New York State Assembly

 
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A11560 Summary:

A11560 Actions:

A11560 Committee Votes:

Committee:WAYS AND MEANS   Chair:Pretlow      
DATE:06/03/2026AYE/NAY:22/10  Action: Favorable refer to committee Rules        
Pretlow
Aye
Palmesano
Nay
Glick
Aye
Fitzpatrick
Nay
Colton
Aye
Hawley
Nay
Cook
Excused
Blankenbush
Nay
Benedetto
Aye
Walsh
Nay
Weprin
Aye
DeStefano
Nay
Ramos
Aye
Manktelow
Nay
Braunstein
Aye
Smullen
Nay
McDonald
Aye
Giglio
Nay
Rozic
Aye
Slater
Nay
Dinowitz
Aye
Magnarelli
Aye
Bronson
Aye
Dilan
Absent
Seawright
Aye
Hyndman
Excused
Walker
Aye
Bichotte Hermel
Aye
Simon
Aye
Cruz
Aye
Otis
Aye
Solages
Aye
Hunter
Aye
Septimo
Aye
Hevesi
Aye

Committee:RULES   Chair:Glick      
DATE:06/03/2026AYE/NAY:20/9  Action: Favorable         
Heastie
Excused
Ra
Nay
Pretlow
Aye
Hawley
Nay
Cook
Excused
Blankenbush
Nay
Glick
Aye
Brabenec
Nay
Dinowitz
Aye
Palmesano
Nay
Colton
Aye
Reilly
Nay
Magnarelli
Aye
Smith
Nay
Paulin
Aye
Jensen
Nay
Peoples-Stokes
Aye
Gandolfo
Nay
Benedetto
Aye
Lavine
Aye
Lupardo
Aye
Braunstein
Aye
Davila
Aye
Hyndman
Aye
Rozic
Aye
Bronson
Aye
Hevesi
Aye
Hunter
Aye
Taylor
Aye
Cruz
Aye
Vanel
Aye

A11560 Floor Votes:

A11560 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          11560
 
                   IN ASSEMBLY
 
                                      June 1, 2026
                                       ___________
 
        Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Barrett,
          Kelles, Tapia, Glick) -- read once and referred to  the  Committee  on
          Ways and Means
 
        AN  ACT  to amend the environmental conservation law, the public service
          law, the public authorities law, the energy law and the labor law,  in
          relation to enacting the responsible data center development act

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "responsible data center development act".
     3    §  2.  The  environmental  conservation law is amended by adding a new
     4  article 31 to read as follows:
     5                                 ARTICLE 31
     6                  MORATORIUM ON DATA CENTER PERMIT ISSUANCE
     7  Section 31-0101. Definitions.
     8          31-0103. Moratorium on large data center permit issuance.
     9          31-0105. Hearing requirement.
    10          31-0107. Environmental impact report.
    11  § 31-0101. Definitions.
    12    For the purposes of this article, the following terms shall  have  the
    13  following meanings:
    14    1.  a.  "Data  center"  shall  mean  all facilities, or combination of
    15  facilities under common ownership or control at the same site, that:
    16    i. Receive electric, gas, or water service  from  an  electric  corpo-
    17  ration,  gas corporation, water-works corporation, or municipality, have
    18  applied or requested to receive such service, or have  otherwise  caused
    19  an  electric  corporation,  gas corporation, water-works corporation, or
    20  municipality to incur an expense in relation to the provision of service
    21  pursuant to the public service law; and
    22    ii. Have a peak demand of one megawatt or more that is used for:
    23    (1) Computing infrastructure, not including manufacturing;
    24    (2) Data processing services;
    25    (3) Web hosting services, not including software publishing;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD16039-04-6
        A. 11560                            2
 
     1    (4) Streaming support services, not including streaming  distribution;
     2  and
     3    (5)  Other  related  services  and  functions as defined by the public
     4  service commission.
     5    b. The term "data center" shall not include facilities majority-owned,
     6  operated, or otherwise controlled by a public research  institution  and
     7  used for research purposes.
     8    2.  "Control",  including  the terms "controlled by" and "under common
     9  control with", means the possession, direct or indirect, of the power to
    10  direct or cause the direction of the management and policies of an enti-
    11  ty, whether through the ownership of voting securities, by contract,  or
    12  otherwise.
    13    3.  "Electric  corporation"  shall have the same meaning given to such
    14  term in subdivision thirteen of section two of the public service law.
    15    4. "Gas corporation" shall have the same meaning given to such term in
    16  subdivision eleven of section two of the public service law.
    17    5. "Water-works corporation" shall have the same meaning given to such
    18  term in subdivision twenty-seven of section two of  the  public  service
    19  law.
    20    6.  "Disadvantaged  communities"  shall have the same meaning given to
    21  such term in section 75-0101 of this chapter.
    22    7. "Large data center" shall mean a data center that has a peak demand
    23  of twenty megawatts or more.
    24  § 31-0103. Moratorium on large data center permit issuance.
    25    1. No permit, certificate, registration, license,  or  other  form  of
    26  approval may be issued by the department to a large data center prior to
    27  one year after the effective date of this section.
    28    2. This section shall not apply to:
    29    a.  the  modification,  renewal, reissuance, or recertification of any
    30  previously issued permit, certificate, registration, license,  or  other
    31  form of approval; or
    32    b.  large data centers commencing construction on or before the effec-
    33  tive date of this section.
    34  § 31-0105. Hearing requirement.
    35    1. The department shall not issue any permit,  certificate,  registra-
    36  tion, license, or other form of approval for a large data center unless,
    37  not  less  than three months before the issuance of such permit, certif-
    38  icate, registration, license,  or  other  form  of  approval,  the  data
    39  center,  in  coordination  with  the  public  service commission and the
    40  department, and subject to  such  requirements  as  the  public  service
    41  commission  and  the  department  shall stipulate, has held at least one
    42  in-person public hearing in  at  least  one  host  community  where  the
    43  proposed large data center is to be constructed.
    44    2. The data center operator shall provide at least thirty days advance
    45  notice  to  residents of host communities of any planned public hearing.
    46  Notice of public hearings shall include the time, place, and location of
    47  the public hearing, a summary of the  large  data  center  project,  the
    48  specific  location  of  the large data center, a detailed explanation of
    49  the projected energy use and energy system impacts, a detailed  explana-
    50  tion  of  the projected water use and wastewater impacts, and a detailed
    51  explanation of the state and local economic incentives  the  large  data
    52  center is applying for and those it has already been awarded. Methods of
    53  providing  notice  to  a  host community shall include, but shall not be
    54  limited to, coverage in print or digital publications of general  circu-
    55  lation  in  the community, and such other publications as the department
    56  may require. The hearing shall be held at a reasonable time  and  place,
        A. 11560                            3
 
     1  and  meaningful opportunity for public comment shall be provided at such
     2  hearing.
     3    3.  At the hearing, the large data center shall address the efforts it
     4  will make to reduce any negative impacts to the host community  and  its
     5  environment that the large data center may cause.
     6    4.  The  large  data  center  shall  pay all expenses for such hearing
     7  including the costs of the  department  and  the  department  of  public
     8  service.
     9  § 31-0107. Environmental impact report.
    10    1.  The department of environmental conservation, in consultation with
    11  the department of public service, department  of  health,  environmental
    12  facilities  corporation, and the federally designated bulk system opera-
    13  tor, shall prepare an environmental impact report on data center  devel-
    14  opment in this state.
    15    2.  The  environmental  impact report shall address matters including,
    16  but not limited to:
    17    a. The number, size in acreage, average and peak  electric  load,  and
    18  location  of current data centers in the state, active proposals for new
    19  data centers, and projections for future growth of data centers.
    20    b. Electricity consumption by data centers, including:
    21    i. the amount of electricity used by data centers within the state;
    22    ii. identification of the generation sources for such electricity;
    23    iii. projections for the changes to the amount under subparagraph i of
    24  this paragraph for both  the  proposed  and  projected  growth  of  data
    25  centers in the state; and
    26    iv.  the  amount  of discounted or subsidized electricity used by data
    27  centers within the state and the amounts of such  discounts  and  subsi-
    28  dies.
    29    c. Water consumption and discharge by data centers, including:
    30    i. the amount of water used by data centers for cooling, including the
    31  sources of such water;
    32    ii. the daily rate of consumption of water from such sources;
    33    iii.  the  amount  of water withdrawn and discharged from data centers
    34  back into the state's water resources, the temperature of the water both
    35  at point of  withdrawal  and  discharge,  locations  of  withdrawal  and
    36  discharge points, and the local impacts of the discharge;
    37    iv.  the  amount  of water consumed by cooling systems, lost to evapo-
    38  ration, or in any way not returned to the waters of the state;
    39    v. projections for the changes to the amounts under  subparagraphs  i,
    40  ii,  iii,  and  iv of this paragraph for both the proposed and projected
    41  growth of data centers in the state; and
    42    vi. the impact of data center development on  the  management  of  the
    43  state's  water resources, including any impacts related to capital plan-
    44  ning, spending, and maintenance needs  of  water-works  corporations  or
    45  municipal  water  systems and of any water authorities, water boards, or
    46  sewer authorities established under article five of the public  authori-
    47  ties law, including billing impacts.
    48    d. Land use for data centers, including:
    49    i. the total acreage used for existing data centers;
    50    ii. projections for the changes to the amounts under subparagraph i of
    51  this  paragraph  for  both  the  proposed  and  projected growth of data
    52  centers in the state;
    53    iii. impacts on farmland, including an analysis of  impacts  on  prime
    54  farmland mineral soil types 1-4; and
    55    iv.  whether  data  centers  are locating on and redeveloping existing
    56  previously-developed and under-utilized  publicly-owned  lands,  facili-
        A. 11560                            4
 
     1  ties,  and  other  infrastructure that may be available for repurposing,
     2  redevelopment, or adaptive reuse, and the availability thereof.
     3    e. Pollution from data centers, including, but not limited to:
     4    i. the amount of greenhouse gases emitted by each existing data center
     5  and  the cumulative total for the state emitted or projected to be emit-
     6  ted by existing, proposed, and  projected  data  centers,  expressed  in
     7  metric  tons of carbon dioxide equivalent, as defined in section 75-0101
     8  of this chapter;
     9    ii. the types and quantity of air  pollutants  emitted  by  each  data
    10  center  and  the  cumulative  total  for  the state emitted by existing,
    11  proposed, and projected data centers;
    12    iii. the types and quantity of water pollution produced by  each  data
    13  center, including thermal pollution from water discharges, and the cumu-
    14  lative total for the state produced by existing, proposed, and projected
    15  data centers;
    16    iv.  potential  public  health impacts, if any, due to reduced air and
    17  water quality in communities near data centers; and
    18    v. the level of noise pollution produced by  each  data  center,  with
    19  projections  for  proposed and projected data centers, at regular inter-
    20  vals beginning at the property line of the  data  center  and  extending
    21  half a mile.
    22    f. Electronic waste from data centers, including:
    23    i. the current volume of electronic waste produced by data centers, by
    24  waste type;
    25    ii. the current methods being used to dispose of or recycle electronic
    26  waste produced by data centers; and
    27    iii.  projections  for the changes to the amounts under subparagraph i
    28  of this paragraph for both the proposed and  projected  growth  of  data
    29  centers in the state.
    30    g.  The  impacts,  including  health impacts and air, water, and noise
    31  pollution impacts, of current, proposed, and projected data  centers  on
    32  disadvantaged  communities  and federally or state recognized indigenous
    33  nations located within a ten-mile radius of such data centers.
    34    h. A review of current statutes and regulations addressing  the  envi-
    35  ronmental impact of data centers.
    36    i.  In  consultation with the empire state development corporation and
    37  the authorities budget office, the amount of public  funds  received  by
    38  data  centers,  including in the form of state and local tax incentives,
    39  including but not limited to payments in lieu of tax arrangements, sales
    40  and use tax incentives, property tax incentives, mortgage recording  tax
    41  incentives, and real estate transfer tax incentives.
    42    3. The environmental impact report shall recommend new legislation and
    43  regulations as appropriate to mitigate the impacts of data centers iden-
    44  tified by the environmental impact report including, but not limited to:
    45    a. minimize air, water, soil, and noise pollution;
    46    b. minimize water consumption; and
    47    c. avoid new burdens on disadvantaged communities and avoid contribut-
    48  ing to existing burdens on disadvantaged communities.
    49    4.  A draft environmental impact report shall be posted on the depart-
    50  ment's website and shall be subject to at least one hundred twenty  days
    51  of public comment from the date of posting. The department shall conduct
    52  at  least one in-person public hearing in at least five of the following
    53  regions of the state: western New York, the Finger Lakes,  the  southern
    54  tier,  central New York, the Mohawk valley, the north country, the capi-
    55  tal region/Hudson valley, the city of New  York,  and  Long  Island,  as
        A. 11560                            5
 
     1  defined  by  the empire state development corporation, and provide mean-
     2  ingful opportunity for comment at such hearings.
     3    5.  The  department  shall  issue  a final environmental impact report
     4  after the public comment and public hearing period  and  no  later  than
     5  eighteen months after this article shall have become a law.
     6    § 3. Subdivision 5 of section 65 of the public service law, as amended
     7  by chapter 134 of the laws of 1921, is amended to read as follows:
     8    5. (a) Nothing in this chapter shall be taken to prohibit a gas corpo-
     9  ration  or  [electrical]  electric corporation from establishing classi-
    10  fications of service based upon the quantity used, the time  when  used,
    11  the  purpose  for  which  used,  the  duration  of use or upon any other
    12  reasonable consideration, and providing schedules of just and reasonable
    13  graduated rates applicable thereto. No  such  classification,  schedule,
    14  rate  or  charge  shall  be  lawful  unless  it  shall be filed with and
    15  approved by the commission,  and  every  such  classification,  rate  or
    16  charge  shall  be  subject to change, alteration and modification by the
    17  commission.
    18    (b) (i) The commission shall require each  electric  corporation,  gas
    19  corporation, and municipality to establish, and file with the commission
    20  for  approval  or modification, an independent classification of service
    21  for large data centers that is separate and distinct from other  classi-
    22  fications  of  service.  The commission shall also require each electric
    23  corporation, gas corporation,  and  municipality  to  file  updates,  if
    24  applicable, to existing classifications of service to exclude large data
    25  centers and to update any other filings, documents, or components there-
    26  of  necessary  to effectuate the reclassification of large data centers.
    27  Each such service classification for large data centers shall at a mini-
    28  mum, in a manner that is just and reasonable, establish a rate,  charge,
    29  or schedule of rates, and additional terms of service, to:
    30    (A)  assign the costs incurred by the electric corporation, gas corpo-
    31  ration, or municipality to serve large data centers, including, but  not
    32  limited  to,  the  costs  of any infrastructure upgrades, administrative
    33  expenses, improvements, or additions and operational costs, necessary to
    34  facilitate and maintain service to such facilities, entirely among  such
    35  classification;
    36    (B)  assign  all  costs  related to the recovery of any rate of return
    37  attributable to large data centers entirely among such classification;
    38    (C) assign all costs of the department, the commission,  and  affected
    39  municipalities  related  to  the requirements of this paragraph entirely
    40  among such classification;
    41    (D) assign all costs of the department  and  the  commission  for  the
    42  implementation  of  the  requirements of section eight of the chapter of
    43  the laws of two thousand twenty-six that added this  paragraph  entirely
    44  among such classification; and
    45    (E)  mitigate  risks and impacts to other service classifications from
    46  large data  centers,  including  ensuring  there  are  no  increases  to
    47  surcharges, basic service or other fixed charges not directly related to
    48  actual energy usage;
    49    (ii)  The  commission,  in  coordination with the federally designated
    50  bulk system operator, shall establish, implement, and annually update an
    51  adjustment mechanism to ensure that all  costs  from  any  increases  in
    52  commodity  prices after the effective date of the chapter of the laws of
    53  two thousand twenty-six that amended this  subdivision,  including,  but
    54  not  limited  to,  transmission service fees, attributable to large data
    55  centers are borne by such facilities.
        A. 11560                            6
 
     1    (iii) The department may promulgate  regulations  regarding  financial
     2  surety  requirements,  between an electric corporation, gas corporation,
     3  or municipality and a large data center, for the provision of service to
     4  large data centers which may include one, or  any  combination,  of  the
     5  following:    insurance,  guarantee,  surety  bond, letter of credit, or
     6  qualification as a self-insurer. In promulgating requirements under this
     7  section, the commission shall be authorized to specify policy  or  other
     8  contractual  terms,  conditions,  or defenses which are necessary or are
     9  unacceptable in establishing such evidence of financial surety.
    10    (iv) For purposes of this paragraph, "large data  center"  shall  have
    11  the  meaning  given to such term by section 31-0101 of the environmental
    12  conservation law.
    13    § 4. Subdivision 5 of section 89-b of the public service law, as added
    14  by chapter 715 of the laws of 1931, is amended to read as follows:
    15    5. (a) Nothing in this chapter shall be taken  to  prohibit  a  water-
    16  works  corporation  from  establishing  classifications of service based
    17  upon the quantity of water used, times  when  used,  purpose  for  which
    18  used,  duration  of use, or upon any other reasonable consideration, and
    19  providing schedules of just and reasonable  graduated  rates  applicable
    20  thereto.  No  such  classification,  schedule,  rate  or charge shall be
    21  lawful unless it shall be filed with and approved by the commission, and
    22  every such classification, rate or charge shall be  subject  to  change,
    23  alteration and modification by the commission.
    24    (b)  (i)  The commission shall require each water-works corporation or
    25  municipal water system to establish, and file with  the  commission  for
    26  approval  or  modification, an independent classification of service for
    27  large data centers that is separate and distinct from other  classifica-
    28  tions  of  service.   The commission shall also require each water-works
    29  corporation to file updates, if applicable, to existing  classifications
    30  of  service  to  exclude  large  data  centers  and  to update any other
    31  filings, documents, or components thereof necessary  to  effectuate  the
    32  reclassification  of  large data centers.  Each such service classifica-
    33  tion for large data centers shall at a minimum, in a manner that is just
    34  and reasonable, establish a rate, charge,  or  schedule  of  rates,  and
    35  additional terms of service, to:
    36    (A) assign the costs incurred by the water-works corporation or munic-
    37  ipal water system to serve large data centers, including, but not limit-
    38  ed   to,  the  costs  of  any  infrastructure  upgrades,  administrative
    39  expenses, improvements, or additions and operational costs, necessary to
    40  facilitate and maintain service to such large  data  center  facilities,
    41  entirely among such classification;
    42    (B)  assign  all  costs  related to the recovery of any rate of return
    43  attributable to large data centers entirely among such classification;
    44    (C) assign all costs of the department, the  commission,  and  munici-
    45  palities  related  to  the requirements of this paragraph entirely among
    46  such classification; and
    47    (D) mitigate risks and impacts to other service  classifications  from
    48  data  centers,  including ensuring there are no increases to surcharges,
    49  basic service or other fixed charges  not  directly  related  to  actual
    50  water usage.
    51    (ii) The commission shall establish, implement, and annually update an
    52  adjustment  mechanism  to  ensure  that  all costs from any increases in
    53  commodity prices after the effective date of the chapter of the laws  of
    54  two  thousand  twenty-six  that amended this subdivision, including, but
    55  not limited to, water service fees, attributable to large  data  centers
    56  are borne by such facilities.
        A. 11560                            7
 
     1    (iii)  The  department  may promulgate regulations regarding financial
     2  surety requirements, between  a  water-works  corporation  or  municipal
     3  water  system  and  a large data center, for the provision of service to
     4  large data centers which may include one, or  any  combination,  of  the
     5  following:    insurance,  guarantee,  surety  bond, letter of credit, or
     6  qualification as a self-insurer. In promulgating requirements under this
     7  section, the commission shall be authorized to specify policy  or  other
     8  contractual  terms,  conditions,  or defenses which are necessary or are
     9  unacceptable in establishing such evidence of financial surety.
    10    (iv) For purposes of this paragraph, "large data  center"  shall  have
    11  the  meaning  given to such term by section 31-0101 of the environmental
    12  conservation law.
    13    § 5. The public service law is amended by adding a new  section  114-b
    14  to read as follows:
    15    § 114-b. Service classification for large data centers. 1. The commis-
    16  sion shall:
    17    a.  not  approve  any  change  of rates or related updates to a tariff
    18  requested by  an  electric  corporation,  gas  corporation,  water-works
    19  corporation,  or  municipality  after the effective date of this section
    20  unless such proposal includes a service classification  for  large  data
    21  centers and an adjustment mechanism in compliance with the provisions of
    22  paragraph (b) of subdivision five of section sixty-five or paragraph (b)
    23  of  subdivision five of section eighty-nine-b of this chapter, as appli-
    24  cable; and
    25    b. ensure that all new or modified service classifications and adjust-
    26  ment mechanisms required by paragraph (b) of subdivision five of section
    27  sixty-five or paragraph (b) of subdivision five of section eighty-nine-b
    28  of this chapter are fully  implemented  by  electric  corporations,  gas
    29  corporations,  water-works corporations, or municipalities no later than
    30  June first, two thousand thirty.
    31    2. For purposes of this section, "large data center"  shall  have  the
    32  meaning  given  to  such  term  by  section 31-0101 of the environmental
    33  conservation law.
    34    § 6. The public authorities law is amended by  adding  a  new  section
    35  1854-e to read as follows:
    36    §  1854-e.  Energy  consumption efficiency goals. 1. No later than one
    37  year after the  effective  date  of  this  section,  the  authority,  in
    38  conjunction with the federally designed bulk system operator, the public
    39  service  commission, and the New York state climate action council shall
    40  determine reasonable energy consumption efficiency goals for the  design
    41  and operation of data centers as defined in section 31-0101 of the envi-
    42  ronmental  conservation law, including, but not limited to, recycling of
    43  waste heat emitted from data centers into an energy source.  Such  goals
    44  shall  align with the benchmarks set forth in the climate leadership and
    45  community protection act enacted by chapter one hundred six of the  laws
    46  of  two thousand nineteen and shall be reviewed and updated accordingly,
    47  annually.
    48    2. A data center operator that has commenced operation  prior  to  the
    49  effective  date  of this section shall have two years to comply with the
    50  energy consumption efficiency goals developed pursuant to this  section.
    51  A  data  center operator that has commenced operation within one year of
    52  the effective date of this section shall have one year  to  comply  with
    53  such energy consumption efficiency goals.
    54    §  7.  The energy law is amended by adding a new article 19 to read as
    55  follows:
        A. 11560                            8
 
     1                                 ARTICLE 19
     2                                DATA CENTERS
     3  Section 19-101. Definitions.
     4          19-103. Renewable energy use standards.
     5          19-105. Renewable energy production standards.
     6    § 19-101. Definitions.  For  purposes  of  this article, the following
     7  terms shall have the following meanings:
     8    1. "Data center" shall have the meaning given to such term in  section
     9  31-0101 of the environmental conservation law.
    10    2.  "Renewable  energy  systems"  shall have the meaning given to such
    11  term in section sixty-six-p of the public service law.
    12    § 19-103. Renewable energy use standards. Every  data  center  with  a
    13  peak  load  of  five  megawatts or more shall demonstrate through annual
    14  third-party independent verification acceptable to  the  public  service
    15  commission  that  it  is  procuring, whether through contract or on-site
    16  generation, that:
    17    1. at least one third of its electricity consumption is  derived  from
    18  renewable  energy  systems for the years two thousand thirty through two
    19  thousand thirty-four,
    20    2. at least two-thirds of its electricity consumption is derived  from
    21  renewable  energy systems for the years two thousand thirty-five through
    22  two thousand thirty-nine, and
    23    3. at least ninety percent of its electricity consumption  is  derived
    24  from renewable energy systems in two thousand forty and thereafter.
    25    § 19-105. Renewable  energy  production  standards.  Every data center
    26  with a peak load of five megawatts or  more  shall  demonstrate  through
    27  annual  third-party  independent  verification  acceptable to the public
    28  service commission that it is deriving as much of its energy needs as is
    29  technologically, environmentally, and practically feasible from  on-site
    30  generation from renewable energy systems.
    31    § 8. Host community benefits. 1. For the purposes of this section, the
    32  following terms shall have the following meanings:
    33    (a) "Host community" shall mean any city, town or village within which
    34  a  large  data  center,  or  any  portion thereof, has been proposed for
    35  development.
    36    (b) "Eligible residential technologies" means:
    37    (i) cold-climate air-source heat pumps and  ground-source  heat  pumps
    38  for  space  heating and cooling, including but not limited to geothermal
    39  ground source heat pumps and thermal energy networks;
    40    (ii) heat pump water heaters;
    41    (iii) distributed solar photovoltaic systems; and
    42    (iv) behind-the-meter battery storage systems.
    43    (c) "Community infrastructure" means:
    44    (i) local broadband infrastructure;
    45    (ii) large data center noise mitigation measures;
    46    (iii) municipal drinking water infrastructure;
    47    (iv) municipal-  and  community-owned  renewable  energy  systems,  as
    48  defined in section 66-p of the public service law;
    49    (v) energy transmission infrastructure; and
    50    (vi) large data center pollution mitigation.
    51    (d)  "Large  data center" shall have the meaning given to such term by
    52  section 31-0101 of the environmental conservation law.
    53    (e) "Waters" shall have the meaning given to such term by  subdivision
    54  4 of section 15-0107 of the environmental conservation law.
        A. 11560                            9
 
     1    (f)  "Closed-loop  cooling  system"  means  a system in which the same
     2  water or other coolant is recirculated, with only make-up and  blow-down
     3  losses, and minimal fresh water intake.
     4    2.  Each  new  large  data  center,  or any existing large data center
     5  undergoing a major expansion that will meet or exceed  20  megawatts  of
     6  additional  load, shall, pursuant to subdivision 3 of this section, fund
     7  a program to:
     8    (a) install eligible residential technologies for host community resi-
     9  dents;
    10    (b) develop community infrastructure in the host community or communi-
    11  ties; and
    12    (c) implement measures to prevent increased levels of water pollution,
    13  strains on wastewater infrastructure, water scarcity, and other  adverse
    14  impacts  to  waters  in  the  host  community  or communities, which may
    15  include but shall not be limited to the adoption of efficient large data
    16  center  cooling  technology,  such  as  closed-loop   cooling   systems;
    17  provided,  however,  such measures shall not be required with respect to
    18  adverse impacts which are addressed pursuant to paragraph (b) of  subdi-
    19  vision 5 of section 89-b of the public service law.
    20    3.  (a)  The  public service commission shall, within ninety days from
    21  the effective date of this subdivision, commence a proceeding to  estab-
    22  lish a program under which large data center owners would be required to
    23  fund  the  program  described  in  subdivision 2 of this section.   Such
    24  proceeding shall establish a process for large data  centers  to  notify
    25  host  communities  of  the  program  and the process for implementation,
    26  including meaningful community engagement.
    27    (b) With respect to the program components contemplated by  paragraphs
    28  (a)  and  (b)  of subdivision 2 of this section, the program shall allow
    29  such communities to indicate preferences for  the  installation  of  any
    30  eligible  residential  technologies  or  community infrastructure.   The
    31  proceeding shall further determine the amount of such eligible  residen-
    32  tial  technologies and/or community infrastructure to be installed based
    33  on community input and all  other  factors  deemed  appropriate  by  the
    34  commission,  including the expected average electric and water demand of
    35  the facility, the average number of electric and water utility customers
    36  within the large data center host community, and the expected  aggregate
    37  annual  electric  and  water  consumption  within such host community or
    38  communities, and shall include prioritization of low-  and  moderate-in-
    39  come  households  and  disadvantaged communities, and the role of utili-
    40  ties, if any, in implementing any aspect of  such  program.  The  public
    41  service commission shall consult with the New York state energy research
    42  and  development  authority, the federally designated bulk system opera-
    43  tor, and the empire state  development  corporation  in  fulfilling  its
    44  responsibilities  pursuant  to this paragraph, and may also consult with
    45  the affected utilities in fulfilling its responsibilities.
    46    (c) With respect to the program components contemplated  by  paragraph
    47  (c)  of  subdivision  2  of this section, the data center shall fund all
    48  appropriate measures necessary to fully prevent the adverse impacts  set
    49  forth  in  such  paragraph. The proceeding shall determine what measures
    50  are appropriate to satisfy such requirements based  on  input  from  the
    51  host  community  and all other factors deemed appropriate by the commis-
    52  sion in consultation with the department of  environmental  conservation
    53  and  the  environmental  facilities corporation, including the number of
    54  wastewater customers within the large data center host community and the
    55  expected aggregate annual wastewater  volumes  within  such  large  data
    56  center host community and the role of wastewater management entities and
        A. 11560                           10
 
     1  local  natural resource management entities, if any, in implementing any
     2  aspect of the program. The public service commission shall consult  with
     3  the  department  of  environmental  conservation  and  the environmental
     4  facilities  corporation  in  fulfilling its responsibilities pursuant to
     5  this paragraph.
     6    (d) The large data center shall annually submit independently  audited
     7  financial reports to the public service commission for such fund.
     8    4. The data center, in coordination with the public service commission
     9  and  the  department  of environmental conservation, shall hold at least
    10  one hearing in at least one host  community  to  inform  the  proceeding
    11  contemplated  by  subdivision 3 of this section. Reasonable notice shall
    12  be given in advance of such hearing, the hearing  shall  be  held  at  a
    13  reasonable time and place, and meaningful opportunity for public comment
    14  shall  be  provided  at  such  hearing.    The data center shall pay all
    15  expenses for such hearing including  the  costs  of  the  department  of
    16  public service and the department of environmental conservation.
    17    5.  All  community infrastructure projects as defined in subdivision 1
    18  of this section with a total  construction  cost  of  not  less  than  1
    19  million  dollars  shall  be  subject  to prevailing wage requirements in
    20  accordance with sections 220, 220-a, 220-b, 220-i, 223, and 224-b of the
    21  labor law, provided that the requirements of this subdivision shall  not
    22  apply to:
    23    (a)  a project conducted under a pre-hire collective bargaining agree-
    24  ment between an  owner  or  developer  and  a  bona  fide  building  and
    25  construction  trades  labor  organization  which has established itself,
    26  and/or its affiliates, as the collective bargaining  representative  for
    27  all  persons who will perform work on such a project, and which provides
    28  that only contractors  and  subcontractors  who  sign  a  pre-negotiated
    29  agreement with the labor organization can perform work on such project;
    30    (b)  construction work on one- or two-family dwellings where the prop-
    31  erty is the owner's primary residence, or construction work performed on
    32  property where the owner of the property owns no more than four dwelling
    33  units; or
    34    (c) construction work performed on a multiple residence and/or  ancil-
    35  lary amenities or installations that is wholly privately owned in any of
    36  the following circumstances:
    37    (i)  where  more than twenty-five percent of the residential units are
    38  affordable and shall be retained subject to  an  anticipated  regulatory
    39  agreement  with  a  local,  state,  or federal governmental entity, or a
    40  not-for-profit entity with an anticipated formal agreement with a local,
    41  state, or federal governmental entity for purposes of providing afforda-
    42  ble housing in a given locality or region provided that  the  period  of
    43  affordability  for  a  residential  unit  deemed  affordable  under  the
    44  provisions of this paragraph shall be for no  less  than  fifteen  years
    45  from the date of construction; or
    46    (ii)  where  no less than thirty-five percent of the residential units
    47  involves the provision of supportive  housing  services  for  vulnerable
    48  populations provided that such units are subject to an anticipated regu-
    49  latory agreement with a local, state, or federal governmental entity.
    50    §  9.  The  Long  Island Power Authority shall establish a program for
    51  large data centers within its service  territory  to  achieve  the  same
    52  objectives  and in the same manner as set forth and described in section
    53  eight of this act.
    54    § 10. The labor law is amended by adding a new section 224-g  to  read
    55  as follows:
        A. 11560                           11
 
     1    § 224-g. Labor standards for construction of data centers. 1.  For the
     2  purposes of this section:
     3    a.  "Data  center"  shall  have the same meaning given to such term in
     4  section 31-0101 of the environmental conservation law.
     5    b. "Covered data center" shall mean a data center with a  peak  demand
     6  capacity of five megawatts or more.
     7    c.  "Fiscal  officer" shall mean the commissioner; except for projects
     8  performed pursuant to a permit issued by a city  with  a  population  in
     9  excess of one million, in which case the "fiscal officer" shall mean the
    10  comptroller or other analogous officer of such city.
    11    2. The construction of a covered data center or expansion of an exist-
    12  ing data center which will be a covered data center after such expansion
    13  shall  be  subject  to  prevailing  wage requirements in accordance with
    14  sections two hundred twenty, two hundred twenty-a, two hundred twenty-b,
    15  two hundred twenty-i, two hundred twenty-three, and two hundred  twenty-
    16  four-b  of  this article, provided that such requirement shall not apply
    17  to construction or expansion of a covered data center conducted under  a
    18  pre-hire  collective  bargaining agreement between an owner or developer
    19  and a bona fide building  and  construction  trades  labor  organization
    20  which  has  established itself, and/or its affiliates, as the collective
    21  bargaining representative for all persons who will perform work on  such
    22  a  project,  and which provides that only contractors and subcontractors
    23  who sign a pre-negotiated agreement  with  the  labor  organization  can
    24  perform work on such project.
    25    3.  The  owner  or developer of such covered data center shall require
    26  the use of apprenticeship agreements as defined by article  twenty-three
    27  of  this  chapter;  or  for  industries without apprenticeship programs,
    28  require the use of workforce training, preferably in conjunction with  a
    29  bona fide labor organization; and consider use of registered pre-appren-
    30  ticeship  direct  entry  programs  for  the  recruitment of local and/or
    31  disadvantaged workers.
    32    4. The enforcement of any construction under  this  section  shall  be
    33  subject  to the requirements of sections two hundred twenty, two hundred
    34  twenty-a, two hundred twenty-b, two hundred twenty-i, two hundred  twen-
    35  ty-three,  two  hundred  twenty-four-b  of this article, and section two
    36  hundred twenty-seven of this chapter and within the jurisdiction of  the
    37  fiscal  officer;  provided,  however,  nothing contained in this section
    38  shall be deemed to construe any project covered this section  as  other-
    39  wise being considered public work pursuant to this article.
    40    5.  The  fiscal  officer may issue rules and regulations governing the
    41  provisions of this section. Violations of this section shall be  grounds
    42  for  determinations  and orders pursuant to section two hundred twenty-b
    43  of this article.
    44    6. For any building service work on a project covered by this section,
    45  prevailing wage shall be paid consistent with article nine of this chap-
    46  ter.
    47    7. The owner or developer of such covered data  center  shall  require
    48  that  the  iron or steel used or supplied for construction, including by
    49  any contractor or subcontractor, shall be produced or made in  whole  or
    50  substantial  part  in the United States, its territories or possessions.
    51  In the case of an iron or steel  product  all  manufacturing  must  take
    52  place  in  the United States, from the initial melting stage through the
    53  application of coatings, except metallurgical  processes  involving  the
    54  refinement of steel additives.
    55    §  11.  Severability.  If  any clause, sentence, paragraph, section or
    56  part of this article shall be adjudged by any court of competent  juris-
        A. 11560                           12

     1  diction  to  be  invalid  and  after  exhaustion of all further judicial
     2  review, the judgment shall not affect, impair or invalidate the  remain-
     3  der  thereof,  but  shall  be  confined  in its operation to the clause,
     4  sentence,  paragraph,  section or part of this article directly involved
     5  in the controversy in which the judgment shall have been rendered.
     6    § 12. This act shall take effect immediately.