Regulates energy consumption by data centers; requires annual disclosure reporting; prohibits incentives in fossil fuel power purchase agreements with utilities; directs the public service commission to establish a data center surcharge and discount plan.
Impact
The act introduces mandatory disclosure reports which data center operators must submit detailing their energy and water usage as well as efforts made to mitigate negative environmental impacts. Additionally, it establishes that public utility commissions will enforce regulations by requiring data centers to utilize more renewable energy sources over time. By 2030, a minimum of one-third of the energy used by regulated data centers must come from renewable sources, increasing to two-thirds by 2035, and aiming for full reliance on renewable energy by 2040.
Summary
S06394, known as the New York State Sustainable Data Centers Act, aims to regulate energy consumption by data centers in New York. This legislation acknowledges that data centers significantly contribute to both energy demand and environmental pollution. As these facilities expand, their high water and electricity consumption poses risks to local ecosystems and residents. The bill seeks to align the growth of data centers with the state’s renewable energy objectives and pollution reduction targets mandated by existing climate laws.
Contention
While proponents argue that S06394 is necessary for sustainable economic development that also protects community and environmental health, opponents may view this regulation as burdensome. Concerns have been raised over the feasibility of meeting the proposed energy and water consumption goals, as well as the potential implications of adding compliance costs to data center operations. The requirement for transparency and public reporting on energy usage may also provoke resistance from operators wary of exposing their operational efficiencies or inefficiencies.
Regulatory framework
The bill amends existing public service and environmental laws, requiring that any data center projected to use five megawatts or more must conduct regular assessments and updates regarding their environmental impacts. Enforcement provisions include penalties for non-compliance, encouraging adherence to sustainability goals while also incentivizing operators to invest in greener technology and energy sources.
Regulates energy consumption by data centers; requires annual disclosure reporting; prohibits incentives in fossil fuel power purchase agreements with utilities; requires the public service commission to create a community discount plan to account for increased energy costs for customers with host communities and make data center operators responsible for subsidizing energy costs within such host community.
Relates to requiring the establishment of utility customer arrears reporting; requires utilities to report to the public service commission on customers who are in arrears.
Relates to requiring the establishment of utility customer arrears reporting; requires utilities to report to the public service commission on customers who are in arrears.
Relates to the department of public service; limits increases in the amount of surcharges; establishes a one year moratorium on the collection of energy surcharges; establishes a moratorium on new surcharge assessments, taxes or fees.
Directs the public service commission to undertake a study of consumer protections adopted by electric corporations and utilities; includes reporting on the adequacy of the public service commission's assistance to customers facing disconnection of utility service.
Directs the public service commission to undertake a study of consumer protections adopted by electric corporations and utilities; includes reporting on the adequacy of the public service commission's assistance to customers facing disconnection of utility service.
Prohibits price gouging with respect to fuel, energy, and transportation goods and services; directs the attorney general to promulgate rules and regulations requiring the periodic public disclosure by actors in the chain of distribution for fuel sold in or into the state of the prices charged or proposed to be charged for fuel.
Provides that every public utility shall provide the commissioner of public service an affidavit annually, that no call centers or other facilities providing customer service have been closed without notice and hearing before the commission; makes related provisions.
Provides that every public utility shall provide the commissioner of public service an affidavit annually, that no call centers or other facilities providing customer service have been closed without notice and hearing before the commission; makes related provisions.
Establishes the climate corporate data accountability act requiring certain business entities within the state to annually disclose scope 1, scope 2 and scope 3 emissions; establishes the climate accountability and emissions disclosure fund.