Zaffirini Bill Requires State Permit For 75-Megawatt Data Centers

The text as introduced · 1,034 words

By: Zaffirini
S.B. No. 32

A BILL TO BE ENTITLED

AN ACT

relating to the issuance by the Public Utilities Commission of

Texas of a permit for the construction of a large computational load

site; providing an administrative penalty.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The Utilities Code is amended by adding Title 7

to read as follows:

TITLE 7. LARGE COMPUTATIONAL LOAD SITES

CHAPTER 401. LARGE COMPUTATIONAL LOAD SITES

Sec. 401.001. DEFINITIONS. In this chapter:

(1) "Commission" means the Public Utility Commission

of Texas.

(2) "Computational load site" means one or more

buildings, structures, or installations at a single location that:

(A) primarily contains information technology

infrastructure used for:

(i) creating, executing, and delivering

software applications and services;

(ii) artificial intelligence training,

deployment, and delivery;

(iii) adding virtual currency transactions

to a distributed ledger; or

(iv) other computational activities at a

data center; and

(B) is supplied through electrical equipment

that is connected to the bulk power system.

(3) "Environmental commission" means the Texas

Commission on Environmental Quality.

(4) "ERCOT" has the meaning assigned by Section

31.002.

(5) "Large computational load site" means a

computational load site that has or is expected to have an aggregate

minimum electric power demand of at least 75 megawatts.

(6) "Virtual currency" has the meaning assigned by

Section 12.001, Business & Commerce Code.

Sec. 401.002. PERMIT REQUIRED BEFORE BEGINNING

CONSTRUCTION. (a) The commission, in collaboration with the

environmental commission, by rule shall require a permit for the

operation of a large computational load site before any

construction, including construction for a material expansion,

redevelopment, or change in the use of a facility, begins at the

site.

(b) An application for a permit issued under this section

must include:

(1) a description of the proposed location of the

site; and

(2) any other information required by commission rule,

which may include:

(A) a copy of any documentation submitted under

Section 37.0561 for planning purposes for a site in the ERCOT power

region;

(B) information regarding the site's anticipated

electric demand, schedule for energization, electric load growth,

and electric infrastructure;

(C) water supply, wastewater, drainage,

floodplain, and infrastructure impact analyses;

(D) an identification of the proposed water

source for the site and information regarding the availability of

an adequate long-term water supply for the site; and

(E) information reasonably necessary to identify

and evaluate measures to mitigate potential adverse impacts

associated with the site and within the jurisdiction of the

commission or the environmental commission.

(c) The commission may hold one or more public meetings on a

permit application.

(d) In considering whether to approve, conditionally

approve, or deny a permit application filed under this section, the

commission shall consider:

(1) the site's planned water and energy use;

(2) the site's potential environmental impacts;

(3) the site's potential impacts on power grid

reliability and the transmission system in this state; and

(4) any measures the applicant may take to mitigate

water, energy, environmental, and power grid impacts.

(e) The commission may deny a permit if the applicant fails

to demonstrate compliance with commission or environmental

commission rules or fails to adequately address a documented or

reasonably foreseeable negative impact identified by the

commission when reviewing the application.

(f) After notice and an opportunity for a hearing, the

commission may suspend or revoke a permit issued under this chapter

for a violation of this chapter or rule adopted under this chapter.

(g) The commission by rule shall adopt a fee to be imposed on

each permit applicant to cover costs associated with implementing

this chapter.

(h) Information submitted to the commission in an

application for a permit under this chapter is confidential and not

subject to disclosure under Chapter 552, Government Code.

Sec. 401.003. ENFORCEMENT. For purposes of this chapter, a

reference in Chapter 15 to a person includes a person required to

obtain a permit under this chapter and the commission may impose an

administrative penalty under Section 15.023 on a person who

violates this chapter or a rule adopted under this chapter.

SECTION 2. Section 5.013(a), Water Code, is amended to read

as follows:

(a) The commission has general jurisdiction over:

(1) water and water rights including the issuance of

water rights permits, water rights adjudication, cancellation of

water rights, and enforcement of water rights;

(2) continuing supervision over districts created

under Article III, Sections 52(b)(1) and (2), and Article XVI,

Section 59, of the Texas Constitution;

(3) the state's water quality program including

issuance of permits, enforcement of water quality rules, standards,

orders, and permits, and water quality planning;

(4) the determination of the feasibility of certain

federal projects;

(5) the adoption and enforcement of rules and

performance of other acts relating to the safe construction,

maintenance, and removal of dams;

(6) conduct of the state's hazardous spill prevention

and control program;

(7) the administration of the state's program relating

to inactive hazardous substance, pollutant, and contaminant

disposal facilities;

(8) the administration of a portion of the state's

injection well program;

(9) the administration of the state's programs

involving underground water and water wells and drilled and mined

shafts;

(10) the state's responsibilities relating to regional

waste disposal;

(11) the responsibilities assigned to the commission

by Chapters 361, 363, 376, 382, 401, 505, 506, and 507, Health and

Safety Code , and Chapter 401, Utilities Code ; and

(12) any other areas assigned to the commission by

this code and other laws of this state.

SECTION 3. As soon as practicable after the effective date

of this Act, the Public Utilities Commission of Texas and the Texas

Commission on Environmental Quality shall:

(1) update the memorandum of understanding

establishing joint jurisdiction between the utilities commission

and the commission to ensure compliance with Title 7, Utilities

Code, as added by this Act, and facilitate the sharing of data

related to large computational load sites; and

(2) adopt rules as necessary to implement Title 7,

Utilities Code, as added by this Act.

SECTION 4. Title 7, Utilities Code, as added by this Act,

applies only a large computational load site for which construction

begins on or after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2027.