HB 1301

 26.988.10  101st Legislative Session  1301
                                       2026 South Dakota Legislature
                                               House Bill 1301
 Introduced by: Representative Healy
1 An Act to limit costs and risks associated with electricity use by data centers and
2impose a moratorium.
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
4 Section 1. That a NEW SECTION be added to chapter 49-34A:
5Terms used in this Act mean:
6     (1)     "Approval authority," for an electric utility that is:
7(a)     A state or rural electric cooperative, the board of directors; or
8(b)     Owned by a municipality or other political subdivision of this state, the
9governing body;
10     (2)     "Data center," any facility that is used as a centralized repository for the
11dissemination, management, processing, and storage of electronic data and
12information; and
13     (3)     "Large data center," a data center with a peak electricity demand of twenty
14megawatts or greater.
15 Section 2. That a NEW SECTION be added to chapter 49-34A:
16When establishing or negotiating a rate or tariff for any data center, an electric
17     utility shall ensure that:
18     (1)     The data center pays the full cost of providing electric service to the data center,
19including the cost of any infrastructure upgrade necessitated by the operation of
20the data center;
21     (2)     The cost of providing electric service to the data center is not paid for by other
22retail customers;
23     (3)     The costs and risks of infrastructure upgrades are not transferred to other retail
24customers during the operation of the data center;
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1    (4)      Other retail customers are not placed at financial risk for paying stranded costs
2associated with providing electric service to the data center if it prematurely ceases
3operating; and
4    (5)      The data center bears all costs of decommissioning the data center.
5 Section 3. That a NEW SECTION be added to chapter 49-34A:
6The operator of a large data center shall submit to the electric utility providing
7    electric service to the large data center a proposal to meet some or all of the large data
8    center's load demand through private electric supplier agreements or self-generation, as
9    a means to limit the risk to other retail customers of stranded-asset costs.
10If a large data center receives electricity from a private electricity supplier or self-
11    generation in addition to an electric utility, the electric utility must interconnect the private
12    electricity supplier or self-generation at the large data center's cost.
13 Section 4. That a NEW SECTION be added to chapter 49-34A:
14The operator of a large data center shall file an annual report with any electric
15    utility providing electric service to the large data center and, if the large data center
16    receives electric service from a public utility, with the commission.
17The report must be filed on the date and in the form specified by the commission
18    or approval authority, as applicable.
19The commission or approval authority, as applicable, shall make the report
20    available to the public, excluding information that is confidential pursuant to chapter 1-
21    27.
22 Section 5. That a NEW SECTION be added to chapter 49-34A:
23The report required under section 4 of this Act must contain:
24    (1)      The name of the large data center;
25    (2)      The name of each developer and owner of the large data center;
26    (3)      The physical size of the large data center in square feet;
27    (4)      The street address of the large data center and the county in which it is located;
28    (5)      The peak electrical demand of the large data center;
29    (6)      Information about any private electricity supplier or self-generation available to
30the large data center pursuant to section 3 of this Act, and the amount of electricity
31provided by the private electricity supplier or self-generation;
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1    (7)      A list of each customer type and the duration of any customer demand contract for
2the large data center;
3    (8)      A description of any transmission and distribution facility addition or enhancement
4required to serve the large data center;
5    (9)      A description of each energy efficiency, load management, and conservation
6measure implemented by the large data center;
7    (10)     A description of any commitment by the large data center to use renewable energy;
8    (11)     An estimate of the service life of the large data center;
9    (12)     A statement identifying each decommissioning resource, activity, and deficiency of
10the large data center;
11    (13)     Any policy, term, or schedule of the large data center, which is intended to limit
12cost and risk impacts on other retail customers;
13    (14)     Information about whether the large data center engages in any cryptocurrency
14mining operation and the annual energy usage for the operation; and
15    (15)     A copy of any required county or municipal zoning or other permit of the large data
16center.
17 Section 6. That a NEW SECTION be added to chapter 49-34A:
18At least annually, each electric utility shall provide, on the electric utility's website,
19    a report of:
20    (1)      The statewide load forecast of large data centers serviced by the electric utility;
21    (2)      A description of existing and proposed electricity generation needed to meet the
22large data center load forecast;
23    (3)      An estimate of the cost of any new generation and transmission needed to meet
24the large data center load forecast; and
25    (4)      Any applicable stranded-asset cost information, including the total cost recovered
26from other retail customers.
27 Section 7. That a NEW SECTION be added to chapter 49-34A:
28A large data center shall comply with any decommissioning requirements adopted
29    by the commission or approval authority, as applicable. In addition, the large data center
30    shall:
31    (1)      Bear all costs of decommissioning the large data center; and
32    (2)      Within the first year following the commencement of operation of the large data
33center:
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1(a)   Submit a decommissioning plan to the electric utility providing electric
2service to the large data center;
3(b)   Post a security bond or other instrument that secures the costs of
4decommissioning the large data center; and
5(c)   Provide a copy of the bond or instrument to the electric utility.
6 Section 8. Notwithstanding any other provision of law, a moratorium is imposed on any new
7 construction or expansion of a large data center in this state. The moratorium includes the
8 expansion of any data center that is not currently a large data center but, if expanded, would
9 become a large data center. The moratorium is in effect through June 30, 2027.
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                                                                            Overstrikes indicate deleted language.