Vermont S 205: An act relating to a temporary moratorium on AI data centers and a report on the construction and operation of AI data centers in Vermont

Bill Text

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S.205 1
Introduced by Senators White, Bongartz, Hardy, Major and Vyhovsky 2
Referred to Committee on 3
Date: 4
Subject: Utilities; AI data centers; moratorium; study 5
Statement of purpose of bill as introduced: This bill proposes to impose a 6
temporary moratorium on the siting and construction of AI data centers in 7
Vermont for the purpose of allowing time for the Public Utility Commission to 8
study the impact such centers would have in Vermont and make 9
recommendations to the General Assembly for a regulatory regime that would 10
best serve the general good of the State. 11
An act relating to a temporary moratorium on AI data centers and a report 12
on the construction and operation of AI data centers in Vermont 13
It is hereby enacted by the General Assembly of the State of Vermont: 14
Sec. 1. AI DATA CENTER MORATORIUM AND REPORT 15
(a) Moratorium. To protect the public safety and welfare and safeguard the 16
rights of ratepayers in Vermont, no person shall be permitted to operate an 17
artificial intelligence (AI) data center or to in any way begin site preparation 18
for or commence construction of an AI data center in this State prior to July 1, 19
2030. The purpose of this temporary moratorium is to allow time for the 20

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appropriate regulatory entities to study and develop a regulatory regime 1
applicable to AI data centers in Vermont that best serves the general good. 2
(b) Definitions. As used in this section: 3
(1) “AI data center” means a facility that requires greater than 100 4
megawatts of new load dedicated to AI inference, training, simulation, or 5
synthetic data generation. 6
(2) “Person” has the same meaning as in 1 V.S.A. § 128. 7
(3) “Ratepayer” means a member of any electric ratepayer class in 8
Vermont, but not including an AI data center. 9
(c) Investigation and report. 10
(1) The Public Utility Commission, with input from the Department of 11
Public Service and all other interested parties, shall open an investigation into 12
the construction and operation of AI data centers in Vermont. The purpose of 13
the investigation is for the Commission to develop findings and 14
recommendations related to the impact AI data center deployment would have 15
in this State and the regulatory regime that would best serve the general good 16
of the State. 17
(2) On or before January 15, 2027, the Commission shall report the 18
findings and recommendations developed pursuant to this section to the House 19
Committees on Energy and Digital Infrastructure and on Environment and the 20
Senate Committees on Finance and on Natural Resources and Energy. 21

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(d) Considerations. In developing the report required by this section, the 1
Public Utility Commission shall consider: 2
(1) the increased energy load required to power an AI data center; 3
(2) water consumption necessary to support the cooling of computing 4
equipment in an AI data center; 5
(3) the environmental impacts of an AI data center with respect to water 6
quality and availability, air quality, local ecosystems, noise emissions, and the 7
availability of surrounding land for other purposes, including farming, 8
conservation, recreation, and housing; 9
(4) strategies for maintaining the reliability and security of the power 10
grid; 11
(5) strategies for promoting energy efficiency and renewable energy 12
initiatives consistent with Vermont’s climate goals; 13
(6) a cost-allocation model that would hold all other electric ratepayers 14
harmless from the increased energy demand necessary to operate an AI data 15
center, including any associated costs for local, State, or regional grid 16
upgrades; 17
(7) the impact, both positive and negative, an AI data center would have 18
on the Vermont economy, particularly regarding workforce opportunities, local 19
businesses, and economic growth, generally; 20

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(8) environmental justice initiatives, particularly regarding the location 1
of an AI data center; 2
(9) local and State permitting requirements that would minimize any 3
adverse effects of the construction and operation of AI data centers in 4
Vermont; and 5
(10) any other matters deemed relevant by the Public Utility 6
Commission. 7
Sec. 2. EFFECTIVE DATE 8
This act shall take effect on passage. 9