SB 2681

Th is bill requires the state energy policy council to impose and collect a clean energy transition surcharge on a data center that has a peak demand of 100 megawatts or more. The clean energy transition surcharge must equal 100% of the proportional costs of adding new clean energy resources to the grid, in cluding transmission upgrades. The council must collect the surcharge and deposit the funds into the Tennessee environmental protection fund. The state energy policy council must ensure that no costs associated with serving the data center are shifted t o customers. ONSITE CLEAN ENERGY GENERATION AND PROHIBITION OF FOSSIL FUEL INCENTIVES This bill requires a new data center or artificial intelligence facility in this state that has an estimated peak load exceeding 100 megawatts to derive 50% of its electricity supply from new, carbon-free energy sources located onsite or through direct interconnection. The amount of new, clean energy generated must prevent a net decrease in the energy available to the public transmission and dist ribution system. This bill prohibits fossil fuel power purchase agreements from being used to qualify for any state economic development incentives or reduced utility rates. A qualified data center must not utilize state-subsidized fossil fuel generation for its primary power load.