Bill > H0727

This bill establishes a regulatory framework for data centers in Vermont, aiming to ensure electric service reliability and affordability for all residents while protecting the environment, natural resources, local communities, economy, and public health and welfare. Key provisions include requiring data centers that use or can use 20 megawatts or more of power to enter into a "large load service equity contract" with an electric company, which must be approved by the Public Utility Commission (Commission) and ensure that other ratepayers are not burdened by the costs associated with data center development. These contracts must cover at least 10 years and include provisions for cost allocation, demand charges, collateral, demand-side management, and load curtailment during emergencies. The bill also mandates that data centers implement energy efficiency measures, maximize on-site renewable energy generation, and use combustion-based backup generation only during power failures. Furthermore, data centers will be required to make an annual payment to finance energy transformation projects and participate in a virtual power plant to optimize energy use. The bill also addresses water usage for cooling, requiring data centers to use closed-loop systems or approved alternatives and obtain necessary water withdrawal and quality permits, with specific monitoring requirements for PFAS (per- and polyfluoroalkyl substances). Data centers will also need to submit quarterly reports on their energy and water usage, and the state will conduct periodic reviews of contracts and issue reports on the impacts of data centers. Finally, the bill calls for recommendations on data center decommissioning and includes provisions for reporting on regional renewable energy market conditions.