The proposed legislation, Substitute Bill No. 1353, aims to amend section 32-286 of the general statutes concerning subsidies for new electricity demand, specifically targeting qualified data centers. The bill introduces new definitions and clarifications regarding terms such as "colocation tenant," "eligible qualified data center costs," and "qualified data center." Notably, it specifies that a "qualified data center" does not include facilities that receive electricity from an electric supplier located on the customer-side of the facility's electric meter unless the supplier increases its generation capacity to offset the facility's total electric usage. This change is intended to ensure that only data centers that contribute to increased electricity generation capacity are eligible for subsidies.

Additionally, the bill outlines what constitutes "qualified investment," which includes non-duplicative eligible costs incurred by owners, operators, and colocation tenants of qualified data centers. The act is set to take effect on October 1, 2025, and aims to promote the development and operation of data centers in a manner that aligns with energy generation and sustainability goals. The revisions in the bill reflect a focus on enhancing the operational framework for data centers while ensuring that they contribute positively to the electricity supply landscape.

Statutes affected:
Raised Bill: 16-11, 16-244dd