HB 6252

HOUSE BILL NO. 6252
A bill to require the submission of thermal impact
assessments by the developers or operators of certain data centers; to impose
certain requirements on the developers or operators of certain data centers; to
provide for the powers and duties of certain state and local governmental
officers and entities; to prescribe civil sanctions; to provide remedies; 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 thermal impact and community
protection act".
Sec.
2. (1) This act is intended to do both of the following:
(a) Ensure that local units of
government, planning commissions, regional planning commissions, zoning commissions,
coordinating zoning committees, and the public receive notice of localized
thermal impacts associated with large-scale data center development before
major land use and infrastructure decisions are made.
(b) Provide a planning and
transparency framework for the evaluation and disclosure of localized thermal
impacts.
(2) This act is not intended to
create any land use, permitting, or other approval authority except to require
a certificate of completeness under section 5.
Sec. 3. As used in this
act:
(a) "Baseline conditions"
means existing land surface temperature, ambient air temperature,
heat-retaining surface conditions, vegetation or tree canopy conditions,
localized microclimate conditions, and wetlands, streams, rivers, ponds, lakes,
drainage features, and other natural features that are within a thermal study
area to the extent relevant to evaluate localized thermal impacts before
construction, expansion, or material modification of a large-scale data center
begins.
(b) "Commission"
means the Michigan public service commission created in section 1 of 1939 PA 3,
MCL 460.1.
(c) "Common control" means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management, operations, development, financing, construction,
ownership, leasing, or use of a facility, parcel, project, phase, affiliate,
subsidiary, contractor-controlled site, special purpose entity, or related
development, whether through ownership, contract, lease, management agreement,
development agreement, option agreement, power purchase arrangement,
interconnection request, financing arrangement, or other means.
(d) "Coordinating zoning
committee" means that term as defined in section 102 of the Michigan
zoning enabling act, 2006 PA 110, MCL 125.3102.
(e) "Data center"
means a facility, campus,
group of buildings, or commonly controlled development that is primarily used
to house, operate, or support servers, data storage systems, networking
equipment, cooling systems, power infrastructure, or other information
technology equipment for the purpose of processing, storing, managing, or
transmitting digital data, including, but not limited to, cloud computing,
artificial intelligence computing, high-performance computing, cryptocurrency
mining, or collocation services.
(f) "Department" means the
department of environment, Great Lakes, and energy.
(g) "Large-scale data
center" means a data center that meets 1 or more of the following:
(i)
Has, is designed to
have, is approved for, or is reasonably projected to have an aggregate critical
information technology load of 25 megawatts or more.
(ii)
Has, is designed to
have, is approved for, or is reasonably projected to have a total
electrical demand of 50 megawatts or more.
(iii)
Is constructed or developed in phases that collectively meet or are reasonably
anticipated to meet a threshold described in subparagraph (i) or (ii).
(iv)
Is subject to an expansion or material modification
that causes or is reasonably anticipated to cause the data
center to meet a threshold described in subparagraph (i) or (ii).
(v) Is
classified as a hyperscale data center, mega-hyperscale data center, or major
digital infrastructure development under another law of this state.
(h) "Local unit of
government" means a county, township, city, or village.
(i) "Localized thermal
impact" means a measurable or reasonably modeled change in land surface
temperature, ambient air temperature, heat retention, heat rejection, or
localized microclimate conditions at or near a large-scale data center that is
reasonably attributable to the construction, physical design, surface
conditions, cooling systems, heat rejection systems, or operation of the
large-scale data center.
(j) "Material
modification" means a change, expansion, or redesign of a data center that
is reasonably anticipated to cause localized thermal impacts or that increases
total building area, land area used for data center operations, heat rejection
capacity, designed information technology load, or total electrical demand by
10% or more.
(k) "Person" means
an individual or a partnership, corporation, limited liability company,
association, governmental entity, or other legal entity.
(l) "Planning
commission" means that term as defined in section 3 of the Michigan
planning enabling act, 2008 PA 33, MCL 125.3803.
(m) "Proprietary
information" means trade secrets, critical energy infrastructure
information, cybersecurity-sensitive information, security-sensitive site
information, confidential engineering information, detailed engineering
drawings, and other information that has not been publicly disseminated or
which is unavailable from other sources, the release of which might cause the
submitter of the information competitive harm.
(n) "Public summary" means
a plain-language summary of a thermal impact assessment that describes a
large-scale data center, the general geographic area studied, anticipated
localized thermal impacts, general methods used to evaluate anticipated
localized thermal impacts, general mitigation alternatives considered, and any
material uncertainty in the assessment.
(o) "Regional planning
commission" means a regional planning commission created under 1945 PA
281, MCL 125.11 to 125.25.
(p) "Thermal impact
assessment" or "assessment" means
a site-specific assessment of the baseline conditions, reasonably anticipated localized
thermal impacts, modeling assumptions, thermal study area, relevant surrounding
land uses, and reasonable thermal mitigation alternatives associated with the
construction, expansion, material modification, or operation of a
large-scale data center.
(q) "Thermal study area"
means the geographic area evaluated in a thermal impact assessment as
determined using generally accepted scientific or engineering practices. Thermal
study area includes, but is not limited to, the project site, adjacent
properties, public rights-of-way, nearby residential areas, schools, parks,
agricultural areas, wetlands, streams, rivers, ponds, lakes, drainage features,
sensitive facilities, local planning areas, and other areas reasonably likely
to experience localized thermal impacts.
(r) "Qualified
professional" means a licensed professional engineer, qualified
environmental professional, qualified climatology or meteorology professional,
qualified building-science professional, or other professional with the
relevant education, training, and experience necessary to evaluate localized
thermal impacts using generally accepted scientific or engineering practices.
(s) "Zoning commission"
means that term as defined in section 102 of the Michigan zoning enabling act,
2006 PA 110, MCL 125.3102.
Sec. 5. (1) In addition to any other requirement provided by law, a
person shall not begin construction or an expansion or material modification of
a large-scale data center unless the commission has issued a certificate of
completeness for the large-scale data center under this section.
(2) In order to obtain a certificate
of completeness under this section, the developer or operator of a large-scale data center must
submit a thermal impact assessment to the commission on a form and in a manner prescribed by the commission. The submission must be made not less than 120 days before
construction, expansion, or material modification of the large-scale data
center begins unless waived by the commission for good cause. The thermal
impact assessment must be prepared by a qualified professional using generally
accepted scientific or engineering practices and must include or attach all of
the following:
(a) A description of the proposed
large-scale data center, including, but not limited to, the general building
footprint, site design, impervious surface conditions, cooling systems, heat
rejection systems, and other physical characteristics relevant to localized
thermal impacts.
(b) A description of baseline
conditions within the thermal study area.
(c) An evaluation of reasonably
anticipated localized thermal impacts of the large-scale data center during
typical seasonal conditions and, if practicable, during high-heat or
peak-temperature conditions.
(d) A description of the modeling
assumptions, measurement methods, data sources, limitations, and uncertainty
ranges used in the assessment.
(e) A map or narrative description
of the thermal study area.
(f) A description of any thermal
mitigation alternatives considered, including, but not limited to, site design
changes, reflective or cool surfaces, vegetative buffers, tree canopy
preservation or replacement, waste heat reuse, cooling-system alternatives,
heat-rejection placement, building orientation, and other measures.
(g) A statement of whether other
nearby large-scale data centers may contribute to cumulative localized thermal
impacts within the thermal study area, based on reasonably available
information.
(h) A list of each person that is
required to receive notice of the assessment under subsection (4).
(i) A public summary of the
assessment.
(j) A certification by the developer
or operator that the information submitted in the assessment is accurate to the
best of the developer's or operator's knowledge and that affiliated, phased, or
commonly controlled portions of the development have not been omitted.
(3) A thermal impact assessment
submitted under subsection (2) must be accompanied by a review fee to the
commission in an amount determined by the commission under this subsection. The
commission shall determine the amount of the review fee on an annual basis in
an amount not to exceed the reasonably anticipated costs of the commission to
administer this act.
(4) Not later than 30 days after
submitting a thermal impact assessment to the commission under this section,
the developer or operator shall file a copy of the assessment with all of the following
persons:
(a) The clerk of each local unit of
government that may be affected by the construction, expansion, or material
modification.
(b) Any planning commission of a
local unit of government described in subdivision (a).
(c) The county planning commission
of any county in which a local unit of government described in subdivision (a) is
located. If there is not a county planning commission, the copy must be filed
with the regional planning commission engaged in planning for the region in
which the local unit of government is located.
(d) Any zoning commission of a local
unit of government described in subdivision (a).
(e) The county zoning commission of any
county in which a local unit of government described in subdivision (a) is
located. If there is not a county zoning commission, the copy must be filed
with the coordinating zoning committee for the region in which the local unit
of government is located.
(5) If a material change occurs
related to the plans for the construction, expansion, or material modification
of a large-scale data center while a thermal impact assessment is under review
by the commission under this section, the developer or operator shall submit an
updated assessment to the commission not later than 30 days after the developer
or operator knows or reasonably should know of the material change.
(6) Not later than 45 days after the
commission receives a thermal impact assessment under subsection (2) or an
updated assessment under subsection (5), whichever is later, the commission
shall determine whether the submission is administratively complete for
purposes of this act. The commission may consult with the department, any
affected local unit of government, and any other relevant person to evaluate
the submission. If the commission determines that a submission is not
administratively complete, the commission may require a developer or operator
to supplement the submission. The developer or operator shall promptly provide
the supplement after receiving notice from the commission under this
subsection. If the commission determines that a submission is administratively
complete and the accompanying review fee has been paid, the commission shall
issue a certificate of completeness for the large-scale data center.
Sec.
7. (1) The commission and any person that receives a copy of a thermal impact
assessment under section 5(4) may use the assessment for informational and
planning purposes to the extent authorized by law.
(2) Except as otherwise provided in
subsection (3), a developer or operator may designate any proprietary
information in a thermal impact assessment for confidential treatment.
(3) The following information in a
thermal impact assessment must not be designated for confidential treatment
under subsection (2):
(a) The public summary of the
assessment.
(b) The general thermal study area
of the assessment.
(c) The types of localized thermal
impacts evaluated in the assessment.
(d) The general mitigation
alternatives considered in the assessment.
(e) The general conclusions of the
assessment.
(4) Proprietary information
designated for confidential treatment under subsection (2) is exempt from
disclosure under the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246, and must not be made available for public inspection or copying or
divulged without the written consent of the developer or operator, except in
accordance with a judicial order.
(5) The commission shall make the
public summary of each thermal impact assessment submitted under section 5
available to the public in a manner determined by the commission.
Sec.
9. (1) A certificate of completeness issued under section 5 for a large-scale
data center expires after 24 months.
(2) If the construction, expansion,
or material modification of a large-scale data center does not begin before the
certificate of completeness for the large-scale data center expires, the
developer or operator shall do 1 of the following before beginning the
construction, expansion, or material modification:
(a) Certify to the commission that
the thermal impact assessment previously submitted to the commission remains
accurate and that no material change has occurred. Upon receipt of a
certification by a developer or operator under this subdivision, the commission
shall extend the expiration date of the certificate of completeness for an
additional period of 12 months.
(b) Submit an updated thermal impact
assessment to the commission for review. The updated assessment is subject to
the requirements of a new thermal impact assessment submitted to the commission
under section 5.
(3) If a certificate of completeness
is issued under section 5 for a large-scale data center, the developer or
operator must submit a postconstruction certification to the commission not
later than 12 months after completion of the construction, expansion, or
material modification. The postconstruction certification must state whether
the large-scale data center as constructed materially differs from the thermal
impact assessment submitted under section 5 with respect to site design,
cooling system, heat rejection, or other factors relevant to localized thermal
impacts. If a material difference described in this subsection has occurred,
the developer or operator must submit an updated thermal impact assessment with
the postconstruction certification.
Sec. 11. A person that violates this
act is subject to a civil fine of not more
than $10,000.00 for each day of violation. The prosecutor of the county in
which the violation occurred or the attorney general may bring an action to
collect the civil fine or to obtain an injunction against the person. A civil fine
collected under this section must be deposited in the general fund.
Sec. 13. The commission may
promulgate rules to implement this act under the administrative procedures act
of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 15. Nothing in this act shall be construed to
regulate electric rates, cost recovery, interconnection standards, or utility
infrastructure planning.
Enacting section 1.
This act takes effect 90 days after the date it is enacted into law.