The bill H.727, introduced by Representative Sibilia, aims to establish a regulatory framework for the deployment of data centers in Vermont, ensuring that electric service remains reliable and affordable while protecting the environment, local communities, and public health. The new subchapter added to 30 V.S.A. outlines the Vermont Sustainable Data Centers Act, which includes definitions, purposes, and specific requirements for data centers, such as the establishment of a separate ratepayer class and tariff schedule by the Public Utility Commission. This framework is designed to mitigate financial risks to existing ratepayers and promote sustainable practices in energy usage.

Key provisions of the bill include requirements for data centers to obtain a certificate of public good before construction, ensuring that their operations do not adversely affect the electric power system or the environment. Additionally, the bill mandates quarterly reporting on energy and water usage by data center owners and annual reports from the Commissioner of Public Service on the impacts of data centers. The bill also proposes a financial structure to support state and local benefits, potentially funded by taxes related to data centers. The act is set to take effect upon passage and will apply to any data center not operational by the effective date.