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HOUSE BILL NO. 6137
A bill to require certain data centers to be subject to
community benefit agreements; to provide for the powers and duties
of certain state and local governmental officers and entities; and
to provide for the promulgation of rules.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act may be cited as the "data center community 1
benefit agreement act". 2
Sec. 3. As used in this act: 3
(a) "Commission" means the Michigan public service commission 4
created in section 1 of 1939 PA 3, MCL 460.1. 5
June 25, 2026, Introduced by Reps. Grant, Andrews, Tsernoglou, Breen, Steckloff, O'Neal,
Wooden, Arbit, Foreman, Hoskins, Snyder, Liberati, Rogers, McFall, Morgan, Martus,
Rheingans, Skaggs, Witwer, MacDonell, McKinney, Scott, Wilson, Conlin, Brixie, Herzb erg
and Fitzgerald and referred to Committee on Government Operations.
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(b) "Community benefit agreement" means 1 or more binding 1
legal agreements between the owner or operator of a data center and 2
a local unit of government, a utility provider, or other community 3
stakeholders under which the owner or operator agrees to pay for or 4
provide certain resources to accommodate and benefit local 5
community interests. 6
(c) "Data center" means a facility in this state that is 7
composed of 1 or more buildings and that is designed and intended 8
for housing, and does house, data center equipment to centralize 9
the storage and processing of data. 10
(d) "Local unit of government" means a county, township, city, 11
or village. 12
(e) "Person" means an individual or a partnership, 13
corporation, limited liability company, association, governmental 14
entity, or other legal entity. 15
Sec. 5. (1) A person shall not begin construction or operation 16
of a data center unless all of the following conditions are met: 17
(a) The local unit of government approves the community 18
benefit agreement for the data center under subsection (2). 19
(b) The commission approves the community benefit agreement 20
for the data center under subsection (3). 21
(c) The owner or operator of the data center enters into the 22
community benefit agreements approved under subsections (2) and 23
(3). 24
(2) In order to obtain approval for a community benefit 25
agreement under this section, the owner or operator of a data 26
center must file an application for review with the local unit of 27
government for the geographic area in which the data center is 28
located. The application must be on a form prescribed by the local 29
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unit of government. Not later than 90 days after receiving an 1
application for review under this subsection, the local unit of 2
government shall approve or deny the application. The local unit of 3
government shall not approve the community benefit agreement unless 4
the local unit of government determines that all of the following 5
conditions are met: 6
(a) The parties to the community benefit agreement include, 7
but are not limited to, the owner or operator of the data center 8
and the local unit of government or an agency or instrumentality of 9
the local unit of government. 10
(b) The community benefit agreement will accommodate and 11
benefit the public health, safety, and general welfare of the 12
inhabitants and the lands and resources of the local unit of 13
government. 14
(c) The community benefit agreement meets the requirements of 15
subsection (4). 16
(3) In order to obtain approval for a community benefit 17
agreement under this section, the owner or operator of a data 18
center must file an application for review with the commission. The 19
application must be on a form prescribed by the commission. Not 20
later than 90 days after receiving an application for review under 21
this subsection, the commission shall approve or deny the 22
application. The commission shall not approve the community benefit 23
agreement unless the commission determines that all of the 24
following conditions are met: 25
(a) The parties to the community benefit agreement include, 26
but are not limited to, the owner or operator of the data center 27
and a utility provider for the data center or an agency or 28
instrumentality of the utility provider. 29
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(b) The community benefit agreement will accommodate and 1
benefit the interests of other ratepayers of the utility provider 2
in the geographic area in which the data center is located. 3
(c) The community benefit agreement meets the requirements of 4
subsection (4). 5
(4) A community benefit agreement entered into under this 6
section must meet all of the following requirements: 7
(a) The community benefit agreement addresses not less than 8
50% of the following topics: 9
(i) Hiring of local workers and contractors for the data 10
center. 11
(ii) Water usage for the data center. 12
(iii) Cost allocation of any electrical or water infrastructure 13
upgrades that would be required to supply the data center. 14
(iv) Funding for community investment and improvement projects. 15
(v) Home efficiency improvements. 16
(b) The community benefit agreement specifies that it is 17
enforceable against each owner and operator of the data center. 18
Sec. 7. A local unit of government shall not issue, grant, or 19
approve a site plan, permit, land use or activity, variance, 20
easement, certificate, or other authorization for a data center 21
unless the local unit of government has approved a community 22
benefit agreement for the data center in accordance with section 5. 23
Sec. 9. The commission shall not approve a utility 24
interconnection for a data center unless the local unit of 25
government has approved a community benefit agreement for the data 26
center in accordance with section 5. 27
Sec. 11. The commission may promulgate rules to implement this 28
act under the administrative procedures act of 1969, 1969 PA 306, 29
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Final Page
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MCL 24.201 to 24.328. 1
Enacting section 1. This act does not take effect unless all 2
of the following bills of the 103rd Legislature are enacted into 3
law: 4
(a) Senate Bill No. ____ (request no. S06933'26) or House Bill 5
No. 6135 (request no. H06933'26). 6
(b) Senate Bill No. ____ (request no. S06934'26) or House Bill 7
No. 6139 (request no. H06934'26). 8
(c) Senate Bill No. ____ (request no. S06939'26 a) or House 9
Bill No. 6136 (request no. H06939'26 a). 10
(d) Senate Bill No. ____ (request no. S06942'26) or House Bill 11
No. 6140 (request no. H06942'26). 12
(e) Senate Bill No. ____ (request no. S06943'26) or House Bill 13
No. 6142 (request no. H06943'26). 14
(f) Senate Bill No. ____ (request no. S06965'26) or House Bill 15
No. 6138 (request no. H06965'26). 16
(g) Senate Bill No. ____ (request no. S07181'26) or House Bill 17
No. 6141 (request no. H07181'26). 18