Assembly Bill A10141

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10141
 
                           I N  A S S E M B L Y
 
                             February 9, 2026
                                ___________
 
 Introduced by M. of A. KELLES -- read once and referred to the Committee
   on Environmental Conservation
 
 AN  ACT  to  amend  the  environmental  conservation law, in relation to
   imposing a moratorium on data center permit issuance; and to amend the
   public service law, in relation to data center rate impacts
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Legislative  findings.  The  legislature hereby finds and
 declares the following:
   1. It is the policy of the State of New York to conserve, improve  and
 protect  its natural resources and environment and to prevent, abate and
 control water, land and air pollution, in order to enhance  the  health,
 safety and welfare of the people of the state and their overall economic
 and social well-being.
   2.  The  projected  tripling  of data centers across the nation in the
 next five years would result in data centers consuming more  electricity
 than 28 million households.
   3.  Data  center  electricity  usage in New York has been projected to
 increase by more than 9,000 MW, which is approximately double the  elec-
 tricity use of all New York households combined.
   4. 56 percent of the electricity used to power data centers comes from
 fossil  fuels. Data centers disproportionately use fossil fuels, with an
 average carbon intensity that is 48 percent  higher  than  the  national
 average.
   5. Even when data centers use renewable energy, they often capture new
 renewable  generation  development that would otherwise have allowed for
 the closure or reduced reliance on fossil  fuel  power  plants,  thereby
 resulting in continued use of fossil fuel-based energy generation beyond
 current expectations.
   6.  The growth of data centers is inconsistent with New York's climate
 commitments.
   7. A Bloomberg analysis of wholesale electricity prices found that  70
 percent  of  locations  with year-on-year price increases were within 50
 miles of significant data center activity. Nationally,  household  elec-

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14606-03-6
 A. 10141                            2
 
 tricity rates increased 13 percent in 2025, largely driven by the devel-
 opment of data centers.
   8.  A tripling of data centers nationwide would require the equivalent
 water usage of 18.5 million households just for cooling the servers.
   9. Data centers convert agricultural and other non-industrial land  to
 industrial usage, removing farmland, woodland, and other resources while
 driving up land values and property taxes.
   10.  The  computing hardware used to run artificial intelligence (AI),
 including microchips and processing, memory, and storage components  has
 a lifespan of 2-5 years and is regularly replaced with updated versions.
 As  a  result, the current AI boom will be responsible for generating up
 to 5 million tons of e-waste annually by 2030.
   § 2. The environmental conservation law is amended  by  adding  a  new
 article 31 to read as follows:
                                ARTICLE 31
                 MORATORIUM ON DATA CENTER PERMIT ISSUANCE
 SECTION 31-0101. DEFINITIONS.
         31-0103. MORATORIUM ON DATA CENTER PERMIT ISSUANCE.
         31-0105. GENERIC ENVIRONMENTAL IMPACT STATEMENT.
         31-0107. ISSUANCE OF REGULATIONS.
 § 31-0101. DEFINITIONS.
   FOR  THE  PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   1. "DATA CENTER" SHALL  MEAN  ALL  BUILDINGS,  EQUIPMENT,  STRUCTURES,
 INFRASTRUCTURE WITHIN AN EXISTING STRUCTURE, AND OTHER STATIONARY ITEMS,
 SUCH  AS  SERVER  RACKS, THAT ARE LOCATED ON A SINGLE SITE OR ON CONTIG-
 UOUS, ADJACENT, OR OTHERWISE CONNECTED SITES,  AND  THAT  ARE  OWNED  OR
 OPERATED BY THE SAME ENTITY OR BY ANY ENTITY WHO CONTROLS, IS CONTROLLED
 BY, OR IS UNDER COMMON CONTROL BY SUCH ENTITY, REGARDLESS OF WHETHER THE
 DATA  CENTER  IS  A SINGLE-OCCUPANT SITE OR MULTI-OCCUPANT SITE, THAT IS
 CAPABLE OF USING TWENTY MEGAWATTS OF ELECTRICITY OR MORE AND IS DESIGNED
 OR INTENDED TO BE PRIMARILY ENGAGED IN DATA  PROCESSING,  DATA  STORAGE,
 DATA  TRANSPORT,  WEB  HOSTING, WEB STREAMING SUPPORT, OR OTHER SERVICES
 DESCRIBED UNDER CODE 518210 OF THE 2022 NORTH AMERICAN INDUSTRY  CLASSI-
 FICATION SYSTEM.
   2.  "CONTROL"  (INCLUDING  THE TERMS "CONTROLLED BY" AND "UNDER COMMON
 CONTROL WITH") MEANS THE POSSESSION, DIRECT OR INDIRECT, OF THE POWER TO
 DIRECT OR CAUSE THE DIRECTION OF THE MANAGEMENT AND POLICIES OF AN ENTI-
 TY, WHETHER THROUGH THE OWNERSHIP OF VOTING SECURITIES, BY CONTRACT,  OR
 OTHERWISE.
   3.  "ELECTRIC  CORPORATION"  SHALL HAVE THE SAME MEANING GIVEN TO SUCH
 TERM IN SUBDIVISION THIRTEEN OF SECTION TWO OF THE PUBLIC SERVICE LAW.
   4. "GAS CORPORATION" SHALL HAVE THE SAME MEANING GIVEN TO SUCH TERM IN
 SUBDIVISION ELEVEN OF SECTION TWO OF THE PUBLIC SERVICE LAW.
   5. "WATER-WORKS CORPORATION" SHALL HAVE THE SAME MEANING GIVEN TO SUCH
 TERM IN SUBDIVISION TWENTY-SEVEN OF SECTION TWO OF  THE  PUBLIC  SERVICE
 LAW.
 § 31-0103. MORATORIUM ON DATA CENTER PERMIT ISSUANCE.
   NO  NEW  PERMITS OF ANY KIND MAY BE ISSUED BY THE STATE OR ANY GOVERN-
 MENTAL AGENCY OR POLITICAL SUBDIVISION OR PUBLIC BENEFIT CORPORATION  OF
 THE STATE, FOR THE SITING, CONSTRUCTION, OR COMMENCEMENT OF OPERATION OF
 A  DATA  CENTER  PRIOR  TO  NINETY  DAYS AFTER THE DEPARTMENT SHALL HAVE
 ISSUED REGULATIONS PURSUANT TO SECTION 31-0107 OF THIS ARTICLE  AND  THE
 PUBLIC SERVICE COMMISSION SHALL HAVE TAKEN ALL ACTIONS REQUIRED PURSUANT
 TO SECTION SIXTY-SIX-X OF THE PUBLIC SERVICE LAW.
 § 31-0105. GENERIC ENVIRONMENTAL IMPACT STATEMENT.
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   1.  THE  DEPARTMENT,  IN  CONSULTATION  WITH  THE DEPARTMENT OF PUBLIC
 SERVICE  AND  THE  FEDERALLY  DESIGNATED  BULK  SYSTEM  OPERATOR,  SHALL
 PREPARE,  PURSUANT  TO ARTICLE EIGHT OF THIS CHAPTER, A GENERIC ENVIRON-
 MENTAL IMPACT STATEMENT ON DATA CENTER DEVELOPMENT IN THIS STATE.
   2. THE GENERIC ENVIRONMENTAL IMPACT STATEMENT SHALL CONSIST OF A STUDY
 OF,  AND  RECOMMENDED  REGULATORY  OR  LEGISLATIVE  ACTION  RELATING TO,
 MATTERS INCLUDING, BUT NOT LIMITED TO:
   A. THE NUMBER, SIZE IN ACREAGE, CURRENT AND MAXIMUM GW  CAPACITY,  AND
 LOCATION  OF CURRENT DATA CENTERS IN THE STATE, ACTIVE PROPOSALS FOR NEW
 DATA CENTERS, AND PROJECTIONS FOR FUTURE GROWTH OF DATA CENTERS.
   B. ELECTRICITY CONSUMPTION BY DATA CENTERS, INCLUDING:
   I. THE AMOUNT OF ELECTRICITY USED BY DATA CENTERS WITHIN THE STATE;
   II. IDENTIFICATION OF THE GENERATION  SOURCES  FOR  SUCH  ELECTRICITY,
 INCLUDING  THE  SHARE  THAT  COMES  FROM FOSSIL FUEL GENERATION, NUCLEAR
 GENERATION, RENEWABLE ENERGY SYSTEMS AS  DEFINED  IN  PARAGRAPH  (B)  OF
 SUBDIVISION  ONE  OF  SECTION SIXTY-SIX-P OF THE PUBLIC SERVICE LAW, AND
 GENERATION IMPORTED FROM OUTSIDE OF THE STATE;
   III. THE IMPACT OF DATA CENTER DEVELOPMENT ON MONTHLY ELECTRICITY  AND
 GAS  RATES  FOR  RESIDENTIAL CONSUMERS, COMMERCIAL CONSUMERS, AND INDUS-
 TRIAL CONSUMERS, BROKEN DOWN BY RATE CLASS AND TYPE, AS WELL AS  PROJEC-
 TIONS  FOR  THE  CHANGES  TO  THESE  AMOUNTS  FOR  BOTH THE PROPOSED AND
 PROJECTED GROWTH OF DATA CENTERS IN THE STATE;
   IV. THE IMPACT OF DATA CENTER DEVELOPMENT ON THE BULK SYSTEM  OPERATOR
 INTERCONNECTION QUEUE;
   V.  THE IMPACT OF DATA CENTER DEVELOPMENT ON TRANSMISSION DEVELOPMENT,
 TRANSMISSION CONSTRAINTS, AND OTHER ISSUES RELATING TO GRID  RELIABILITY
 THROUGHOUT ALL LOAD ZONES IDENTIFIED BY THE BULK SYSTEM OPERATOR; AND
   VI.  HOW DATA CENTER DEVELOPMENT HAS IMPACTED CAPITAL PLANNING, SPEND-
 ING AND MAINTENANCE NEEDS  FOR  ELECTRIC  CORPORATIONS  AND  GAS  CORPO-
 RATIONS.
   C. WATER CONSUMPTION AND DISCHARGE BY DATA CENTERS, INCLUDING:
   I. THE AMOUNT OF WATER USED BY DATA CENTERS FOR COOLING, INCLUDING THE
 SOURCES OF SUCH WATER;
   II. THE DAILY RATE OF CONSUMPTION OF WATER FROM SUCH SOURCES;
   III.  THE  AMOUNT  OF WATER DISCHARGED FROM DATA CENTERS BACK INTO THE
 STATE'S WATER RESOURCES;
   IV. THE AMOUNT OF WATER CONSUMED BY COOLING SYSTEMS,  LOST  TO  EVAPO-
 RATION, OR IN ANYWAY NOT RETURNED TO THE WATERS OF THE STATE;
   V.  PROJECTIONS FOR THE CHANGES TO THESE AMOUNTS FOR BOTH THE PROPOSED
 AND PROJECTED GROWTH OF DATA CENTERS IN THE STATE;
   VI. THE IMPACT OF DATA CENTER DEVELOPMENT ON WATER-WORKS CORPORATIONS'
 CAPITAL PLANNING, SPENDING, AND MAINTENANCE NEEDS; AND
   VII. THE IMPACT OF DATA CENTER DEVELOPMENT ON MONTHLY WATER RATES  FOR
 RESIDENTIAL  CONSUMERS,  COMMERCIAL CONSUMERS, AND INDUSTRIAL CONSUMERS,
 BROKEN DOWN BY RATE CLASS AND TYPE,  AS  WELL  AS  PROJECTIONS  FOR  THE
 CHANGES  TO  THESE AMOUNTS FOR BOTH THE PROPOSED AND PROJECTED GROWTH OF
 DATA CENTERS IN THE STATE.
   D. LAND USE FOR DATA CENTERS, INCLUDING:
   I. THE TOTAL ACREAGE USED FOR EXISTING DATA CENTERS;
   II. THE TYPES AND AMOUNT OF LAND THAT HAVE  BEEN  REZONED  FROM  OTHER
 ZONING CATEGORIES FOR USE BY DATA CENTERS;
   III.  THE  IMPACT  ON LAND VALUES AND PROPERTY TAXES WITHIN A TEN-MILE
 RADIUS OF A DATA CENTER;
   IV. PROJECTIONS FOR THE CHANGES TO THESE AMOUNTS FOR BOTH THE PROPOSED
 AND PROJECTED GROWTH OF DATA CENTERS IN THE STATE; AND
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   V. IMPACTS ON FARMLAND, INCLUDING AN  ANALYSIS  OF  IMPACTS  ON  PRIME
 FARMLAND MINERAL SOIL TYPES 1-4.
   E. POLLUTION FROM DATA CENTERS, INCLUDING:
   I. THE AMOUNT OF GREENHOUSE GASES EMITTED BY EACH EXISTING DATA CENTER
 AND  THE  CUMULATIVE  TOTAL FOR THE STATE EMITTED BY EXISTING, PROPOSED,
 AND PROJECTED DATA CENTERS, EXPRESSED IN METRIC TONS OF  CARBON  DIOXIDE
 EQUIVALENT, AS DEFINED IN SECTION 75-0101 OF THIS CHAPTER;
   II.  THE  TYPES  AND  QUANTITY  OF AIR POLLUTANTS EMITTED BY EACH DATA
 CENTER AND THE CUMULATIVE TOTAL  FOR  THE  STATE  EMITTED  BY  EXISTING,
 PROPOSED, AND PROJECTED DATA CENTERS; AND
   III.  THE  TYPES AND QUANTITY OF WATER POLLUTION PRODUCED BY EACH DATA
 CENTER, INCLUDING THERMAL POLLUTION FROM WATER DISCHARGES, AND THE CUMU-
 LATIVE TOTAL FOR THE STATE PRODUCED BY EXISTING, PROPOSED, AND PROJECTED
 DATA CENTERS; AND
   IV. THE LEVEL OF NOISE POLLUTION PRODUCED BY EACH  DATA  CENTER,  WITH
 PROJECTIONS  FOR  PROPOSED AND PROJECTED DATA CENTERS, AT REGULAR INTER-
 VALS BEGINNING AT THE PROPERTY LINE OF THE  DATA  CENTER  AND  EXTENDING
 HALF A MILE.
   F. ELECTRONIC WASTE FROM DATA CENTERS, INCLUDING:
   I. THE CURRENT VOLUME OF ELECTRONIC WASTE PRODUCED BY DATA CENTERS, BY
 WASTE TYPE;
   II. THE CURRENT METHODS BEING USED TO DISPOSE OF OR RECYCLE ELECTRONIC
 WASTE PRODUCED BY DATA CENTERS;
   III.  PROJECTIONS  FOR  THE  CHANGES  TO  THESE  AMOUNTS  FOR BOTH THE
 PROPOSED AND PROJECTED GROWTH OF DATA CENTERS IN THE STATE.
   G. A REVIEW OF CURRENT STATUTES AND REGULATIONS ADDRESSING  THE  ENVI-
 RONMENTAL IMPACT OF DATA CENTERS.
   3.  PROJECTIONS  OF  FUTURE DATA CENTER GROWTH WITHIN THE STATE MAY BE
 BASED SOLELY ON DATA AVAILABLE AS OF THE  DATE  ON  WHICH  THIS  SECTION
 SHALL  TAKE EFFECT, AND THE DEPARTMENT MAY CHOOSE TO ACCOUNT FOR ONGOING
 CHANGES AND UNCERTAINTY IN GROWTH PROJECTIONS.
   4. A DRAFT GENERIC ENVIRONMENTAL IMPACT STATEMENT SHALL BE  POSTED  ON
 THE  DEPARTMENT'S  WEBSITE AND BE SUBJECT TO AT LEAST ONE HUNDRED TWENTY
 DAYS OF PUBLIC COMMENT FROM THE DATE  OF  ISSUANCE.  THE  DEPARTMENT  OF
 ENVIRONMENTAL  CONSERVATION  SHALL CONDUCT AT LEAST ONE IN-PERSON PUBLIC
 HEARING IN EACH OF THE FOLLOWING REGIONS OF THE STATE: WESTERN NEW YORK,
 THE FINGER LAKES, THE  SOUTHERN  TIER,  CENTRAL  NEW  YORK,  THE  MOHAWK
 VALLEY, THE NORTH COUNTRY, THE CAPITAL REGION/HUDSON VALLEY, THE CITY OF
 NEW  YORK,  AND  LONG ISLAND, AS DEFINED BY THE EMPIRE STATE DEVELOPMENT
 CORPORATION, AND PROVIDE MEANINGFUL  OPPORTUNITY  FOR  COMMENT  AT  SUCH
 HEARINGS.
   5.  THE  DEPARTMENT  SHALL  ISSUE A FINAL GENERIC ENVIRONMENTAL IMPACT
 STATEMENT PURSUANT TO THIS SECTION NO SOONER THAN EIGHTEEN MONTHS  AFTER
 THIS SECTION SHALL HAVE BECOME A LAW.
 § 31-0107. ISSUANCE OF REGULATIONS.
   NO  SOONER  THAN THREE YEARS AFTER THE EFFECTIVE DATE OF THIS SECTION,
 THE DEPARTMENT SHALL ISSUE FINAL NEW OR UPDATED REGULATIONS TO  MITIGATE
 THE  ENVIRONMENTAL  IMPACT  OF  DATA  CENTERS. SUCH REGULATIONS SHALL BE
 INFORMED BY THE GENERIC ENVIRONMENTAL IMPACT STATEMENT  ISSUED  PURSUANT
 TO SECTION 31-0105 OF THIS ARTICLE, AND SHALL BE DESIGNED, TO THE GREAT-
 EST POSSIBLE EXTENT, TO:
   1. MINIMIZE ENERGY CONSUMPTION;
   2.  MINIMIZE EMISSION OF GREENHOUSE GASES AND PRODUCTION OF OTHER AIR,
 WATER, AND SOIL POLLUTION;
   3. MINIMIZE NOISE POLLUTION;
   4. MINIMIZE WATER CONSUMPTION;
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   5. REQUIRE A MINIMUM AMOUNT OF ELECTRICITY USAGE TO BE PROVIDED BY ON-
 AND OFF-SITE RENEWABLE ENERGY SYSTEMS, AS DEFINED IN  PARAGRAPH  (B)  OF
 SUBDIVISION ONE OF SECTION SIXTY-P OF THE PUBLIC SERVICE LAW, AND ENERGY
 STORAGE.
   § 3. The public service law is amended by adding a new section 66-x to
 read as follows:
   § 66-X. DATA CENTER RATE IMPACTS. 1. (A) NO LATER THAN EIGHTEEN MONTHS
 AFTER THIS SECTION SHALL HAVE BECOME A LAW, THE COMMISSION SHALL ISSUE A
 FINAL REPORT ON DATA CENTERS, AS DEFINED IN SECTION 31-0101 OF THE ENVI-
 RONMENTAL CONSERVATION LAW, INCLUDING:
   (I)  THE IMPACT OF DATA CENTERS ON ELECTRICITY AND GAS RATES FOR RESI-
 DENTIAL, COMMERCIAL, AND INDUSTRIAL USERS;
   (II) HOW DATA CENTER OPERATORS CAN MINIMIZE THE IMPACT OF DATA CENTERS
 ON ELECTRICITY AND GAS RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL
 USERS WITHOUT ADDITIONAL GOVERNMENT SPENDING;
   (III) A REVIEW OF CURRENT STATUTES AND REGULATIONS DESIGNED  TO  MINI-
 MIZE  THE  IMPACT OF DATA CENTERS ON ELECTRICITY AND GAS RATES FOR RESI-
 DENTIAL, COMMERCIAL, AND INDUSTRIAL USERS; AND
   (IV) AN EVALUATION OF ACTIONS THE COMMISSION CAN TAKE TO MINIMIZE  THE
 IMPACT  OF  DATA  CENTERS  ON ELECTRICITY AND GAS RATES FOR RESIDENTIAL,
 COMMERCIAL, AND INDUSTRIAL USERS, INCLUDING, BUT  NOT  LIMITED  TO,  THE
 CREATION OF A NEW CUSTOMER CLASSIFICATION FOR DATA CENTERS.
   (B)  A  DRAFT  REPORT  SHALL  BE ISSUED PRIOR TO THE COMPLETION OF THE
 FINAL REPORT, WITH SUCH DRAFT REPORT SUBJECT TO  AT  LEAST  ONE  HUNDRED
 TWENTY  DAYS  OF  PUBLIC  COMMENT  FROM  THE DATE OF ISSUANCE. THE FINAL
 REPORT SHALL TAKE  INTO  CONSIDERATION  FEEDBACK  SUBMITTED  DURING  THE
 PUBLIC COMMENT PERIOD.
   2. NO SOONER THAN THREE YEARS AFTER THE ENACTMENT OF THIS SECTION, THE
 COMMISSION  SHALL  ISSUE ANY ADDITIONAL ORDERS NECESSARY TO MINIMIZE, TO
 THE GREATEST POSSIBLE EXTENT, THE IMPACT OF DATA CENTERS, AS DEFINED  IN
 SECTION  31-0101  OF  THE ENVIRONMENTAL CONSERVATION LAW, ON ELECTRICITY
 AND GAS RATES FOR RESIDENTIAL, COMMERCIAL, AND INDUSTRIAL USERS, AND  TO
 ENSURE THAT ALL COSTS ASSOCIATED WITH PROVIDING AND MAINTAINING ELECTRIC
 AND GAS SERVICE TO DATA CENTERS, INCLUDING, BUT NOT LIMITED TO, REQUIRE-
 MENTS FOR ANY NEW ELECTRICITY GENERATION, TRANSMISSION, AND DISTRIBUTION
 INFRASTRUCTURE, COSTS ASSOCIATED WITH INCREASES IN ELECTRICITY WHOLESALE
 SUPPLY  AND  CAPACITY MARKET PRICES, PEAK AND NON-PEAK DEMAND IMPACTS ON
 GENERATION SOURCES AND  GENERATION  CAPACITY  NEEDS,  AND  INCREASES  IN
 NATURAL  GAS  AND  OIL  COMMODITY  PRICES,  SHALL  BE BORNE BY SUCH DATA
 CENTER. IN DEVELOPING SUCH NEW ORDER OR ORDERS, THE COMMISSION SHALL  BE
 INFORMED  BY  THE GENERIC ENVIRONMENTAL IMPACT STATEMENT ISSUED PURSUANT
 TO SECTION 31-0105 OF THE ENVIRONMENTAL CONSERVATION LAW AS WELL AS  THE
 REPORT ISSUED PURSUANT TO SUBDIVISION ONE OF THIS SECTION.
   §  4.  This  act shall take effect on the thirtieth day after it shall
 have become a law, and shall apply to all permits pending or filed after
 such effective date.