Senate committee hears wide debate on bill to regulate data centers; staff outlines tariffs, reporting and small fee

The Senate Environment, Energy and Technology Committee on the record heard hours of testimony on a substitute for Senate Bill 6,171, a measure that would require electric utilities to make available a tariff or policy for "emerging large energy use facilities" — defined in the bill as facilities with a maximum aggregate contract demand of 20 megawatts or more, primarily engaged in data-processing and related services.

Kim Cushing, staff to the committee, told lawmakers the substitute directs utilities to include elements such as a minimum contract length of 10 years, pricing structures that reflect cost causation and provisions requiring facilities to curtail or reduce load during energy emergency events. The bill also would require data centers to provide sustainability reports every three years and to certify that facilities that begin operation or expand after July 1, 2026, will use new renewable or non‑emitting generation for at least 80% of their load by 2030 and 100% by 2035. Utilities must have a tariff or policy approved by the Utilities and Transportation Commission (for investor‑owned utilities) or the governing body of a consumer‑owned utility by Oct. 1, 2026.

The substitute creates an annual fee of 0.005¢ per…