Bill > SB2681

This bill, known as the "Bring Your Own Generation (BYOG) Act," establishes new requirements for large data centers and artificial intelligence (AI) facilities in Tennessee to promote clean energy. It mandates that the State Energy Policy Council, a body responsible for energy matters, will impose a "clean energy transition surcharge" on data centers with a peak demand of 100 megawatts (MW) or more, which is a significant amount of electricity usage. This surcharge will cover 100% of the costs associated with adding new clean energy resources and necessary transmission upgrades to the power grid, ensuring that these costs are not passed on to regular customers. Furthermore, any new data center or AI facility with an estimated peak load exceeding 100 MW must generate at least 50% of its electricity from new, carbon-free energy sources located onsite or directly connected, without reducing the overall energy available to the public grid. The bill also prohibits the use of fossil fuel power purchase agreements (PPAs), which are contracts to buy electricity generated from fossil fuels, to qualify for state economic development incentives or reduced utility rates, and prevents qualified data centers from using state-subsidized fossil fuel generation for their main power needs.

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https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=SB2681&ga=114