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MD SB903

Data Centers - Fast Track Pass for Co-Location and Sales and Use Tax


summary

Introduced
02/03/2025
In Committee
02/03/2025
Crossed Over
Passed
Dead
04/08/2025

Introduced Session

2025 Regular Session

Bill Summary

Establishing an expedited certificate of public convenience and necessity review process for certain co-located energy generation projects that have received a fast track pass; establishing a Data Center Fast Track Advisory Committee in the Public Service Commission to facilitate the application for and review and awarding of fast track passes; altering the requirements for qualified data center personal property to be eligible to be exempt from the sales and use tax; etc.

AI Summary

This bill establishes an expedited review process for data center projects that co-locate with energy generation facilities, creating a new "Fast Track Pass" system overseen by a Data Center Fast Track Advisory Committee. The committee, composed of representatives from various state agencies, will establish criteria for selecting projects based on factors like energy generation technology, power usage effectiveness, green building standards, land use, water usage, community impact, and environmental justice considerations. The bill modifies the requirements for qualified data centers to receive sales and use tax exemptions, now requiring applicants to demonstrate high energy efficiency (with a power usage effectiveness score of 1.2 or less), use at least 90% carbon-free renewable energy, and avoid using diesel fuel for on-site generation. The Public Service Commission must expedite the review of these projects, prioritizing them over other matters and taking final action within 6 months. The bill limits the number of Fast Track Passes to three per year and allows for partial tax exemptions based on a comparative analysis with other states' economic development incentives. The changes aim to attract and support data center development in Maryland while promoting energy efficiency and sustainable practices.

Committee Categories

Education

Sponsors (1)

Last Action

Senate Education, Energy, and the Environment Hearing (13:00:00 3/6/2025 ) (on 03/06/2025)

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