Regulates energy consumption by data centers; requires annual disclosure reporting; prohibits incentives in fossil fuel power purchase agreements with utilities; directs the public service commission to establish a data center surcharge and discount plan.
Impact
The act introduces mandatory disclosure reports which data center operators must submit detailing their energy and water usage as well as efforts made to mitigate negative environmental impacts. Additionally, it establishes that public utility commissions will enforce regulations by requiring data centers to utilize more renewable energy sources over time. By 2030, a minimum of one-third of the energy used by regulated data centers must come from renewable sources, increasing to two-thirds by 2035, and aiming for full reliance on renewable energy by 2040.
Summary
S06394, known as the New York State Sustainable Data Centers Act, aims to regulate energy consumption by data centers in New York. This legislation acknowledges that data centers significantly contribute to both energy demand and environmental pollution. As these facilities expand, their high water and electricity consumption poses risks to local ecosystems and residents. The bill seeks to align the growth of data centers with the state’s renewable energy objectives and pollution reduction targets mandated by existing climate laws.
Contention
While proponents argue that S06394 is necessary for sustainable economic development that also protects community and environmental health, opponents may view this regulation as burdensome. Concerns have been raised over the feasibility of meeting the proposed energy and water consumption goals, as well as the potential implications of adding compliance costs to data center operations. The requirement for transparency and public reporting on energy usage may also provoke resistance from operators wary of exposing their operational efficiencies or inefficiencies.
Regulatory framework
The bill amends existing public service and environmental laws, requiring that any data center projected to use five megawatts or more must conduct regular assessments and updates regarding their environmental impacts. Enforcement provisions include penalties for non-compliance, encouraging adherence to sustainability goals while also incentivizing operators to invest in greener technology and energy sources.
Same As
Regulates energy consumption by data centers; requires annual disclosure reporting; prohibits incentives in fossil fuel power purchase agreements with utilities; directs the public service commission to establish a data center surcharge and discount plan.
Regulates energy consumption by data centers; requires annual disclosure reporting; prohibits incentives in fossil fuel power purchase agreements with utilities; directs the public service commission to establish a data center surcharge and discount plan.
Requires the public service commission establish a grid modernization surcharge imposed on utilities for the energy use of data centers and high-intensity data centers which meet a specified threshold of electricity or information-technology load; establishes the grid modernization fund to finance investments in system reliability, capacity expansion, and integration of clean energy resources.
Requires the public service commission establish a grid modernization surcharge imposed on utilities for the energy use of data centers and high-intensity data centers which meet a specified threshold of electricity or information-technology load; establishes the grid modernization fund to finance investments in system reliability, capacity expansion, and integration of clean energy resources.
Repeals provisions relating to sale and use taxes with respect to data centers to include both personal property purchased by internet data centers and services performed on said personal property purchased by data centers.
Repeals provisions relating to sale and use taxes with respect to data centers to include both personal property purchased by internet data centers and services performed on said personal property purchased by data centers.
Provides for reporting by utilities and owners of buildings meeting certain thresholds regarding energy consumption data; requires NYSERDA to create a list of buildings subject to such requirements; provides exemptions; requires public reporting on the information collected; makes related provisions.
Provides for reporting by utilities and owners of buildings meeting certain thresholds regarding energy consumption data; requires NYSERDA to create a list of buildings subject to such requirements; provides exemptions; requires public reporting on the information collected; makes related provisions.
Imposes a moratorium on the issuance of permits for new data centers; requires the public service commission to issue an order or orders to minimize the impact of new data centers on electricity and gas rates for residential, commercial, and industrial users; clarifies that certain provisions are applicable to the Long Island power authority.
Imposes a moratorium on the issuance of permits for new data centers; requires the public service commission to issue an order or orders to minimize the impact of new data centers on electricity and gas rates for residential, commercial, and industrial users; clarifies that certain provisions are applicable to the Long Island power authority.