S T A T E   O F   N E W   Y O R K
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                                  6394--A
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                              March 13, 2025
                                ___________
 
 Introduced by Sens. GONZALEZ, MAY -- read twice and ordered printed, and
   when printed to be committed to the Committee on Energy and Telecommu-
   nications  --  reported favorably from said committee and committed to
   the Committee on Environmental Conservation --  committee  discharged,
   bill  amended,  ordered  reprinted  as amended and recommitted to said
   committee
 
 AN ACT to amend the public service law, the public authorities  law  and
   the  energy  law,  in  relation to regulation of energy consumption by
   data centers
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short title.  This act shall be known and may be cited as
 the "New York state sustainable data centers act".
   § 2. Legislative intent and findings. The legislature finds that  data
 centers  are  significant  energy  and  water  consumers and significant
 contributors to air and water pollution. The expansion and operation  of
 data  centers  across  the  state  impairs  New  York state's ability to
 achieve the renewable energy and emissions reduction benchmarks required
 by the climate leadership and community  protection  act  due  to  their
 significant  use of energy and water and significant emissions of green-
 house gases generated through the power needs of their operation.  Given
 the  growing  demand  for  the  construction of data centers, there is a
 critical need to improve the  energy  efficiency  of  data  centers  and
 reduce  their  energy consumption, water consumption, reliance on fossil
 fuels, and emissions.  Likewise, the large quantities of water  used  by
 data  centers  contribute  an  additional  threat  to  the health of the
 state's waters, the ecosystems of which they are an integral  part,  and
 the  residents  of the state who rely on them. This act will ensure that
 economic development involving  data  centers  is  consistent  with  the
 state's environmental standards and principles, and that where renewable
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09616-05-5
 S. 6394--A                          2
              

 
 energy  is  used  to  power data centers, that such energy is being used
 responsibly, with the interests and health of the public in mind.
   §  3.  The public service law is amended by adding a new article 12 to
 read as follows:
                                ARTICLE 12
               REGULATION OF DATA CENTER ENERGY CONSUMPTION
 SECTION 240. DEFINITIONS.
         241. DATA CENTER DISCLOSURE REPORTS.
         242. PUBLIC ENGAGEMENT.
         243. ANNUAL DATA CENTER DISCLOSURE REPORT UPDATES.
   § 240. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   1.  "CARBON DIOXIDE EQUIVALENTS" SHALL HAVE THE MEANING GIVEN TO  SUCH
 TERM IN SECTION 75-0101 OF THIS CHAPTER.
   2.  "DATA CENTER" SHALL MEAN: (A) A STRUCTURE, GROUP OF STRUCTURES, OR
 INFRASTRUCTURE WITHIN AN EXISTING STRUCTURE FOR THE CENTRAL  HOUSING  OF
 SERVER  RACKS  THAT  ARE  USED  FOR THE INTERCONNECTION AND OPERATION OF
 INFORMATION TECHNOLOGY AND NETWORK TELECOMMUNICATIONS EQUIPMENT FOR  THE
 PROVISION  OF DATA STORAGE, DATA PROCESSING, OR DATA TRANSPORT SERVICES;
 AND (B) ALL RELATED FACILITIES AND  INFRASTRUCTURE  FOR  POWER  DISTRIB-
 UTION,  ENVIRONMENTAL  CONTROL, COOLING AND SECURITY REQUIRED TO DELIVER
 THE DESIRED SERVICE WITH RESPECT TO THE SPECIFIC DATA CENTER.
   3. "DATA CENTER OPERATOR" SHALL MEAN THE OWNER OR OPERATOR OF THE DATA
 CENTER, OR OTHER PERSON WHO HAS COMPARABLE RIGHTS OF  USE  OVER  A  DATA
 CENTER,  INCLUDING ANY PERSON OR ENTITY RESPONSIBLE FOR ALLOCATING SPACE
 FOR EXTERNAL USE OF  INFORMATION  TECHNOLOGY  AND  NETWORK  TELECOMMUNI-
 CATIONS EQUIPMENT WITHIN A DATA CENTER.
   4.  "DATA  CENTER DISCLOSURE REPORT" SHALL MEAN THAT REPORT WHICH DATA
 CENTER OPERATORS MUST SUBMIT TO THE COMMISSION PRIOR TO CONSTRUCTION  OF
 A  DATA  CENTER,  AS  REQUIRED  BY SECTION TWO HUNDRED FORTY-ONE OF THIS
 ARTICLE.
   5. "EMPLOYEE" SHALL HAVE THE MEANING GIVEN TO  SUCH  TERM  IN  SECTION
 SEVEN HUNDRED FORTY OF THE LABOR LAW.
   6.  "HOST  COMMUNITY"  SHALL MEAN ANY MUNICIPALITY WITHIN WHICH A DATA
 CENTER, OR ANY PORTION THEREOF,  HAS  BEEN  DEVELOPED  OR  PROPOSED  FOR
 DEVELOPMENT, OR WHICH SUFFERS ANY NEGATIVE IMPACT FROM A DATA CENTER.
   7. "NEGATIVE IMPACT" SHALL MEAN ANY INCREASE IN EMISSIONS OF REGULATED
 AIR CONTAMINANTS AS DEFINED IN SUBDIVISION TWENTY-TWO OF SECTION 19-0107
 OF  THE  ENVIRONMENTAL  CONSERVATION  LAW, DISCHARGES INTO WATERS OF THE
 STATE AS DESCRIBED IN SUBDIVISION TWO OF SECTION 17-0301 OF THE ENVIRON-
 MENTAL CONSERVATION LAW, NOISE POLLUTION, OR ANY OTHER FORM OF POLLUTION
 THAT AFFECTS A HOST COMMUNITY.
   8. "RENEWABLE ENERGY" SHALL HAVE THE SAME MEANING AS "RENEWABLE ENERGY
 SYSTEMS" AS DEFINED IN SECTION SIXTY-SIX-P OF THIS CHAPTER.
   9. "REGULATED DATA CENTER" SHALL MEAN A DATA CENTER PROJECTED TO  HAVE
 AN ENERGY USAGE CAPACITY OF FIVE OR MORE MEGAWATTS.
   10. "BILL CREDIT" MEANS A MONTHLY MONETARY CREDIT WHICH IS FUNDED BY A
 DATA CENTER OPERATOR AS FURTHER DETERMINED BY THE COMMISSION AND APPEARS
 ON  THE UTILITY BILL OF A LOW INCOME OR MODERATE INCOME CUSTOMER LOCATED
 IN THIS STATE.
   11. "HYPERSCALE DATA CENTER" SHALL MEAN A DATA CENTER  THAT  TAKES  UP
 TEN  THOUSAND  SQUARE FEET OR MORE AND USES AT LEAST FIVE THOUSAND SERV-
 ERS.
   12. "MICRO DATA CENTER" SHALL MEAN A  DATA  CENTER  THAT  IS  ENCLOSED
 WITHIN  ONE  STANDARD SERVER RACK AND DOES NOT SUPPORT CRITICAL LOADS OF
 MORE THAN ONE HUNDRED FIFTY KILOWATTS.
 S. 6394--A                          3
 
   § 241. DATA CENTER DISCLOSURE REPORTS. FOR ANY PROPOSED REGULATED DATA
 CENTER, THE PROPOSED DATA CENTER OPERATOR SHALL  SUBMIT  A  DATA  CENTER
 DISCLOSURE  REPORT  TO  THE  DEPARTMENT  AND THE COMMISSION AT LEAST ONE
 HUNDRED EIGHTY DAYS PRIOR  TO  COMMENCING  ANY  CONSTRUCTION  ACTIVITIES
 RELATED  TO  A  REGULATED DATA CENTER. THE REPORT SHALL CONTAIN RELEVANT
 INFORMATION REGARDING THE PROPOSED REGULATED DATA CENTER, INCLUDING:
   1. (A) THE HOST COMMUNITY OR COMMUNITIES IN WHICH THE  REGULATED  DATA
 CENTER WILL BE LOCATED; AND
   (B)  THE ORGANIZATION OF THE PLANNED REGULATED DATA CENTER AS A SINGLE
 OPERATOR ENTERPRISE OR MANAGED DATA CENTER, COLOCATED FACILITY,  HYPERS-
 CALE  DATA  CENTER,  MICRO  DATA  CENTER, OR A CONTAINER OR MODULAR DATA
 CENTER.
   2.  THE NUMBER OF FULL-TIME AND PART-TIME EMPLOYEES  THE  DATA  CENTER
 OPERATOR  INTENDS  TO  EMPLOY  AT  THE PLANNED REGULATED DATA CENTER AND
 RELEVANT DEMOGRAPHIC INFORMATION INCLUDING BUT NOT LIMITED TO:
   (A) THE EDUCATION LEVELS OF THE EMPLOYEES INTENDED TO BE  EMPLOYED  AT
 THE PLANNED DATA CENTER, WITH PERCENTAGES INCLUDED FOR HIGHEST EDUCATION
 ACHIEVED  INCLUDING  HIGH SCHOOL DIPLOMA, ASSOCIATE'S DEGREE, BACHELOR'S
 DEGREE, AND HIGHER LEVEL OF EDUCATION; AND
   (B) THE PROJECTED PERCENTAGE OF EMPLOYEES RESIDING IN THE HOST  COMMU-
 NITY OR COMMUNITIES.
   3.  (A)  THE PROJECTED AVERAGE ENERGY USAGE OF THE PLANNED DATA CENTER
 PER DAY AND RELATED INFORMATION INCLUDING BUT NOT LIMITED TO:
   (I) THE PROJECTED TYPE OF ENERGY BEING USED  THAT  IS  NEITHER  FOSSIL
 FUEL NOR RENEWABLE ENERGY, WHERE APPLICABLE;
   (II) THE FORMS OF RENEWABLE ENERGY EXPECTED TO BE UTILIZED; AND
   (III)  THE  PROJECTED  PERCENTAGE OF ENERGY USAGE THAT IS FOSSIL FUEL,
 RENEWABLE ENERGY, AND NEITHER RENEWABLE ENERGY NOR FOSSIL FUEL WHERE THE
 DATA CENTER IS OPERATING AT PEAK;
   (B)  THE  PROJECTED  AVERAGE  AMOUNT  OF  ENERGY USAGE PER HOUR OF THE
 PLANNED DATA CENTER DURING PEAK  LOAD  MEASURED  IN  KILOWATT-HOURS  AND
 ANTICIPATED FREQUENCY OF PEAK LOAD PER WEEK;
   (C)  THE  PROJECTED  ANNUAL  EMISSIONS  OF  CARBON DIOXIDE EQUIVALENTS
 PRODUCED TO POWER THE FACILITY WHICH ARE PRODUCED OFF-SITE;
   (D) THE PROJECTED ANNUAL AMOUNT OF WASTE HEAT PRODUCED ON-SITE,  MEAS-
 URED IN BRITISH THERMAL UNITS;
   (E)  THE  PROJECTED PERCENTAGE OF THE ANNUAL AMOUNT OF RECOVERED WASTE
 HEAT, THAT WAS TRANSFORMED INTO ENERGY TO POWER THE DATA CENTER; AND
   (F) THE INTENDED USE FOR RECOVERED WASTE HEAT TO INCLUDE  BUT  NOT  BE
 LIMITED  TO  GENERAL  BUILDING  HEATING, COOLING SYSTEMS, COOLANT SYSTEM
 SPECIFICALLY FOR THE CAPTURE OF WASTE HEAT FROM PROCESSORS.
   4. IF A PLANNED REGULATED DATA CENTER IS REQUIRED TO OBTAIN AND HOLD A
 PERMIT PURSUANT TO TITLE FIFTEEN OF ARTICLE FIFTEEN OF THE ENVIRONMENTAL
 CONSERVATION LAW, THE DATA CENTER OPERATOR SHALL REPORT:
   (A) THE AMOUNT OF WATER PROJECTED TO BE USED  ANNUALLY  AND  HOW  THAT
 WATER WILL BE USED IN THE PLANNED REGULATED DATA CENTER; AND
   (B)  THE AVERAGE AMOUNT OF WATER EXPECTED TO BE USED DAILY MEASURED IN
 GALLONS.
   5. FOR ANY REGULATED DATA CENTER MAKING ANY DISCHARGE WITHIN THE MEAN-
 ING OF ARTICLE SEVENTEEN OF THE ENVIRONMENTAL CONSERVATION LAW, THE DATA
 CENTER OPERATOR SHALL REPORT:
   (A) THE ANNUAL PROJECTED DISCHARGES BY TYPE AND AMOUNT; AND
   (B) HOW DISCHARGES WILL BE TREATED, IF AT ALL,  TO  REMOVE  POLLUTANTS
 AND/OR TO WHAT EXTENT DISCHARGE TEMPERATURE WILL BE ADJUSTED, IF AT ALL,
 BEFORE BEING DISCHARGED.
 S. 6394--A                          4

   6.  THE  COMMISSION  MAY PROMULGATE RULES REQUIRING ADDITIONAL DISCLO-
 SURES, AS APPROPRIATE.
   § 242. PUBLIC  ENGAGEMENT.  THE  COMMISSION  SHALL  PUBLICIZE THE DATA
 DISCLOSURE REPORT ON ITS WEBSITE  WITHIN  TEN  DAYS  OF  RECEIVING  SUCH
 REPORT. THE DATA CENTER OPERATOR SHALL HOLD AT LEAST TWO PUBLIC HEARINGS
 WITHIN  SIXTY DAYS AFTER SUBMITTING ITS DATA CENTER DISCLOSURE REPORT TO
 THE COMMISSION. AT LEAST ONE OF THE TWO PUBLIC  HEARINGS  MUST  BE  HELD
 WITHIN THE HOST COMMUNITY WHERE THE DATA CENTER OPERATOR PLANS TO LOCATE
 ITS DATA CENTER.  THE DATA CENTER OPERATOR SHALL PROVIDE AT LEAST THIRTY
 DAYS  ADVANCE  NOTICE  TO  RESIDENTS  OF HOST COMMUNITIES OF ANY PLANNED
 PUBLIC HEARINGS. NOTICE OF  PUBLIC  HEARINGS  SHALL  INCLUDE  THE  TIME,
 PLACE,  AND  LOCATION  OF EACH PUBLIC HEARING, A SUMMARY OF THE PROPOSED
 DATA CENTER PROJECT, AND THE  SPECIFIC  LOCATION  OF  THE  PLANNED  DATA
 CENTER.  METHODS  OF PROVIDING NOTICE TO A HOST COMMUNITY SHALL INCLUDE,
 BUT SHALL NOT BE LIMITED TO, COVERAGE IN ANY PRINT OR  DIGITAL  PUBLICA-
 TION  PRODUCED  BY  LOCAL,  COMMUNITY, AND ETHNIC MEDIA. DURING A PUBLIC
 HEARING CONDUCTED PURSUANT TO THIS SECTION,  THE  DATA  CENTER  OPERATOR
 MUST  EXPLICITLY  DISCLOSE  AND  PRESENT  ITS  FINDING UNDER SECTION TWO
 HUNDRED FORTY-THREE OF  THIS  ARTICLE  IN  CLEAR  AND  CONCISE  LANGUAGE
 COMPREHENSIBLE  FOR  MEMBERS  OF  THE PUBLIC IN GENERAL.   IT SHALL ALSO
 ADDRESS THE EFFORTS IT WILL MAKE TO REDUCE ANY NEGATIVE IMPACTS  TO  THE
 HOST  COMMUNITY  AND  ITS  ENVIRONMENT  THAT THE PLANNED DATA CENTER MAY
 CAUSE.   A DRAFT OF THE DATA CENTER  DISCLOSURE  REPORT  SHALL  BE  MADE
 PUBLICLY AVAILABLE NO LATER THAN THIRTY DAYS PRIOR TO THE FIRST HEARING.
   § 243. ANNUAL  DATA  CENTER DISCLOSURE REPORT UPDATES.  1. A REGULATED
 DATA CENTER OPERATOR SHALL SUBMIT AN ANNUAL DATA  DISCLOSURE  REPORT  TO
 THE  COMMISSION,  WHICH  THE COMMISSION SHALL POST ON ITS WEBSITE WITHIN
 FIFTEEN DAYS OF RECEIPT. DATA CENTER OPERATORS SHALL INCLUDE ALL CHANGES
 TO THE DISCLOSURES REQUIRED PURSUANT TO SECTION TWO HUNDRED FORTY-ONE OF
 THIS ARTICLE  FROM  YEAR-TO-YEAR.  ADDITIONALLY,  ANNUAL  REPORTS  SHALL
 INCLUDE  BUT  NOT  BE  LIMITED  TO INFORMATION REGARDING THE DATA CENTER
 OPERATOR'S EFFORTS TOWARD GREATER ENERGY EFFICIENCY AND OVERALL SUSTAIN-
 ABILITY THAT YEAR.   SUCH FINDINGS  SHALL  BE  PRESENTED  IN  CLEAR  AND
 CONCISE  LANGUAGE  READILY  COMPREHENSIBLE  FOR  MEMBERS  OF THE GENERAL
 PUBLIC.
   2. SPECIFICALLY, DATA CENTER OPERATORS SHALL REPORT:
   (A) EFFORTS MADE TO REDUCE ENERGY CONSUMPTION WITHIN THE PAST YEAR;
   (B) A COMPARISON OF THE  YEAR'S  ENERGY  CONSUMPTION  TO  THE  INITIAL
 PROJECTED  AMOUNTS  OUTLINED IN SUBDIVISION THREE OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE, AND, FOLLOWING THE FIRST YEAR,  A  COMPARISON
 TO THE YEAR BEFORE;
   (C) A PROJECTION FOR ENERGY USAGE FOR THE NEXT YEAR, THAT INCLUDES THE
 SAME INFORMATION AS REQUIRED BY SUBDIVISION THREE OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE;
   (D)  EFFORTS  MADE  TO REDUCE FOSSIL FUEL CONSUMPTION AND INCREASE THE
 PERCENTAGE OF ENERGY USE OF, OR SUPPORT FOR RENEWABLE ENERGY WITHIN  THE
 PAST  YEAR,  WITH  A COMPARISON OF THE YEAR'S FOSSIL FUEL CONSUMPTION TO
 THE PROJECTED AMOUNT, AND, FOLLOWING THE FIRST YEAR, A COMPARISON TO THE
 YEAR BEFORE;
   (E) EFFORTS MADE TO REDUCE WATER CONSUMPTION WITHIN THE PAST YEAR;
   (F) (I) FOR DATA CENTERS THAT ARE REQUIRED TO OBTAIN AND HOLD A PERMIT
 PURSUANT TO TITLE  FIFTEEN  OF  ARTICLE  FIFTEEN  OF  THE  ENVIRONMENTAL
 CONSERVATION LAW, A COMPARISON OF THE YEAR'S WATER USAGE TO THE PROJECT-
 ED  AMOUNT,  AND,  FOLLOWING  THE  FIRST  YEAR, A COMPARISON TO THE YEAR
 BEFORE, EXPRESSED IN GALLONS; AND
 S. 6394--A                          5
 
   (II) FOR DATA CENTERS THAT ARE REQUIRED TO HAVE A PERMIT  PURSUANT  TO
 TITLE  FIFTEEN OF ARTICLE FIFTEEN OF THE ENVIRONMENTAL CONSERVATION LAW,
 A PROJECTION FOR WATER USAGE FOR THE  NEXT  YEAR,  DISCLOSING  THE  SAME
 INFORMATION  AS  REQUIRED  BY  SUBDIVISION  FOUR  OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE;
   (G)  EFFORTS  MADE TO PROTECT THE ENVIRONMENT AND PUBLIC FROM POLLUTED
 WATER IN THE PAST YEAR  ACCOMPANIED  BY  MEASUREMENTS  OF  ACTUAL  WATER
 POLLUTION  IN  A  MANNER  TO BE DETERMINED BY THE DEPARTMENT PURSUANT TO
 REGULATIONS;
   (H) EFFORTS MADE TO REDUCE WASTE HEAT AND UTILIZE WASTE HEAT TO  POWER
 THE  DATA  CENTER ACCOMPANIED BY MEASUREMENTS OF ACTUAL HEAT WASTE EMIS-
 SION AND REUSE; AND
   (I) PERCENTAGE OF DATA CENTER EMPLOYEES  THAT  LIVE  WITHIN  THE  HOST
 COMMUNITY.
   3.  IN  THE EVENT OF ANY NONCOMPLIANCE WITH SECTION TWO HUNDRED FORTY-
 ONE OR TWO HUNDRED FORTY-THREE OF THIS  ARTICLE,  THE  DEPARTMENT  SHALL
 NOTIFY  THE  DATA  CENTER  OPERATOR. THE DATA CENTER OPERATOR SHALL HAVE
 SIXTY DAYS TO CURE SUCH VIOLATION. IF SUCH VIOLATION HAS NOT BEEN  CURED
 AFTER  SIXTY  DAYS,  SUCH DATA CENTER SHALL BE SUBJECT TO FINES OF UP TO
 TEN THOUSAND DOLLARS BASED ON THE SEVERITY AND EXTENT OF  THE  VIOLATION
 AND  SHALL  BE  ASSESSED  ANOTHER TEN THOUSAND DOLLAR FINE FOR EVERY DAY
 THEY ARE LATE IN COMPLYING WITH SUCH SECTIONS. ALL FUNDS COLLECTED UNDER
 THIS ARTICLE SHALL BE DEPOSITED INTO THE ENVIRONMENTAL  PROTECTION  FUND
 ESTABLISHED BY SECTION NINETY-TWO-S OF THE STATE FINANCE LAW.
   4.  THE  DEPARTMENT AND THE ATTORNEY GENERAL ARE AUTHORIZED TO ENFORCE
 THE PROVISIONS OF THIS ARTICLE.
   § 4. The public authorities law is amended by  adding  a  new  section
 1854-e to read as follows:
   §  1854-E.  ENERGY  CONSUMPTION EFFICIENCY GOALS. 1. NO LATER THAN ONE
 YEAR AFTER THE  EFFECTIVE  DATE  OF  THIS  SECTION,  THE  AUTHORITY,  IN
 CONJUNCTION WITH THE FEDERALLY DESIGNED BULK SYSTEM OPERATOR, THE PUBLIC
 SERVICE  COMMISSION, AND THE NEW YORK STATE CLIMATE ACTION COUNCIL SHALL
 DETERMINE REASONABLE ENERGY CONSUMPTION EFFICIENCY GOALS FOR THE  DESIGN
 AND OPERATION OF DATA CENTERS AS DEFINED IN ARTICLE TWELVE OF THE PUBLIC
 SERVICE  LAW,  INCLUDING,  BUT  NOT  LIMITED TO, RECYCLING OF WASTE HEAT
 EMITTED FROM DATA CENTERS INTO AN ENERGY SOURCE. SUCH GOALS SHALL  ALIGN
 WITH  THE  BENCHMARKS  SET FORTH IN THE CLIMATE LEADERSHIP AND COMMUNITY
 PROTECTION ACT ENACTED BY CHAPTER ONE HUNDRED SIX OF  THE  LAWS  OF  TWO
 THOUSAND NINETEEN AND SHALL BE REVIEWED AND UPDATED ACCORDINGLY, ANNUAL-
 LY.
   2.  A  DATA  CENTER OPERATOR THAT HAS COMMENCED OPERATION PRIOR TO THE
 EFFECTIVE DATE OF THIS SECTION SHALL HAVE TWO YEARS TO COMPLY  WITH  THE
 ENERGY  CONSUMPTION EFFICIENCY GOALS DEVELOPED PURSUANT TO THIS SECTION.
 A DATA CENTER OPERATOR THAT HAS COMMENCED OPERATION WITHIN ONE  YEAR  OF
 THE  EFFECTIVE  DATE  OF THIS SECTION SHALL HAVE ONE YEAR TO COMPLY WITH
 SUCH ENERGY CONSUMPTION EFFICIENCY GOALS.
   § 5. The energy law is amended by adding a new article 19 to  read  as
 follows:
                                ARTICLE 19
                               DATA CENTERS
 SECTION 19-101. FOSSIL FUEL POWER PURCHASE AGREEMENTS.
   § 19-101. FOSSIL  FUEL  POWER  PURCHASE  AGREEMENTS. 1. POWER PURCHASE
 AGREEMENTS FOR ANY ENERGY GENERATED THROUGH THE  CONSUMPTION  OF  FOSSIL
 FUELS  SHALL  NOT  PROVIDE ECONOMIC INCENTIVES OR DISCOUNTS TO REGULATED
 DATA CENTERS, AS SET FORTH IN ARTICLE TWELVE OF THE PUBLIC SERVICE LAW.
 S. 6394--A                          6
 
   2. IN FURTHERANCE OF THE GOALS SET FORTH IN THE CLIMATE LEADERSHIP AND
 COMMUNITY PROTECTION ACT: (A) BY TWO THOUSAND THIRTY, AT LEAST ONE-THIRD
 OF ALL ENERGY USED BY REGULATED DATA CENTERS MUST  BE  PROVIDED  THROUGH
 POWER  PURCHASE  AGREEMENTS EXCLUSIVELY FOR RENEWABLE ENERGY; AND (B) BY
 TWO  THOUSAND  THIRTY-FIVE,  AT  LEAST  TWO-THIRDS OF ALL ENERGY USED BY
 REGULATED DATA CENTERS SHALL BE PROVIDED THROUGH POWER  PURCHASE  AGREE-
 MENTS  EXCLUSIVELY  FOR RENEWABLE ENERGY; AND (C) BY TWO THOUSAND FORTY,
 ALL ENERGY USED BY REGULATED DATA  CENTERS  SHALL  BE  PROVIDED  THROUGH
 POWER PURCHASE AGREEMENTS EXCLUSIVELY FOR RENEWABLE ENERGY.
   3.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "POWER PURCHASE AGREEMENT" SHALL MEAN AN AGREEMENT BETWEEN A  DATA
 CENTER  OPERATOR,  A  UTILITY,  AN  AUTHORITY,  OR  AN INDEPENDENT POWER
 PRODUCER WHEREIN THE UTILITY AGREES TO PROVIDE THE DATA CENTER ELECTRIC-
 ITY, OR AN INDEPENDENT POWER PRODUCER, OVER A DEFINED PERIOD OF TIME.
   (B) "UTILITY" SHALL HAVE THE SAME  MEANING  AS  "UTILITY  COMPANY"  AS
 DEFINED IN SECTION TWO OF THE PUBLIC SERVICE LAW.
   § 6. The public service law is amended by adding a new section 76-a to
 read as follows:
   § 76-A. DATA CENTER SURCHARGE AND DISCOUNT PLAN. 1. THE PUBLIC SERVICE
 COMMISSION  IS  HEREBY AUTHORIZED AND DIRECTED, TO INITIATE A PROCEEDING
 WITHIN THREE MONTHS OF THIS BILL BECOMING LAW TO ESTABLISH  A  REGULATED
 DATA  CENTER  SURCHARGE  THAT  WILL  BE  CHARGED  TO  ALL REGULATED DATA
 CENTERS. THE COMMISSION WHEN DETERMINING THE SURCHARGE, SHALL ENSURE THE
 SURCHARGE WILL BE SUFFICIENT TO COVER ANY RATE INCREASES RESULTING  FROM
 TRANSMISSION  AND  DISTRIBUTION  SYSTEM  UPGRADES  THAT ARE REQUIRED FOR
 REGULATED DATA CENTERS TO INTERCONNECT TO THE GRID  AND  OPERATE,  ALONG
 WITH  ANY  INCREASES  IN ENERGY SUPPLY COSTS DIRECTLY RESULTING FROM THE
 OPERATIONS OF DATA CENTERS.
   2. ALL MONIES COLLECTED FROM  THE  REGULATED  DATA  CENTER  SURCHARGE,
 EXCLUDING  ANY  REASONABLE AND PRUDENTLY INCURRED UTILITY ADMINISTRATIVE
 COSTS ASSOCIATED FROM COLLECTING THE SURCHARGE, SHALL BE DIRECTED TO THE
 ENERGY AFFORDABILITY PROGRAM CREATED WITHIN THE DEPARTMENT  CASE  DOCKET
 14-M-0565,  IN  THE  ORDER ADOPTING LOW INCOME PROGRAM MODIFICATIONS AND
 DIRECTING UTILITY FILINGS, PROCEEDING ON MOTION  OF  THE  COMMISSION  TO
 EXAMINE  PROGRAMS TO ADDRESS ENERGY AFFORDABILITY FOR LOW INCOME UTILITY
 CUSTOMERS MAY 20, 2016, OR ANY SUCCESSOR PROGRAMS.
   3. THE COMMISSION SHALL AUTHORIZE EACH ELECTRIC UTILITY CORPORATION TO
 ESTABLISH AN ACCOUNT THAT IS SOLELY USED FOR STORING THE PROCEEDS OF THE
 REGULATED UTILITY DATA CENTER  SURCHARGE,  AND  ONCE  EVERY  YEAR,  UPON
 REVIEW  AND  APPROVAL FROM THE COMMISSION, SHALL TRANSFER THOSE PROCEEDS
 TO THEIR ENERGY AFFORDABILITY PROGRAM CUSTOMERS IN THE FORM  OF  MONTHLY
 BILL CREDITS.
   4.  THIS  PROCEEDING SHALL INCLUDE A PUBLIC COMMENT PERIOD OF AT LEAST
 SIXTY DAYS AND FOUR PUBLIC HEARINGS IN DIFFERENT REGIONS OF THE STATE.
   5. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION  THE  COMMIS-
 SION  SHALL ISSUE AN ORDER REQUIRING ALL ELECTRIC CORPORATIONS TO IMPLE-
 MENT A SURCHARGE ON REGULATED DATA CENTERS WITHIN THEIR SERVICE TERRITO-
 RIES.  THE  COMMISSION  SHALL  REVIEW  AND  UPDATE  THIS  SURCHARGE  FOR
 REGULATED DATA CENTERS ONCE EVERY THREE YEARS.
   §  7. This act shall take effect one year after it shall have become a
 law.