Vermont H 727: An act relating to sustainable data center deployment

Bill Text

BILLAS PASSED BY THE HOUSE AND SENATE H.727
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H.727
Introduced by Representative Sibilia of Dover
Referred to Committee on
Date:
Subject: Utilities; data centers; ratepayer class; siting; reporting
Statement of purpose of bill as introduced: This bill proposes to regulate the
deployment of data centers in Vermont for the purpose of ensuring electric
service reliability and affordability for all Vermonters and preventing any
adverse effects on the State’s environment, natural resources, local
communities, economy, and public health and welfare.
An act relating to sustainable data center deployment
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 30 V.S.A. chapter 5, subchapter 3 is added to read:
Subchapter 3. Data Centers
§ 281. SHORT TITLE
This subchapter shall be known and may be cited as the “Vermont
Sustainable Data Centers Act.”
§ 282. PURPOSE
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BILLAS PASSED BY THE HOUSE AND SENATE H.727
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The purpose of this subchapter is to establish a regulatory framework that
ensures responsible growth of an essential industry in a manner that protects
existing electric ratepayers from unwarranted costs and promotes sustainable
climate, environmental, community, and equity outcomes consistent with State
policy.
§ 283. DEFINITIONS
As used in this subchapter:
(1) “Data center” means a facility that uses or is able to use 20
megawatts or more of power and is engaged in providing data processing,
hosting, and related services as described under code 518210 of the 2022
North American Industry Classification System.
(2) “Facility” means all buildings, equipment, structures, and other
stationary items that are located on a single site or on contiguous or adjacent
sites and that are owned or operated by the same person or by any person that
controls, is controlled by, or is under common control with such person.
§ 284. TARIFFS; CONTRACTS
(a) For the purpose of ensuring just and reasonable rates for all ratepayer
classes and mitigating the risk of financial exposure to electric distribution
companies and their existing ratepayers, the Public Utility Commission shall
establish a separate ratepayer class and tariff schedule applicable to data
centers and, in addition, shall require specific provisions in any contract for
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BILLAS PASSED BY THE HOUSE AND SENATE H.727
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electric service entered into by an electric distribution company and a data
center as specified in subsection (c) of this section.
(b) The Commission shall develop a general tariff with standardized
structures applicable to all electric distribution companies with respect to the
data center ratepayer class, and these requirements shall be reflected in each
company’s individual tariff filings. The standardized structures shall:
(1) include a method for allocating costs that is equal or proportional to
the costs of providing electric service to data centers;
(2) provide for equitable contributions to the efficiency, reliability, and
resiliency of the electricity network;
(3) mitigate the risk of other ratepayer classes paying unwarranted costs,
including any electric generation, distribution, and transmission infrastructure
costs incurred solely to meet the load requirements of a data center;
(4) promote or, at a minimum, not impede in any way an electric
company’s ability to meet renewable electricity targets pursuant to the
Renewable Energy Standard;
(5) reflect the mandatory contractual provisions specified in subsection
(c) of this section; and
(6) meet any other conditions the Commission may require consistent
with the purpose of this section and in the public interest.
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(c) A contract for electric service entered into between an electric company
and a data center shall:
(1) specify the duration of the contract, which shall not be less than 10
years;
(2) specify the date or the estimated date that the electric company will
begin to provide electric service to the data center;
(3) obligate the data center to pay a minimum amount or percentage
based on the data center’s projected electricity usage for the duration of the
contract;
(4) include a reasonable charge for excess demand;
(5) include a collateral requirement sufficient to mitigate the risk of
stranded costs; and
(6) meet any other terms or conditions required by the Commission that
are consistent with the purpose of this section and in the public interest.
§ 285. SITING; CERTIFICATE OF PUBLIC GOOD
(a) No person shall in any way begin site preparation for or commence
construction of a data center unless the Commission first finds that the same
will promote the general good of the State and issues a certificate of public
good to that effect pursuant to this section.
(b) Before the Commission issues a certificate of publi