'This bill is about protecting Ohio consumers': State reps introduce bill to put requirements on data centers

COLUMBUS, Ohio — Two Ohio state representatives have introduced a bill that would impose various requirements on data centers’ agreements with electric utility companies.

House Bill 706 was introduced by Rep. Tristan Rader, D-District 13, and Rep. David Thomas, R-District 65. According to a press release issued by the representatives, the bill would make sure the infrastructure and upgrade costs associated with these facilities aren’t passed on to existing Ohio customers.

“This bill is about protecting Ohio consumers,” Rader said in the release. “Data centers may bring jobs and investment, but their massive electricity demand can also drive major grid costs. Working families and small businesses should not be forced to pick up the tab for private infrastructure built to serve some of the largest corporate customers in the world. These standards ensure that if these projects move forward, they do so responsibly, transparently, and without increasing rates for everyone else.”

The bill specifies agreements between the data centers and utility companies, subject to approval by the public utilities commission.

The bill also includes 12-year minimum contract commitments; rules on exit payments and unused-capacity charges; financial assurances to protect other customers from costs associated with a premature exit, downsizing, etc.; and more.

“This is a commonsense approach that supports economic development while protecting consumers,” Thomas said in the release. “Data centers are an important part of Ohio’s future, and we want to continue attracting them. At the same time, utilities and regulators need clear rules so that grid investments are planned responsibly and existing customers are not left holding the bag.”

The bill was introduced on Feb. 17, and its list of cosponsors highlights its bipartisan support.

Ohio Senate Democrats recently held a press conference where they pushed for bipartisan legislation related to data centers, according to a press release.

“Ohio currently has an existing tax giveaway for data center development that is costing us almost $200 million a year,” said Sen. Kent Smith, D-District 21, in the release. “For this tax break, everyday Ohioans are forced to pay increased utility bills because of the extra energy demand. Data centers need to start paying their fair share. That’s what the tax break repeal bill and Data Grid Cost Responsibility Act will do. I would ask our Senate Republican friends to join with us to protect the pockets of the people we represent.”

According to their release, the Democrats in the Ohio Senate invited Republicans to work with them as they intend to introduce the following legislation:

• Data Center Grid Cost Responsibility Act
• Data Center Tax Break Bill
• Powering Ohio Communities Act
• Local Development Protection Act
• A resolution reaffirming home rule
• Ohio Power Reliability and Fairness Act
• Responsible Water Use in Data Centers Act

You can view the full language in HB 706 here