Bill > HB2463

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 will cover the costs of adding new clean energy resources and transmission upgrades to the grid, ensuring these costs are not passed on to other customers. Furthermore, any new data center or AI facility with an estimated peak load exceeding 100 MW must generate 50% of its electricity from new, carbon-free energy sources located onsite or directly connected, without reducing the 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 from a power plant, 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.

Agriculture and Natural Resources

https://wapp.capitol.tn.gov/apps/Billinfo/Default?BillNumber=HB2463&ga=114