RAW | Gov. Beshear announces intent to sign executive order related to data centers
Kentucky Governor Andy Beshear announced an executive order to establish a regulatory framework for data centers, ensuring they invest responsibly and operate transparently. The order aims to protect citizens from increased power bills and environmental harm by mandating energy plans and denying permits for projects negatively impacting air, water, and natural resources. It also requires data centers to pay fair taxes and engage transparently with local communities, while recognizing local communities' authority over specific project approvals.
Kentucky Governor Andy Beshear announced an executive order aimed at regulating data center development across the state. The order seeks to ensure that data center companies invest responsibly, operate transparently, and act as "good neighbors" to communities.
The executive order establishes protections concerning power bills and the environment. It requires project developers to submit an initial energy plan to the Energy and Environment Cabinet, demonstrating how they will avoid raising electric bills for families and current businesses. The Public Service Commission is ordered to prohibit utilities from increasing rates to recover costs caused by data center development or operations.
Environmental protections include directing the Energy and Environment Cabinet to deny permitting applications if a data center would negatively impact air quality, water use, water quality, water supply, federal jurisdictional wetlands, or natural resources. Secretary of the Energy and Environment Cabinet, John Lyons, highlighted that his cabinet tracks over 30 local ordinances and moratoriums against data centers. Angie Hatton, Chair of the Public Service Commission, emphasized learning from other states to protect Kentucky ratepayers.
Additionally, the order mandates that data center project developers pay their fair share of state, local, and school taxes. Developers must also commit to transparent public discussions with local community leaders and residents, focusing on proposed locations, impacts, and job opportunities. The Governor stressed that the order sets minimum standards, but ultimate decisions on welcoming data centers remain with local communities.