MCLI Model State Law for Data Centers - Creating Low Emissions, Accountability, and New Generation Rules for Infrastructure and Data Center (CLEAN GRID) Act

This model state law provides a framework for state governments to address key issues associated with data center development.

The model law establishes a new Certificate of Operation requirement; a data center developer must obtain a Certificate prior to construction and operation. The Certificate would only be issued by the State once the project demonstrates compliance with energy, environmental, and other standards.

For example, the model law includes a so-called "Bring Your Own New Clean Energy" or "BYONCE" requirement, which would require data centers to provide new, additional clean energy to satisfy their own load. This limits emissions impacts and prevents the costs of new generation and infrastructure from being shifted to existing ratepayers.

The model law also contains provisions for backup power generation, transparency and disclosure, and statewide planning. It prohibits nondisclosure agreements between developers and public officials, and creates a Data Center Planning Commission to evaluate impacts and make recommendations for future changes.

This model law was as principally drafted by the Model Climate Laws Initiative, in partnership with Climate Mayors, the Sabin Center for Climate Change Law at Columbia Law School, and Climate XChange.