H.R. 9419 — Power and Water for Families Act of 2026

This section requires electric utilities to design rates for large-load customers to recover the full incremental cost of any generation, transmission, or distribution upgrades needed to serve their load, including after contract termination or cessation of service. It also requires utilities to obtain financial assurances or contributions from the customer before making such upgrades. A large-load customer is defined as a non-residential retail customer with facilities behind a single point of interconnection that have an aggregate peak demand of 100 megawatts or more.

This section requires each electric utility to consider rates, contracts, tariffs, or other mechanisms under which large-load customers develop, acquire, or dedicate new or incremental generation resources sufficient to serve their projected load, with any excess capacity, energy, or attributes made available to other customers through long-term contracts or market mechanisms. It permits implementation via physical allocation, power purchase agreements, tariffs, or other methods but prohibits mandating uniform resource set-asides.

This section establishes new deadlines for state regulatory authorities and nonregulated electric utilities to consider standards (22) and (23) of section 111(d): commencement within 1 year after enactment and completion of the determination within 2 years after enactment. It exempts any electric utility in a state that has already implemented those standards (or comparable standards), conducted a proceeding on them, or had its legislature vote on them before enactment.

This section applies the prior and pending proceedings compliance provisions under 16 U.S.C. 2634 to the standard established by paragraph (22) of section 111(d), treating proceedings commenced by State regulatory authorities and nonregulated electric utilities before the enactment of that paragraph as complying if they substantially conform to the standard.

This section establishes a new 30 percent tax credit for qualifying additive generation projects under section 48G of the Internal Revenue Code. The credit applies to the portion of qualified investment allocable to creditable excess capacity—new or incremental electric generation that exceeds the projected peak demand of a covered large-load facility (100 megawatts or more), is committed under a long-term contract of at least 10 years to an eligible load-serving entity, and does not shift costs to existing customers. The credit terminates for projects placed in service more than 10 years after enactment and applies only to projects whose construction begins after the date of enactment.

This section establishes a 30 percent tax credit for qualified investments in qualifying water reuse projects, defined as onsite water recycling systems in industrial, manufacturing, data center, or food processing facilities; replacement of freshwater with municipal recycled water for production or services; or construction or expansion of municipal water recycling systems. The credit applies to tangible depreciable property placed in service by the taxpayer and terminates for projects not placed in service within 10 years after enactment.