Bill > SB1999

This bill, titled the "Data Center, Artificial Intelligence, and Clean Transition Tariff Accountability Act," aims to manage the growing electricity demand from large energy-intensive users, such as data centers and AI facilities, by establishing a voluntary "clean transition tariff" (CTT). This CTT allows these large users to pay a premium to fund new, clean electricity generation and necessary grid upgrades, ensuring that the costs associated with their significant energy consumption do not shift to residential and small business customers. The bill defines "large energy-intensive users" as facilities with a peak demand of 25 megawatts or greater or those primarily involved in data processing, AI training, cloud computing, high-performance computing, or crypto-adjacent operations. It also clarifies that "incremental load" refers to new or expanded electricity demand beyond a facility's initial approved service. The Tennessee Public Utility Commission is empowered to approve these tariffs, provided they meet specific criteria, including ensuring that new generation is additional and that no costs are recovered from smaller customers. The bill also addresses the role of the Tennessee Valley Authority (TVA) and local power companies (municipal utilities and electric cooperatives), requiring them to ensure that incremental load is served consistently with the bill's protections and that large users bear the proportional costs of necessary grid upgrades. Furthermore, local power companies must demonstrate that residential and small business customers will not face rate increases due to these large users and that all incremental generation and grid costs are fully allocated to them. The bill mandates annual reporting to legislative committees on the impact of these tariffs and the allocation of costs, and it takes effect on July 1, 2026, applying to new or expanded large energy-intensive users seeking service thereafter.

Business and Industry

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1999&ga=114