Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Data Centers topic
No spam. Unsubscribe anytime.
Lawmakers press for tighter data‑center rules after WRA briefing; HB 93 microgrid amendment draws heated scrutiny
Summary
A Western Resource Advocates briefing on data‑center water, energy and grid impacts prompted questions from lawmakers about HB 93’s microgrid amendment and whether last‑minute floor changes enabled large fossil‑fueled projects such as 'Project Jupiter.' Legislators pressed for clearer reporting, contract safeguards and local protections.
A policy analyst from Western Resource Advocates told the Science, Technology & Telecommunications Committee that modern data centers—especially hyperscalers—are increasingly large and resource‑intensive, noting that “data centers on average use 40% of their electricity for cooling.” The presentation outlined cooling technologies (refrigeration, evaporative, free and direct‑liquid cooling), described the water–energy tradeoffs and warned that some cooling methods are consumptive of scarce water supplies.
The briefing moved to utilities and rates as the analyst described how large, speculative interconnection requests by data‑center developers can create ‘phantom load’ in utility planning, distort load forecasting, and risk stranded infrastructure costs being socialized to residential customers. She told the committee the state Public Regulation Commission has an open investigatory docket looking at load forecasting and interconnection reporting.
Lawmakers used the presentation to press how state policy should respond. Representative Cadena said the microgrid amendment attached to House Bill 93 was added with little notice and accused colleagues of misleading the House about its effect, saying the amendment “changes the future of my valley” and that the original sponsor had been “misled. She was deceived.” Senator Padilla, who sponsored related work in the Senate, responded that sponsors may amend bills they carry and defended the concurrence process, saying the statute’s 2045 Energy Transition Act compliance requirement for certain interconnected microgrids sets a future standard.
Committee members zeroed in on several policy levers WRA recommended: reforming economic development rate statutes to tie discounts to measurable local benefits (minimum tax revenue or job commitments), requiring longer minimum contract durations or exit fees to avoid stranded assets, creating a separate utility rate class for data centers, and establishing water‑use reporting or large water‑user permitting thresholds. WRA also highlighted state laws in Minnesota and Oregon that require water permitting reviews, new rate classes, minimum contract terms, and minimum bill requirements to protect other customers.
Several members pressed for greater transparency and local engagement. Representative Garrett and others contrasted well‑studied projects such as Facebook’s Los Lunas campus—cited as 100% renewable‑backed and locally engaged—with Project Jupiter, saying community outreach and complete public information were lacking in the Jupiter case. WRA suggested more frequent interconnection reporting, stronger contract provisions and clearer cost allocation rules as practical next steps.
No formal action was taken; the committee kept the issue on its agenda for further study and signaled interest in statutory changes, reporting improvements and closer review of utility tariffs that affect large loads.
