Committee debates temporary pause on large data‑center approvals and exemption route via PUC

The Energy, Utilities and Technology Committee spent the bulk of its language‑review session on LD307, a bill that would impose a temporary limitation on approvals for large data centers while the Legislature and a newly proposed Data Center Coordination Council consider system‑level policy changes.

Staff told the committee the majority report would create a temporary limitation tied to a date (members discussed a 90‑day post‑adjournment trigger versus a fixed November 1 date) and would establish a coordination council chaired by the Commissioner of Energy Resources. Committee staff flagged that the majority report needed to explicitly list the commissioner as a council member and clarify the council’s membership and duties.

The minority report presented a different structure: an interim suspension through September 1, 2027 on municipal or state approvals for data centers with projected or current electric demand of 20 megawatts or more, while preserving an administrative exemption process. Under the minority language the developer may petition the Public Utilities Commission for an exemption order after an adjudicatory proceeding; the PUC could consult with the Department of Energy Resources and municipal water or wastewater authorities and impose conditions to protect ratepayers and water resources.

Staff also highlighted a potential legal wrinkle affecting the pause. Two statutory provisions cited by staff indicate that if an application is filed and later determined complete during a suspension, the substantive rules in effect on the date the application was deemed complete may govern processing. That means agencies accepting applications during a pause could unintentionally allow applicants to lock in the regulatory framework in place at filing. Committee members discussed inserting explicit language to prohibit agencies from accepting applications during the suspension if the intent is to prevent that lock‑in.

Representative Kesler summarized the majority concern: “My intent on this vote was that there would not be any opportunity to get a permit started and lock in the current regulatory environment.” Committee members said adding a prohibition on accepting applications would better match the pause’s stated purpose.

The minority language also included operational limits tied to PUC oversight: a data center that obtains an exemption could not increase electric demand beyond the level documented in its petition without further PUC approval, and the minority report set a grid‑supply cap in the text discussed of 100 megawatts for increases requiring notice and hearing.

Members debated timing. Some on the majority report preferred a fixed date (November 1) to avoid uncertainty if statutory adjournment shifts the 90‑day clock; others accepted the November 1 fallback with the option for the Legislature to act earlier if the council’s recommendations supported immediate change. Staff said final wording would return in a pink copy for committee review.

What’s next: The language will be edited to clarify whether agencies may accept applications during the suspension and to ensure the commissioner is explicitly named in council membership. The bill will return to committee in revised (pink) form for further review.