summary
Introduced
04/01/2025
04/01/2025
In Committee
04/02/2025
04/02/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Session
Bill Summary
AN ACT TO ASSIGN THE COST OF NEW DATA CENTERS, ELECTRIC VEHICLE CHARGING STATIONS, AND ASSOCIATED ELECTRICITY DEMANDS TO THOSE WHO BENEFIT DIRECTLY FROM THESE POWER SUPPLIES. Whereas, Artificial Intelligence (AI) as commonly understood, is becoming increasingly integrated into everyday life and across multiple sectors - if not every sector - of the American economy; and Whereas, AI is currently placing strains on current power grids and its demand is expected to increase; and Whereas, the Environmental Protection Agency's rules released in 2024 aim to drastically increase the purchase and use of electric and plug-in hybrid electric vehicles; and Whereas, electric grid operators project a rapid increase in American electricity demand, up 4.7% between 2023 and 2028, caused by growth in data centers and electric vehicles; and Whereas, rapid growth of electricity demand without sufficient baseload generation in place to meet the demand jeopardizes reliability and affordability and will cause interruptions of service, often when needed most, during the hottest or coldest months; and Whereas, 230 coal plants, which produced twenty percent (20%) of American electricity in 2022, are being targeted for closure by activist groups, state and federal regulators, and utilities, with dozens across the nation slated for closure in the next three years; and Whereas, the North American Electric Reliability Corp. (NERC), and the Regional Transmission Organizations (RTOs) have warned that large swathes of the United States face elevated risks of electricity shortfalls now and in the future; and Whereas, restricting the supply of electricity without immediate substitutes jeopardizes reliability and affordability and will cause interruptions of service, often when needed most, during the hottest or coldest months; and Whereas, America's coal and natural gas plants should not be recklessly decommissioned or regulated out of existence, they should be kept online (readily available) to meet the projected rapid increase in electricity demand caused by new data centers and electric vehicles; and Whereas, the North Carolina Utilities Commission must prioritize retaining and adding dispatchable, on-demand baseload power to meet the anticipated increase in demand; and Whereas, newly built data centers should be the first to have their power curtailed in the event that new dispatchable power is not added to the grid and electricity blackouts or brownouts occur; and Whereas, those benefitting directly from new dispatchable power supplies, like EV and PHEV users and data centers, should have to cover the cost of the additional demand they are placing on the electric grid; Now, therefore,
AI Summary
This bill introduces the Equitable Escalation of Electricity Demand Act, which addresses the increasing electricity demands from data centers and electric vehicles (EVs) by requiring those who directly benefit from new power infrastructure to help cover its costs. The legislation defines key terms like "dispatchable power" (electricity that can be readily generated on demand) and establishes specific requirements for new EV charging stations and data centers. For EV charging stations, a new fee will be imposed to fund electrical grid maintenance and upgrades, with state-owned stations required to collect and track these fees. Data centers will be responsible for ensuring they have sufficient dispatchable power, either by contracting directly with local utilities to construct new power sources or by developing their own power generation facilities that comply with environmental and safety regulations. If a data center receives state economic incentives, they must enter into an agreement about power provision, with potential financial penalties for non-compliance. The bill also allows data centers to sell excess generated power back to utilities. The overarching goal is to ensure grid reliability and prevent potential electricity shortfalls by making new high-demand technologies responsible for the infrastructure needed to support their power requirements, rather than spreading these costs across all ratepayers.
Committee Categories
Transportation and Infrastructure
Sponsors (5)
Last Action
Ref to the Com on Energy and Public Utilities, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House (on 04/02/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ncleg.gov/BillLookUp/2025/H638 |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H638v1.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H638v0.pdf |
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