Large-Load Data Centers

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0017.03 Sarah Lozano x3858 SENATE BILL 26-102
Senate Committees House Committees
Transportation & Energy
A BILL FOR AN ACT
CONCERNING MEASURES TO EN SURE ACCOUNTABILITY FOR101
LARGE-LOAD DATA CENTERS.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill creates certain requirements for large-load data centers,
which are defined in the bill as:
! A new data center that has a peak load of more than 30
megawatts or multiple new data centers with a collective
peak load of more than 60 megawatts; or
! An existing data center that adds a peak load of more than
SENATE SPONSORSHIP
Kipp,
HOUSE SPONSORSHIP
Brown,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
30 megawatts or multiple existing data centers that add a
collective peak load of more than 60 megawatts.
No later than June 30, 2030, the public utilities commission
(commission) is required to make a determination on whether 100%
hourly matching by large-load data centers is technically and
economically feasible. If the commission determines that 100% hourly
matching is not technically and economically feasible, the commission
must make a determination of the highest percentage of hourly matching
by large-load data centers that is technically and economically feasible
(hourly matching requirement), which percentage the commission must
update on a regular basis.
Beginning January 1, 2031, an operator of a large-load data center
(operator) must generate, purchase, or otherwise acquire a quantity of
electricity generated from renewable resources necessary to meet 100%
of the operator's large-load data center's total annual electricity
consumption. An operator must also achieve the hourly matching
requirement. An operator must comply with these requirements through
a tariff, contract, or program entered into with a utility, one or more
power purchase agreements entered into with an independent power
producer, or a self-supply of electricity.
An operator must enter into contracts of at least 15 years with a
utility to pay for certain infrastructure and resource costs. An operator
must also contribute to utility demand-side management programs and
comply with certain operational water management and on-site backup
generation requirements.
No later than June 30, 2028, and no later than each June 30
thereafter, an operator must report to the department of public health and
environment certain information about the large-load data center,
including information about the large-load data center's annual electricity
and water consumption. The department of public health and environment
must compile the information reported and provide a report to the general
assembly and commission and make the report publicly available on the
department's website.
A utility is prohibited from interconnecting or supplying electricity
to a large-load data center unless:
! The operator has either provided an up-front payment or
entered into a contract of at least 15 years with the utility,
which up-front payment or contract must require the
operator to pay for certain infrastructure and resource costs;
! On or after January 1, 2031, the utility has verified that the
operator is in compliance with the hourly matching
requirement; and
! The utility determines and ensures that the addition of the
large-load data center to the utility's system does not
negatively affect the utility's ability to provide reliable
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service to customers or meet applicable clean energy
targets or increase the utility's greenhouse gas emissions.
A utility is prohibited from offering economic development rates
to large-load data centers and is required to develop and offer demand
response programs or flexible connection tariffs to the utility's customers
that are operators. A utility is required to solicit and accept voluntary
financial contributions from operators to certain utility programs, which
contributions must supplement, rather than substitute, the utility's funding
of those programs. A utility that is rate-regulated by the commission with
customers that are operators is required to describe efforts to comply with
the bill in the utility's annual report filed with the commission.
On or before June 30, 2027, the department of local affairs must
publish model codes for the development of large-load data centers,
which model codes must consider certain best practices. In developing the
model codes, the department of local affairs must conduct a robust
stakeholder and engagement process and evaluate, update, and review the
model codes every 5 years.
With its development permit application for a large-load data
center, the person responsible for the initial development of a large-load
data center (developer) must submit a site assessment to the local
government reviewing the application. A site assessment must include
certain components.
If the siting of a large-load data center is proposed in a
disproportionately impacted community or if an operator of an existing
data center in a disproportionately impacted community plans to expand
the data center's peak load such that the data center will become a
large-load data center, the developer or operator must undergo a
cumulative impacts analysis before the development or expansion begins.
The developer or operator is required to contract with a third-party
contractor selected by the department of public health and environment
to perform the cumulative impacts analysis.
In reviewing a development permit application for a large-load
data center that is in a disproportionately impacted community or is
proposed to be in a disproportionately impacted community, the
applicable local government is required to consider the applicant's
cumulative impacts analysis and whether the mitigation strategies
described by the applicant are sufficient to avoid any negative impacts
identified in the cumulative impacts analysis. Prior to applying for a
development permit that is in a disproportionately impacted community
or is proposed to be in a disproportionately impacted community, a
developer or operator must comply with certain public hearing, notice,
and community outreach requirements.
If the siting of a large-load data center is proposed in a
disproportionately impacted community or if an operator of an existing
data center in a disproportionately impacted community plans to expand
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the data center's peak load such that the data center will become a
large-load data center, the developer or operator must enter into a
community benefit agreement with the disproportionately impacted
community before the development or expansion begins. The developer
is required to consult with the applicable local government and certain
coalition groups and consider certain topics during community benefit
agreement negotiations.
An operator is required to comply with certain labor standards.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds that:3
(a) Colorado and the United States are experiencing rapid and4
unprecedented growth in data centers, which presents significant5
challenges for electric utilities, the electric grid, regulators, and electricity6
consumers statewide;7
(b) Absent clear statutory direction and appropriate safeguards,8
the costs of serving new large-load data centers may be shifted to9
residential, commercial, and other existing ratepayers, increasing10
electricity bills and creating financial risk from overbuilt or stranded11
generation, transmission, and distribution infrastructure;12
(c) At a time when electricity demand is increasing and13
affordability is a growing concern for Colorado households, costs to serve14
large-load data centers should not shift onto other ratepayers;15
(d) Unchecked growth in large-load data centers may increase16
reliance on fossil fuel generation, hinder electric utilities' ability to meet17
state and utility clean energy and greenhouse gas emission reduction18
requirements, and adversely affect public health and disproportionately19
impacted communities;20
(e) The general assembly has established statewide climate, clean21
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energy, and emission reduction goals, including a goal of reaching1
net-zero emissions by 2050, which require that new electricity demand be2
met through prudent planning, investment in zero-emission resources, and3
avoidance of unnecessary fossil fuel expansion;4
(f) Maintaining affordable electricity for all Coloradans requires5
consumer protection guardrails to ensure that large-load data centers bear6
the incremental costs of the generation, transmission, and distribution7
infrastructure necessary to serve them;8
(g) Operators of large-load data centers should help Colorado9
meet its clean energy and climate goals and be responsible for paying10
their fair share of the costs of new energy infrastructure and grid11
investments needed to meet the demand of large-load data centers;12
(h) Flexible load and behind-the-meter resources, when designed13
and deployed to provide dispatchable capacity, can reduce peak demand,14
defer or avoid distribution and transmission system upgrades, and15
mitigate ratepayer impacts associated with large-load data center16
interconnections;17
(i) Managing large-load data center growth should advance18
affordability, reliability, and electrification, ensuring that large-load data19
center development strengthens, rather than undermines, Colorado's clean20
energy transition;21
(j) Colorado rivers have experienced severe water stress in recent22
years due to overuse and climate change. New large water users like23
large-load data centers may threaten Colorado's water supply security and24
the state's ability to provide reliable water resources for other critical25
water users, including communities, tribal nations, agricultural users,26
recreational users, and the environment.27
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(k) Promoting the efficient and maximum utilization of Colorado's1
water resources by large-load data centers through requiring transparency2
of use and sourcing and maximizing sustainable and water-smart cooling3
technologies can increase communities' resilience to drought and climate4
change, reduce the sale of agricultural water rights in response to5
increased demand for municipal water use, and protect river flows and6
aquifer levels;7
(l) Certain information regarding sources and usage of both water8
and energy by large-load data centers is critical to decision-making9
processes and should be made available to relevant local and state10
authorities;11
(m) Colorado has experienced decades of population growth that12
has resulted in greatly increased pressure on natural resources, including13
land, water, and wildlife. The siting and development of new large-load14
data centers and associated infrastructure, including on-site generation15
resources and other electrical infrastructure, can result in habitat loss and16
fragmentation without appropriate measures to avoid, minimize, and17
mitigate direct, indirect, and cumulative impacts to wildlife resources.18
The siting and development of new large-load data centers must be19
balanced with the obligation of the state to protect wildlife resources and20
the hunting, fishing, and recreation traditions that they support, which21
traditions are an important part of the economy and culture of Colorado.22
(n) The cumulative impacts of pollution are even more devastating23
for communities of color and low-income communities who bear outsized24
environmental burdens due to past and present discriminatory25
environmental and land use policies, endure higher health risks from26
pollution exposure, experience systemic injustice, and have faced27
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exclusion from government and industry decision-making and1
enforcement efforts; and2
(o) Data center development should support Colorado's workforce3
and communities by adhering to high labor standards.4
(2) It is therefore in the best interests of the state of Colorado to5
establish a comprehensive framework for large-load data centers that:6
(a) Ensures electricity service that is clean, affordable, and7
reliable;8
(b) Protects consumers and communities, including9
disproportionately impacted communities;10
(c) Advances the state's climate and clean energy goals; and11
(d) Affirms the authority of the public utilities commission and12
local governments to oversee new large-load data center development in13
an equitable and responsible manner.14
(3) It is the intent of the general assembly that nothing in this act:15
(a) Alters the greenhouse gas emission reduction goals and16
deadlines established in section 25-7-102 (2)(g), Colorado Revised17
Statutes;18
(b) Diminishes the air quality control commission's existing19
authority to require more than the minimum greenhouse gas emission20
reduction goals and deadlines established in section 25-7-102 (2)(g),21
Colorado Revised Statutes; or22
(c) Prevents state or local authorities from enacting additional23
requirements for large-load data centers.24
SECTION 2. In Colorado Revised Statutes, add article 2.5 to title25
40 as follows:26
ARTICLE 2.527
SB26-102-7-
Large-load Data Centers1
40-2.5-101. Definitions.2
AS USED IN THIS ARTICLE 2.5, UNLESS THE CONTEXT OTHERWISE3
REQUIRES:4
(1) "C LOSED-LOOP COOLING SYSTEM " MEANS A COOLING5
CONFIGURATION THAT OPERATES BY RECIRCULATING AIR , WATER ,6
REFRIGERANTS, OR OTHER HEAT-TRANSFER MEDIUMS WITHIN SEALED OR7
SELF-CONTAINED EQUIPMENT TO ABSORB AND REJECT HEAT WITHOUT8
EXPOSURE TO THE ATMOSPHERE OR ROUTINE EVAPORATIVE WATER LOSS.9
(2) "CUMULATIVE IMPACTS" MEANS THE INCREMENTAL EFFECTS10
THAT A LARGE -LOAD DATA CENTER HAS ON THE ENVIRONMENT ,11
INCLUDING EFFECTS ON AIR QUALITY, WATER QUALITY, WATER RESOURCE12
AVAILABILITY, CLIMATE, NOISE, ODOR , WILDLIFE, AND PUBLIC HEALTH ,13
WHEN ADDED TO THE IMPACTS FROM OTHER PAST , PRESENT , AND14
REASONABLY FORESEEABLE FUTURE DEVELOPMENT OF ANY TYPE ON A15
DISPROPORTIONATELY IMPACTED COMMUNITY.16
(3) "DATA CENTER" MEANS A FACILITY THAT:17
(a) H OUSES INFORMATION TECHNOLOGY EQUIPMENT USED FOR18
DATA PROCESSING, DATA STORAGE, OR TELECOMMUNICATIONS; AND19
(b) H AS THE PRIMARY FUNCTION OF DELIVERING ONE OR MORE20
INFORMATION TECHNOLOGY SERVICES, INCLUDING:21
(I) P ROVIDING DATA STORAGE , PROCESSING , AND TRANSPORT22
SERVICES;23
(II) SUPPORTING THE DELIVERY OF CLOUD COMPUTING SERVICES;24
(III) PROVIDING NETWORK CONNECTIVITY SERVICES; AND25
(IV) SUPPORTING ARTIFICIAL INTELLIGENCE, MACHINE LEARNING,26
OR SIMILAR COMPUTATIONAL SERVICES.27
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(4) "E MERGENCY" MEANS AN UNPLANNED AND INVOLUNTARY1
INTERRUPTION OF UTILITY ELECTRIC SERVICE OR A CONDITION POSING AN2
IMMINENT RISK TO PUBLIC HEALTH OR SAFETY THAT IS DOCUMENTED AND3
VERIFIED BY THE SERVING ELECTRIC UTILITY.4
(5) "H OURLY MATCHING " MEANS THE DEMONSTRATED5
PROPORTION OF A LARGE-LOAD DATA CENTER'S HOURLY ENERGY USAGE6
MET BY PURCHASED OR GENERATED RENEWABLE RESOURCES ,7
REPRESENTED AS A PERCENTAGE AND DEMONSTRATED WITH CERTIFIED8
THIRD-PARTY ACCOUNTING, AS APPROVED BY THE COMMISSION.9
(6) "LARGE-LOAD DATA CENTER" MEANS:10
(a) A DATA CENTER THAT BEGINS OPERATION ON OR AFTER THE11
EFFECTIVE DATE OF THIS SECTION:12
(I) WITH A PEAK LOAD OF MORE THAN THIRTY MEGAWATTS; OR13
(II) THAT IS COVERED BY AN INTERCONNECTION AGREEMENT THAT14
ALLOWS FOR A PEAK LOAD OF MORE THAN THIRTY MEGAWATTS;15
(b) M ULTIPLE DATA CENTERS THAT BEGIN OPERATION ON OR16
AFTER THE EFFECTIVE DATE OF THIS SECTION AND THAT:17
(I) H AVE A COLLECTIVE PEAK LOAD OF MORE T HAN SIXTY18
MEGAWATTS; OR19
(II) A RE COVERED BY AN INTERCONNECTION AGREEMENT OR20
MULTIPLE INTERCONNECTION AGREEMENTS THAT ALLOW FOR A21
COLLECTIVE PEAK LOAD OF MORE THAN SIXTY MEGAWATTS;22
(c) A DATA CENTER EXISTING BEFORE THE EFFECTIVE DATE OF THIS23
SECTION THAT, ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION:24
(I) ADDS A PEAK LOAD OF MORE THAN THIRTY MEGAWATTS; OR25
(II) SIGNS A NEW INTERCONNECTION AGREEMENT THAT ALLOWS26
FOR ADDING A PEAK LOAD OF MORE THAN THIRTY MEGAWATTS; OR27
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(d) M ULTIPLE DATA CENTERS EXISTING BEFORE THE EFFECTIVE1
DATE OF THIS SECTION THAT, ON OR AFTER THE EFFECTIVE DATE OF THIS2
SECTION:3
(I) A DD A COLLECTIVE PEAK LOAD OF MORE THAN SIXTY4
MEGAWATTS AT MULTIPLE DATA CENTERS; OR5
(II) S IGN A NEW INTERCONNECTION AGREEMENT THAT ALLOWS6
FOR ADDING A COLLECTIVE PEAK LOAD OF MORE THAN SIXTY MEGAWATTS7
AT MULTIPLE DATA CENTERS.8
(7) "L ARGE-LOAD DATA CENTER DEVELOPER " OR "DEVELOPER"9
MEANS A PERSON THAT IS RESPONSIBLE FOR THE INITIAL DEVELOPMENT OF10
A LARGE-LOAD DATA CENTER, INCLUDING THE PURCHASE OF LAND AND11
THE CONSTRUCTION OF INFRASTRUCTURE INTENDED FOR A LARGE -LOAD12
DATA CENTER.13
(8) "L ARGE-LOAD DATA CENTER OPERATOR " OR "OPERATOR"14
MEANS AN OWNER OR OPERATOR OF A LARGE-LOAD DATA CENTER.15
(9) "LOCAL GOVERNMENT" MEANS A STATUTORY OR HOME RULE16
CITY, TOWN, COUNTY, OR CITY AND COUNTY.17
(10) "MULTIPLE DATA CENTERS" MEANS ALL DATA CENTERS THAT18
ARE:19
(a) LOCATED ON A SINGLE SITE OR ON CONTIGUOUS SITES; AND20
(b) OWNED OR OPERATED BY THE SAME PERSON OR BY A PERSON21
THAT CONTROLS, IS CONTROLLED BY , OR IS UNDER COMMON CONTROL22
WITH THE OTHER PERSON.23
(11) "OFFICE" MEANS THE COLORADO ENERGY OFFICE CREATED IN24
SECTION 24-38.5-101.25
(12) "PEAK LOAD" MEANS THE PEAK POWER CONSUMPTION TO BE26
USED BY A LARGE-LOAD DATA CENTER, MEASURED IN MEGAWATTS.27
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(13) "P OWER-USAGE EFFECTIVENESS " MEANS THE TOTAL1
ELECTRICITY CONSUMPTION OF A LARGE-LOAD DATA CENTER DIVIDED BY2
THE ELECTRICITY CONSUMPTION OF INFORMATION TECHNOLOGY3
EQUIPMENT, INCLUDING COMPUTING , STORAGE , AND NETWORKING4
EQUIPMENT, IN THE LARGE -LOAD DATA CENTER ON AN ANNUAL BASIS ,5
EXPRESSED AS A NUMBER.6
(14) "R ENEWABLE ENERGY STORAGE " HAS THE MEANING SET7
FORTH IN SECTION 40-2-124 (1)(a)(VII.5).8
(15) "R ENEWABLE RESOURCE " HAS THE SAME MEANING AS9
"RENEWABLE ENERGY RESOURCES " AS DEFINED IN SECTION 40-2-12410
(1)(a)(VII).11
(16) "USE BY RIGHT" MEANS A LAND USE THAT PROCEEDS UNDER12
OBJECTIVE STANDARDS SET FORTH IN ZONING OR OTHER LOCAL13
GOVERNMENT LAWS AND THAT DOES NOT HAVE A DISCRETIONARY14
APPROVAL PROCESS.15
(17) "WATER-USAGE EFFECTIVENESS" MEANS THE TOTAL WATER16
CONSUMPTION OF A LARGE-LOAD DATA CENTER, INCLUDING DIRECT AND17
INDIRECT WATER USAGE, DIVIDED BY THE ELECTRICITY CONSUMPTION OF18
INFORMATION TECHNOLOGY EQUIPMENT , INCLUDING COMPUTING ,19
STORAGE, AND NETWORKING EQUIPMENT , IN THE LARGE -LOAD DATA20
CENTER ON AN ANNUAL BASIS , EXPRESSED AS LITERS PER21
KILOWATT-HOUR.22
40-2.5-102. Hourly matching requirements - determination by23
commission.24
(1) NO LATER THAN JUNE 30, 2030, THE COMMISSION SHALL , IN25
CONSULTATION WITH THE OFFICE AND THE AIR POLLUTION CONTROL26
DIVISION IN THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AND27
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FOLLOWING A NONADJUDICATORY PROCEEDING WITH THE OPPORTUNITY1
FOR PUBLIC INPUT , MAKE A DETERMINATION ON WHETHER2
ONE-HUNDRED-PERCENT HOURLY MATCHING BY LARGE -LOAD DATA3
CENTERS IS TECHNICALLY AND ECONOMICALLY FEASIBLE.4
(2) I F THE COMMISSION DETERMINES THAT ACHIEVING5
ONE-HUNDRED-PERCENT HOURLY MATCHING BY LARGE -LOAD DATA6
CENTERS IS NOT TECHNICALLY AND ECONOMICALLY FEASIBLE , THE7
COMMISSION, IN CONSULTATION WITH THE OFFICE AND THE AIR POLLUTION8
CONTROL DIVISION AND FOLLOWING A NONADJUDICATORY PROCEEDING9
WITH THE OPPORTUNITY FOR PUBLIC INPUT , SHALL MAKE A10
DETERMINATION OF THE HIGHEST PERCENTAGE OF HOURLY MATCHING BY11
LARGE-LOAD DATA CENTERS THAT IS TECHNICALLY AND ECONOMICALLY12
FEASIBLE.13
(3) A FTER THE COMMISSION DETERMINES THE HIGHEST14
PERCENTAGE OF HOURLY MATCHING BY LARGE-LOAD DATA CENTERS THAT15
IS TECHNICALLY AND ECONOMICALLY FEASIBLE , THE COMMISSION , IN16
CONSULTATION WITH THE OFFICE AND THE AIR POLLUTION CONTROL17
DIVISION AND FOLLOWING A NONADJUDICATORY PROCEEDING WITH THE18
OPPORTUNITY FOR PUBLIC INPUT, SHALL UPDATE THIS PERCENTAGE ON A19
REGULAR BASIS BUT NO LESS FREQUENTLY THAN EVERY THREE YEARS20
AFTER THE DATE OF THE MOST RECENT DETERMINATION.21
(4) I N MAKING A DETERMINATION UNDER THIS SECTION , THE22
COMMISSION MAY CONSIDER THE ROLE OF FLEXIBLE LOAD , ENERGY23
EFFICIENCY, DISTRIBUTED ENERGY RESOURCES , AND VIRTUAL POWER24
PLANTS IN REDUCING PEAK DEMAND AND IMPROVING UTILIZATION OF25
RENEWABLE RESOURCES.26
40-2.5-103. Large-load data center requirements - utilization27
SB26-102-12-
of renewable resources - utility infrastructure and program1
contribution obligations - backup generation requirements.2
(1) A LARGE-LOAD DATA CENTER OPERATOR SHALL , BEGINNING3
JANUARY 1, 2031:4
(a) GENERATE, PURCHASE, OR OTHERWISE ACQUIRE A QUANTITY5
OF ELECTRICITY GENERATED FROM RENEWABLE RESOURCES NECESSARY6
TO MEET ONE HUNDRED PERCENT OF THE OPERATOR'S LARGE-LOAD DATA7
CENTER'S TOTAL ANNUAL ELECTRICITY CONSUMPTION FOR EACH YEAR8
THAT THE LARGE-LOAD DATA CENTER IS OPERATIONAL;9
(b) GENERATE, PURCHASE, OR OTHERWISE ACQUIRE A QUANTITY10
OF ELECTRICITY AND ASSOCIATED RENEWABLE ENERGY CREDITS11
GENERATED FROM RENEWABLE RESOURCES FOR THE OPERATOR 'S12
LARGE-LOAD DATA CENTER NECESSARY TO ACHIEVE AT LEAST THE13
HIGHEST PERCENTAGE OF HOURLY MATCHING THAT THE COMMISSION14
DETERMINES IS TECHNICALLY AND ECONOMICALLY FEASIBLE FOR15
LARGE-LOAD DATA CENTERS PURSUANT TO SECTION 40-2.5-102; AND16
(c) E NSURE THAT THE OPERATOR 'S LARGE-LOAD DATA CENTER17
COMPLIES WITH THE HOURLY MATCHING REQUIREMENT DETERMINED BY18
THE COMMISSION PURSUANT TO SECTION 40-2.5-102 IN EFFECT AT THE19
TIME THAT THE LARGE -LOAD DATA CENTER ENTERS INTO , RENEWS, OR20
MATERIALLY AMENDS A POWER PURCHASE AGREEMENT , RENEWABLE21
ENERGY CONTRACT, OR COMMISSION -APPROVED CLEAN ENERGY TARIFF22
USED FOR COMPLIANCE WITH THIS SECTION.23
(2) (a) THE RENEWABLE RESOURCES DESCRIBED IN SUBSECTION (1)24
OF THIS SECTION MUST BE NEW AND INCREMENTAL RESOURCES25
DELIVERABLE TO THE ELECTRIC GRID SERVING THE LARGE -LOAD DATA26
CENTER OR DELIVERABLE DIRECTLY TO THE LARGE-LOAD DATA CENTER.27
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(b) A NY RENEWABLE ENERGY CREDITS ASSOCIATED WITH THE1
ELECTRICITY GENERATED FROM RENEWABLE RESOURCES USED TO MEET2
THE REQUIREMENTS DESCRIBED IN SUBSECTION (1) OF THIS SECTION MUST3
BE RETIRED BY THE LARGE-LOAD DATA CENTER OPERATOR OR ON BEHALF4
OF THE LARGE -LOAD DATA CENTER OPERATOR IN THE YEAR THAT THE5
ELECTRICITY IS GENERATED.6
(3) A LARGE-LOAD DATA CENTER OPERATOR SHALL IMPLEMENT ITS7
COMPLIANCE WITH THE REQUIREMENTS DESCRIBED IN SUBSECTION (1) OF8
THIS SECTION THROUGH ONE OF THE FOLLOWING OR A COMBINATION OF9
THE FOLLOWING METHODS, WHICH MUST COVER ALL OF THE OPERATOR'S10
LARGE-LOAD DATA CENTER'S ELECTRICITY DEMANDS:11
(a) A TARIFF, CONTRACT, OR PROGRAM ENTERED INTO WITH THE12
UTILITY SUPPLYING THE LARGE-LOAD DATA CENTER WITH ELECTRICITY;13
(b) ONE OR MORE POWER PURCHASE AGREEMENTS ENTERED INTO14
WITH AN INDEPENDENT POWER PRODUCER SUPPLYING THE LARGE -LOAD15
DATA CENTER WITH ELECTRICITY; OR16
(c) SELF-SUPPLY OF ELECTRICITY, INCLUDING BEHIND-THE-METER17
GENERATION OF RENEWABLE RESOURCES , OR RENEWABLE ENERGY18
STORAGE USED TO SERVE THE LARGE-LOAD DATA CENTER'S ELECTRICITY19
DEMANDS.20
(4) THROUGH CONTRACTS WITH UTILITIES OF AT LEAST FIFTEEN21
YEARS, IF USING UTILITY POWER SUPPLY , A LARGE -LOAD DATA CENTER22
OPERATOR SHALL PAY FOR THE FOLLOWING:23
(a) ALL OF THE COSTS ASSOCIATED WITH A UTILITY CONSTRUCTING24
OR PROCURING GENERATION , TRANSMISSION , AND DISTRIBUTION25
INFRASTRUCTURE NECESSARY TO SUPPLY THE OPERATOR 'S LARGE-LOAD26
DATA CENTER WITH ELECTRICITY;27
SB26-102-14-
(b) T HE OPERATOR 'S SHARE OF EXISTING GENERATION ,1
TRANSMISSION, DISTRIBUTION, AND OTHER RESOURCES NEEDED TO SERVE2
THE OPERATOR'S LARGE-LOAD DATA CENTER AND OTHER ENERGY SUPPLY3
AND OPERATIONS INFRASTRUCTURE AND EQUIPMENT REQUIRED TO4
MAINTAIN GRID RELIABILITY AND OPERATIONAL PERFORMANCE FOR OTHER5
CUSTOMERS; AND6
(c) A LL OF THE COSTS OF RENEWABLE RESOURCE ELECTRICITY7
CURTAILMENTS AND RESERVE REQUIREMENTS ASSOCIATED WITH THE8
OPERATOR'S RENEWABLE RESOURCE ELECTRICITY PURCHASES AND OF9
INFRASTRUCTURE AND INVESTMENTS REQUIRED TO MAINTAIN GRID10
SERVICE, STABILITY, AND RELIABILITY DUE TO STRESS ON THE ELECTRICAL11
SYSTEM CAUSED BY THE OPERATOR'S LARGE-LOAD DATA CENTER.12
(5) (a) A LARGE -LOAD DATA CENTER OPERATOR SHALL13
CONTRIBUTE TO UTILITY DEMAND -SIDE MANAGEMENT PROGRAMS . THE14
AMOUNT OF MONEY THAT THE OPERATOR IS REQUIRED TO CONTRIBUTE15
MUST BE BASED ON THE LARGE -LOAD DATA CENTER 'S TOTAL ANNUAL16
ELECTRICITY CONSUMPTION AND THE COST-RECOVERY MECHANISMS THAT17
FUND THE DEMAND-SIDE MANAGEMENT PROGRAMS.18
(b) SUBSECTION (5)(a) OF THIS SECTION APPLIES TO A LARGE-LOAD19
DATA CENTER OPERATOR REGARDLESS OF WHETHER THE ELECTRICITY IS20
SUPPLIED BY A UTILITY OR ANOTHER SOURCE AS LONG AS THE21
LARGE-LOAD DATA CENTER IS CONNECTED TO THE UTILITY'S SYSTEM.22
(6) A LARGE -LOAD DATA CENTER OPERATOR SHALL OPTIMIZE23
OPERATIONAL WATER MANAGEMENT THROUGH THE IMPLEMENTATION OF24
WATER-EFFICIENT TECHNOLOGY , AS DETERMINED BY A LOCAL25
GOVERNMENT WITH JURISDICTION OVER THE LARGE-LOAD DATA CENTER.26
(7) (a) (I) ON-SITE BACKUP POWER SERVING A LARGE-LOAD DATA27
SB26-102-15-
CENTER MUST MAXIMIZE RELIANCE ON RENEWABLE RESOURCES AND1
RENEWABLE ENERGY STORAGE , TO THE EXTENT TECHNICALLY AND2
ECONOMICALLY FEASIBLE.3
(II) A LARGE -LOAD DATA CENTER OPERATOR MAY RELY ON4
ON-SITE, COMBUSTION -BASED BACKUP GENERATION ONLY AFTER5
EVALUATING AND DEPLOYING NONCOMBUSTION BACKUP ALTERNATIVES6
TO THE MAXIMUM EXTENT PRACTICABLE.7
(b) IF A LARGE-LOAD DATA CENTER USES ONE OR MORE ON -SITE8
COMBUSTION GENERATORS FOR BACKUP GENERATION , THE GENERATOR9
MUST:10
(I) B E LIMITED TO USE IN AN EMERGENCY AND FOR REQUIRED11
TESTING AND MAINTENANCE. THE TOTAL AMOUNT OF USE FOR REQUIRED12
TESTING AND MAINTENANCE MUST BE FOR NO MORE THAN FIFTY HOURS13
PER YEAR.14
(II) N OT BE USED FOR ROUTINE PEAK SHAVING , ECONOMIC15
DISPATCH, CAPACITY OR ANCILLARY SERVICE MARKETS , OR ANY16
NONEMERGENCY GRID SUPPORT; AND17
(III) USE NONRESETTABLE METERS TO TRACK OPERATING HOURS.18
(c) IF A LARGE-LOAD DATA CENTER USES ONE OR MORE ON -SITE19
COMBUSTION GENERATORS POWERED BY FUEL OIL FOR BACKUP20
GENERATION, THE GENERATOR MUST:21
(I) M EET OR EXCEED THE UNITED STATES ENVIRONMENTAL22
PROTECTION AGENCY 'S TIER 4 FINAL EMISSIONS STANDARDS FOR23
STATIONARY COMPRESSION -IGNITION ENGINES IN EFFECT ON THE24
EFFECTIVE DATE OF THIS SECTION;25
(II) UTILIZE ULTRA-LOW SULFUR DIESEL; AND26
(III) BE EQUIPPED WITH THE BEST AVAILABLE EMISSIONS CONTROL27
SB26-102-16-
TECHNOLOGIES TO ACHIEVE THE UNITED STATES ENVIRONMENTAL1
PROTECTION AGENCY 'S TIER 4 FINAL EMISSIONS STANDARDS FOR2
STATIONARY COMPRESSION -IGNITION ENGINES IN EFFECT ON THE3
EFFECTIVE DATE OF THIS SECTION , INCLUDING DIESEL PARTICULATE4
FILTERS AND SELECTIVE CATALYTIC REDUCTION CONTROLS, WHICH MUST5
BE PROPERLY OPERATED AND MAINTAINED.6
(d) IF A LARGE-LOAD DATA CENTER USES ONE OR MORE ON-SITE,7
GAS-POWERED COMBUSTION GENERATORS FOR BACKUP GENERATION:8
(I) A NY STATIONARY SPARK -IGNITION ENGINES MUST MEET OR9
EXCEED THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 'S10
EMISSIONS STANDARDS FOR STATIONARY SPARK -IGNITION ENGINES IN11
EFFECT ON THE EFFECTIVE DATE OF THIS SECTION;12
(II) A NY STATIONARY COMBUSTION TURBINES MUST MEET OR13
EXCEED THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 'S14
EMISSIONS STANDARDS FOR STATIONARY COMBUSTION TURBINES IN15
EFFECT ON THE EFFECTIVE DATE OF THIS SECTION; AND16
(III) T HE GENERATORS MUST EMPLOY THE BEST AVAILABLE17
METHANE LEAK DETECTION AND REPAIR PRACTICES AND PROHIBIT18
ROUTINE VENTING OR BYPASSING OF EMISSIONS CONTROLS.19
40-2.5-104. Reporting to the department of public health and20
environment.21
(1) NO LATER THAN JUNE 30, 2028, AND NO LATER T HAN EACH22
JUNE 30 THEREAFTER , A LARGE -LOAD DATA CENTER OPERATOR SHALL23
REPORT TO THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT THE24
FOLLOWING INFORMATION FOR THE PREVIOUS CALENDAR YEAR FOR THE25
OPERATOR'S LARGE-LOAD DATA CENTER:26
(a) TOTAL ANNUAL ELECTRICITY CONSUMPTION;27
SB26-102-17-
(b) PEAK LOAD;1
(c) T OTAL ANNUAL ELECTRICITY SUPPLY SERVING THE2
LARGE-LOAD DATA CENTER, DISAGGREGATED BY:3
(I) E LECTRICITY PURCHASED FROM OFF -SITE RENEWABLE4
RESOURCES, BY SOURCE;5
(II) E LECTRICITY PURCHASED FROM OFF -SITE NONRENEWABLE6
RESOURCES, BY SOURCE;7
(III) E LECTRICITY GENERATED ON SITE FROM RENEWABLE8
RESOURCES;9
(IV) E LECTRICITY DISCHARGED ON SITE FROM RENEWABLE10
ENERGY STORAGE; AND11
(V) E LECTRICITY GENERATED ON SITE FROM NONRENEWABLE12
RESOURCES, INCLUDING COMBUSTION-BASED BACKUP GENERATION;13
(d) HOURLY CONSUMPTION OF ELECTRICITY PROVIDED FOR EIGHT14
THOUSAND SEVEN HUNDRED SIXTY HOURS;15
(e) HOURLY ELECTRICITY SUPPLY FROM RENEWABLE RESOURCES16
FOR EIGHT THOUSAND SEVEN HUNDRED SIXTY HOURS;17
(f) TOTAL INSTALLED CAPACITY OF:18
(I) O N-SITE RENEWABLE RESOURCES , BY FUEL TYPE AND IN19
MEGAWATTS;20
(II) O N-SITE RENEWABLE ENERGY STORAGE CAPACITY , IN21
MEGAWATTS AND IN MEGAWATT-HOURS; AND22
(III) O N-SITE BACKUP GENERATION , BY FUEL TYPE AND IN23
MEGAWATTS;24
(g) T OTAL ANNUAL HOURS OF OPERATION FOR EACH ON -SITE25
BACKUP GENERATOR , DISAGGREGATED BY FUEL TYPE AND BY USE26
CATEGORY, INCLUDING FOR EMERGENCY USE AND USE IN TESTING OR27
SB26-102-18-
MAINTENANCE;1
(h) T OTAL ANNUAL DISCHARGE FROM RENEWABLE ENERGY2
STORAGE;3
(i) POWER-USAGE EFFECTIVENESS;4
(j) TOTAL ANNUAL WATER CONSUMPTION, INCLUDING PEAK WATER5
DEMAND PER DAY , TYPES OF COOLING TECHNOLOGIES EMPLOYED , AND6
EFFORTS TO IMPROVE ON-SITE WATER EFFICIENCY AND REUSE;7
(k) T OTAL WATER INPUT IN CUBIC METERS THAT INCLUDES ALL8
WATER VOLUMES THAT ENTER THE LARGE-LOAD DATA CENTER THAT ARE9
USED FOR THE FUNCTIONS OF THE LARGE-LOAD DATA CENTER;10
(l) THE SOURCES OF WATER FOR THE LARGE-LOAD DATA CENTER,11
INCLUDING MUNICIPAL WATER SUPPLY , GROUNDWATER , AND SURFACE12
WATER, AND WHETHER WATER FROM THE SOURCES IS POTABLE OR13
RECLAIMED. IF THE LARGE-LOAD DATA CENTER UTILIZES MORE THAN ONE14
WATER SOURCE, THE OPERATOR SHALL PROVIDE INFORMATION REGARDING15
WATER USAGE FROM EACH SOURCE AS A PERCENTAGE OF TOTAL WATER16
USAGE.17
(m) WATER-USAGE EFFECTIVENESS; AND18
(n) THE TOTAL AMOUNT OF INCENTIVES OR SUBSIDIES RECEIVED BY19
THE LARGE-LOAD DATA CENTER OPERATOR FROM LOCAL GOVERNMENTS,20
ECONOMIC DEVELOPMENT ORGANIZATIONS, OR OTHER ENTITIES FOR THE21
DEVELOPMENT OF THE LARGE-LOAD DATA CENTER.22
(2) N OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE23
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT SHALL COMPILE THE24
INFORMATION REPORTED TO THE DEPARTMENT PURSUANT TO SUBSECTION25
(1) OF THIS SECTION AND PROVIDE AN ANNUAL REPORT TO THE GENERAL26
ASSEMBLY AND THE COMMISSION AND MAKE THE ANNUAL REPORT27
SB26-102-19-
PUBLICLY AVAILABLE ON THE DEPARTMENT'S WEBSITE.1
40-2.5-105. Utility requirements - definition.2
(1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE3
REQUIRES, "UTILITY" INCLUDES:4
(a) A COOPERATIVE ELECTRIC ASSOCIATION , AS DEFINED IN5
SECTION 40-9.5-102 (1);6
(b) A MUNICIPAL ELECTRIC UTILITY; AND7
(c) A WHOLESALE ELECTRIC COOPERATIVE, AS DEFINED IN SECTION8
40-2-134 (2).9
(2) (a) A UTILITY SHALL NOT INTERCONNECT OR SUPPLY10
ELECTRICITY TO A LARGE-LOAD DATA CENTER UNLESS THE LARGE-LOAD11
DATA CENTER OPERATOR HAS EITHER FIRST PROVIDED AN UP -FRONT12
PAYMENT OR ENTERED INTO A CONTRACT OF AT LEAST FIFTEEN YEARS13
WITH THE UTILITY , WHICH UP -FRONT PAYMENT OR CONTRACT MUST14
REQUIRE THE OPERATOR TO PAY FOR THE FOLLOWING:15
(I) A LL OF THE COSTS ASSOCIATED WITH THE UTILITY16
CONSTRUCTING OR PROCURING GENERATION , TRANSMISSION , AND17
DISTRIBUTION INFRASTRUCTURE NECESSARY TO SUPPLY THE OPERATOR'S18
LARGE-LOAD DATA CENTER WITH ELECTRICITY;19
(II) T HE OPERATOR 'S SHARE OF EXISTING GENERATION ,20
TRANSMISSION, DISTRIBUTION, AND OTHER RESOURCES NEEDED TO SERVE21
THE OPERATOR'S LARGE-LOAD DATA CENTER AND OTHER ENERGY SUPPLY22
AND OPERATIONS INFRASTRUCTURE AND EQUIPMENT REQUIRED TO23
MAINTAIN GRID RELIABILITY AND OPERATIONAL PERFORMANCE FOR THE24
UTILITY'S OTHER CUSTOMERS; AND25
(III) ALL OF THE COSTS OF RENEWABLE RESOURCE ELECTRICITY26
CURTAILMENTS AND RESERVE REQUIREMENTS ASSOCIATED WITH THE27
SB26-102-20-
OPERATOR'S RENEWABLE RESOURCE ELECTRICITY PURCHASES AND THE1
COSTS OF INFRASTRUCTURE AND INVESTMENTS REQUIRED TO MAINTAIN2
GRID SERVICE , STABILITY , AND RELIABILITY DUE TO STRESS ON THE3
ELECTRICAL SYSTEM CAUSED BY THE OPERATOR 'S LARGE -LOAD DATA4
CENTER.5
(b) IN ESTABLISHING COST ALLOCATION IN ELECTRICITY RATES, A6
UTILITY SHALL ACCOUNT FOR COST CAUSATION FOR LARGE -LOAD DATA7
CENTERS ACROSS ALL HOURS OF THE YEAR.8
(c) A UTILITY MAY REQUIRE A LARGE-LOAD DATA CENTER IN THE9
UTILITY'S SERVICE TERRITORY WITH A SELF -SUPPLY OF ELECTRICITY TO10
ENTER INTO A CONTRACT OR PROVIDE UP -FRONT PAYMENTS FOR THE11
COSTS THAT THE LARGE-LOAD DATA CENTER IMPOSES ON THE UTILITY TO12
PROVIDE BACKUP POWER.13
(3) A UTILITY SHALL NOT INTERCONNECT OR SUPPLY ELECTRICITY14
TO A LARGE-LOAD DATA CENTER ON OR AFTER JANUARY 1, 2031, UNLESS15
IT HAS VERIFIED THAT THE LARGE -LOAD DATA CENTER OPERATOR IS IN16
COMPLIANCE WITH THE HOURLY MATCHING REQUIREMENT DETERMINED17
BY THE COMMISSION PURSUANT TO SECTION 40-2.5-102.18
(4) A UTILITY SHALL NOT OFFER ECONOMIC DEVELOPMENT RATES19
PURSUANT TO SECTION 40-3-104.3 TO LARGE-LOAD DATA CENTERS.20
(5) (a) A UTILITY SHALL DEVELOP AND OFFER AT LEAST ONE OF21
THE FOLLOWING TO THE UTILITY 'S CUSTOMERS THAT ARE LARGE -LOAD22
DATA CENTER OPERATORS:23
(I) O NE OR MORE DEMAND RESPONSE PROGRAMS , WHICH24
PROGRAMS MUST NOT ALLOW THE USE OF DIESEL GENERATORS , THAT25
ENCOURAGE LARGE-LOAD DATA CENTER OPERATORS TO SIGNIFICANTLY26
REDUCE THE POWER DEMAND OF THE OPERATOR 'S LARGE -LOAD DATA27
SB26-102-21-
CENTER DURING PEAK PERIODS THROUGH LOAD -SHIFTING, BATTERY1
STORAGE , UNINTERRUPTIBLE POWER SUPPLY , OR ON -SITE OR2
ZERO-EMISSIONS BACKUP GENERATION; OR3
(II) F LEXIBLE CONNECTION TARIFFS OR OTHER TARIFFS THAT4
ENCOURAGE OR REQUIRE LARGE -LOAD DATA CENTER OPERATORS TO5
SIGNIFICANTLY REDUCE THE POWER DEMAND OF THE OPERATOR 'S6
LARGE-LOAD DATA CENTER DURING PEAK PERIODS.7
(b) A UTILITY MAY:8
(I) P ROVIDE EXPEDITED INTERCONNECTION TO A LARGE -LOAD9
DATA CENTER OPERATOR THAT COMMITS TO FLEXIBLE INTERCONNECTION10
OR COMMITS TO ACHIEVING AT LEAST EIGHTY -PERCENT HOURLY11
MATCHING OF RENEWABLE RESOURCES WITH THE LARGE -LOAD DATA12
CENTER'S ELECTRICITY CONSUMPTION BY 2030; AND13
(II) REQUIRE FLEXIBLE INTERCONNECTION AS A CONDITION FOR14
INTERCONNECTION OF A LARGE-LOAD DATA CENTER.15
(c) AN INTERCONNECTION AGREEMENT BETWEEN A UTILITY AND16
A LARGE-LOAD DATA CENTER OPERATOR MUST INCLUDE A REQUIREMENT17
FOR AN UP -FRONT PAYMENT OR SECURITY BY THE LARGE -LOAD DATA18
CENTER OPERATOR AND SIGNIFICANT MONTHLY DEMAND CHARGES ,19
UNLESS THE OPERATOR PARTICIPATES IN A FLEXIBLE INTERCONNECTION20
TARIFF OR PROGRAM THAT PROVIDES SYSTEM BENEFITS FOR WHICH21
CORRESPONDING CHARGES MAY BE REDUCED WITHOUT CREATING22
CROSS-SUBSIDIZATION BY OTHER CUSTOMER CLASSES.23
(6) (a) A UTILITY SHALL NOT INTERCONNECT OR SUPPLY24
ELECTRICITY TO A LARGE-LOAD DATA CENTER UNLESS THE UTILITY HAS25
DETERMINED AND ENSURES THAT THE ADDITION OF THE LARGE -LOAD26
DATA CENTER TO THE UTILITY'S SYSTEM:27
SB26-102-22-
(I) D OES NOT NEGATIVELY AFFECT THE UTILITY 'S ABILITY TO1
PROVIDE RELIABLE ELECTRIC SERVICE TO EXISTING CUSTOMERS;2
(II) D OES NOT NEGATIVELY AFFECT THE UTILITY 'S ABILITY TO3
COMPLY WITH SECTION 25-7-105 OR THE RULES ADOPTED PURSUANT TO4
SECTION 25-7-105 OR THE UTILITY'S ACHIEVEMENT OF THE CLEAN ENERGY5
TARGETS DESCRIBED IN SECTION 40-2-125.5 (3), IF APPLICABLE, OR OTHER6
APPLICABLE CLEAN ENERGY AND EMISSIONS TARGETS , INCLUDING7
ECONOMY-WIDE TARGETS; AND8
(III) D OES NOT INCREASE THE UTILITY 'S GREENHOUSE GAS9
EMISSIONS FOR THE FIFTEEN YEARS AFTER THE ADDITION OF THE10
LARGE-LOAD DATA CENTER, COMPARED TO PROJECTED GREENHOUSE GAS11
EMISSIONS BY THE UTILITY WITHOUT THE ADDITION OF THE LARGE-LOAD12
DATA CENTER.13
(b) A NY COSTS INCURRED BY A UTILITY IN MAKING THE14
DETERMINATION DESCRIBED IN SUBSECTION (6)(a) OF THIS SECTION MUST15
BE BORNE BY THE LARGE-LOAD DATA CENTER SEEKING INTERCONNECTION.16
(7) (a) A UTILITY SHALL SOLICIT AND ACCEPT , IF OFFERED BY A17
LARGE-LOAD DATA CENTER OPERATOR , VOLUNTARY FINANCIAL18
CONTRIBUTIONS TO THE UTILITY'S INCOME-QUALIFIED ENERGY EFFICIENCY,19
ELECTRIFICATION, DEMAND RESPONSE, DISTRIBUTED ENERGY RESOURCES,20
OR VIRTUAL POWER PLANT PROGRAMS.21
(b) I F A LARGE -LOAD DATA CENTER OPERATOR PROVIDES A22
VOLUNTARY FINANCIAL CONTRIBUTION , THE VOLUNTARY FINANCIAL23
CONTRIBUTION MUST SUPPLEMENT , RATHER THAN SUBSTITUTE , THE24
UTILITY'S FUNDING OF THE PROGRAMS DESCRIBED IN SUBSECTION (7)(a) OF25
THIS SECTION. A VOLUNTARY FINANCIAL CONTRIBUTION BY A LARGE-LOAD26
DATA CENTER OPERATOR IS NOT SUBJECT TO COST -EFFECTIVENESS27
SB26-102-23-
TESTING AND SHALL NOT BE COUNTED AS PART OF UTILITY EXPENDITURES1
RELATIVE TO ANY BUDGET CAPS FOR THE PROGRAMS DESCRIBED IN2
SUBSECTION (7)(a) OF THIS SECTION.3
(c) A UTILITY THAT RECEIVES A VOLUNTARY FINANCIAL4
CONTRIBUTION FROM ONE OR MORE LARGE -LOAD DATA CENTER5
OPERATORS SHALL INCLUDE INFORMATION ABOUT THE VOLUNTARY6
FINANCIAL CONTRIBUTION, INCLUDING THE AMOUNT RECEIVED, HOW THE7
MONEY WAS USED , AND ANY DEMONSTRATED CUSTOMER OR GRID8
BENEFITS, IN THE UTILITY 'S ANNUAL ENERGY EFFICIENCY AND9
ELECTRIFICATION REPORTS.10
(8) (a) A UTILITY RATE-REGULATED BY THE COMMISSION WITH ONE11
OR MORE CUSTOMERS THAT ARE LARGE-LOAD DATA CENTER OPERATORS12
SHALL DESCRIBE THE UTILITY'S EFFORTS TO COMPLY WITH THIS SECTION13
IN THE UTILITY'S ANNUAL REPORT FILED WITH THE COMMISSION.14
(b) A UTILITY RATE-REGULATED BY THE COMMISSION WITH ONE OR15
MORE CUSTOMERS THAT ARE LARGE -LOAD DATA CENTER OPERATORS16
SHALL PROVIDE MONTHLY REPORTING TO THE COMMISSION ON THE17
FOLLOWING:18
(I) NUMBER AND CAPACITY OF NEW LARGE -LOAD DATA CENTER19
INTERCONNECTION REQUESTS;20
(II) NUMBER AND CAPACITY OF NEW LARGE-LOAD DATA CENTER21
INTERCONNECTION REQUESTS REJECTED BY THE UTILITY OR WITHDRAWN;22
(III) T OTAL CAPACITY OF NEW LARGE -LOAD DATA CENTER23
INTERCONNECTION REQUESTS IN QUEUE WITH A SIGNED INTERCONNECTION24
AGREEMENT; AND25
(IV) NUMBER AND CAPACITY OF NEW LARGE-LOAD DATA CENTER26
CUSTOMER INTERCONNECTIONS COMPLETED AND IN OPERATION.27
SB26-102-24-
(9) NOTHING IN THIS SECTION PROHIBITS THE COMMISSION FROM1
ADOPTING A TARIFF FOR LARGE -LOAD DATA CENTER OPERATORS , OR A2
SUBSET OF LARGE-LOAD DATA CENTER OPERATORS, THAT INCLUDES MORE3
STRINGENT REQUIREMENTS THAN THIS SECTION.4
40-2.5-106. Model local codes by the department of local5
affairs - site assessments.6
(1) (a) ON OR BEFORE JUNE 30, 2027, THE DEPARTMENT OF LOCAL7
AFFAIRS SHALL PUBLISH MODEL CODES FOR THE DEVELOPMENT OF8
LARGE-LOAD DATA CENTERS. THE MODEL CODES MUST CONSIDER , AT A9
MINIMUM, BEST PRACTICES FOR THE FOLLOWING:10
(I) U PDATING LOCAL ZONING LAWS TO RESPOND TO THE11
PROLIFERATION OF LARGE-LOAD DATA CENTERS;12
(II) A VOIDING AND MITIGATING POTENTIAL NEW IMPACTS TO13
RESIDENTS FROM NOISE , LIGHT , AIR , ELECTROMAGNETIC FIELDS , AND14
OTHER SOURCES OF POLLUTION , INCLUDING FROM ON -SITE BACKUP15
GENERATION;16
(III) U PDATING PUBLIC ENGAGEMENT PROCESSES RELATED TO17
LARGE-LOAD DATA CENTER DEVELOPMENT;18
(IV) ESTABLISHING WATER AND LAND USE POLICY MECHANISMS19
AND DEVELOPMENT REVIEW PROCESSES TO ALIGN LARGE WATER USER20
DEVELOPMENT WITH SUSTAINABLE WATER MANAGEMENT , INCLUDING21
WATER-RELATED SITING CONSIDERATIONS , THE USE OF NONPOTABLE22
SUPPLIES AND ON-SITE WATER REUSE, AND WATER EFFICIENCY TOOLS AND23
TECHNOLOGY. THE POLICY MECHANISMS AND DEVELOPMENT REVIEW24
PROCESSES MAY INCLUDE:25
(A) ESTABLISHING ADDITIONAL REQUIREMENTS FOR LARGE WATER26
USERS;27
SB26-102-25-
(B) I MPLEMENTING WATER DEMAND OFFSET OR NET NEUTRAL1
GROWTH POLICIES;2
(C) A DOPTING WATER ALLOCATION POLICIES WITH QUANTIFIED3
WATER RESOURCES FOR WATER INTENSIVE INDUSTRIAL GROWTH;4
(D) R EQUIRING CONSERVATION PLANS WITH IDENTIFIED5
EFFICIENCY AND REUSE BEST PRACTICES IN WATER SERVICE APPLICATIONS;6
OR7
(E) D EVELOPING REPORTING GUIDANCE AND TEMPLATES FOR8
WATER AND WASTE USE STREAMS;9
(V) R EQUIRING A LARGE -LOAD DATA CENTER DEVELOPER TO10
PROVE TO A LOCAL GOVERNMENT IN ITS DEVELOPMENT PERMIT11
APPLICATION HOW THE LARGE -LOAD DATA CENTER PROJECT WILL FIT12
WITHIN LOCAL GOVERNMENT STRATEGIC PLANNING AND LAWS WITH13
CLEAR AND TRANSPARENT TIMELINES , PLANS , AND ACCOUNTABILITY14
MEASURES;15
(VI) C REATING AND IMPLEMENTING COMMUNITY BENEFIT16
AGREEMENTS, INCLUDING RECOMMENDATIONS FOR PUBLIC ENGAGEMENT;17
AND18
(VII) I MPLEMENTING REPORTING REQUIREMENTS TO LOCAL19
GOVERNMENTS AND IMPACTED COMMUNITIES RELATED TO ON-SITE FOSSIL20
FUEL GENERATION.21
(b) T HE DEPARTMENT OF LOCAL AFFAIRS SHALL CONDUCT A22
ROBUST STAKEHOLDER AND ENGAGEMENT PROCESS IN DEVELOPING THE23
MODEL CODES DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION ,24
INCLUDING ENGAGEMENT WITH:25
(I) S TATE AGENCIES , INCLUDING THE AIR POLLUTION CONTROL26
DIVISION AND THE WATER QUALITY CONTROL DIVISION IN THE27
SB26-102-26-
DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, THE COMMISSION,1
THE OFFICE, AND THE DEPARTMENT OF NATURAL RESOURCES;2
(II) COLORADO CONSUMER PROTECTION ORGANIZATIONS;3
(III) STATEWIDE LABOR AND TRADE ASSOCIATIONS;4
(IV) STATEWIDE ENERGY AND CLIMATE ORGANIZATIONS;5
(V) COLORADO AGRICULTURAL INTERESTS;6
(VI) DISPROPORTIONATELY IMPACTED COMMUNITIES;7
(VII) LARGE-LOAD DATA CENTER DEVELOPERS;8
(VIII) LARGE-LOAD DATA CENTER OPERATORS;9
(IX) TRIBAL GOVERNMENTS;10
(X) MUNICIPAL WATER UTILITIES; AND11
(XI) MUNICIPAL ELECTRIC UTILITIES AND COOPERATIVE ELECTRIC12
ASSOCIATIONS.13
(c) T HE DEPARTMENT OF LOCAL AFFAIRS SHALL EVALUATE ,14
UPDATE, AND REVIEW THE MODEL CODES DESCRIBED IN SUBSECTION (1)(a)15
OF THIS SECTION EVERY FIVE YEARS AFTER THE DATE OF THE PUBLISHING16
OF THE MODEL CODES.17
(2) W ITH ITS DEVELOPMENT PERMIT APPLICATION FOR A18
LARGE-LOAD DATA CENTER , A LARGE -LOAD DATA CENTER DEVELOPER19
SHALL SUBMIT A SITE ASSESSMENT TO THE LOCAL GOVERNMENT20
REVIEWING THE DEVELOPMENT PERMIT APPLICATION. A SITE ASSESSMENT21
MUST INCLUDE DESCRIPTIONS OF:22
(a) A NTICIPATED TOTAL WATER FOOTPRINT , INCLUDING DIRECT23
AND INDIRECT WATER USAGE AND TOTAL WATER INPUT IN CUBIC METERS;24
(b) P LANNED WATER SOURCES , INCLUDING INFORMATION25
REGARDING WATER USAGE FROM EACH SOURCE AS A PERCENTAGE OF26
TOTAL WATER USAGE;27
SB26-102-27-
(c) ANTICIPATED ON-SITE AIR EMISSIONS, INCLUDING EMISSIONS OF1
GREENHOUSE GASES; TOXIC AIR CONTAMINANTS, AS DEFINED IN SECTION2
25-7-109.5 (1)(i); AND CRITERIA POLLUTANTS , AS DEFINED IN SECTION3
43-1-128 (2)(b);4
(d) ANY POTENTIAL IMPACTS ON AGRICULTURAL, HISTORIC, AND5
CULTURAL RESOURCES WITHIN THE LOCAL GOVERNMENT'S JURISDICTION;6
(e) E FFORTS TO LOCATE BACKUP GENERATION AND OTHER7
SOURCES OF AIR, NOISE, AND LIGHT POLLUTION AS FAR AS REASONABLY8
POSSIBLE FROM RESIDENCES, SCHOOLS, AND HEALTH CLINICS; AND9
(f) A DESCRIPTION OF INITIAL AND ONGOING OPPORTUNITIES FOR10
PUBLIC ENGAGEMENT.11
(3) NOTHING IN THIS SECTION ESTABLISHES, ALTERS, IMPAIRS, OR12
NEGATES THE ABILITY OF A LOCAL GOVERNMENT TO REGULATE LAND USE13
RELATED TO LARGE -LOAD DATA CENTERS ; EXCEPT THAT A LOCAL14
GOVERNMENT SHALL NOT ALLOW LARGE -LOAD DATA CENTERS TO BE15
ZONED AS A USE BY RIGHT.16
40-2.5-107. Disproportionately impacted communities -17
cumulative impacts analysis - review of development permit18
application by local governments - community engagement -19
community benefit agreements.20
(1) (a) IF THE SITING OF A LARGE-LOAD DATA CENTER IS PROPOSED21
IN A DISPROPORTIONATELY IMPACTED COMMUNITY OR IF AN OPERATOR OF22
A DATA CENTER IN A DISPROPORTIONATELY IMPACTED COMMUNITY THAT23
EXISTS BEFORE THE EFFECTIVE DATE OF THIS SECTION PLANS TO EXPAND24
THE DATA CENTER 'S PEAK LOAD SUCH THAT THE DATA CENTER WILL25
BECOME A LARGE-LOAD DATA CENTER, THE LARGE-LOAD DATA CENTER26
DEVELOPER OR LARGE -LOAD DATA CENTER OPERATOR , AS APPLICABLE ,27
SB26-102-28-
SHALL UNDERGO A CUMULATIVE IMPACTS ANALYSIS BEFORE THE1
DEVELOPMENT OR EXPANSION BEGINS.2
(b) I N CONDUCTING THE CUMULATIVE IMPACTS ANALYSIS3
DESCRIBED IN SUBSECTION (1)(a) OF THIS SECTION , A DEVELOPER OR4
OPERATOR SHALL CONTRACT WITH A THIRD -PARTY CONTRACTOR5
SELECTED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT TO6
PERFORM THE CUMULATIVE IMPACTS ANALYSIS IN A SCIENTIFICALLY7
RIGOROUS MANNER. THE COSTS OF THE THIRD-PARTY CONTRACTOR MUST8
BE BORNE ENTIRELY BY THE DEVELOPER OR OPERATOR.9
(2) I N REVIEWING , APPROVING , DENYING , OR AMENDING A10
DEVELOPMENT PERMIT APPLICATION FOR A LARGE -LOAD DATA CENTER11
THAT IS IN A DISPROPORTIONATELY IMPACTED COMMUNITY OR IS12
PROPOSED TO BE IN A DISPROPORTIONATELY IMPACTED COMMUNITY ,13
INCLUDING A DEVELOPMENT PERMIT MODIFICATION THAT WOULD CAUSE14
A DATA CENTER IN A DISPROPORTIONATELY IMPACTED COMMUNITY TO15
BECOME A LARGE -LOAD DATA CENTER , THE APPLICABLE LOCAL16
GOVERNMENT SHALL CONSIDER THE APPLICANT'S CUMULATIVE IMPACTS17
ANALYSIS. IF THE LOCAL GOVERNMENT FINDS THAT THE LARGE -LOAD18
DATA CENTER PROPOSED BY THE APPLICATION WILL HAVE NET NEGATIVE19
CUMULATIVE IMPACTS ON A DISPROPORTIONATELY IMPACTED20
COMMUNITY, THE LOCAL GOVERNMENT SHALL CONSIDER IF MITIGATION21
STRATEGIES DESCRIBED BY THE APPLICANT ARE SUFFICIENT TO AVOID THE22
NEGATIVE IMPACTS IDENTIFIED IN THE CUMULATIVE IMPACTS ANALYSIS.23
THE LOCAL GOVERNMENT MAY CONSULT WITH THE DEPARTMENT OF24
PUBLIC HEALTH AND ENVIRONMENT REGARDING THE RESULTS OF THE25
CUMULATIVE IMPACTS ANALYSIS AND PROPOSED MITIGATION STRATEGIES.26
IN REVIEWING, APPROVING, DENYING, OR AMENDING AN APPLICATION, THE27
SB26-102-29-
LOCAL GOVERNMENT SHALL INCLUDE A PLAIN LANGUAGE SUMMARY OF ITS1
DETERMINATION.2
(3) (a) P RIOR TO APPLYING FOR A DEVELOPMENT PERMIT FOR A3
LARGE-LOAD DATA CENTER THAT IS IN A DISPROPORTIONATELY IMPACTED4
COMMUNITY OR IS PROPOSED TO BE IN A DISPROPORTIONATELY IMPACTED5
COMMUNITY, INCLUDING A DEVELOPMENT PERMIT MODIFICATION THAT6
WOULD CAUSE A DATA CENTER IN A DISPROPORTIONATELY IMPACTED7
COMMUNITY TO BECOME A LARGE-LOAD DATA CENTER, THE LARGE-LOAD8
DATA CENTER DEVELOPER OR LARGE-LOAD DATA CENTER OPERATOR, AS9
APPLICABLE, SHALL:10
(I) HOST A MINIMUM OF THREE PUBLIC HEARINGS OR COMMENT11
PERIODS AT LEAST SIXTY DAYS PRIOR TO SUBMITTING THE DEVELOPMENT12
PERMIT APPLICATION . AT LEAST ONE OF THE PUBLIC HEARINGS OR13
COMMENT PERIODS MUST BE HELD WITHIN THE DISPROPORTIONATELY14
IMPACTED COMMUNITY WHERE THE DEVELOPER OR OPERATOR PLANS TO15
OPERATE THE LARGE-LOAD DATA CENTER OR IS CURRENTLY OPERATING16
THE DATA CENTER.17
(II) SCHEDULE VARIABLE TIMES OF DAY AND DAYS OF THE WEEK18
FOR OPPORTUNITIES FOR PUBLIC INPUT ON THE PROJECT , INCLUDING AT19
LEAST ONE TIME ON SATURDAY OR SUNDAY, ONE TIME AFTER 5 P.M., AND20
ONE TIME BEFORE 12 NOON;21
(III) PROVIDE PUBLIC NOTICE AT LEAST THIRTY DAYS BEFORE ANY22
PUBLIC HEARING OR BEFORE THE START OF ANY COMMENT PERIOD, WHICH23
PUBLIC NOTICE MUST INCLUDE THE TIME , PLACE, AND LOCATION OF THE24
PUBLIC HEARING AND A SUMMARY OF THE PROJECT AND MAY BE PROVIDED25
THROUGH SEVERAL DIFFERENT OUTLETS AND LOCATIONS, INCLUDING:26
(A) SCHOOLS;27
SB26-102-30-
(B) HEALTH CLINICS;1
(C) SOCIAL MEDIA;2
(D) SOCIAL AND ACTIVITY CLUBS;3
(E) LOCAL GOVERNMENTS;4
(F) TRIBAL GOVERNMENTS;5
(G) RELIGIOUS OR CIVIC ORGANIZATIONS;6
(H) C OMMUNITY -BASED ENVIRONMENTAL JUSTICE7
ORGANIZATIONS; OR8
(I) OTHER LOCAL SERVICES;9
(IV) PROVIDE OUTREACH MATERIALS TRANSLATED INTO THE TOP10
TWO LANGUAGES SPOKEN IN THE DISPROPORTIONATELY IMPACTED11
COMMUNITY WHERE THE DEVELOPER OR OPERATOR PLANS TO DEVELOP OR12
OPERATE OR IS OPERATING THE LARGE -LOAD DATA CENTER , WHICH13
MATERIALS INFORM THE DISPROPORTIONATELY IMPACTED COMMUNITY14
ABOUT OPPORTUNITIES TO PROVIDE INPUT ON THE PROJECT, THE RIGHTS OF15
THE COMMUNITY, THE POSSIBLE OUTCOMES OF THE PROJECT , AND ANY16
UPCOMING PUBLIC HEARINGS OR COMMENT PERIODS; AND17
(V) I MPLEMENT OTHER BEST PRACTICES FOR OUTREACH AND18
ENGAGEMENT SET FORTH IN SECTION 24-4-109 (3)(b).19
(b) DURING A PUBLIC HEARING OR COMMENT PERIOD DESCRIBED20
IN THIS SUBSECTION (3), THE LARGE-LOAD DATA CENTER DEVELOPER OR21
LARGE-LOAD DATA CENTER OPERATOR SHALL EXPLICITLY DISCLOSE THE22
RESULTS OF THE CUMULATIVE IMPACTS ANALYSIS CONDUCTED BY A23
THIRD-PARTY CONTRACTOR PURSUANT TO SUBSECTION (1) OF THIS24
SECTION. THE DEVELOPER OR OPERATOR SHALL ALSO DESCRIBE THE25
EFFORTS THAT THE DEVELOPER OR OPERATOR WILL MAKE TO REDUCE26
ANTICIPATED NEGATIVE IMPACTS TO THE DISPROPORTIONATELY IMPACTED27
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COMMUNITY OR ITS ENVIRONMENT FROM THE PROPOSED LARGE -LOAD1
DATA CENTER PROJECT.2
(4) (a) I F A LARGE -LOAD DATA CENTER IS PROPOSED IN A3
DISPROPORTIONATELY IMPACTED COMMUNITY OR IF AN OPERATOR OF A4
DATA CENTER IN A DISPROPORTIONATELY IMPACTED COMMUNITY THAT5
EXISTS BEFORE THE EFFECTIVE DATE OF THIS SECTION PLANS TO EXPAND6
THE DATA CENTER 'S PEAK LOAD SUCH THAT THE DATA CENTER WILL7
BECOME A LARGE-LOAD DATA CENTER, THE DEVELOPER OR OPERATOR, AS8
APPLICABLE, SHALL ENTER INTO A LEGALLY BINDING AND PUBLICLY9
DISCLOSED COMMUNITY BENEFIT AGREEMENT WITH THE10
DISPROPORTIONATELY IMPACTED COMMUNITY BEFORE THE DEVELOPMENT11
OR EXPANSION BEGINS.12
(b) (I) DURING COMMUNITY BENEFIT AGREEMENT NEGOTIATIONS,13
THE DEVELOPER OR OPERATOR SHALL CONSULT WITH THE LOCAL14
GOVERNMENT WITH JURISDICTION OVER THE LARGE-LOAD DATA CENTER15
OR PROPOSED LARGE-LOAD DATA CENTER PROJECT AND A COALITION OF16
AT LEAST THREE COMMUNITY-BASED ORGANIZATIONS WITHIN A TWO-MILE17
RADIUS OF THE LARGE -LOAD DATA CENTER OR PROPOSED LARGE -LOAD18
DATA CENTER PROJECT . THE DEVELOPER OR OPERATOR SHALL HOST A19
SERIES OF AT LEAST FIVE MEETINGS WITH KEY STAKEHOLDER GROUPS20
IDENTIFIED BY THE LOCAL GOVERNMENT AND COALITION. AT LEAST TWO21
OF THE MEETINGS MUST OFFER THE OPPORTUNITY FOR PUBLIC COMMENT.22
THE MEETINGS MUST COMPLY WITH THE BEST PRACTICES FOR OUTREACH23
AND ENGAGEMENT SET FORTH IN SECTION 24-4-109 (3)(b).24
(II) I N NEGOTIATING A COMMUNITY BENEFIT AGREEMENT , THE25
PARTIES SHALL CONSIDER:26
(A) T HE PRIORITIZATION OF DISPROPORTIONATELY IMPACTED27
SB26-102-32-
COMMUNITIES THROUGH FIRST -SOURCE HIRING PROGRAMS , REVENUE1
SHARING, COMMUNITY PROGRAM FUNDING , COMMUNITY OR PUBLIC2
OWNERSHIP REQUIREMENTS, AND OTHER STATE-INITIATED MECHANISMS;3
AND4
(B) REGULAR EQUITY IMPACT ASSESSMENTS , PROTECTIONS FOR5
RENTERS AND SMALL BUSINESSES , AND PUBLIC DASHBOARDS FOR6
DISCLOSURE OF INFORMATION DEEMED RELEVANT BY THE COALITION OF7
COMMUNITY ORGANIZATIONS DESCRIBED IN SUBSECTION (4)(b)(I) OF THIS8
SECTION.9
(c) (I) A COMMUNITY BENEFIT AGREEMENT SHOULD AIM TO AVOID10
AND MITIGATE NEGATIVE IMPACTS FROM THE LARGE-LOAD DATA CENTER,11
DRIVE INVESTMENTS AND SERVICES REQUESTED BY DISPROPORTIONATELY12
IMPACTED COMMUNITIES , AND SUPPORT LOCAL WORKFORCE13
DEVELOPMENT.14
(II) A COMMUNITY BENEFIT AGREEMENT MAY CONTEMPLATE A15
COMMUNITY BENEFIT FUND TIED TO PROJECT SCALE, ENVIRONMENTAL AND16
PUBLIC HEALTH , LONG -TERM SUBSIDIES AND MONITORING , AND17
SUPPORTING HOUSING , BROADBAND , HEALTH -CARE AND CHILD CARE18
CENTERS, AND COMMUNITY RESILIENCE.19
(d) A LOCAL GOVERNMENT MAY DETERMINE APPROPRIATE20
PENALTIES FOR NONCOMPLIANCE WITH A COMMUNITY BENEFIT21
AGREEMENT.22
40-2.5-108. Labor standards.23
(1) A LARGE-LOAD DATA CENTER OPERATOR SHALL:24
(a) P ROVIDE PREVAILING WAGES , AS DEFINED IN SECTION25
24-92-201 (6) AND DETERMINED BY THE DIRECTOR OF THE DEPARTMENT26
OF PERSONNEL PURSUANT TO SECTION 24-92-205 (1), TO EMPLOYEES THAT27
SB26-102-33-
ARE FULLY EMPLOYED, AS DEFINED IN SECTION 8-70-103 (12.5);1
(b) P ARTICIPATE IN AN APPRENTICESHIP PROGRAM REGISTERED2
WITH THE UNITED STATES DEPARTMENT OF LABOR OR A STATE3
APPRENTICESHIP AGENCY RECOGNIZED BY THE UNITED STATES4
DEPARTMENT OF LABOR;5
(c) REQUIRE PARTICIPATION IN THE "OSHA 10" CLASS OR A CLASS6
OFFERED BY THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH7
ADMINISTRATION COMPRISED OF SUBSTANTIALLY SIMILAR CONTENT;8
(d) COMPLY WITH ANY APPLICABLE WORKPLACE SITE SAFETY PLAN9
REQUIREMENTS OF THE FEDERAL OCCUPATIONAL SAFETY AND HEALTH10
ADMINISTRATION; AND11
(e) N OT HAVE A DOCUMENTED PATTERN OF WAGE THEFT OR12
MISCLASSIFICATION OF EMPLOYEES , AS DEFINED IN SECTION 8-72-11413
(2)(f).14
SECTION 3. Applicability. This act applies to conduct occurring15
on or after the effective date of this act.16
SECTION 4. Safety clause. The general assembly finds,17
determines, and declares that this act is necessary for the immediate18
preservation of the public peace, health, or safety or for appropriations for19
the support and maintenance of the departments of the state and state20
institutions.21
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