, the Administrator, or the electing State under this section; (B) to prevent, limit, delay, or penalize disclosure by an electing State to-- (i) the Secretary or the Administrator of any information required to be disclosed to the Secretary or the Administrator under this section; or (ii) an affected unit of local government of any information provided to the electing State under this section; or (C) to require any party to the contract or agreement to seek approval from a data center operator before responding to a request for information from the Secretary, the Administrator, or an electing State made pursuant to subsection (g)(4). (2) Voidability.--Any provision of a nondisclosure agreement, confidentiality agreement, or similar contract or agreement that purports to restrict disclosure in a manner prohibited under paragraph (1) is void as against public policy and unenforceable to the extent of such restriction. (3) No liability for compliance.--No electric utility, water authority, drinking water utility, unit of local government, or State agency shall be liable to a data center operator under any nondisclosure agreement, confidentiality agreement, or similar contract or agreement for any disclosure made in compliance with the requirements of this section. (4) Federal preemption.--To the extent that any provision of State contract law would render enforceable a provision of a nondisclosure agreement, confidentiality agreement, or similar contract or agreement prohibited or rendered unenforceable under this subsection, such provision of State law is preempted by this Act. (5) Rule of construction.--Nothing in this section prohibits a data center operator from entering into a nondisclosure agreement, confidentiality agreement, or similar contract or agreement covering information that is not required to be disclosed to the Secretary, the Administrator, or an electing State under this section. (g) Enforcement.-- (1) Negligent violations.--Any data center operator that negligently fails to submit a disclosure required under subsection (b) or a report required under subsection (c) shall be subject to a civil penalty of not more than $50,000 for each day of noncompliance. (2) Knowing violations.--Any data center operator that knowingly fails to submit a disclosure required under subsection (b) or a report required under subsection (c), or that knowingly submits a false or materially misleading disclosure or report, shall be subject to a civil penalty of not more than $100,000 for each day of noncompliance. (3) State enforcement.--An electing State may impose fines and engage in other enforcement activities consistent with this section and applicable State law. (4) Requests for information.--The Secretary and the Administrator, acting jointly, or an electing State may issue to an electric utility, water authority, or drinking water utility a request for information relating to matters required to be disclosed by a data center operator under subsection (b) or (c). (h) Rulemaking.--Not later than 180 days after the date of enactment of this Act, the Secretary and the Administrator shall jointly promulgate such regulations as are necessary to carry out this section, including regulations establishing-- (1) standardized formatting for the disclosures under subsection (b) and the reports under subsection (c); and (2) procedures for submission to, and review by, the Secretary and the Administrator of disclosures under subsection (b), reports under subsection (c), and compilations under subsection (d)(1). <all>