Bill > HB6137

This bill, titled the "Data Center Community Benefit Agreement Act," requires that before a person can start building or operating a data center, which is a facility designed to house data processing and storage equipment, they must first secure approval for a community benefit agreement. This agreement is a legally binding contract between the data center owner/operator and local government, utility providers, or other community stakeholders, where the data center operator agrees to provide certain resources or payments to benefit the local community. To get this agreement approved, the data center operator must submit an application to the local unit of government (like a county, city, or village) and the Michigan Public Service Commission (the "Commission," which oversees utilities). Both entities have 90 days to approve or deny the application, with the local government ensuring the agreement benefits public health, safety, and welfare, and the Commission ensuring it benefits other utility customers. The community benefit agreement itself must address at least 50% of specific topics, including local hiring, water usage, infrastructure upgrade costs, community investment projects, and home efficiency improvements, and must be enforceable against all future owners and operators of the data center. Furthermore, local governments cannot issue permits or other authorizations for a data center without this approved agreement, and the Commission cannot approve utility connections for a data center unless the agreement is also approved. The Commission is also empowered to create rules to implement this act. This bill is contingent on the enactment of several other related bills.