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, including terms such as "colocation tenant," "eligible qualified data center costs," and "qualified investment." Notably, it specifies that "qualified data centers" must not 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 data centers contribute to the overall electricity demand management and sustainability efforts.

Additionally, the bill outlines the types of expenditures that qualify as "eligible qualified data center costs," which include a wide range of development and operational expenses related to the construction and functioning of data centers. The legislation emphasizes the importance of energy efficiency and infrastructure improvements in the context of data centers, which are critical for managing the growing demand for electricity in the digital age. The effective date for these changes is set for October 1, 2025.

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