Limit costs and risks associated with electricity use by data centers and impose a moratorium.
Impact
One of the most significant features of HB1301 is the imposition of a moratorium on the construction or expansion of large data centers until June 30, 2027. This pause is expected to give the state time to evaluate the implications of large data centers on local electrical infrastructure and to ensure that new regulations can effectively manage their operational impacts. The bill seeks to ensure that any data center operating or expanding in the state is not a burden to local electric consumers and that substantial energy usage is responsibly planned and regulated.
Summary
House Bill 1301 aims to create a regulatory framework for large data centers in South Dakota by limiting costs and risks associated with their electricity usage. The bill defines a 'large data center' as any facility with a peak electricity demand of twenty megawatts or greater, and establishes that electric utilities must ensure these centers cover the full cost of their electric service without passing any costs onto other retail customers. Furthermore, any required infrastructure upgrades or stranded costs due to a center’s operation will also fall upon the data center itself. This aims to safeguard other electricity consumers from financial risks.
Contention
The contours of the debate surrounding HB1301 involve concerns about the balance between fostering economic development and protecting existing consumers. Supporters of the bill argue that it is a necessary step towards establishing accountability for data centers, which are known for consuming large amounts of electricity, often without paying their fair share of the costs that their infrastructure demands. Critics, however, express concerns that the moratorium could stifle economic growth in an increasingly digital economy, as well as the potential excess regulation may discourage future investment in necessary technological infrastructure.
Subject lithium mining operations to certain provisions regarding permitting, annual reporting, disturbed land limitations, and mined land reclamation.
Limit the imposition of restrictions on the carrying of a concealed pistol and other items of self-defense while on the campus of a public institution of higher education.
Prohibit use of the South Dakota public utilities commission gross receipts tax fund for reimbursement of costs incurred by the Public Utilities Commission.