The bill H.727, which was vetoed by the Governor, aimed to create a comprehensive regulatory framework for data centers in Vermont, specifically targeting those that utilize 20 megawatts or more of power. It defined a data center and included provisions for multiple nonadjacent sites operating as a single entity. Key requirements included the necessity for data centers to enter into large load service equity contracts with electric distribution companies, ensuring that other ratepayers would not bear the costs associated with data center operations. The bill mandated compliance with demand-side management provisions, annual energy transformation payments to local communities, and participation in virtual power plants. Additionally, it required quarterly reporting on energy and water usage, with reports accessible to the public.

The legislation also addressed land use and environmental concerns, stipulating that data centers must obtain an Act 250 permit and adhere to specific water use requirements, including the use of closed-loop cooling systems. It imposed strict monitoring standards for PFAS discharges and required various environmental permits. The bill called for additional reports on renewable energy market conditions and a recommended regulatory model for data center decommissioning. If enacted, the bill would have applied to both new and existing data centers seeking to expand their capacity beyond the established threshold.

Statutes affected:
As Passed By the House -- Unofficial: 10-6001
As Passed by Both House and Senate -- Official: 10-6001
As Passed by Both House and Senate -- Unofficial: 10-6001