Assembly Bill A9086B

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9086
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                            September 12, 2025
                                ___________
 
 Introduced by M. of A. KELLES -- read once and referred to the Committee
   on Corporations, Authorities and Commissions
 
 AN  ACT  to amend the public service law, the public authorities law and
   the energy law, in relation to regulation  of  energy  consumption  by
   data centers

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "New York state sustainable data centers act".
   §  2. Legislative intent and findings. The legislature finds that data
 centers are significant energy and water consumers and contribute to air
 and water pollution. The expansion and operation of data centers  across
 the state impairs New York state's ability to achieve the benchmarks set
 out  in the state's climate goals due to their significant use of energy
 and water  and  significant  emissions  of  greenhouse  gases  generated
 through the power needs of their operation. Given the growing demand for
 the  construction  of  data centers, there is a critical need to improve
 the energy efficiency of data centers and reduce their  energy  consump-
 tion,  water  consumption,  and reliance on fossil fuels.  Additionally,
 where renewable energy is used to power  data  centers,  this  act  will
 ensure  that  such  energy is being used responsibly, with the interests
 and health of the public in mind, especially concerning  power  purchase
 agreements  between  utility companies and data center operators as they
 may not directly reduce emissions tied to the data center.
   § 3. The public service law is amended by adding a new article  12  to
 read as follows:
                                ARTICLE 12
               REGULATION OF DATA CENTER ENERGY CONSUMPTION
 SECTION 240. DEFINITIONS.
         241. DATA CENTER DISCLOSURE REPORTS.
         242. PUBLIC ENGAGEMENT.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09616-04-5
              

 A. 9086                             2
 
         243. ANNUAL DATA CENTER DISCLOSURE REPORT UPDATES.
   § 240. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   1.  "CUSTOMER"  SHALL MEAN A HOMEOWNER OR TENANT RECEIVING ELECTRICITY
 OR NATURAL GAS AS A RETAIL CUSTOMER.
   2. "DATA CENTER" SHALL MEAN: (A) A STRUCTURE, GROUP OF STRUCTURES,  OR
 INFRASTRUCTURE  WITHIN  AN  EXISTING  STRUCTURE FOR THE CENTRAL HOUSING,
 INTERCONNECTION AND OPERATION  OF  INFORMATION  TECHNOLOGY  AND  NETWORK
 TELECOMMUNICATIONS  EQUIPMENT  FOR  THE  PROVISION OF DATA STORAGE, DATA
 PROCESSING, OR DATA TRANSPORT SERVICES; AND (B) ALL  RELATED  FACILITIES
 AND  INFRASTRUCTURE FOR POWER DISTRIBUTION, ENVIRONMENTAL CONTROL, COOL-
 ING AND SECURITY REQUIRED TO DELIVER THE DESIRED SERVICE WITH RESPECT TO
 THE SPECIFIC DATA CENTER.
   3. "DATA CENTER OPERATOR" SHALL MEAN WHOEVER IS EITHER  THE  OWNER  OF
 THE  DATA  CENTER  OR  HAS  COMPARABLE RIGHTS OF USE OVER A DATA CENTER,
 INCLUDING ANY PERSON OR ENTITY  RESPONSIBLE  FOR  ALLOCATING  SPACE  FOR
 EXTERNAL  USE  OF  INFORMATION TECHNOLOGY AND NETWORK TELECOMMUNICATIONS
 EQUIPMENT WITHIN A DATA CENTER.
   4. "DATA CENTER DISCLOSURE REPORT" SHALL MEAN THAT REPORT  WHICH  DATA
 CENTER  OPERATORS MUST SUBMIT TO THE COMMISSION PRIOR TO CONSTRUCTION OF
 A DATA CENTER, AS REQUIRED BY SECTION  TWO  HUNDRED  FORTY-ONE  OF  THIS
 ARTICLE.
   5. "DISADVANTAGED COMMUNITIES" SHALL MEAN: (A) AREAS BURDENED BY CUMU-
 LATIVE  ENVIRONMENTAL POLLUTION AND OTHER HAZARDS THAT CAN LEAD TO NEGA-
 TIVE PUBLIC HEALTH EFFECTS; (B) AREAS WITH CONCENTRATIONS OF PEOPLE THAT
 ARE OF LOW INCOME, HIGH UNEMPLOYMENT, HIGH RENT BURDEN,  LOW  LEVELS  OF
 HOME  OWNERSHIP,  LOW  LEVELS  OF  EDUCATIONAL ATTAINMENT, OR MEMBERS OF
 GROUPS THAT HAVE HISTORICALLY EXPERIENCED DISCRIMINATION ON THE BASIS OF
 RACE OR ETHNICITY; AND (C) AREAS VULNERABLE TO THE  IMPACTS  OF  CLIMATE
 CHANGE SUCH AS FLOODING, STORM SURGES, AND URBAN HEAT ISLAND EFFECTS.
   6.   "EMPLOYEE" SHALL MEAN AN INDIVIDUAL WHO PERFORMS SERVICES FOR AND
 UNDER THE CONTROL AND DIRECTION OF AN EMPLOYER FOR WAGES OR OTHER REMUN-
 ERATION, OR NATURAL PERSONS EMPLOYED AS INDEPENDENT CONTRACTORS TO CARRY
 OUT WORK IN FURTHERANCE OF AN EMPLOYER'S BUSINESS ENTERPRISE WHO ARE NOT
 THEMSELVES EMPLOYERS.
   7. "GREENHOUSE GAS" SHALL MEAN CARBON DIOXIDE, CARBON MONOXIDE,  METH-
 ANE,  NITROUS OXIDE, HYDROFLUOROCARBONS, PERFLUOROCARBONS, SULFUR HEXAF-
 LUORIDE, AND ANY OTHER SUBSTANCE  EMITTED  INTO  THE  AIR  THAT  MAY  BE
 REASONABLY  ANTICIPATED  TO CAUSE OR CONTRIBUTE TO ANTHROPOGENIC CLIMATE
 CHANGE.
   8. "HOST COMMUNITY" SHALL MEAN ANY MUNICIPALITY WITHIN  WHICH  A  DATA
 CENTER,  OR  ANY  PORTION  THEREOF,  HAS  BEEN DEVELOPED OR PROPOSED FOR
 DEVELOPMENT.
   9. "NEGATIVE IMPACT" SHALL MEAN ANY INCREASE IN GREENHOUSE  GAS  EMIS-
 SIONS,  NOISE  POLLUTION, CONCENTRATION OF PARTICULATES BEING INTRODUCED
 INTO AIR, NATURAL AND DRINKING WATER, OR ANY  OTHER  FORM  OF  POLLUTION
 THAT WOULD DECREASE THE QUALITY OF LIFE IN A HOST COMMUNITY.
   10.  "POWER PURCHASE AGREEMENT" SHALL MEAN THE AGREEMENTS BETWEEN DATA
 CENTER OPERATORS AND A UTILITY PROVIDER WHERE DATA CENTER OPERATORS  BUY
 AN  AMOUNT  OF EITHER RENEWABLE OR NON-RENEWABLE ENERGY OUTPUT FROM THAT
 POWER PLANT.
   11. "RENEWABLE ENERGY" SHALL HAVE THE SAME MEANING AS "RENEWABLE ENER-
 GY SYSTEMS" AS DEFINED IN SECTION SIXTY-SIX-P OF THIS CHAPTER.
   12. "UTILITY PROVIDER" SHALL HAVE THE SAME MEANING AS "UTILITY  COMPA-
 NY" AS DEFINED IN SECTION TWO OF THIS CHAPTER.
   13. "BILL CREDIT" MEANS A MONTHLY MONETARY CREDIT WHICH IS FUNDED BY A
 DATA CENTER OPERATOR AS FURTHER DETERMINED BY THE COMMISSION AND APPEARS
 A. 9086                             3
 
 ON  THE UTILITY BILL OF A LOW INCOME OR MODERATE INCOME CUSTOMER LOCATED
 IN THIS STATE.
   § 241. DATA CENTER DISCLOSURE REPORTS.  WHERE A PLANNED DATA CENTER IS
 PROJECTED  TO HAVE THE CAPACITY TO CONSUME FIVE OR MORE MEGAWATTS AT ANY
 GIVEN MOMENT, A DATA CENTER OPERATOR SHALL SUBMIT A DATA CENTER  DISCLO-
 SURE  REPORT  TO  THE  COMMISSION  PRIOR  TO COMMENCING ANY CONSTRUCTION
 ACTIVITIES RELATED TO A DATA CENTER. THE REPORT SHALL BE  MADE  PUBLICLY
 AVAILABLE VIA THE COMMISSION'S WEBSITE AND CONTAIN DATA INCLUDING:
   1. BASIC INFORMATION
   (A)  THE  HOST COMMUNITY OR COMMUNITIES IN WHICH THE DATA CENTER SHALL
 BE LOCATED; AND
   (B) THE ORGANIZATION OF THE PLANNED DATA CENTER AS A  SINGLE  OPERATOR
 ENTERPRISE  OR MANAGED DATA CENTER, COLOCATION FACILITY, HYPERSCALE DATA
 CENTER, MICRO DATA CENTER, OR A CONTAINER OR MODULAR DATA CENTER.
   2. LABOR
   THE NUMBER OF FULL-TIME AND PART-TIME EMPLOYEES THE DATA CENTER OPERA-
 TOR INTENDS TO EMPLOY AT THE PLANNED DATA CENTER AND RELEVANT DEMOGRAPH-
 IC INFORMATION INCLUDING BUT NOT LIMITED TO:
   (A) THE EDUCATION LEVELS OF THE EMPLOYEES INTENDED TO BE  EMPLOYED  AT
 THE PLANNED DATA CENTER, WITH PERCENTAGES INCLUDED FOR HIGHEST EDUCATION
 ACHIEVED  INCLUDING  HIGH SCHOOL DIPLOMA, ASSOCIATE'S DEGREE, BACHELOR'S
 DEGREE, AND HIGHER LEVEL OF EDUCATION; AND
   (B) THE PROJECTED PERCENTAGE OF EMPLOYEES RESIDING IN THE HOST  COMMU-
 NITY OR COMMUNITIES.
   3. PROJECTED ENERGY USAGES
   (A) THE PROJECTED MEAN ENERGY USAGE OF THE PLANNED DATA CENTER PER DAY
 MEASURED  IN  KILOWATT-HOURS  AND  RELATED INFORMATION INCLUDING BUT NOT
 LIMITED TO:
   (I) THE PROJECTED TYPE OF ENERGY BEING USED  THAT  IS  NEITHER  FOSSIL
 FUEL NOR RENEWABLE ENERGY, WHERE APPLICABLE;
   (II) THE FORMS OF RENEWABLE ENERGY EXPECTED TO BE UTILIZED; AND
   (III)  THE  PROJECTED  PERCENTAGE OF ENERGY USAGE THAT IS FOSSIL FUEL,
 RENEWABLE ENERGY, AND NEITHER RENEWABLE ENERGY NOR FOSSIL FUEL WHERE THE
 DATA CENTER IS OPERATING AT PEAK;
   (B)  THE PROJECTED MEAN AMOUNT OF ENERGY USAGE PER HOUR OF THE PLANNED
 DATA CENTER DURING PEAK LOAD MEASURED IN KILOWATT-HOURS AND  ANTICIPATED
 FREQUENCY OF PEAK LOAD PER WEEK;
   (C)  THE  PROJECTED  ANNUAL  AMOUNT  OF  CARBON  EMISSIONS EQUIVALENTS
 PRODUCED TO POWER THE FACILITY, INCLUDING OFF-SITE  EMISSIONS,  MEASURED
 IN METRIC TONS;
   (D)  THE  PROJECTED ANNUAL AMOUNT OF WASTE HEAT PRODUCED ON-SITE MEAS-
 URED IN BRITISH THERMAL UNITS;
   (E) THE PROJECTED PERCENTAGE OF THE ANNUAL AMOUNT OF  RECOVERED  WASTE
 HEAT THAT WAS TRANSFORMED INTO ENERGY TO POWER THE DATA CENTER; AND
   (F)  THE  INTENDED  USE FOR RECOVERED WASTE HEAT TO INCLUDE BUT NOT BE
 LIMITED TO GENERAL BUILDING HEATING,  COOLING  SYSTEMS,  COOLANT  SYSTEM
 SPECIFICALLY FOR THE CAPTURE OF WASTE HEAT FROM PROCESSORS.
   4. PROJECTED WATER INTAKE AND WATER USAGE
   ONLY  WHERE  A  PLANNED  DATA  CENTER IS REQUIRED TO OBTAIN AND HOLD A
 WATER WITHDRAWAL PERMIT, THE DATA CENTER OPERATOR SHALL REPORT:
   (A) AMOUNT OF WATER PROJECTED TO BE USED ANNUALLY MEASURED IN  GALLONS
 AND HOW THAT WATER SHALL BE USED IN THE PLANNED DATA CENTER; AND
   (B)  MEAN  AMOUNT  OF  WATER  EXPECTED  TO  BE  USED DAILY MEASURED IN
 GALLONS.
   5. PROJECTED WATER POLLUTION
 A. 9086                             4
 
   WHERE A PLANNED DATA CENTER IS REQUIRED TO OBTAIN  AND  HOLD  A  WATER
 WITHDRAWAL PERMIT, THE DATA CENTER OPERATOR SHALL REPORT:
   (A) ANNUAL PROJECTED AMOUNT OF WATER BEING DEPOSITED INTO THE ENVIRON-
 MENT MEASURED IN GALLONS; AND
   (B) HOW WATER BEING REINTRODUCED INTO THE ENVIRONMENT WILL BE TREATED,
 IF  AT ALL, TO REMOVE POLLUTANTS AND/OR TO WHAT EXTENT WATER TEMPERATURE
 WILL BE ADJUSTED, IF AT ALL, BEFORE BEING REINTRODUCED INTO THE ENVIRON-
 MENT.
   6. ADDITIONAL DISCLOSURES
   THE COMMISSION MAY PROMULGATE RULES  REQUIRING  ADDITIONAL  POINTS  OF
 DISCLOSURE, AS APPROPRIATE.
   § 242. PUBLIC  ENGAGEMENT.  THE  COMMISSION  SHALL  PUBLICIZE THE DATA
 DISCLOSURE REPORT ON ITS WEBSITE  WITHIN  TEN  DAYS  OF  RECEIVING  SUCH
 REPORT. THE DATA CENTER OPERATOR SHALL HOLD AT LEAST TWO PUBLIC HEARINGS
 WITHIN  SIXTY DAYS AFTER SUBMITTING ITS DATA CENTER DISCLOSURE REPORT TO
 THE COMMISSION. AT LEAST ONE OF THE TWO PUBLIC  HEARINGS  MUST  BE  HELD
 WITHIN THE HOST COMMUNITY WHERE THE DATA CENTER OPERATOR PLANS TO CREATE
 ITS  DATA CENTER.  THE DATA CENTER OPERATOR SHALL PROVIDE ADVANCE NOTICE
 TO RESIDENTS OF SUCH HOST COMMUNITY OF SUCH PUBLIC HEARINGS. SUCH NOTICE
 SHALL INCLUDE THE TIME, PLACE, AND LOCATION OF SUCH PUBLIC  HEARINGS,  A
 SUMMARY  OF  THE PROPOSED DATA CENTER PROJECT, AND THE SPECIFIC LOCATION
 OF THE PLANNED DATA CENTER. METHODS OF PROVIDING NOTICE TO A HOST COMMU-
 NITY SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, COVERAGE IN  ANY  PRINT
 OR  DIGITAL  PUBLICATION PRODUCED BY LOCAL, COMMUNITY, AND ETHNIC MEDIA.
 DURING A PUBLIC HEARING CONDUCTED PURSUANT TO  THIS  SECTION,  THE  DATA
 CENTER  OPERATOR  MUST EXPLICITLY DISCLOSE AND PRESENT ITS FINDING UNDER
 SECTION TWO HUNDRED FORTY-THREE OF THIS ARTICLE  IN  CLEAR  AND  CONCISE
 LANGUAGE  COMPREHENSIBLE FOR MEMBERS OF THE PUBLIC IN GENERAL.  IT SHALL
 ALSO ADDRESS THE EFFORTS IT WILL MAKE TO REDUCE ANY NEGATIVE IMPACTS  TO
 THE  HOST COMMUNITY AND ITS ENVIRONMENT THAT THE PLANNED DATA CENTER MAY
 CAUSE.
   § 243. ANNUAL DATA CENTER DISCLOSURE REPORT UPDATES.   1. DATA  CENTER
 OPERATORS  SHALL  SUBMIT AN ANNUAL DATA DISCLOSURE REPORT TO THE COMMIS-
 SION, WHICH THE COMMISSION SHALL POST ON ITS WEBSITE. DATA CENTER OPERA-
 TORS SHALL INCLUDE ALL CHANGES TO THE DISCLOSURES REQUIRED  PURSUANT  TO
 SECTION  TWO  HUNDRED FORTY-ONE OF THIS ARTICLE FROM YEAR-TO-YEAR. ADDI-
 TIONALLY, ANNUAL REPORTS SHALL INCLUDE BUT NOT BE LIMITED TO INFORMATION
 REGARDING THE DATA CENTER OPERATOR'S EFFORTS TOWARD GREATER ENERGY EFFI-
 CIENCY AND OVERALL SUSTAINABILITY THAT YEAR.   SUCH  FINDINGS  SHALL  BE
 DRAFTED IN CLEAR AND CONCISE LANGUAGE READILY COMPREHENSIBLE FOR MEMBERS
 OF  THE GENERAL PUBLIC. THE COMMISSION SHALL PUBLICLY POST THE REPORT ON
 THE COMMISSION'S WEBSITE WITHIN FIFTEEN DAYS OF RECEIPT.
   2. SPECIFICALLY, DATA CENTER OPERATORS SHALL REPORT:
   (A) EFFORTS MADE TO REDUCE ENERGY CONSUMPTION WITHIN THE PAST YEAR;
   (B) A COMPARISON OF THE  YEAR'S  ENERGY  CONSUMPTION  TO  THE  INITIAL
 PROJECTED  AMOUNTS  OUTLINED IN SUBDIVISION THREE OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE, AND, FOLLOWING THE FIRST YEAR,  A  COMPARISON
 TO THE YEAR BEFORE, EXPRESSED IN BRITISH THERMAL UNITS;
   (C)  A  PROJECTION  FOR ENERGY USAGE FOR THE NEXT YEAR, DISCLOSING THE
 SAME INFORMATION AS REQUIRED BY SUBDIVISION THREE OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE;
   (D) EFFORTS MADE TO REDUCE FOSSIL FUEL CONSUMPTION  AND  INCREASE  THE
 PERCENTAGE  OF  ENERGY  USE  FROM RENEWABLE ENERGY WITHIN THE PAST YEAR,
 WITH A COMPARISON OF THE YEAR'S FOSSIL FUEL CONSUMPTION TO THE PROJECTED
 AMOUNT, AND, FOLLOWING THE FIRST YEAR, A COMPARISON TO THE YEAR  BEFORE,
 EXPRESSED IN TERAWATT-HOURS;
 A. 9086                             5
 
   (E) EFFORTS MADE TO REDUCE WATER CONSUMPTION WITHIN THE PAST YEAR;
   (F)  FOR  DATA  CENTERS  THAT  ARE REQUIRED TO HAVE A WATER WITHDRAWAL
 PERMIT, A COMPARISON OF THE YEAR'S WATER USAGE TO THE PROJECTED  AMOUNT,
 AND,  FOLLOWING  THE  FIRST  YEAR,  A  COMPARISON  TO  THE  YEAR BEFORE,
 EXPRESSED IN GALLONS;
   (G) FOR DATA CENTERS THAT ARE REQUIRED  TO  HAVE  A  WATER  WITHDRAWAL
 PERMIT,  A  PROJECTION FOR WATER USAGE FOR THE NEXT YEAR, DISCLOSING THE
 SAME INFORMATION AS REQUIRED BY SUBDIVISION FOUR OF SECTION TWO  HUNDRED
 FORTY-ONE OF THIS ARTICLE;
   (H)  EFFORTS  MADE TO PROTECT THE ENVIRONMENT AND PUBLIC FROM POLLUTED
 WATER IN THE PAST YEAR  ACCOMPANIED  BY  MEASUREMENTS  OF  ACTUAL  WATER
 POLLUTION EXPRESSED IN MILLIGRAMS PER LITER;
   (I)  EFFORTS MADE TO REDUCE WASTE HEAT AND UTILIZE WASTE HEAT TO POWER
 THE DATA CENTER ACCOMPANIED BY MEASUREMENTS OF ACTUAL HEAT WASTE  EXPUL-
 SION AND REUSE, MEASURED IN BRITISH THERMAL UNITS; AND
   (J)  PERCENTAGE  OF  DATA  CENTER  EMPLOYEES THAT LIVE WITHIN THE HOST
 COMMUNITY.
   3. IF A DATA CENTER OPERATOR IS NO LONGER IN COMPLIANCE WITH  SECTIONS
 TWO  HUNDRED  FORTY-ONE AND TWO HUNDRED FORTY-THREE OF THIS ARTICLE, THE
 COMMISSION SHALL NOTIFY THE DATA CENTER OPERATOR. THE DATA CENTER OPERA-
 TOR SHALL HAVE SIXTY DAYS TO CURE SUCH VIOLATION. IF SUCH VIOLATION  HAS
 NOT  BEEN  CURED  AFTER SIXTY DAYS, SUCH DATA CENTER SHALL BE SUBJECT TO
 FINES OF UP TO TEN THOUSAND DOLLARS BASED ON THE SEVERITY AND EXTENT  OF
 THE VIOLATION AND SHALL BE ASSESSED ANOTHER TEN THOUSAND DOLLAR FINE FOR
 EVERY  DAY  THEY  ARE  LATE  IN  COMPLYING WITH SUCH SECTIONS. ALL FUNDS
 COLLECTED UNDER THIS ARTICLE SHALL BE DEPOSITED INTO  THE  ENVIRONMENTAL
 PROTECTION FUND ESTABLISHED BY SECTION NINETY-TWO-S OF THE STATE FINANCE
 LAW.
   §  4.  The  public  authorities law is amended by adding a new section
 1854-e to read as follows:
   § 1854-E. ENERGY CONSUMPTION EFFICIENCY GOALS. 1. NO  LATER  THAN  ONE
 YEAR  AFTER  THE  EFFECTIVE  DATE  OF  THIS  SECTION,  THE AUTHORITY, IN
 CONJUNCTION WITH THE NEW YORK SYSTEM INDEPENDENT  OPERATOR,  THE  PUBLIC
 SERVICE  COMMISSION, AND THE NEW YORK STATE CLIMATE ACTION COUNCIL SHALL
 DETERMINE REASONABLE ENERGY CONSUMPTION EFFICIENCY GOALS FOR THE  DESIGN
 AND OPERATION OF DATA CENTERS AS DEFINED IN ARTICLE TWELVE OF THE PUBLIC
 SERVICE  LAW,  INCLUDING,  BUT  NOT  LIMITED TO, RECYCLING OF WASTE HEAT
 EMITTED FROM DATA CENTERS INTO AN ENERGY SOURCE. SUCH GOALS SHALL  ALIGN
 WITH  THE  BENCHMARKS  LAID OUT IN THE NEW YORK STATE CLIMATE LEADERSHIP
 AND COMMUNITY PROTECTION ACT AND SHALL BE REVIEWED AND  UPDATED  ACCORD-
 INGLY, ANNUALLY.
   2.  A  DATA  CENTER OPERATOR THAT HAS COMMENCED OPERATION PRIOR TO THE
 EFFECTIVE DATE OF THIS SECTION SHALL HAVE TWO YEARS TO COMPLY  WITH  THE
 ENERGY  CONSUMPTION EFFICIENCY GOALS DEVELOPED PURSUANT TO THIS SECTION.
 A DATA CENTER OPERATOR THAT HAS COMMENCED OPERATION WITHIN ONE  YEAR  OF
 THE  EFFECTIVE  DATE  OF THIS SECTION SHALL HAVE ONE YEAR TO COMPLY WITH
 SUCH ENERGY CONSUMPTION EFFICIENCY GOALS.
   § 5. The energy law is amended by adding a new article 19 to  read  as
 follows:
                                ARTICLE 19
                         POWER PURCHASE AGREEMENTS
 SECTION 19-101. FOSSIL FUEL POWER PURCHASE AGREEMENTS.
         19-103. COMMUNITY DISCOUNT PLAN.
   § 19-101. FOSSIL  FUEL  POWER  PURCHASE  AGREEMENTS. 1. POWER PURCHASE
 AGREEMENTS FOR ANY ENERGY GENERATED THROUGH THE  CONSUMPTION  OF  FOSSIL
 A. 9086                             6
 
 FUELS  SHALL NOT PROVIDE ECONOMIC INCENTIVES OR DISCOUNTS TO DATA CENTER
 OPERATORS, AS DEFINED IN ARTICLE TWELVE OF THE PUBLIC SERVICE LAW.
   2.  IN  FURTHERANCE OF THE GOALS SET OUT IN THE NEW YORK STATE CLIMATE
 LEADERSHIP AND COMMUNITY PROTECTION ACT: (A) BY TWO THOUSAND THIRTY,  AT
 LEAST  ONE-THIRD  OF  ALL  ENERGY  USED BY DATA CENTERS MUST BE PROVIDED
 THROUGH POWER PURCHASE AGREEMENTS EXCLUSIVELY FOR RENEWABLE ENERGY;  AND
 (B)  BY TWO THOUSAND THIRTY-FIVE, AT LEAST TWO-THIRDS OF ALL ENERGY USED
 BY DATA CENTERS SHALL BE  PROVIDED  THROUGH  POWER  PURCHASE  AGREEMENTS
 EXCLUSIVELY  FOR  RENEWABLE  ENERGY;  AND (C) BY TWO THOUSAND FORTY, ALL
 ENERGY USED BY DATA CENTERS SHALL BE  PROVIDED  THROUGH  POWER  PURCHASE
 AGREEMENTS EXCLUSIVELY FOR RENEWABLE ENERGY.
   § 19-103. COMMUNITY DISCOUNT PLAN. 1. THE PUBLIC SERVICE COMMISSION IS
 HEREBY AUTHORIZED AND DIRECTED, TO ESTABLISH A PROGRAM, AS SOON AS PRAC-
 TICABLE,  TO  BE  KNOWN  AS  THE COMMUNITY DISCOUNT PLAN, THAT WILL GIVE
 LOW-INCOME AND MODERATE-INCOME ELECTRIC UTILITY  RATEPAYERS  WHO  RESIDE
 WITHIN  A  HOST  COMMUNITY A BILL CREDIT, TO PROTECT AND OFFSET LOW- AND
 MODERATE-INCOME RESIDENTIAL RATEPAYERS FROM COSTS ASSOCIATED  WITH  DATA
 CENTER  CONSTRUCTION  AND  ONGOING OPERATION WITHIN SUCH HOST COMMUNITY.
 SUCH BILL CREDITS SHALL BE IN ADDITION TO  ANY  OTHER  RENEWABLE  ENERGY
 PROGRAM DISCOUNTS SUCH RATEPAYERS ARE RECEIVING.
   2.  (A)  THE  PUBLIC SERVICE COMMISSION IS AUTHORIZED AND DIRECTED, AS
 DEEMED FEASIBLE, TO ENTER INTO A CONTRACT FOR THE PURPOSE OF  IMPLEMENT-
 ING THE COMMUNITY DISCOUNT PLAN, INCLUDING BUT NOT LIMITED TO AGREEMENTS
 WITH  A  DATA CENTER OPERATOR, TO PROVIDE BILL CREDITS TO HOST COMMUNITY
 ELECTRICITY RATEPAYERS APPROVED BY THE PUBLIC SERVICE COMMISSION.
   (B) THE PUBLIC SERVICE COMMISSION SHALL ENTER INTO AN  AGREEMENT  WITH
 SUCH UTILITY OPERATOR TO ENSURE BILL CREDITS ARE REFLECTED ON LOW-INCOME
 AND MODERATE-INCOME RATEPAYERS' MONTHLY ELECTRIC UTILITY BILLS.
   (C)  THE  PUBLIC  SERVICE  COMMISSION  SHALL DETERMINE THE BILL CREDIT
 AMOUNT GIVEN TO EACH HOST COMMUNITY ELECTRICITY RATEPAYER BASED  ON  THE
 COMMISSION'S  ANALYSIS OF HOW MUCH CONSUMER RATES AND ANY OTHER DELIVERY
 CHARGES INCURRED WILL INCREASE AS A RESULT OF  A  DATA  CENTER  BECOMING
 ONLINE  WITHIN  THE HOST COMMUNITY NOT TO EXCEED TWENTY PERCENT AND THIS
 INFORMATION SHALL BE PROVIDED ON A RESIDENTIAL ELECTRIC UTILITY BILL  OF
 AN OWNER OR TENANT OF A RESIDENTIAL BUILDING FOR A PERIOD OF FIVE YEARS.
   (D)  THE  COMMUNITY DISCOUNT SHALL BE IMPLEMENTED IN THE FIRST BILLING
 CYCLE FOLLOWING THE OPENING OF A DATA CENTER IN THE HOST COMMUNITY.
   (E) THE PUBLIC SERVICE COMMISSION MAY  REQUEST  FROM  ANY  DEPARTMENT,
 DIVISION,  OFFICE,  COMMISSION OR OTHER AGENCY OF THE STATE OR ANY STATE
 PUBLIC AUTHORITY, AND THE SAME ARE AUTHORIZED TO PROVIDE,  SUCH  ASSIST-
 ANCE,  SERVICES AND DATA AS MAY BE REQUIRED BY THE AUTHORITY IN CARRYING
 OUT THE PURPOSES OF THIS SUBDIVISION.
   (F) WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION, THE COMMIS-
 SION SHALL ISSUE A REPORT TO THE GOVERNOR, THE SPEAKER OF THE  ASSEMBLY,
 THE TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER OF THE ASSEM-
 BLY,  AND THE MINORITY LEADER OF THE SENATE THAT ADDRESSES THE FEASIBIL-
 ITY AND ADVISABILITY OF IMPLEMENTING THE COMMUNITY DISCOUNT PLAN.
   § 6. This act shall take effect one year after it shall have become  a
 law.

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9086--A
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                            September 12, 2025
                                ___________
 
 Introduced by M. of A. KELLES -- read once and referred to the Committee
   on  Corporations, Authorities and Commissions -- committee discharged,
   bill amended, ordered reprinted as amended  and  recommitted  to  said
   committee
 
 AN  ACT  to amend the public service law, the public authorities law and
   the energy law, in relation to regulation  of  energy  consumption  by
   data centers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title.  This act shall be known and may be  cited  as
 the "New York state sustainable data centers act".
   §  2. Legislative intent and findings. The legislature finds that data
 centers are significant  energy  and  water  consumers  and  significant
 contributors  to air and water pollution. The expansion and operation of
 data centers across the  state  impairs  New  York  state's  ability  to
 achieve the renewable energy and emissions reduction benchmarks required
 by  the  climate  leadership  and  community protection act due to their
 significant use of energy and water and significant emissions of  green-
 house  gases generated through the power needs of their operation. Given
 the growing demand for the construction of  data  centers,  there  is  a
 critical  need  to  improve  the  energy  efficiency of data centers and
 reduce their energy consumption, water consumption, reliance  on  fossil
 fuels,  and emissions.   Likewise, the large quantities of water used by
 data centers contribute an  additional  threat  to  the  health  of  the
 state's  waters,  the ecosystems of which they are an integral part, and
 the residents of the state who rely on them. This act will  ensure  that
 economic  development  involving  data  centers  is  consistent with the
 state's environmental standards and principles, and that where renewable
 energy is used to power data centers, that such  energy  is  being  used
 responsibly, with the interests and health of the public in mind.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09616-07-5
 A. 9086--A                          2
              

 
   §  3.  The public service law is amended by adding a new article 12 to
 read as follows:
                                ARTICLE 12
               REGULATION OF DATA CENTER ENERGY CONSUMPTION
 SECTION 240. DEFINITIONS.
         241. DATA CENTER DISCLOSURE REPORTS.
         242. PUBLIC ENGAGEMENT.
         243. ANNUAL DATA CENTER DISCLOSURE REPORT UPDATES.
   § 240. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
   1.   "CARBON DIOXIDE EQUIVALENTS" SHALL HAVE THE MEANING GIVEN TO SUCH
 TERM IN SECTION 75-0101 OF THIS CHAPTER.
   2. "DATA CENTER" SHALL MEAN: (A) A STRUCTURE, GROUP OF STRUCTURES,  OR
 INFRASTRUCTURE  WITHIN  AN EXISTING STRUCTURE FOR THE CENTRAL HOUSING OF
 SERVER RACKS THAT ARE USED FOR  THE  INTERCONNECTION  AND  OPERATION  OF
 INFORMATION  TECHNOLOGY AND NETWORK TELECOMMUNICATIONS EQUIPMENT FOR THE
 PROVISION OF DATA STORAGE, DATA PROCESSING, OR DATA TRANSPORT  SERVICES;
 AND  (B)  ALL  RELATED  FACILITIES AND INFRASTRUCTURE FOR POWER DISTRIB-
 UTION, ENVIRONMENTAL CONTROL, COOLING AND SECURITY REQUIRED  TO  DELIVER
 THE DESIRED SERVICE WITH RESPECT TO THE SPECIFIC DATA CENTER.
   3. "DATA CENTER OPERATOR" SHALL MEAN THE OWNER OR OPERATOR OF THE DATA
 CENTER,  OR  OTHER  PERSON  WHO HAS COMPARABLE RIGHTS OF USE OVER A DATA
 CENTER, INCLUDING ANY PERSON OR ENTITY RESPONSIBLE FOR ALLOCATING  SPACE
 FOR  EXTERNAL  USE  OF  INFORMATION  TECHNOLOGY AND NETWORK TELECOMMUNI-
 CATIONS EQUIPMENT WITHIN A DATA CENTER.
   4. "DATA CENTER DISCLOSURE REPORT" SHALL MEAN THAT REPORT  WHICH  DATA
 CENTER  OPERATORS MUST SUBMIT TO THE COMMISSION PRIOR TO CONSTRUCTION OF
 A DATA CENTER, AS REQUIRED BY SECTION  TWO  HUNDRED  FORTY-ONE  OF  THIS
 ARTICLE.
   5.  "EMPLOYEE"  SHALL  HAVE  THE MEANING GIVEN TO SUCH TERM IN SECTION
 SEVEN HUNDRED FORTY OF THE LABOR LAW.
   6. "HOST COMMUNITY" SHALL MEAN ANY MUNICIPALITY WITHIN  WHICH  A  DATA
 CENTER,  OR  ANY  PORTION  THEREOF,  HAS  BEEN DEVELOPED OR PROPOSED FOR
 DEVELOPMENT, OR WHICH SUFFERS ANY NEGATIVE IMPACT FROM A DATA CENTER.
   7. "NEGATIVE IMPACT" SHALL MEAN ANY INCREASE IN EMISSIONS OF REGULATED
 AIR CONTAMINANTS AS DEFINED IN SUBDIVISION TWENTY-TWO OF SECTION 19-0107
 OF THE ENVIRONMENTAL CONSERVATION LAW, DISCHARGES  INTO  WATERS  OF  THE
 STATE AS DESCRIBED IN SUBDIVISION TWO OF SECTION 17-0301 OF THE ENVIRON-
 MENTAL CONSERVATION LAW, NOISE POLLUTION, OR ANY OTHER FORM OF POLLUTION
 THAT AFFECTS A HOST COMMUNITY.
   8. "RENEWABLE ENERGY" SHALL HAVE THE SAME MEANING AS "RENEWABLE ENERGY
 SYSTEMS" AS DEFINED IN SECTION SIXTY-SIX-P OF THIS CHAPTER.
   9.  "REGULATED DATA CENTER" SHALL MEAN A DATA CENTER PROJECTED TO HAVE
 AN ENERGY USAGE CAPACITY OF FIVE OR MORE MEGAWATTS.
   10. "BILL CREDIT" MEANS A MONTHLY MONETARY CREDIT WHICH IS FUNDED BY A
 DATA CENTER OPERATOR AS FURTHER DETERMINED BY THE COMMISSION AND APPEARS
 ON THE UTILITY BILL OF A LOW INCOME OR MODERATE INCOME CUSTOMER  LOCATED
 IN THIS STATE.
   11.  "HYPERSCALE  DATA  CENTER" SHALL MEAN A DATA CENTER THAT TAKES UP
 TEN THOUSAND SQUARE FEET OR MORE AND USES AT LEAST FIVE  THOUSAND  SERV-
 ERS.
   12.  "MICRO  DATA  CENTER"  SHALL  MEAN A DATA CENTER THAT IS ENCLOSED
 WITHIN ONE STANDARD SERVER RACK AND DOES NOT SUPPORT CRITICAL  LOADS  OF
 MORE THAN ONE HUNDRED FIFTY KILOWATTS.
   § 241. DATA CENTER DISCLOSURE REPORTS. FOR ANY PROPOSED REGULATED DATA
 CENTER,  THE  PROPOSED  DATA  CENTER OPERATOR SHALL SUBMIT A DATA CENTER
 DISCLOSURE REPORT TO THE DEPARTMENT AND  THE  COMMISSION  AT  LEAST  ONE
 A. 9086--A                          3
 
 HUNDRED  EIGHTY  DAYS  PRIOR  TO  COMMENCING ANY CONSTRUCTION ACTIVITIES
 RELATED TO A REGULATED DATA CENTER. THE REPORT  SHALL  CONTAIN  RELEVANT
 INFORMATION REGARDING THE PROPOSED REGULATED DATA CENTER, INCLUDING:
   1.  (A)  THE HOST COMMUNITY OR COMMUNITIES IN WHICH THE REGULATED DATA
 CENTER WILL BE LOCATED; AND
   (B) THE ORGANIZATION OF THE PLANNED REGULATED DATA CENTER AS A  SINGLE
 OPERATOR  ENTERPRISE OR MANAGED DATA CENTER, COLOCATED FACILITY, HYPERS-
 CALE DATA CENTER, MICRO DATA CENTER, OR  A  CONTAINER  OR  MODULAR  DATA
 CENTER.
   2.    THE  NUMBER OF FULL-TIME AND PART-TIME EMPLOYEES THE DATA CENTER
 OPERATOR INTENDS TO EMPLOY AT THE  PLANNED  REGULATED  DATA  CENTER  AND
 RELEVANT DEMOGRAPHIC INFORMATION INCLUDING BUT NOT LIMITED TO:
   (A)  THE  EDUCATION LEVELS OF THE EMPLOYEES INTENDED TO BE EMPLOYED AT
 THE PLANNED DATA CENTER, WITH PERCENTAGES INCLUDED FOR HIGHEST EDUCATION
 ACHIEVED INCLUDING HIGH SCHOOL DIPLOMA, ASSOCIATE'S  DEGREE,  BACHELOR'S
 DEGREE, AND HIGHER LEVEL OF EDUCATION; AND
   (B)  THE PROJECTED PERCENTAGE OF EMPLOYEES RESIDING IN THE HOST COMMU-
 NITY OR COMMUNITIES.
   3. (A) THE PROJECTED AVERAGE ENERGY USAGE OF THE PLANNED  DATA  CENTER
 PER DAY AND RELATED INFORMATION INCLUDING BUT NOT LIMITED TO:
   (I)  THE PROJECTED TYPE OF ENERGY BEING USED  THAT  IS  NEITHER FOSSIL
 FUEL NOR RENEWABLE ENERGY, WHERE APPLICABLE;
   (II) THE FORMS OF RENEWABLE ENERGY EXPECTED TO BE UTILIZED; AND
   (III)  THE  PROJECTED  PERCENTAGE OF ENERGY USAGE THAT IS FOSSIL FUEL,
 RENEWABLE ENERGY, AND NEITHER RENEWABLE ENERGY NOR FOSSIL FUEL WHERE THE
 DATA CENTER IS OPERATING AT PEAK;
   (B) THE PROJECTED AVERAGE AMOUNT OF  ENERGY  USAGE  PER  HOUR  OF  THE
 PLANNED  DATA  CENTER  DURING  PEAK  LOAD MEASURED IN KILOWATT-HOURS AND
 ANTICIPATED FREQUENCY OF PEAK LOAD PER WEEK;
   (C) THE PROJECTED  ANNUAL  EMISSIONS  OF  CARBON  DIOXIDE  EQUIVALENTS
 PRODUCED TO POWER THE FACILITY WHICH ARE PRODUCED OFF-SITE;
   (D)  THE PROJECTED ANNUAL AMOUNT OF WASTE HEAT PRODUCED ON-SITE, MEAS-
 URED IN BRITISH THERMAL UNITS;
   (E) THE PROJECTED PERCENTAGE OF THE ANNUAL AMOUNT OF  RECOVERED  WASTE
 HEAT, THAT WAS TRANSFORMED INTO ENERGY TO POWER THE DATA CENTER; AND
   (F)  THE  INTENDED  USE FOR RECOVERED WASTE HEAT TO INCLUDE BUT NOT BE
 LIMITED TO GENERAL BUILDING HEATING,  COOLING  SYSTEMS,  COOLANT  SYSTEM
 SPECIFICALLY FOR THE CAPTURE OF WASTE HEAT FROM PROCESSORS.
   4. IF A PLANNED REGULATED DATA CENTER IS REQUIRED TO OBTAIN AND HOLD A
 PERMIT PURSUANT TO TITLE FIFTEEN OF ARTICLE FIFTEEN OF THE ENVIRONMENTAL
 CONSERVATION LAW, THE DATA CENTER OPERATOR SHALL REPORT:
   (A)  THE  AMOUNT  OF  WATER PROJECTED TO BE USED ANNUALLY AND HOW THAT
 WATER WILL BE USED IN THE PLANNED REGULATED DATA CENTER; AND
   (B) THE AVERAGE AMOUNT OF WATER EXPECTED TO BE USED DAILY MEASURED  IN
 GALLONS.
   5. FOR ANY REGULATED DATA CENTER MAKING ANY DISCHARGE WITHIN THE MEAN-
 ING OF ARTICLE SEVENTEEN OF THE ENVIRONMENTAL CONSERVATION LAW, THE DATA
 CENTER OPERATOR SHALL REPORT:
   (A) THE ANNUAL PROJECTED DISCHARGES BY TYPE AND AMOUNT; AND
   (B)  HOW  DISCHARGES  WILL BE TREATED, IF AT ALL, TO REMOVE POLLUTANTS
 AND/OR TO WHAT EXTENT DISCHARGE TEMPERATURE WILL BE ADJUSTED, IF AT ALL,
 BEFORE BEING DISCHARGED.
   6. THE COMMISSION MAY PROMULGATE RULES  REQUIRING  ADDITIONAL  DISCLO-
 SURES, AS APPROPRIATE.
   § 242. PUBLIC  ENGAGEMENT.  THE  COMMISSION  SHALL  PUBLICIZE THE DATA
 DISCLOSURE REPORT ON ITS WEBSITE  WITHIN  TEN  DAYS  OF  RECEIVING  SUCH
 A. 9086--A                          4
 
 REPORT. THE DATA CENTER OPERATOR SHALL HOLD AT LEAST TWO PUBLIC HEARINGS
 WITHIN  SIXTY DAYS AFTER SUBMITTING ITS DATA CENTER DISCLOSURE REPORT TO
 THE COMMISSION. AT LEAST ONE OF THE TWO PUBLIC  HEARINGS  MUST  BE  HELD
 WITHIN THE HOST COMMUNITY WHERE THE DATA CENTER OPERATOR PLANS TO LOCATE
 ITS DATA CENTER.  THE DATA CENTER OPERATOR SHALL PROVIDE AT LEAST THIRTY
 DAYS  ADVANCE  NOTICE  TO  RESIDENTS  OF HOST COMMUNITIES OF ANY PLANNED
 PUBLIC HEARINGS. NOTICE OF  PUBLIC  HEARINGS  SHALL  INCLUDE  THE  TIME,
 PLACE,  AND  LOCATION  OF EACH PUBLIC HEARING, A SUMMARY OF THE PROPOSED
 DATA CENTER PROJECT, AND THE  SPECIFIC  LOCATION  OF  THE  PLANNED  DATA
 CENTER.  METHODS  OF PROVIDING NOTICE TO A HOST COMMUNITY SHALL INCLUDE,
 BUT SHALL NOT BE LIMITED TO, COVERAGE IN ANY PRINT OR  DIGITAL  PUBLICA-
 TION  PRODUCED  BY  LOCAL,  COMMUNITY, AND ETHNIC MEDIA. DURING A PUBLIC
 HEARING CONDUCTED PURSUANT TO THIS SECTION,  THE  DATA  CENTER  OPERATOR
 MUST  EXPLICITLY  DISCLOSE  AND  PRESENT  ITS  FINDING UNDER SECTION TWO
 HUNDRED FORTY-THREE OF  THIS  ARTICLE  IN  CLEAR  AND  CONCISE  LANGUAGE
 COMPREHENSIBLE  FOR  MEMBERS  OF  THE PUBLIC IN GENERAL.   IT SHALL ALSO
 ADDRESS THE EFFORTS IT WILL MAKE TO REDUCE ANY NEGATIVE IMPACTS  TO  THE
 HOST  COMMUNITY  AND  ITS  ENVIRONMENT  THAT THE PLANNED DATA CENTER MAY
 CAUSE.   A DRAFT OF THE DATA CENTER  DISCLOSURE  REPORT  SHALL  BE  MADE
 PUBLICLY AVAILABLE NO LATER THAN THIRTY DAYS PRIOR TO THE FIRST HEARING.
   § 243. ANNUAL  DATA  CENTER DISCLOSURE REPORT UPDATES.  1. A REGULATED
 DATA CENTER OPERATOR SHALL SUBMIT AN ANNUAL DATA  DISCLOSURE  REPORT  TO
 THE  COMMISSION,  WHICH  THE COMMISSION SHALL POST ON ITS WEBSITE WITHIN
 FIFTEEN DAYS OF RECEIPT. DATA CENTER OPERATORS SHALL INCLUDE ALL CHANGES
 TO THE DISCLOSURES REQUIRED PURSUANT TO SECTION TWO HUNDRED FORTY-ONE OF
 THIS ARTICLE  FROM  YEAR-TO-YEAR.  ADDITIONALLY,  ANNUAL  REPORTS  SHALL
 INCLUDE  BUT  NOT  BE  LIMITED  TO INFORMATION REGARDING THE DATA CENTER
 OPERATOR'S EFFORTS TOWARD GREATER ENERGY EFFICIENCY AND OVERALL SUSTAIN-
 ABILITY THAT YEAR.   SUCH FINDINGS  SHALL  BE  PRESENTED  IN  CLEAR  AND
 CONCISE  LANGUAGE  READILY  COMPREHENSIBLE  FOR  MEMBERS  OF THE GENERAL
 PUBLIC.
   2. SPECIFICALLY, DATA CENTER OPERATORS SHALL REPORT:
   (A) EFFORTS MADE TO REDUCE ENERGY CONSUMPTION WITHIN THE PAST YEAR;
   (B) A COMPARISON OF THE  YEAR'S  ENERGY  CONSUMPTION  TO  THE  INITIAL
 PROJECTED  AMOUNTS  OUTLINED IN SUBDIVISION THREE OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE, AND, FOLLOWING THE FIRST YEAR,  A  COMPARISON
 TO THE YEAR BEFORE;
   (C) A PROJECTION FOR ENERGY USAGE FOR THE NEXT YEAR, THAT INCLUDES THE
 SAME INFORMATION AS REQUIRED BY SUBDIVISION THREE OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE;
   (D)  EFFORTS  MADE  TO REDUCE FOSSIL FUEL CONSUMPTION AND INCREASE THE
 PERCENTAGE OF ENERGY USE OF, OR SUPPORT FOR RENEWABLE ENERGY WITHIN  THE
 PAST  YEAR,  WITH  A COMPARISON OF THE YEAR'S FOSSIL FUEL CONSUMPTION TO
 THE PROJECTED AMOUNT, AND, FOLLOWING THE FIRST YEAR, A COMPARISON TO THE
 YEAR BEFORE;
   (E) EFFORTS MADE TO REDUCE WATER CONSUMPTION WITHIN THE PAST YEAR;
   (F) (I) FOR DATA CENTERS THAT ARE REQUIRED TO OBTAIN AND HOLD A PERMIT
 PURSUANT TO TITLE  FIFTEEN  OF  ARTICLE  FIFTEEN  OF  THE  ENVIRONMENTAL
 CONSERVATION LAW, A COMPARISON OF THE YEAR'S WATER USAGE TO THE PROJECT-
 ED  AMOUNT,  AND,  FOLLOWING  THE  FIRST  YEAR, A COMPARISON TO THE YEAR
 BEFORE, EXPRESSED IN GALLONS; AND
   (II) FOR DATA CENTERS THAT ARE REQUIRED TO HAVE A PERMIT  PURSUANT  TO
 TITLE  FIFTEEN OF ARTICLE FIFTEEN OF THE ENVIRONMENTAL CONSERVATION LAW,
 A PROJECTION FOR WATER USAGE FOR THE  NEXT  YEAR,  DISCLOSING  THE  SAME
 INFORMATION  AS  REQUIRED  BY  SUBDIVISION  FOUR  OF SECTION TWO HUNDRED
 FORTY-ONE OF THIS ARTICLE;
 A. 9086--A                          5
 
   (G) EFFORTS MADE TO PROTECT THE ENVIRONMENT AND PUBLIC  FROM  POLLUTED
 WATER  IN  THE  PAST  YEAR  ACCOMPANIED  BY MEASUREMENTS OF ACTUAL WATER
 POLLUTION IN A MANNER TO BE DETERMINED BY  THE  DEPARTMENT  PURSUANT  TO
 REGULATIONS;
   (H)  EFFORTS MADE TO REDUCE WASTE HEAT AND UTILIZE WASTE HEAT TO POWER
 THE DATA CENTER ACCOMPANIED BY MEASUREMENTS OF ACTUAL HEAT  WASTE  EMIS-
 SION AND REUSE; AND
   (I)  PERCENTAGE  OF  DATA  CENTER  EMPLOYEES THAT LIVE WITHIN THE HOST
 COMMUNITY.
   3. IN THE EVENT OF ANY NONCOMPLIANCE WITH SECTION TWO  HUNDRED  FORTY-
 ONE  OR  TWO  HUNDRED  FORTY-THREE OF THIS ARTICLE, THE DEPARTMENT SHALL
 NOTIFY THE DATA CENTER OPERATOR. THE DATA  CENTER  OPERATOR  SHALL  HAVE
 SIXTY  DAYS TO CURE SUCH VIOLATION. IF SUCH VIOLATION HAS NOT BEEN CURED
 AFTER SIXTY DAYS, SUCH DATA CENTER SHALL BE SUBJECT TO FINES  OF  UP  TO
 TEN  THOUSAND  DOLLARS BASED ON THE SEVERITY AND EXTENT OF THE VIOLATION
 AND SHALL BE ASSESSED ANOTHER TEN THOUSAND DOLLAR  FINE  FOR  EVERY  DAY
 THEY ARE LATE IN COMPLYING WITH SUCH SECTIONS. ALL FUNDS COLLECTED UNDER
 THIS  ARTICLE  SHALL BE DEPOSITED INTO THE ENVIRONMENTAL PROTECTION FUND
 ESTABLISHED BY SECTION NINETY-TWO-S OF THE STATE FINANCE LAW.
   4. THE DEPARTMENT AND THE ATTORNEY GENERAL ARE AUTHORIZED  TO  ENFORCE
 THE PROVISIONS OF THIS ARTICLE.
   §  4.  The  public  authorities law is amended by adding a new section
 1854-e to read as follows:
   § 1854-E. ENERGY CONSUMPTION EFFICIENCY GOALS. 1. NO  LATER  THAN  ONE
 YEAR  AFTER  THE  EFFECTIVE  DATE  OF  THIS  SECTION,  THE AUTHORITY, IN
 CONJUNCTION WITH THE FEDERALLY DESIGNED BULK SYSTEM OPERATOR, THE PUBLIC
 SERVICE COMMISSION, AND THE NEW YORK STATE CLIMATE ACTION COUNCIL  SHALL
 DETERMINE  REASONABLE ENERGY CONSUMPTION EFFICIENCY GOALS FOR THE DESIGN
 AND OPERATION OF DATA CENTERS AS DEFINED IN ARTICLE TWELVE OF THE PUBLIC
 SERVICE LAW, INCLUDING, BUT NOT LIMITED  TO,  RECYCLING  OF  WASTE  HEAT
 EMITTED  FROM DATA CENTERS INTO AN ENERGY SOURCE. SUCH GOALS SHALL ALIGN
 WITH THE BENCHMARKS SET FORTH IN THE CLIMATE  LEADERSHIP  AND  COMMUNITY
 PROTECTION  ACT  ENACTED  BY  CHAPTER ONE HUNDRED SIX OF THE LAWS OF TWO
 THOUSAND NINETEEN AND SHALL BE REVIEWED AND UPDATED ACCORDINGLY, ANNUAL-
 LY.
   2. A DATA CENTER OPERATOR THAT HAS COMMENCED OPERATION  PRIOR  TO  THE
 EFFECTIVE  DATE  OF THIS SECTION SHALL HAVE TWO YEARS TO COMPLY WITH THE
 ENERGY CONSUMPTION EFFICIENCY GOALS DEVELOPED PURSUANT TO THIS  SECTION.
 A  DATA  CENTER OPERATOR THAT HAS COMMENCED OPERATION WITHIN ONE YEAR OF
 THE EFFECTIVE DATE OF THIS SECTION SHALL HAVE ONE YEAR  TO  COMPLY  WITH
 SUCH ENERGY CONSUMPTION EFFICIENCY GOALS.
   §  5.  The energy law is amended by adding a new article 19 to read as
 follows:
                                ARTICLE 19
                               DATA CENTERS
 SECTION 19-101. FOSSIL FUEL POWER PURCHASE AGREEMENTS.
   § 19-101. FOSSIL FUEL POWER PURCHASE  AGREEMENTS.  1.  POWER  PURCHASE
 AGREEMENTS  FOR  ANY  ENERGY GENERATED THROUGH THE CONSUMPTION OF FOSSIL
 FUELS SHALL NOT PROVIDE ECONOMIC INCENTIVES OR  DISCOUNTS  TO  REGULATED
 DATA CENTERS, AS SET FORTH IN ARTICLE TWELVE OF THE PUBLIC SERVICE LAW.
   2. IN FURTHERANCE OF THE GOALS SET FORTH IN THE CLIMATE LEADERSHIP AND
 COMMUNITY PROTECTION ACT: (A) BY TWO THOUSAND THIRTY, AT LEAST ONE-THIRD
 OF  ALL  ENERGY  USED BY REGULATED DATA CENTERS MUST BE PROVIDED THROUGH
 POWER PURCHASE AGREEMENTS EXCLUSIVELY FOR RENEWABLE ENERGY; AND  (B)  BY
 TWO  THOUSAND  THIRTY-FIVE,  AT  LEAST  TWO-THIRDS OF ALL ENERGY USED BY
 REGULATED DATA CENTERS SHALL BE PROVIDED THROUGH POWER  PURCHASE  AGREE-
 A. 9086--A                          6
 
 MENTS  EXCLUSIVELY  FOR RENEWABLE ENERGY; AND (C) BY TWO THOUSAND FORTY,
 ALL ENERGY USED BY REGULATED DATA  CENTERS  SHALL  BE  PROVIDED  THROUGH
 POWER PURCHASE AGREEMENTS EXCLUSIVELY FOR RENEWABLE ENERGY.
   3.  FOR  THE  PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
 THE FOLLOWING MEANINGS:
   (A) "POWER PURCHASE AGREEMENT" SHALL MEAN AN AGREEMENT BETWEEN A  DATA
 CENTER  OPERATOR,  A  UTILITY,  AN  AUTHORITY,  OR  AN INDEPENDENT POWER
 PRODUCER WHEREIN THE UTILITY AGREES TO PROVIDE THE DATA CENTER ELECTRIC-
 ITY, OR AN INDEPENDENT POWER PRODUCER, OVER A DEFINED PERIOD OF TIME.
   (B) "UTILITY" SHALL HAVE THE SAME  MEANING  AS  "UTILITY  COMPANY"  AS
 DEFINED IN SECTION TWO OF THE PUBLIC SERVICE LAW.
   § 6. The public service law is amended by adding a new section 76-a to
 read as follows:
   § 76-A. DATA CENTER SURCHARGE AND DISCOUNT PLAN. 1. THE PUBLIC SERVICE
 COMMISSION  IS  HEREBY AUTHORIZED AND DIRECTED, TO INITIATE A PROCEEDING
 WITHIN THREE MONTHS OF THIS BILL BECOMING LAW TO ESTABLISH  A  REGULATED
 DATA  CENTER  SURCHARGE  THAT  WILL  BE  CHARGED  TO  ALL REGULATED DATA
 CENTERS. THE COMMISSION WHEN DETERMINING THE SURCHARGE, SHALL ENSURE THE
 SURCHARGE WILL BE SUFFICIENT TO COVER ANY RATE INCREASES RESULTING  FROM
 TRANSMISSION  AND  DISTRIBUTION  SYSTEM  UPGRADES  THAT ARE REQUIRED FOR
 REGULATED DATA CENTERS TO INTERCONNECT TO THE GRID  AND  OPERATE,  ALONG
 WITH  ANY  INCREASES  IN ENERGY SUPPLY COSTS DIRECTLY RESULTING FROM THE
 OPERATIONS OF DATA CENTERS.
   2. ALL MONIES COLLECTED FROM  THE  REGULATED  DATA  CENTER  SURCHARGE,
 EXCLUDING  ANY  REASONABLE AND PRUDENTLY INCURRED UTILITY ADMINISTRATIVE
 COSTS ASSOCIATED FROM COLLECTING THE SURCHARGE, SHALL BE DIRECTED TO THE
 ENERGY AFFORDABILITY PROGRAM CREATED WITHIN THE DEPARTMENT  CASE  DOCKET
 14-M-0565,  IN  THE  ORDER ADOPTING LOW INCOME PROGRAM MODIFICATIONS AND
 DIRECTING UTILITY FILINGS, PROCEEDING ON MOTION  OF  THE  COMMISSION  TO
 EXAMINE  PROGRAMS TO ADDRESS ENERGY AFFORDABILITY FOR LOW INCOME UTILITY
 CUSTOMERS MAY 20, 2016, OR ANY SUCCESSOR PROGRAMS.
   3. THE COMMISSION SHALL AUTHORIZE EACH ELECTRIC UTILITY CORPORATION TO
 ESTABLISH AN ACCOUNT THAT IS SOLELY USED FOR STORING THE PROCEEDS OF THE
 REGULATED UTILITY DATA CENTER  SURCHARGE,  AND  ONCE  EVERY  YEAR,  UPON
 REVIEW  AND  APPROVAL FROM THE COMMISSION, SHALL TRANSFER THOSE PROCEEDS
 TO THEIR ENERGY AFFORDABILITY PROGRAM CUSTOMERS IN THE FORM  OF  MONTHLY
 BILL CREDITS.
   4.  THIS  PROCEEDING SHALL INCLUDE A PUBLIC COMMENT PERIOD OF AT LEAST
 SIXTY DAYS AND FOUR PUBLIC HEARINGS IN DIFFERENT REGIONS OF THE STATE.
   5. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SECTION  THE  COMMIS-
 SION  SHALL ISSUE AN ORDER REQUIRING ALL ELECTRIC CORPORATIONS TO IMPLE-
 MENT A SURCHARGE ON REGULATED DATA CENTERS WITHIN THEIR SERVICE TERRITO-
 RIES.  THE  COMMISSION  SHALL  REVIEW  AND  UPDATE  THIS  SURCHARGE  FOR
 REGULATED DATA CENTERS ONCE EVERY THREE YEARS.
   §  7. This act shall take effect one year after it shall have become a
 law.