Bill > S08037

This bill establishes a new utility rate classification and regulatory framework for datacenters in New York State, focusing on incentivizing datacenter development in upstate regions. The legislation requires electric corporations to create a special rate tariff for datacenters with peak demand over 400 kilowatts, mandating that datacenters with aggregate statewide demand of 1 megawatt or more use this tariff. To qualify for congestion management or local employment incentives, datacenters must purchase 100% of their electric energy from within New York State, with at least 50% coming from renewable sources like solar, wind, hydropower, geothermal, and biomethane. The bill also prevents datacenters from bypassing public purpose funding mechanisms through off-grid power connections and ensures they contribute to state-mandated clean energy and grid reliability programs. Additionally, the New York State Energy Research and Development Authority (NYSERDA) is authorized to develop congestion management incentives specifically for datacenters in NYISO zones A through H and zone K, excluding downstate regions like New York City and Long Island. These incentives can include targeted congestion cost mitigation and local employment grants, contingent upon meeting specific renewable procurement and employment benchmarks.

Transportation and Infrastructure

https://www.nysenate.gov/legislation/bills/2025/S8037