SESSION WATCH
THE BILL ITSELF

CS/CS/HB 1007

Data Centers

VERSION H 1007 c2 · BACK TO THE SUMMARY · OFFICIAL RECORD

underlined language is being added; struck language is being deleted. Line numbers are the Legislature's own — the same ones amendments cite.

1 A bill to be entitled
2 An act relating to data centers; creating s. 112.231,
3 F.S.; defining terms; prohibiting an agency from
4 entering into a nondisclosure agreement or other
5 contract that restricts the agency from disclosing
6 certain information to the public; providing that an
7 agreement or contract, or a provision of an agreement
8 or contract, is void and unenforceable under certain
9 circumstances; providing civil penalties; authorizing
10 the state attorney to bring an action to collect a
11 fine; providing applicability; creating s. 163.326,
12 F.S.; providing legislative findings; specifying that
13 local governments maintain authority to exercise power
14 and responsibility over comprehensive planning and
15 land development regulations related to large load
16 customers; prohibiting a large load customer from
17 being considered an electric substation; requiring
18 applicants for construction permits for a certain new
19 data center in specified areas to demonstrate that the
20 operation of the data center will comply with certain
21 provisions and submit a specified study in support of
22 such application; providing applicability; authorizing
23 the local government to waive the prohibition under
24 certain circumstances; providing a directive to the
25 Division of Law Revision; amending s. 288.075, F.S.;
26 providing a definition; providing an exception to a
27 provision allowing an extension of certain
28 confidentiality protections; creating s. 366.043,
29 F.S.; providing legislative findings; defining terms;
30 requiring the Florida Public Service Commission to
31 develop minimum tariff and service requirements for
32 large load customers; requiring that such requirements
33 ensure that large load customers bear their costs of
34 service and that such costs are not shifted to the
35 general body of ratepayers; requiring certain measures
36 to minimize the risk of nonpayment of such costs;
37 requiring that such minimum tariff and service
38 requirements include certain provisions designed to
39 prevent a public utility from providing electric
40 service to a large load customer that is a foreign
41 entity; prohibiting a customer from separating a
42 certain electrical load into multiple smaller
43 connections for a specified purpose; authorizing the
44 commission to include certain measures in minimum
45 tariff and service requirements; prohibiting any
46 tariff, contractual provision, service requirement, or
47 other public utility policy from preventing or
48 hindering the curtailment or interruption of electric
49 service to a large load customer for certain purposes;
50 prohibiting a public utility from knowingly providing
51 electric service to a large load customer that is a
52 foreign entity; requiring the commission to adopt
53 rules by a specified date; specifying a deadline for
54 utilities to file a tariff in compliance with the
55 final rule; amending s. 373.203, F.S.; defining terms;
56 creating s. 373.262, F.S.; providing legislative
57 intent; prohibiting the governing board of a water
58 management district or the Department of Environmental
59 Protection from issuing a permit for the consumptive
60 use of water to a large-scale data center under
61 certain circumstances; requiring that such permit be
62 issued to a large-scale data center applicant if the
63 applicant establishes that the proposed use of water
64 satisfies certain requirements; requiring the
65 governing board or the department to require the use
66 of reclaimed water for a large-scale data center
67 applicant's allocation when certain requirements are
68 met; specifying requirements for certain permit
69 applications; prohibiting the approval of permit
70 applications without a hearing; amending s. 373.239,
71 F.S.; requiring that consumptive use permit
72 modifications proposed by a large-scale data center be
73 treated in a specified manner; providing effective
74 dates.
76 Be It Enacted by the Legislature of the State of Florida:
78 Section 1. Section 112.231, Florida Statutes, is created
79 to read:
80 112.231 Data center nondisclosure agreements.—
81 (1) As used in this section, the term:
82 (a) "Agency" means any state, county, district, authority,
83 or municipal officer, public employee, department, division,
84 board, bureau, or commission, or other separate unit of
85 government created or established by law and any other public or
86 private agency, person, partnership, corporation, or business
87 entity acting on behalf of any such agency.
88 (b) "Data center" means a facility that primarily contains
89 electronic equipment used to process, store, and transmit
90 digital information, which may be:
91 1. A free-standing structure; or
92 2. A facility within a larger structure which uses
93 environmental control equipment to maintain the proper
94 conditions for the operation of electronic equipment.
95 (2) An agency may not enter into a nondisclosure agreement
96 or other contract restricting the agency from disclosing
97 information about a potential data center development to members
98 of the public.
99 (3) An agreement or contract, or a provision of an
100 agreement or contract, that violates this section is against
101 public policy and is void and unenforceable.
102 (4) An agency that violates this section is subject to a
103 civil fine of not more than $1,000. The state attorney of the
104 county in which the violation occurred may bring an action to
105 collect the fine.
106 (5) This section applies to agreements entered into on or
107 after July 1, 2026.
108 Section 2. Effective upon becoming a law, section 163.326,
109 Florida Statutes, is created to read:
110 163.326 Large load customer considerations.—
111 (1) The Legislature finds that certain land uses,
112 including facilities with substantial electric or other utility
113 demands, such as data centers and other large load customers as
114 defined in s. 366.043(2), may present unique planning,
115 infrastructure, and compatibility considerations. The
116 Legislature intends that such considerations shall be addressed
117 through local comprehensive planning and land development
118 regulations adopted pursuant to this chapter, including
119 provisions related to infrastructure capacity, land use
120 compatibility, environmental impacts, and the efficient
121 provision of public facilities and services.
122 (2) Local governments shall maintain the authority to
123 exercise the powers and responsibilities for comprehensive
124 planning and land development regulation granted by law with
125 respect to large load customers. A large load customer may not
126 be considered an electric substation for the purposes of s.
127 163.3208.
128 (3)(a) If the proposed location of a new large-scale data
129 center, as defined in s. 373.203, is within 5 miles of any
130 residential property or school, as measured from the proposed
131 location of the nearest noise producing structure on the
132 proposed data center site, an applicant for a construction
133 permit for the data center must demonstrate that operation of
134 the data center will comply with applicable federal and state
135 rules and regulations relating to radiofrequency emissions,
136 applicable local noise control or abatement ordinances, and all
137 other applicable land use regulations. In support of the
138 construction permit application, the applicant must submit an
139 independently prepared noise impact study that uses
140 scientifically accepted methodologies. The study must describe
141 the methodologies and assumptions relied upon in developing the
142 study, provide all relevant data relied upon in developing the
143 study, and be readily understandable by both technical and
144 nontechnical audiences. The study must address the expected
145 levels of noise emissions from operation of the proposed data
146 center as compared to no-build noise emission levels and address
147 the impacts of all noise mitigation measures proposed by the
148 applicant to ensure compliance with applicable noise control or
149 abatement requirements. Such measures may include, but are not
150 limited to, facility soundproofing measures, external noise
151 attenuation measures, low-frequency noise attenuation measures,
152 low-noise equipment, and natural or geographic features. This
153 subsection does not apply to any existing construction, current
154 operation, or modification of a data center in existence on the
155 effective date of this section, unless such construction,
156 operation, or modification results in the data center meeting
157 the criteria to be considered a large-scale data center as
158 defined in s. 373.203.
159 (b) The requirements in paragraph (a) may be waived by a
160 unanimous vote of the total membership of the governing body of
161 the local government with jurisdiction over the parcel of land
162 that will include the proposed data center.
163 Section 3. The Division of Law Revision is directed to
164 replace the phrase "the effective date of this section" wherever
165 it occurs in this act with the date that section becomes a law.
166 Section 4. Paragraphs (a), (b), and (c) of subsection (1)
167 of section 288.075, Florida Statutes, are redesignated as
168 paragraphs (b), (c), and (d), respectively, paragraph (a) of
169 subsection (2) is amended, and a new paragraph (a) is added to
170 subsection (1) of that section, to read:
171 288.075 Confidentiality of records.—
172 (1) DEFINITIONS.—As used in this section, the term:
173 (a) "Data center" has the same meaning as in s. 373.203.
174 (2) PLANS, INTENTIONS, AND INTERESTS.—
175 (a)1. If a private corporation, partnership, or person
176 requests in writing before an economic incentive agreement is
177 signed that an economic development agency maintain the
178 confidentiality of information concerning plans, intentions, or
179 interests of such private corporation, partnership, or person to
180 locate, relocate, or expand any of its business activities in
181 this state, the information is confidential and exempt from s.
182 119.07(1) and s. 24(a), Art. I of the State Constitution for 12
183 months after the date an economic development agency receives a
184 request for confidentiality or until the information is
185 otherwise disclosed, whichever occurs first.
186 2. An economic development agency may extend the period of
187 confidentiality specified in subparagraph 1. for up to an
188 additional 12 months upon written request from the private
189 corporation, partnership, or person who originally requested
190 confidentiality under this section and upon a finding by the
191 economic development agency that such private corporation,
192 partnership, or person is still actively considering locating,
193 relocating, or expanding its business activities in this state.
194 Such a request for an extension in the period of confidentiality
195 must be received prior to the expiration of any confidentiality
196 originally provided under subparagraph 1. This subparagraph does
197 not apply to information described in subparagraph 1. related to
198 data centers.
200 If a final project order for a signed economic development
201 agreement is issued, then the information will remain
202 confidential and exempt for 180 days after the final project
203 order is issued, until a date specified in the final project
204 order, or until the information is otherwise disclosed,
205 whichever occurs first. However, such period of confidentiality
206 may not extend beyond the period of confidentiality established
207 in subparagraph 1. or subparagraph 2.
208 Section 5. Section 366.043, Florida Statutes, is created
209 to read:
210 366.043 Large load tariffs for public electric utilities.—
211 (1) The Legislature finds that the provision of safe and
212 reliable electric services, provided at fair, just, and
213 reasonable rates, is essential to the welfare of the ratepayers
214 of this state. The Legislature further finds that when one class
215 of electric service customer requires uniquely large electrical
216 loads at a single location, it imposes a disproportionate risk
217 on the other ratepayers of this state and makes it necessary for
218 the commission to develop and enforce rate structures and other
219 policies for such customers which ensure such risk is mitigated
220 as much as possible and prevent shifting the costs of serving
221 large load customers to the general body of ratepayers.
222 (2) As used in this section, the term:
223 (a) "Controlled by" means having the power to direct or
224 cause the direction of the management or policies of a company,
225 whether through ownership of securities, by contract, or
226 otherwise. A person or an entity that directly or indirectly has
227 the right to vote 25 percent or more of the voting interests of
228 the company or that is entitled to 25 percent or more of its
229 profits is presumed to control the entity.
230 (b) "Foreign country of concern" has the same meaning as
231 in s. 692.201.
232 (c) "Foreign entity" means an entity that is:
233 1. Owned or controlled by the government of a foreign
234 country of concern; or
235 2. A partnership, an association, a corporation, an
236 organization, or other combination of persons organized under
237 the laws of or having its principal place of business in a
238 foreign country of concern, or a subsidiary of such entity.
239 (d) "Large load customer" means a customer with an
240 anticipated monthly peak load of 50 megawatts or more,
241 calculated as the highest average load over a 15-minute interval
242 at a single location. The term does not include a load
243 aggregated across multiple locations owned by the same customer.
244 However, the term includes all customers or other entities that
245 have entered into a colocation or similar agreement at a single
246 location that otherwise meets the anticipated monthly peak load
247 provided in this paragraph.
248 (e) "Public utility" has the same meaning as in s. 366.02,
249 except that the term does not include a gas utility.
250 (3) The commission shall develop minimum tariff and
251 service requirements for large load customers pursuant to all of
252 the following:
253 (a) The minimum tariff and service requirements must
254 reasonably ensure that each large load customer bears its own
255 full cost of service and that such cost is not shifted to the
256 general body of ratepayers. Such cost of service includes, but
257 is not limited to, connection, incremental transmission,
258 incremental generation, and other infrastructure costs;
259 operations and maintenance expenses; and any other costs
260 required to serve a large load customer. The risk of nonpayment
261 of such costs may not be borne by the general body of
262 ratepayers.
263 (b) The minimum tariff and service requirements must
264 include provisions reasonably designed to prevent a public
265 utility from providing electric service to a customer that would
266 otherwise qualify as a large load customer if that customer is a
267 foreign entity.
268 (4) A customer may not separate an electrical load at a
269 single location into multiple smaller connections to avoid being
270 classified as a large load customer.
271 (5) To effectuate the requirements of subsection (3), the
272 commission may include in such requirements utility industry-
273 accepted ratemaking and other financial tools, including, but
274 not limited to, all of the following:
275 (a) Contributions in aid of construction or other required
276 customer infrastructure investments that may be returned, in
277 whole or in part, to such customers over time.
278 (b) Demand charges, including minimum demand charges.
279 (c) Incremental generation charges.
280 (d) Financial guarantees.
281 (e) Minimum load factors.
282 (f) Take-or-pay provisions or similar provisions requiring
283 payment for contracted capacity, regardless of a large load
284 customer's actual electricity use or demand.
285 (g) Minimum period of service contract requirements,
286 including early termination fees or other fees for violation of
287 such contracts.
288 (6) Any tariff, contractual provision, service
289 requirement, or other public utility policy relating to large
290 load customers may not prevent or otherwise hinder the
291 curtailment or interruption of electric service to a large load
292 customer where such curtailment or interruption is intended to
293 ensure grid stability, reduce the likelihood or breadth of wider
294 service outages, or ensure public safety during an emergency or
295 other exceptional circumstance.
296 (7) A public utility may not knowingly provide electric
297 service to a customer that would otherwise qualify as a large
298 load customer if that customer is a foreign entity.
299 (8) The commission shall adopt rules to implement and
300 administer this section and shall propose a rule for adoption by
301 March 1, 2027.
302 (9) Within 60 days after adoption of the final rule
303 implementing this section, each public utility shall file, for
304 commission approval, a tariff that complies with the final rule. Section 6. Effective upon becoming a law, subsections (3)
306 and (4) of section 373.203, Florida Statutes, are redesignated
307 as subsections (5) and (6), respectively, and new subsections
308 (3) and (4) are added to that section, to read:
309 373.203 Definitions.—
310 (3) "Data center" means a facility that primarily contains
311 electronic equipment used to process, store, and transmit
312 digital information, which may be:
313 (a) A free-standing structure; or
314 (b) A facility within a larger structure which uses
315 environmental control equipment to maintain the proper
316 conditions for the operation of electronic equipment.
317 (4) "Large-scale data center" means a single location,
318 with a data center on site, that has an anticipated monthly peak
319 load of 50 megawatts or more, calculated as the highest average
320 load over a 15-minute interval. The term does not include a load
321 aggregated across multiple locations owned by the same customer.
322 However, the term includes all customers or other entities that
323 have entered into a colocation or similar agreement at a single
324 location that otherwise meets the anticipated monthly peak load
325 provided in this subsection.
326 Section 7. Section 373.262, Florida Statutes, is created
327 to read:
328 373.262 Large-scale data center permitting.—
329 (1) It is the intent of the Legislature that the
330 development and operation of large-scale data centers in this
331 state be managed under a permitting framework that ensures this
332 state's water resources are used in the public interest, in a
333 manner that is not harmful to the water resources of this state,
334 and consistent with local government zoning regulations and
335 comprehensive plans.
336 (2) Consistent with other provisions of this part, the
337 governing board of a water management district or the department
338 may not issue a permit to a large-scale data center applicant
339 for an allocation of water if the proposed use of the water is
340 harmful to the water resources of the area or is prohibited by
341 the applicable local government zoning regulations and
342 comprehensive plan. A permit shall be issued to a large-scale
343 data center applicant for an allocation of water if the
344 applicant establishes that the proposed use of water:
345 (a) Is a reasonable-beneficial use as defined in s.
346 373.019;
347 (b) Will not interfere with any presently existing legal
348 use of water; and
349 (c) Is consistent with the public interest.
350 (3) The governing board or the department shall require
351 the use of reclaimed water in lieu of all or a portion of a
352 proposed use of surface water or groundwater by a large-scale
353 data center applicant when:
354 (a) A suitable reclaimed water supply source is available
355 and permitted;
356 (b) Reclaimed water distribution or supply lines are
357 available at the property boundary in sufficient capacity and
358 quality to serve the applicant's needs;
359 (c) The applicant is capable of accessing the reclaimed
360 water source through distribution or supply lines;
361 (d) Use of reclaimed water is environmentally,
362 economically, and technically feasible; and
363 (e) Use of reclaimed water would not conflict with the
364 requirements contained in the applicant's surface water
365 discharge permit, if applicable.
366 (4)(a) In addition to the requirements of s. 373.229, all
367 permit applications made under this part requesting an
368 allocation of at least an average daily flow of 100,000 gallons
369 of water per day by a large-scale data center must contain:
370 1. All sources and amounts of water and losses of water
371 used for cooling, industrial and treatment processes, personal
372 or sanitary needs of employees, and landscape irrigation; and
373 2. A water conservation plan that, at a minimum,
374 incorporates recycling cooling water before discharge or
375 disposal, implementation of a leak detection and repair program,
376 use of water efficient fixtures, and implementation of an
377 employee awareness and education program concerning water
378 conservation.
379 (b) Notwithstanding s. 373.229(4), the governing board or
380 the department may not approve a permit application made under
381 this part by a large-scale data center without a hearing.
382 Section 8. Subsection (2) of section 373.239, Florida
383 Statutes, is amended to read:
384 373.239 Modification and renewal of permit terms.—
385 (2) If the proposed modification involves water use of
386 100,000 gallons or more per day or is proposed by a large-scale
387 data center as defined in s. 373.203, the application shall be
388 treated under the provisions of s. 373.229 in the same manner as
389 the initial permit application. Otherwise, the governing board
390 or the department may at its discretion approve the proposed
391 modification without a hearing, provided the permittee
392 establishes that:
393 (a) A change in conditions has resulted in the water
394 allowed under the permit becoming inadequate for the permittee's
395 need, or
396 (b) The proposed modification would result in a more
397 efficient utilization of water than is possible under the
398 existing permit.
399 Section 9. Except as otherwise expressly provided in this
400 act and except for this section, which shall take effect upon
401 becoming a law, this act shall take effect July 1, 2026.