Sec. 4. Data center requirement for off-grid power supply
639 words·~3 min read·
/bill/119/s/3852/is/section-4·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Subject to paragraph (2), beginning on the date that is 180 days after the date of enactment of this Act, a covered entity may not build, own, operate, or maintain a data center unless the data center derives all of its energy, including back-up energy, from a captive power plant, on-site power generation, or some other source or combination of sources separate from, and not deriving power from, the electric grid. Until the date that is 10 years after the date of enactment of this Act, a covered entity that owns, operates, or maintains an existing data center that derives any of its energy from the electric grid as of the date described in paragraph
(1)may comply with the prohibition under that paragraph by obtaining and maintaining an unexpired Zero Rate Effect Certificate. For the 10-year period beginning on the date of enactment of this Act, a covered entity that owns, operates, or maintains an existing data center that derives any of its energy from the electric grid shall submit to the Secretary a request for the issuance of a Zero Rate Effect Certificate for that data center. On receipt of a request for a Zero Rate Effect Certificate, the Secretary shall study and determine— how interconnection costs and other infrastructure costs needed to supply the data center with power from the electric grid are allocated; the contribution of the data center to coincident peak, including load factors, and any effects on capacity charges; the effects on the locational marginal price for— the local electric grid; and the relevant region; any changes in value-cost ratios; any effects on the marginal cost of generation; any changes in line loss percentages caused by heavier loads on local distribution lines; any offsets in data center power infrastructure cost-sharing by ratepayers through Rate Effect Credits or other financial arrangements described in subsection (c); and any other metrics or information the Secretary determines relevant. If the Secretary determines, based on the study conducted under paragraph (2), that the relevant data center will not increase the electrical rates paid by ratepayers, the Secretary shall issue a Zero Rate Effect Certificate for the data center. In making a determination under subparagraph (A), the Secretary shall prioritize the electrical rates paid by residential ratepayers over all other ratepayer classes. A Zero Rate Effect Certificate issued under paragraph
(3)shall expire 1 year after the date of issuance. A covered entity may apply for the reissuance of a Zero Rate Effect Certificate as necessary. A covered entity may meet the requirements for the issuance of a Zero Rate Effect Certificate by paying Rate Effect Credits or through some other financial arrangement that, in the determination of the Secretary, would offset the effect on the electrical rates paid by ratepayers. In making a determination under paragraph (1), the Secretary shall prioritize the electrical rates paid by residential ratepayers over all other ratepayer classes. Any power source, including a captive power plant, on-site generation, or other source described in subsection (a)(1), that is used to generate electricity for a data center shall comply with all applicable local, State, and Federal laws (including regulations) based on the actual use and emissions of the power source. A covered entity seeking to construct any power source described in subsection (a)(1) shall enter into a project labor agreement (as defined in section 52.222–34(a) of title 48, Code of Federal Regulations (or a successor regulation)) for the construction of the power source. Any person who violates subsection
(a)shall be subject to a civil penalty of not less than $1,000,000 per day of the violation. The Secretary may promulgate such regulations as the Secretary determines to be necessary to implement this section. In promulgating regulations under paragraph (1), the Secretary shall prioritize the electrical rates paid by residential ratepayers over all other ratepayer classes.