Gov. Scott vetoed state regulations on data centers. One of his deputies just urged Congress to pass them.
Vermont's Secretary of Natural Resources, Julie Moore, testified before a U.S. Congressional committee supporting federal legislation to limit water cost hikes for consumers from data centers. This comes after Governor Phil Scott vetoed a similar bipartisan state bill creating a regulatory framework for data centers in Vermont, arguing existing regulations are sufficient. Amid ongoing debate, three Vermont towns have enacted temporary data center prohibitions, and advocacy groups are campaigning against data center development in the state.
Vermont’s Secretary of Natural Resources, Julie Moore, recently testified before a U.S. Congressional committee in Washington, D.C., urging support for a federal bill aimed at directing states to limit the financial burden on consumers for water used by large data centers. Moore expressed support for requiring data center owners and operators to contribute to water infrastructure costs and for studying the environmental impacts of these facilities.
Her federal testimony notably followed Republican Gov. Phil Scott’s veto of a bipartisan Vermont state bill (H.727) that would have established a new regulatory framework for large data centers, including similar water-related provisions. The veto, which narrowly avoided an override in the House, was based on Scott's belief that Vermont already possesses adequate regulations and that the bill imposed overly burdensome standards.
The federal legislation, known as the Water Cost Accountability Act, seeks to prevent public water systems from charging consumers for data center water usage or infrastructure expansions. While in its initial stages in the House, the debate over data centers is escalating nationally, with recent polling indicating growing public disapproval. Concurrently, local communities in Vermont are taking action, with three cities and towns passing temporary prohibitions on data centers, and one company exploring the former Vermont Yankee site in Vernon for a potential project. Vermont Conservation Voters also launched a public campaign, "Don't Data Center Vermont," to highlight environmental concerns.
Advocates like Dan Fingas of Vermont Conservation Voters and Ben Edgerly Walsh of the Vermont Public Interest Research Group expressed surprise and concern over the apparent contradiction between Moore's federal stance and Gov. Scott's continued opposition to statewide regulations. Scott, however, reiterated his view that statewide laws are unnecessary given the low likelihood of data center development in Vermont, though he supports local communities adopting their own policies. Edgerly Walsh also voiced skepticism about the federal bill's chances, citing potential presidential vetoes and emphasizing the need for Vermonters to pursue local solutions.