AN ACT RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION (Requires that certain data centers requiring large amounts of electricity be required to fund the cost of necessary infrastructure improvements to supply such electricity.)

H7331

2026 -- H 7331
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LC004385
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION

Introduced By:
Representatives Kennedy, Azzinaro, McEntee, Tanzi, Cortvriend,
Edwards, Bennett, Ackerman, Kazarian, and Diaz

Date Introduced:
January 28, 2026

Referred To:
House Corporations
It is enacted by the General Assembly as follows:
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SECTION 1. Chapter 39-1 of the General Laws entitled "Public Utilities Commission" is
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hereby amended by adding thereto the following section:
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39-1-64. Data centers -- Electric cost allocation.

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(a) As used in this section, “data center” means a facility, or portion of a facility, primarily
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engaged in the storage, processing, or transmission of digital information using computer servers
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and related equipment, and having a projected or actual electric demand of fifty megawatts (50
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MW) or greater at a single site.
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(b) The public utilities commission shall require that any costs reasonably attributable to
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the planning, construction, expansion, operation, or maintenance of electric generation,
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transmission, or distribution facilities necessary to serve a data center shall be borne exclusively by
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that data center.
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(c) No such costs shall be recovered from residential customers or from commercial
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customers that are not data centers as defined in this section.
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(d) The commission shall require electric distribution companies to establish one or more
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dedicated rate classes, tariffs, contracts, or other cost recovery mechanisms applicable to data
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centers to ensure compliance with this section.
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(e) Nothing in this section shall be construed to alter participation in, or obligations under,
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regional transmission organizations, federally regulated wholesale electric markets, or federal
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reliability standards.

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SECTION 2. Section 42-98-7 of the General Laws in Chapter 42-98 entitled "Energy
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Facility Siting Act" is hereby amended to read as follows:
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42-98-7. Powers and duties.
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(a)(1) The siting board is the licensing and permitting authority for all licenses, permits,
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assents, or variances that, under any statute of the state or ordinance of any political subdivision of
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the state, would be required for siting, construction, or alteration of a major energy facility in the
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state.
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(2) Any agency, board, council, or commission of the state or political subdivision of the
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state that, absent this chapter, would be required to issue a permit, license, assent, or variance in
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order for the siting, construction, or alteration of a major energy facility to proceed, shall sit and
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function at the direction of the siting board. These agencies shall follow the procedures established
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by statute, ordinance, and/or regulation provided for determining the permit, license, assent, or
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variance, but, instead of issuing the permit, license, assent, or variance, shall forward its findings
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from the proceeding, together with the record supporting the findings and a recommendation for
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final action, to the siting board.
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(3) Notwithstanding any provision in this chapter to the contrary, in those instances in
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which the department of environmental management exercises a permitting or licensing function
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under the delegated authority of federal law, including, but not limited to, the federal Clean Water
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Act (33 U.S.C. § 1251 et seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et
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seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), and those state laws and regulations that
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implement those federal laws, the department of environmental management shall be the licensing
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and permitting authority. Moreover, the authority to issue licenses and permits delegated to the
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department of environmental management pursuant to chapter 1 of title 2 and to the coastal
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resources management council pursuant to chapter 23 of title 46, shall remain with those agencies,
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but in all other respects the department of environmental management and the coastal resources
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management council shall follow the procedures set forth in this chapter.
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(b) The siting board is authorized and empowered to summon and examine witnesses and
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to compel the production and examination of papers, books, accounts, documents, records,
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certificates, and other legal evidence that may be necessary for the determination of its jurisdiction
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and decision of any question before, or the discharge of any duty required by law of, the board.
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(c) The siting board is empowered to issue any orders, rules, or regulations as may be
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required to effectuate the purposes of this chapter.
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(d) The siting board shall, by regulation, determine the standards for intervention.
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(e) The siting board’s proceedings shall in all respects comply with the requirements of the

LC004385 - Page 2 of 5
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Administrative Procedures Act, chapter 35 of this title, except where otherwise explicitly provided.
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(f) In the case of any application involving electric generation, transmission, or distribution
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facilities intended, in whole or in part, to serve a data center as defined in § 39-1-64, the energy
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facility siting board shall consult with the public utilities commission regarding ratepayer impacts
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and electric cost allocation.
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(1) The board may condition approval of any such application upon a showing that the
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applicant has obtained approval from the public utilities commission for rates, tariffs, contracts, or
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other mechanisms ensuring compliance with § 39-1-64.
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(2) Nothing in this section shall be construed to authorize the energy facility siting board
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to set electric rates or to exercise ratemaking authority.
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SECTION 3. Title 46 of the General Laws entitled "WATERS AND NAVIGATION" is
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hereby amended by adding thereto the following chapter:
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CHAPTER 15.9
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DATA CENTER WATER USE DISCLOSURE
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46-15.9-1. Definitions.

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As used in this chapter, “data center” means a facility, or portion of a facility, primarily
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engaged in the storage, processing, or transmission of digital information using computer servers
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and related equipment, and having a projected or actual electric demand of fifty megawatts (50
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MW) or greater at a single site.
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46-15.9-2. Water use disclosure.

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(a) Each data center shall annually submit to the department of environmental management
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a report containing:
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(1) Average daily water withdrawal;
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(2) Peak daily water withdrawal;
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(3) Cooling technologies utilized; and
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(4) Water recycling or reuse practices.
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(b) The department shall prescribe the form and manner of such reporting.
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46-15.9-3. Water efficiency plans.

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The director of the department of environmental management may require a data center to
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submit a water efficiency, conservation, or recycling plan as a condition of any permit issued under
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this title.
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46-15.9-4. Site restoration assurance.

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The director may require financial assurance, in a form acceptable to the department, to
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ensure site restoration in the event of abandonment or cessation of operations

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SECTION 4. Severability.
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If any provision of this act or its application to any person or circumstance is held invalid,
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the remainder of the act and the application of its provisions to other persons or circumstances shall
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not be affected.
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SECTION 5. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO PUBLIC UTILITIES AND CARRIERS -- PUBLIC UTILITIES COMMISSION
***
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This act would require that certain data centers requiring large amounts of electricity be
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required to fund the cost of necessary infrastructure improvements to supply such electricity.
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This act would take effect upon passage.
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LC004385
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