Senate Bill 1999, known as the "Data Center, Artificial Intelligence, and Clean Transition Tariff Accountability Act," aims to address the growing electricity demand from large-scale data centers, artificial intelligence facilities, and other energy-intensive operations in Tennessee. The bill establishes a framework for a Tennessee clean transition tariff (CTT) that allows these large users to voluntarily procure additional clean energy while ensuring that the costs do not shift to residential and small business customers. It mandates that large energy-intensive users bear the costs of necessary grid upgrades and infrastructure improvements proportional to their energy consumption.

The legislation also includes provisions for transparency and accountability, requiring the Tennessee Public Utility Commission to report annually on the impacts of large energy users on residential rates and the development of clean energy resources. The bill emphasizes the importance of protecting smaller ratepayers from potential rate increases due to the demands of large corporate energy users and aims to maintain grid reliability and affordability. The act is set to take effect on July 1, 2026, and will apply to all new or expanded large energy-intensive users seeking electric service from that date forward.