Businesses: other; data center local decision protection act; create. Creates new act. TIE BAR…

Full Bill Text

HOUSE BILL NO. 6426 A bill to regulate certain activities related to large-scale data centers; to provide for the powers and duties of certain state and local governmental officers and entities; to provide remedies; and to prescribe civil sanctions. the people of the state of michigan enact: Sec. 1. This act may be cited as the "data center local decision protection act". Sec. 3. As used in this act: (a) "Common control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management, operations, development, financing, construction, ownership, leasing, or use of a facility, parcel, project, phase, affiliate, subsidiary, contractor-controlled site, special purpose entity, or related development, whether through ownership, contract, lease, management agreement, development agreement, option agreement, power purchase arrangement, interconnection request, financing arrangement, or other means. (b) "Data center" means a facility , campus, group of buildings, or commonly controlled development that is primarily used to house, operate, or support servers, data storage systems, networking equipment, cooling systems, power infrastructure, or other information technology equipment for the purpose of processing, storing, managing, or transmitting digital data, including, but not limited to, cloud computing, artificial intelligence computing, high-performance computing, cryptocurrency mining, or collocation services. (c) "Large-scale data center" means a data center that meets 1 or more of the following : ( i ) Has , is designed to have, is approved for, or is reasonably projected to have an aggregate critical information technology load of 25 megawatts or more. ( ii ) Has , is designed to have, is approved for, or is reasonably projected to have a total electrical demand of 50 megawatts or more. ( iii ) Is constructed or developed in phases that collectively meet or are reasonably anticipated to meet a threshold described in subparagraph ( i ) or ( ii ). ( iv ) Is subject to an expansion or material modification that causes or is reasonably anticipated to cause the data center to meet a threshold described in subparagraph ( i ) or ( ii ). ( v ) Is classified as a hyperscale data center, mega-hyperscale data center, or major digital infrastructure development under another law of this state. (d) "Local decision" means any approval, issuance, grant, denial, or conditional approval by a local unit of government related to a site plan, permit, land use or activity, variance, easement, certificate, or other authorization for a large-scale data center, including, but not limited to, under the Michigan zoning enabling act, 2006 PA 110, MCL 125.3101 to 125.3702. (e) "Local unit of government" means a county, township, city, or village. (f) "Material misrepresentation" means a false, incomplete, or misleading statement of material fact. (g) "Person" means an individual or a partnership, corporation, limited liability company, association, governmental entity, or other legal entity. (h) "Proprietary information" means trade secrets, critical energy infrastructure information, cybersecurity-sensitive information, security-sensitive site information, confidential engineering information, detailed engineering drawings, and other information that has not been publicly disseminated or that is unavailable from other sources, the release of which might cause the submitter of the information competitive harm. (i) "Public summary" means a plain-language summary of a proposed large-scale data center that includes, but is not limited to, a description of the projected energy demand, water use, infrastructure needs, ownership structure, affiliated entities, environmental impacts, and phased development plans of the proposed large-scale data center. Sec. 5. (1) An application submitted by a person to obtain a local decision is not administratively complete unless, in addition to any other requirement imposed by law, both of the following conditions are met: (a) The application includes all of the following information for the proposed large-scale data center: ( i ) Energy demand. ( ii ) Water use. ( iii ) Infrastructure needs. ( iv ) Environmental impacts. ( v ) Ownership structure. ( vi ) Affiliated entities. ( vii ) Any phased development plans. ( viii ) A public summary. (b) The information described in subdivision (a) has been made available for public review under subsection (5) for not less than 30 days. (2) A person may designate any information submitted under subsection (1) other than a public summary as proprietary information to be exempted from disclosure under subsection (5). (3) If a material change occurs to any information submitted by a person under subsection (1), the person shall promptly update or supplement the information. (4) A local unit of government that receives information for a proposed large-scale data center under subsection (1) may request additional information that is reasonably related to an impact of the proposed large-scale data center on the community, including, but not limited to, information related to noise, vibration, lighting, traffic, potential strain on public or utility-owned infrastructure, public safety, and emergency services. A person that receives a request for additional information under this subsection shall promptly comply with the request or provide a detailed written explanation of the reasons the request cannot be completed. (5) Not later than 30 days after receiving information for a proposed large-scale data center under subsection (1), (3), or (4), a local unit of government shall post the information publicly on the local unit of government's website, or in a public place if it does not have a website, except for information that has been designated as proprietary information under subsection (2) or is otherwise exempt from disclosure under applicable law. Sec. 7. (1) A local unit of government may do any of the following in connection with a local decision: (a) Consider as substantial evidence the cumulative impacts that the proposed large-scale data center may have on farmland, wetlands, and natural resources. (b) Consider as substantial evidence any applicable labor standards and workforce considerations of the proposed large-scale data center. (c) Require the developer to enter into 1 or more enforceable agreements with the local unit of government. An agreement entered into under this subdivision may impose any requirement on the data center that is reasonably related to an impact of the proposed large-scale data center on the community, including, but not limited to, energy demand, water use, infrastructure needs, public safety, environmental impacts, noise, lighting, and site restoration. (2) A local unit of government may require the developer of a large-scale data center to pay for the actual, reasonable costs of the local unit of government to review and process an application for a local decision, including, but not limited to, legal, engineering, environmental, and public safety analysis costs. Sec. 9. (1) A person aggrieved by a local decision may not seek judicial review of the local decision unless all of the following conditions are met: (a) The person has exhausted all available remedies with the local unit of government, including, but not limited to, filing an appeal with a zoning board of appeals under section 604 of the Michigan zoning enabling act, 2006 PA 110, MCL 125.3604. (b) The person has provided written notice of the alleged defects to the local unit of government and has provided not less than 30 days for the local unit of government to cure any alleged defect that is of a procedural nature. (c) The action seeking judicial review complies with any timeliness requirement imposed by law. (2) A court may, on its own motion or on the motion of a party, dismiss an action brought by a person if the conditions described in subsection (1) have not been met . Sec. 11. (1) Subject to section 9, a person that is aggrieved by a local decision may seek judicial review in the circuit court for the county in which the large-scale data center is located. (2) In an action brought under this section, the circuit court shall confine its consideration to a review of the record that existed at the time of the local decision. The court shall set aside the local decision only if the person demonstrates by clear and convincing evidence that the local decision is any of the following: (a) In violation of the Constitution of the United States, the state constitution of 1963, or a statute. (b) In excess of the local unit of government's statutory authority or jurisdiction. (c) Made upon unlawful procedure resulting in material prejudice to the person. (d) Not supported by competent, material, and substantial evidence on the record. (e) Arbitrary, capricious, or clearly an abuse or unwarranted exercise of discretion. (f) Affected by other substantial and material error of law. (3) In an action brought under this section, the circuit court may award attorney fees to a local unit of government if any of the following apply: (a) The person failed to comply with section 9. (b) The person made a material misrepresentation in connection with the local decision. (c) The action is frivolous. (d) The action was brought in bad faith. Sec. 13. (1) A person that makes a material misrepresentation in connection with a local decision is subject to a civil fine as follows: (a) For a first violation, a civil fine of not more than $10,000.00. (b) For a second violation, a civil fine of not more than $25,000.00. (c) For a third or subsequent violation, a civil fine of not more than $50,000.00. (2) The prosecutor of the county in which the material misrepresentation was made or the attorney general may bring an action to collect a civil fine imposed under this section. A civil fine collected under this section must be deposited in the general fund. Enacting section 1. This act takes effect 90 days after the date it is enacted into law. Enacting section 2. This act does not take effect unless House Bill No. 6427 (request no. H07711'26 a) of the 103rd Legislature is enacted into law.