The bill H.727, known as the Vermont Sustainable Data Centers Act, establishes a regulatory framework for the responsible growth of data centers in Vermont. It aims to protect existing electric ratepayers from unwarranted costs while promoting sustainable environmental and community outcomes. The bill defines a data center as a facility using 20 megawatts or more of power and outlines requirements for large load service equity contracts that data centers must enter into with electric companies. These contracts must ensure equitable cost allocation, mitigate risks to other ratepayer classes, and include provisions for demand-side management and compliance with energy efficiency standards.

Additionally, the bill introduces new permitting requirements for data centers regarding water use and cooling systems, mandating the use of closed-loop cooling systems to minimize environmental impacts. It also prohibits the addition of per- and polyfluoroalkyl substances (PFAS) to wastewater discharges from data centers. The Public Utility Commission is tasked with preparing a report on regional renewable energy market conditions and recommending a regulatory model for data center decommissioning by December 2026. The act will take effect upon passage and applies to new data centers and existing ones seeking to expand their capacity.

Statutes affected:
As Passed By the House -- Unofficial: 10-6001