CS for CS for SB 484                            Second Engrossed
       
       
       
       
       
       
       
       
       2026484e2
       
    1                        A bill to be entitled                      
    2         An act relating to data centers; creating s. 163.326,
    3         F.S.; providing legislative findings; specifying that
    4         local governments maintain authority to exercise power
    5         and responsibility over comprehensive planning and
    6         land development regulations relating to large load
    7         customers; prohibiting a large load customer from
    8         being considered an electric substation; amending s.
    9         288.075, F.S.; defining the term “data center”;
   10         providing an exception to a provision allowing an
   11         extension of certain confidentiality protections;
   12         creating s. 366.043, F.S.; providing legislative
   13         findings; defining terms; requiring public utilities
   14         to provide certain minimum tariff and service
   15         requirements for large load customers; requiring that
   16         such requirements ensure that large load customers
   17         bear their costs of service and that such costs are
   18         not shifted to the general body of ratepayers;
   19         requiring certain measures to minimize the risk of
   20         nonpayment of such costs; requiring that such minimum
   21         tariff and service requirements include certain
   22         provisions designed to prevent a public utility from
   23         providing electric service to a large load customer
   24         that is a foreign entity; prohibiting a customer from
   25         separating a certain electrical load into multiple
   26         smaller connections for a specified purpose;
   27         authorizing the Florida Public Service Commission to
   28         approve public utility tariffs that include certain
   29         utility industry-accepted ratemaking and other
   30         financial tools; prohibiting any tariff, contractual
   31         provision, service requirement, or other public
   32         utility policy from preventing or hindering the
   33         curtailment or interruption of electric service to a
   34         large load customer for certain purposes; prohibiting
   35         a public utility from knowingly providing electric
   36         service to a large load customer that is a foreign
   37         entity; requiring each public utility to file a tariff
   38         in compliance with the provisions of the bill by a
   39         specified date; amending s. 373.203, F.S.; defining
   40         terms; creating s. 373.262, F.S.; providing
   41         legislative intent; prohibiting the governing board of
   42         a water management district or the Department of
   43         Environmental Protection from issuing a permit for the
   44         consumptive use of water to a large-scale data center
   45         under certain circumstances; requiring that such
   46         permit be issued to a large-scale data center
   47         applicant if the applicant establishes that the
   48         proposed use of water satisfies certain requirements;
   49         requiring the governing board or the department to
   50         require the use of reclaimed water for a large-scale
   51         data center applicant’s allocation when certain
   52         requirements are met; specifying requirements for
   53         certain permit applications; prohibiting the approval
   54         of permit applications without a hearing; amending s.
   55         373.239, F.S.; requiring that consumptive use permit
   56         modifications proposed by a large-scale data center be
   57         treated in a specified manner; requiring the Office of
   58         Program Policy Analysis and Government Accountability
   59         to contract for a study relating to the construction
   60         and operation of large-scale data centers; providing
   61         requirements for the study; requiring the study to be
   62         submitted to the Governor, the President of the
   63         Senate, and the Speaker of the House by a specified
   64         date; providing effective dates.
   65          
   66  Be It Enacted by the Legislature of the State of Florida:
   67  
   68         Section 1. Effective upon becoming a law, section 163.326,
   69  Florida Statutes, is created to read:
   70         163.326 Large load customer considerations.—
   71         (1) The Legislature finds that certain land uses, including
   72  facilities with substantial electric or other utility demands,
   73  such as data centers and other large load customers as defined
   74  in s. 366.043(2), may present unique planning, infrastructure,
   75  and compatibility considerations. The Legislature intends that
   76  such considerations shall be addressed through local
   77  comprehensive planning and land development regulations adopted
   78  pursuant to this chapter, including provisions related to
   79  infrastructure capacity, land use compatibility, environmental
   80  impacts, and the efficient provision of public facilities and
   81  services.
   82         (2) Local governments shall maintain the authority to
   83  exercise the powers and responsibilities for comprehensive
   84  planning and land development regulation granted by law with
   85  respect to large load customers. A large load customer may not
   86  be considered an electric substation for the purposes of s.
   87  163.3208.
   88         Section 2. Paragraphs (a), (b), and (c) of subsection (1)
   89  of section 288.075, Florida Statutes, are redesignated as
   90  paragraphs (b), (c), and (d), respectively, paragraph (a) of
   91  subsection (2) is amended, and a new paragraph (a) is added to
   92  subsection (1) of that section, to read:
   93         288.075 Confidentiality of records.—
   94         (1) DEFINITIONS.—As used in this section, the term:
   95         (a) “Data center” has the same meaning as in s. 373.203.
   96         (2) PLANS, INTENTIONS, AND INTERESTS.—
   97         (a)1. If a private corporation, partnership, or person
   98  requests in writing before an economic incentive agreement is
   99  signed that an economic development agency maintain the
  100  confidentiality of information concerning plans, intentions, or
  101  interests of such private corporation, partnership, or person to
  102  locate, relocate, or expand any of its business activities in
  103  this state, the information is confidential and exempt from s.
  104  119.07(1) and s. 24(a), Art. I of the State Constitution for 12
  105  months after the date an economic development agency receives a
  106  request for confidentiality or until the information is
  107  otherwise disclosed, whichever occurs first.
  108         2. An economic development agency may extend the period of
  109  confidentiality specified in subparagraph 1. for up to an
  110  additional 12 months upon written request from the private
  111  corporation, partnership, or person who originally requested
  112  confidentiality under this section and upon a finding by the
  113  economic development agency that such private corporation,
  114  partnership, or person is still actively considering locating,
  115  relocating, or expanding its business activities in this state.
  116  Such a request for an extension in the period of confidentiality
  117  must be received prior to the expiration of any confidentiality
  118  originally provided under subparagraph 1. This subparagraph does
  119  not apply to information described in subparagraph 1. relating
  120  to data centers.
  121  
  122  If a final project order for a signed economic development
  123  agreement is issued, then the information will remain
  124  confidential and exempt for 180 days after the final project
  125  order is issued, until a date specified in the final project
  126  order, or until the information is otherwise disclosed,
  127  whichever occurs first. However, such period of confidentiality
  128  may not extend beyond the period of confidentiality established
  129  in subparagraph 1. or subparagraph 2.
  130         Section 3. Section 366.043, Florida Statutes, is created to
  131  read:
  132         366.043 Large load tariffs for public electric utilities.—
  133         (1) The Legislature finds that the provision of safe and
  134  reliable electric services, provided at fair, just, and
  135  reasonable rates, is essential to the welfare of the ratepayers
  136  of this state. The Legislature further finds that when one class
  137  of electric service customer requires uniquely large electrical
  138  loads at a single location, it imposes a disproportionate risk
  139  on the other ratepayers of this state and makes it necessary for
  140  the commission to develop and enforce rate structures and other
  141  policies for such customers which ensure such risk is mitigated
  142  as much as possible and prevent shifting the costs of serving
  143  large load customers to the general body of ratepayers.
  144         (2) As used in this section, the term:
  145         (a) “Controlled by” means having the power to direct or
  146  cause the direction of the management or policies of a company,
  147  whether through ownership of securities, by contract, or
  148  otherwise. A person or an entity that directly or indirectly has
  149  the right to vote 25 percent or more of the voting interests of
  150  the company or that is entitled to 25 percent or more of its
  151  profits is presumed to control the entity.
  152         (b) “Foreign country of concern” has the same meaning as in
  153  s. 692.201.
  154         (c) “Foreign entity” means an entity that is:
  155         1. Owned or controlled by the government of a foreign
  156  country of concern; or
  157         2. A partnership, an association, a corporation, an
  158  organization, or other combination of persons organized under
  159  the laws of or having its principal place of business in a
  160  foreign country of concern, or a subsidiary of such entity.
  161         (d) “Large load customer” means a customer with an
  162  anticipated monthly peak load of 50 megawatts or more,
  163  calculated as the highest average load over a 15-minute interval
  164  at a single location. The term does not include a load
  165  aggregated across multiple locations owned by the same customer.
  166  However, the term includes all customers or other entities that
  167  have entered into a colocation or similar agreement at a single
  168  location that otherwise meets the anticipated monthly peak load
  169  provided in this paragraph.
  170         (e) “Public utility” has the same meaning as in s. 366.02,
  171  except that the term does not include a gas utility.
  172         (3) The following minimum tariff and service requirements
  173  for large load customers are required in public utility tariffs:
  174         (a) The minimum tariff and service requirements must
  175  reasonably ensure that each large load customer bears its own
  176  full cost of service and that such cost is not shifted to the
  177  general body of ratepayers. Such cost of service includes, but
  178  is not limited to, connection, incremental transmission,
  179  incremental generation, and other infrastructure costs;
  180  operations and maintenance expenses; and any other costs
  181  required to serve a large load customer. The risk of nonpayment
  182  of such costs may not be borne by the general body of
  183  ratepayers.
  184         (b) The minimum tariff and service requirements must
  185  include provisions reasonably designed to prevent a public
  186  utility from providing electric service to a customer that would
  187  otherwise qualify as a large load customer if that customer is a
  188  foreign entity.
  189         (4) A customer may not separate an electrical load at a
  190  single location into multiple smaller connections to avoid being
  191  classified as a large load customer.
  192         (5) To effectuate the requirements of subsection (3), the
  193  commission may approve public utility tariffs that include
  194  utility industry-accepted ratemaking and other financial tools,
  195  including, but not limited to, the following:
  196         (a) Contributions in aid of construction or other required
  197  customer infrastructure investments that may be returned, in
  198  whole or in part, to such customers over time.
  199         (b) Demand charges, including minimum demand charges.
  200         (c) Incremental generation charges.
  201         (d) Financial guarantees.
  202         (e) Minimum load factors.
  203         (f) Take-or-pay provisions or similar provisions requiring
  204  payment for contracted capacity, regardless of a large load
  205  customer’s actual electricity use or demand.
  206         (g) Minimum period of service contract requirements,
  207  including early termination fees or other fees for violation of
  208  such contracts.
  209         (6) Any tariff, contractual provision, service requirement,
  210  or other public utility policy relating to large load customers
  211  may not prevent or otherwise hinder the curtailment or
  212  interruption of electric service to a large load customer where
  213  such curtailment or interruption is intended to ensure grid
  214  stability, reduce the likelihood or breadth of wider service
  215  outages, or ensure public safety during an emergency or other
  216  exceptional circumstance.
  217         (7) A public utility may not knowingly provide electric
  218  service to a customer that would otherwise qualify as a large
  219  load customer if that customer is a foreign entity.
  220         (8) No later than October 1, 2026, each public utility
  221  shall file, for commission approval, a tariff that complies with
  222  this section.
  223         Section 4. Effective upon becoming a law, subsections (3)
  224  and (4) of section 373.203, Florida Statutes, are redesignated
  225  as subsections (5) and (6), respectively, and new subsections
  226  (3) and (4) are added to that section, to read:
  227         373.203 Definitions.—
  228         (3) “Data center” means a facility that primarily contains
  229  electronic equipment used to process, store, and transmit
  230  digital information, which may be:
  231         (a) A free-standing structure; or
  232         (b) A facility within a larger structure which uses
  233  environmental control equipment to maintain the proper
  234  conditions for the operation of electronic equipment.
  235         (4) “Large-scale data center” means a single location, with
  236  a data center on site, that has an anticipated monthly peak load
  237  of 50 megawatts or more, calculated as the highest average load
  238  over a 15-minute interval. The term does not include a load
  239  aggregated across multiple locations owned by the same customer.
  240  However, the term includes all customers or other entities that
  241  have entered into a colocation or similar agreement at a single
  242  location that otherwise meets the anticipated monthly peak load
  243  provided in this subsection.
  244         Section 5. Section 373.262, Florida Statutes, is created to
  245  read:
  246         373.262 Large-scale data center permitting.—
  247         (1) It is the intent of the Legislature that the
  248  development and operation of large-scale data centers in this
  249  state be managed under a permitting framework that ensures this
  250  state’s water resources are used in the public interest, in a
  251  manner that is not harmful to the water resources of this state,
  252  and consistent with local government zoning regulations and
  253  comprehensive plans.
  254         (2) Consistent with other provisions of this part, the
  255  governing board of a water management district or the department
  256  may not issue a permit to a large-scale data center applicant
  257  for an allocation of water if the proposed use of the water is
  258  harmful to the water resources of the area or is prohibited by
  259  the applicable local government zoning regulations and
  260  comprehensive plan. A permit shall be issued to a large-scale
  261  data center applicant for an allocation of water if the
  262  applicant establishes that the proposed use of water:
  263         (a) Is a reasonable-beneficial use as defined in s.
  264  373.019;
  265         (b) Will not interfere with any presently existing legal
  266  use of water; and
  267         (c) Is consistent with the public interest.
  268         (3) The governing board or the department shall require the
  269  use of reclaimed water in lieu of all or a portion of a proposed
  270  use of surface water or groundwater by a large-scale data center
  271  applicant when:
  272         (a) A suitable reclaimed water supply source is available
  273  and permitted;
  274         (b) Reclaimed water distribution or supply lines are
  275  available at the property boundary in sufficient capacity and
  276  quality to serve the applicant’s needs;
  277         (c) The applicant is capable of accessing the reclaimed
  278  water source through distribution or supply lines;
  279         (d) Use of reclaimed water is environmentally,
  280  economically, and technically feasible; and
  281         (e) Use of reclaimed water would not conflict with the
  282  requirements contained in the applicant’s surface water
  283  discharge permit, if applicable.
  284         (4)(a) In addition to the requirements of s. 373.229, all
  285  permit applications made under this part requesting an
  286  allocation of at least an average daily flow of 100,000 gallons
  287  of water per day by a large-scale data center must contain:
  288         1. All sources and amounts of water and losses of water
  289  used for cooling, industrial and treatment processes, personal
  290  or sanitary needs of employees, and landscape irrigation; and
  291         2. A water conservation plan that, at a minimum,
  292  incorporates recycling cooling water before discharge or
  293  disposal, implementation of a leak detection and repair program,
  294  use of water efficient fixtures, and implementation of an
  295  employee awareness and education program concerning water
  296  conservation.
  297         (b) Notwithstanding s. 373.229(4), the governing board or
  298  the department may not approve a permit application made under
  299  this part by a large-scale data center without a hearing.
  300         Section 6. Subsection (2) of section 373.239, Florida
  301  Statutes, is amended to read:
  302         373.239 Modification and renewal of permit terms.—
  303         (2) If the proposed modification involves water use of
  304  100,000 gallons or more per day or is proposed by a large-scale
  305  data center as defined in s. 373.203, the application shall be
  306  treated under the provisions of s. 373.229 in the same manner as
  307  the initial permit application. Otherwise, the governing board
  308  or the department may at its discretion approve the proposed
  309  modification without a hearing, provided the permittee
  310  establishes that:
  311         (a) A change in conditions has resulted in the water
  312  allowed under the permit becoming inadequate for the permittee’s
  313  need, or
  314         (b) The proposed modification would result in a more
  315  efficient utilization of water than is possible under the
  316  existing permit.
  317         Section 7. The Office of Program Policy Analysis and
  318  Government Accountability (OPPAGA) shall contract for an
  319  independent, interdisciplinary study of policy considerations
  320  related to the construction and operation of large-scale data
  321  centers, including, but not limited to, state, regional, or
  322  local economic development and tax revenue impacts; use of land,
  323  water, and other natural resources; energy use and related cost
  324  and rate impacts; and public health and safety related impacts.
  325  OPPAGA may contract with one or more nonpartisan academic or
  326  nonprofit research organizations with policy and scientific
  327  expertise in relevant fields of study. The study must identify
  328  any issues unique to the construction and operation of large
  329  scale data centers in this state. The study must also include
  330  recommendations on facility siting and mitigation measures that
  331  should be considered to reduce any potential negative impacts.
  332  OPPAGA shall submit the study to the Governor, the President of
  333  the Senate, and the Speaker of the House of Representatives by
  334  July 1, 2027.
  335         Section 8. Except as otherwise expressly provided in this
  336  act and except for this section, which shall take effect upon
  337  becoming a law, this act shall take effect July 1, 2026.