HB1477
To Amend The Arkansas Electric Utility And Gas Utility Storm Recovery Securitization Act; To Exempt Certain Data Centers From Storm Recovery Costs And Charges; And To Declare An Emergency.
Last Action (May 1, 2023): Died in House Committee at Sine Die Adjournment
Sponsors
AI-Generated Summary
House Bill 1477 amends the Arkansas Electric Utility and Gas Utility Storm Recovery Securitization Act to provide a specific exemption for certain data centers. To qualify for the exemption from storm recovery costs and charges, a data center must meet specific North American Industry Classification System (NAICS) codes, make a minimum capital investment of $10 million in the state, and create at least 50 new full-time jobs with wages at 150% of the county or state average. The bill explicitly excludes cryptocurrency operations from this definition of a data center. Furthermore, the entity must own or have a dedicated substation to be eligible for the cost exemption. The bill includes an emergency clause to allow for immediate implementation, citing the need to attract and support time-sensitive economic development projects within the data center industry.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are qualifying data center operators that meet the specified investment, job creation, and infrastructure requirements, as they will be exempt from paying certain utility-related storm recovery costs. Additionally, the state government and local economies may benefit from the intended attraction of large-scale capital investments and the creation of high-wage jobs associated with the expansion of the data center industry in Arkansas.
Who Might Suffer?
The primary entities negatively impacted are other classes of utility ratepayers, such as residential and small business customers. Because the bill exempts specific large-scale data centers from storm recovery charges, the remaining costs for storm recovery may need to be redistributed or absorbed by the remaining customer base, potentially leading to higher utility rates for those not covered by the exemption.
Get Notified
Receive an email when this bill's status changes.