,i #aai? ,,congress #b;d ,session ,h4 ,r4 #idai ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,june #bd1 #bjbf,mr4 ,baumg>tn] introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committee on ,en]gy & ,comm]ce1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to facilitate ! responsible developm5t ( data c5t]s & relat$ infra/ructure1 to protect exi/+ ratepay]s f ! %ift+ ( increm5tal infra/ructure co/s attributable to l>ge-load facilities1 to enc\rage inve/m5t 9 wat] reuse1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,p[] & ,wat] = ,families ,act ( #bjbf4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,artificial intellig5ce has ! pot5tial to drive economic gr[?1 accel]ate sci5tific & m$ical innovation1 /r5g!n ,am]ican competitiv5ess1 & enhance ! national security ( ! ,unit$ ,/ates4 7#b7 ,ma9ta9+ ,am]ican lead]%ip 9 artificial intellig5ce ov] ! ,*9ese ,communi/ ,p>ty w require ! responsible developm5t ( data c5t]s & advanc$ comput+ infra/ructure2 & to d s1 ! ,unit$ ,/ates is exp]i5c+ rapid gr[? 9 l>ge electrical loads1 includ+ data c5t]s & advanc$ comput+ facilities1 "s ( :i* require p[] at a scale comp>able to t ( major metropolitan areas4 7#c7 ,! effects ( new l>ge electrical loads on electricity co/s are n uni=m across ! ,unit$ ,/ates & dep5d on regional res\rces1 m>ket /ructure1 utility regulation1 & ! allocation ( co/s associat$ ) s]v+ su* loads4 ,abs5t appropriate safegu>ds1 su* loads may place upw>d pressure on p[] co/s1 r$uce access to ,f$]al res\rces1 & create risks to regional electric reliability4 7#d7 ,! electric-p[] sector ( ! ,unit$ ,/ates is *>act]iz$ by div]se regional m>kets1 res\rce mixes1 utility /ructures1 regulatory sy/ems1 & reliability ne$s4 ,/ate regulatory au?orities1 nonregulat$ electric utilities1 regional transmission organizations1 & o!r relevant entities %\ld reta9 flexibility to implem5t solutions appropriate to ! communities !y s]ve4 7#e7 ,wat] reuse projects1 includ+ onsite wat] recycl+ sy/ems )9 data c5t] facilities & municipal wat] recycl+ sy/ems1 c protect aquif]s by replac+ ! use ( fre%wat]1 su* z riv]s1 /reams & gr\ndwat]1 ) recycl$ wat] & support ! responsible developm5t ( data c5t]s & o!r indu/rial facilities4 #c4 ,policy ( congress ,x is ! policy ( ,congress t-- 7#a7 ! ,unit$ ,/ates %\ld pursue an all-(-!-above /rategy to develop ! en]gy & wat] infra/ructure requir$ to ma9ta9 global lead]%ip 9 artificial intellig5ce2 7#b7 ! ,unit$ ,/ates %\ld address demon/rat$ & localiz$ infra/ructure impacts ?r\gh t>get$1 evid5ce-bas$ measures r ?an broad re/rictions1 blanket moratoria1 or policies t imp$e responsible developm5t2 7#c7 l>ge-load cu/om]s %\ld be enc\rag$ to build1 br+1 or buy new & additive g5]ation res\rces & %\ld be> ! full increm5tal co/ ( ! infra/ructure requir$ prim>ily to s]ve _! facilities2 7#d7 ! developm5t ( data c5t]s & advanc$ comput+ facilities %\ld be address$ ?r\gh regionally appropriate policies t protect af=dability & reliability :ile all[+ responsible economic developm5t2 & 7#e7 wat] reuse %\ld be enc\rag$ ?r\gh inve/m5t 9 projects t in/all1 replace1 or modify onsite wat] recycl+ sy/ems1 replace ! use ( fre%wat] ) recycl$ wat] f a municipal wat] provid]1 or build or exp& municipal wat] recycl+ sy/ems4 ,i ,,p[] ,,= ,,families #aja4 ,f$]al /&>d relat+ to l>ge-load cu/om]s ,section #aaa7;d7 ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7#af ,u4,s4,c4 #bfba7;d77 is am5d$ by add+ at ! end ! foll[+3 7#bb7 ,/&>ds = l>ge-load cu/om]s 7,a7 ,recov]y ( full1 increm5tal co/ ( upgrades ,a rate *>g$1 or ent]$ into1 by an electric utility = provid+ electric s]vice to a l>ge-load cu/om] %all be design$ to recov] f ! l>ge-load cu/om] ! full1 increm5tal co/ ( any g5]ation1 transmission1 or di/ribution upgrade necess>y to s]ve ! load ( su* l>ge-load cu/om]1 includ+ 9 ! ev5t ( su* l>ge-load cu/om] t]m9at+ a contract ) ! electric utility p]ta9+ to ! sale ( electric en]gy1 or o!rwise ceas+ ! pur*ase ( electric en]gy f ! electric utility4 7,b7 ,f9ancial assurances & contributions ,be=e mak+ any g5]ation1 transmission1 or di/ribution upgrade t is necess>y to s]ve ! load ( a l>ge-load cu/om]1 an electric utility %all require ! l>ge-load cu/om] provide to ! electric utility f9ancial assurances or contributions to cov] ! co/ ( su* upgrade4 7,c7 ,l>ge-load cu/om] def9$ ,9 ?is p>agraph1 ! t]m l>ge-load cu/om] means a non-resid5tial retail electric cu/om] t1 on or aft] ! date ( ! enactm5t ( ?is p>agraph1 reque/s to ent] into1 or ent]s into1 a contract p]ta9+ to ! sale ( electric en]gy = "o or m facilities t-- 7i7 are beh9d a s+le po9t ( int]connection2 & 7ii7 h1 9 ! aggregate1 a peak electric dem& ( #ajj megawatts or m at a s+le site or campus4 4 #ajb4 ,f$]al /&>d relat+ to additive g5]ation = l>ge-load cu/om]s ,section #aaa7;d7 ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7#af ,u4,s4,c4 #bfba7;d771 z am5d$ by section #aja ( ?is ,title1 is fur!r am5d$ by add+ at ! end ! foll[+3 7#bc7 ,additive g5]ation = l>ge-load cu/om]s 7,a7 ,9 g5]al ,ea* electric utility %all consid] ! e/abli%m5t ( rates1 contracts1 t>iffs1 s]vice agreem5ts1 or o!r me*anisms "u :i* s]vice to a l>ge-load cu/om] is enc\rag$ or requir$ to develop1 acquire1 f9ance1 or contractually d$icate new or increm5tal g5]ation res\rces suffici5t to s]ve ! project$ load ( su* l>ge-load cu/om] &1 :]e feasible1 to provide additional capacity1 en]gy1 capacity attributes1 or o!r res\rce b5efits = ! b5efit ( o!r cu/om]s4 7,b7 ,additive g5]ation inc5tive ,9 c>ry+ out subp>agraph 7,a71 includ+ z a means ( satisfy+ or supplem5t+ ! /&>d describ$ 9 p>agraph 7#bb71 ea* electric utility %all consid] me*anisms "u :i* any capacity1 en]gy1 capacity attributes1 or o!r res\rce b5efits 9 excess ( ! project$ load ( su* l>ge-load cu/om] may be made available1 ?r\gh long-t]m contracts or o!r m>ket-bas$ me*anisms1 to load-s]v+ entities s]v+ resid5tial1 agricultural1 small bus9ess1 or o!r exi/+ cu/om]s4 7,c7 ,flexible implem5tation ,a ,/ate regulatory au?ority1 ) respect to ea* electric utility = :i* ! ,/ate regulatory au?ority has ratemak+ au?ority1 & ea* nonregulat$ electric utility may implem5t ! /&>d "u ?is p>agraph ?r\gh-- 7i7 physical allocation ( g5]at+ capacity2 7ii7 long-t]m p[] pur*ase agreem5ts2 7iii7 contractual or f9ancial arrangem5ts2 7iv7 m>ket-bas$ me*anisms2 7v7 t>iff conditions or special contracts = l>ge-load cu/om]s2 or 7vi7 any o!r me*anism det]m9$ appropriate by ! ,/ate regulatory au?ority or nonregulat$ electric utility4 7,e7 ,no m&atory res\rce allocation ,no?+ 9 ?is p>agraph %all be con/ru$ to require a ,/ate regulatory au?ority or nonregulat$ electric utility to m&ate ! physical allocation ( g5]at+ capacity or to require a uni=m p]c5tage set-aside ( new or increm5tal g5]ation res\rces4 7,f7 ,l>ge-load cu/om] def9$ ,9 ?is p>agraph1 ! t]m l>ge-load cu/om] has ! mean+ giv5 su* t]m 9 p>agraph 7#bb77;,c74 4 #ajc4 ,obligations to consid] & det]m9e ,section #aab ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7#af ,u4,s4,c4 #bfbb7 is am5d$-- 7#a7 9 subsection 7b71 by add+ at ! end ! foll[+3 7#i7 7,a7 ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is p>agraph1 ea* ,/ate regulatory au?ority 7) respect to ea* electric utility = :i* ! ,/ate has ratemak+ au?ority7 & ea* nonregulat$ electric utility %all comm5ce consid]ation "u section #aaa1 or set a he>+ date = consid]ation1 ) respect to ! /&>d e/abli%$ by p>agraph 7#bb7 ( section #aaa7;d74 7,b7 ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is p>agraph1 ea* ,/ate regulatory au?ority 7) respect to ea* electric utility = :i* ! ,/ate has ratemak+ au?ority7 & ea* nonregulat$ electric utility %all complete ! consid]ation & make ! det]m9ation "u section #aaa ) respect to ! /&>d e/abli%$ by p>agraphs 7#bb7 & 7#bc7 ( section #aaa7;d74 2 7#b7 9 subsection 7c7-- 7,a7 by /rik+ subsection 7b77#b7 & ins]t+ subsection 7b72 & 7,b7 by ins]t+ ,9 ! case ( ! /&>d e/abli%$ by p>agraphs 7#bb7 & 7#bc7 ( section #aaa7;d71 ! ref]5ce conta9$ 9 ?is subsection to ! date ( enactm5t ( ?is ,act %all be deem$ to be a ref]5ce to ! date ( enactm5t ( t p>agraph 7#bb7 & 7#bc74 aft] p>agraph 7#ba742 & 7#c7 by add+ at ! end ! foll[+3 7i7 ,o!r prior /ate actions ,subsections 7b7 & 7c7 %all n apply to ! /&>d e/abli%$ by p>agraphs 7#bb7 & 7#bc7 ( section #aaa7;d7 9 ! case ( any electric utility 9 a ,/ate if1 be=e ! date ( enactm5t ( ?is subsection-- 7#a7 ! ,/ate has implem5t$ = ! electric utility ! /&>d 7or a comp>able /&>d72 7#b7 ! ,/ate regulatory au?ority = ! ,/ate or ! relevant nonregulat$ electric utility has conduct$ a proce$+ to consid] implem5tation ( ! /&>d 7or a comp>able /&>d7 = ! electric utility2 or 7#c7 ! ,/ate legislature has vot$ on ! implem5tation ( ! /&>d 7or a comp>able /&>d7 = ! electric utility4 4 #ajd4 ,prior & p5d+ proce$+s ,section #abd ( ! ,public ,utility ,regulatory ,policies ,act ( #aigh 7#af ,u4,s4,c4 #bfcd7 is am5d$ by add+ at ! end ! foll[+3 ,9 ! case ( ! /&>d e/abli%$ by p>agraph 7#bb7 ( section #aaa7;d71 ! ref]5ce conta9$ 9 ?is section to ! date ( enactm5t ( ?is ,act %all be deem$ to be a ref]5ce to ! date ( enactm5t ( t p>agraph 7#bb744 #aje4 ,qualify+ additive g5]ation project cr$it 7a7 ,9 g5]al ,subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #dh;,f ! foll[+3 #dh;,g4 ,qualify+ additive g5]ation project cr$it 7a7 ,9 g5]al ,= purposes ( section #df1 ! qualify+ additive g5]ation project cr$it = any taxable ye> is an am\nt equal to #cj p]c5t ( ! qualifi$ additive inve/m5t1 z det]m9$ "u subsection 7b71 = su* taxable ye>4 7b7 ,qualifi$ additive inve/m5t ,= purposes ( ?is section1 ! t]m qualifi$ additive inve/m5t means ! portion ( ! qualifi$ inve/m5t 9 qualifi$ prop]ty plac$ 9 s]vice dur+ ! taxable ye> t is prop]ly allocable to cr$itable excess capacity4 7c7 ,cr$itable excess capacity ,= purposes ( ?is section1 ! t]m cr$itable excess capacity means ! portion ( new or increm5tal electric g5]ation capacity t-- 7#a7 exce$s ! project$ peak electric dem& ( a cov]$ l>ge-load facility2 7#b7 is made available to "o or m eligible load-s]v+ entities pursuant to a long-t]m contract or o!r b9d+ writt5 agreem5t2 & 7#c7 does n exce$ #ej p]c5t ( ! project$ peak electric dem& ( su* cov]$ l>ge-load facility4 7d7 ,qualify+ additive g5]ation project ,= purposes ( ?is section1 ! t]m qualify+ additive g5]ation project means a project t-- 7#a7 develops1 con/ructs1 acquires1 f9ances1 or contractually d$icates new or increm5tal electric g5]ation res\rces to support a cov]$ l>ge-load facility2 7#b7 makes cr$itable excess capacity available to "o or m eligible load-s]v+ entities2 & 7#c7 does n %ift g5]ation1 transmission1 di/ribution1 int]connection1 /r&$1 or o!r infra/ructure co/s attributable to ! cov]$ l>ge-load facility to exi/+ resid5tial1 agricultural1 small bus9ess1 or o!r exi/+ cu/om]s4 7e7 ,v]ification & recapture 7#a7 ,v]ification ,no cr$it %all be all[$ "u ?is section unless ! taxpay] c]tifies1 9 su* =m & mann] z ! ,secret>y may require1 t-- 7,a7 ! project$ peak electric dem& ( ! cov]$ l>ge-load facility is support$ by an eng9e]+ /udy1 utility s]vice agreem5t1 int]connection /udy1 or o!r docum5tation det]m9$ appropriate by ! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy2 7,b7 ! cr$itable excess capacity is subject to a long-t]m contract or o!r b9d+ writt5 agreem5t ) "o or m eligible load-s]v+ entities2 & 7,c7 su* cr$itable excess capacity is reasonably expect$ to be deliv]able to su* eligible load-s]v+ entities4 7#b7 ,recapture ,! ,secret>y %all provide rules = ! recapture ( all or a portion ( any cr$it all[$ "u ?is section if1 dur+ su* p]iod z ! ,secret>y det]m9es appropriate-- 7,a7 ! taxpay] mat]ially increases ! electric dem& ( ! cov]$ l>ge-load facility 9 a mann] t r$uces or elim9ates ! cr$itable excess capacity2 7,b7 ! taxpay] t]m9ates or mat]ially r$uces ! long-t]m contract or o!r b9d+ writt5 agreem5t describ$ 9 p>agraph 7#a77;,b72 or 7,c7 ! ,secret>y det]m9es t ! project$ peak electric dem& ( ! cov]$ l>ge-load facility 0 mat]ially und]/at$4 7f7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,cov]$ l>ge-load facility ,! t]m cov]$ l>ge-load facility means "o or m nonresid5tial facilities beh9d a s+le po9t ( int]connection t h1 9 ! aggregate1 a peak electric dem& ( #ajj megawatts or m at a s+le site or campus4 7#b7 ,eligible load-s]v+ entity ,! t]m eligible load-s]v+ entity means an electric utility1 public p[] utility1 electric coop]ative1 municipal utility1 inve/or-own$ utility1 ,f$]al p[] m>ket+ adm9i/ration cu/om] or pref]5ce cu/om]1 or any o!r load-s]v+ entity det]m9$ appropriate by ! ,secret>y4 7#c7 ,long-t]m contract ,! t]m long-t]m contract means a contract1 t>iff1 s]vice agreem5t1 p[] pur*ase agreem5t1 capacity agreem5t1 or o!r b9d+ writt5 arrangem5t ) a t]m ( n less ?an #aj ye>s4 7#d7 ,qualifi$ prop]ty ,! t]m qualifi$ prop]ty means tangible prop]ty t is us$ z an integral "p ( a qualify+ additive g5]ation project1 ) respect to :i* depreciation or amortization is all[able1 & ! orig9al use ( :i* beg9s ) ! taxpay]4 7g7 ,guidance ,! ,secret>y1 9 consultation ) ! ,secret>y ( ,en]gy & ! ,f$]al ,en]gy ,regulatory ,commission1 %all issue su* guidance z may be necess>y to c>ry out ?is section1 includ+ guidance = det]m9+ qualifi$ additive inve/m5t1 project$ peak electric dem&1 cr$itable excess capacity1 deliv]ability1 & prev5tion ( co/ %ift+4 7h7 ,t]m9ation ,?is section %all n apply to any qualify+ additive g5]ation project plac$ 9 s]vice m ?an #aj ye>s aft] ! date ( enactm5t ( ?is section4 4 7b7 ,"p ( inve/m5t cr$it ,section #df ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+3 7#h7 ! qualify+ additive g5]ation project cr$it4 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #dh;,f ! foll[+3 ,sec4 #dh;,g4 ,qualify+ additive g5]ation project cr$it4 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to qualify+ additive g5]ation projects ! con/ruction ( :i* beg9s aft] ! date ( enactm5t ( ?is ,act4 ,,ii ,,advanc+ ,,wat] ,,reuse #bja4 ,qualify+ wat] reuse project cr$it 7a7 ,9 g5]al ,subp>t ,e ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #dh;,e ! foll[+ new section3 #dh;,f4 ,qualify+ wat] reuse project cr$it 7a7 ,9 g5]al ,= purposes ( section #df1 ! qualify+ wat] reuse project cr$it = any taxable ye> is an am\nt equal to #cj p]c5t ( ! qualifi$ inve/m5t = su* taxable ye> ) respect to any qualify+ wat] reuse project ( ! taxpay]4 7b7 ,qualifi$ inve/m5t 7#a7 ,9 g5]al ,= purposes ( subsection 7a71 ! qualifi$ inve/m5t ) respect to any qualify+ wat] reuse project = any taxable ye> is ! basis ( qualifi$ prop]ty plac$ 9 s]vice by ! taxpay] dur+ su* taxable ye> :i* is "p ( su* qualify+ wat] reuse project4 7#b7 ,qualifi$ prop]ty ,= purposes ( ?is subsection1 ! t]m qualifi$ prop]ty means prop]ty-- 7,a7 :i* is tangible prop]ty1 7,b7 ) respect to :i* depreciation 7or amortization 9 lieu ( depreciation7 is all[able1 & 7,c7 :i* is-- 7i7 con/ruct$1 recon/ruct$1 or erect$ by ! taxpay]1 or 7ii7 acquir$ by ! taxpay] if ! orig9al use ( su* prop]ty comm5ces ) ! taxpay]4 7#c7 ,c]ta9 qualifi$ progress exp5ditures rules made applicable ,rules simil> to ! rules ( subsections 7c77#d7 & 7d7 ( section #df 7z 9 effect on ! day be=e ! enactm5t ( ! ,rev5ue ,reconciliation ,act ( #aiij7 %all apply = purposes ( ?is section4 7c7 ,qualify+ wat] reuse project ,= purposes ( ?is section-- 7#a7 ,9 g5]al ,! t]m qualify+ wat] reuse project means a project :i*-- 7,a7 in/alls1 replaces1 or modifies an onsite wat] recycl+ sy/em )9 an indu/rial1 manufactur+1 data c5t]1 or food process+ facility1 7,b7 replaces ! use ( fre%wat]1 su* z gr\ndwat]1 ) recycl$ wat] f a municipal wat] provid] = ! production ( goods or provision ( s]vices by ! taxpay]1 or 7,c7 builds or exp&s a municipal wat] recycl+ sy/em = ! purpose ( secur+ recycl$ wat] = ! production ( goods or provision ( s]vices4 7#b7 ,wat] recycl+ sy/em ,! t]m wat] recycl+ sy/em means infra/ructure ne$$ = ! production1 /orage1 conveyance1 & use ( recycl$ wat]4 7#c7 ,recycl$ wat] ,! t]m recycl$ wat] means =m] wa/ewat]1 includ+ bo? indu/rial & municipal wa/ewat]1 t has be5 treat$ & clean$ = a specific b5eficial use4 7d7 ,special rule = c]ta9 prop]ty transf]r$ to utilities 7#a7 ,9 g5]al ,9 ! case ( any qualifi$ transf] prop]ty transf]r$ f a p]son to a utility-- 7,a7 su* prop]ty %all be treat$ z qualifi$ prop]ty ) respect to su* p]son1 7,b7 su* p]son %all be treat$ z hav+ plac$ su* prop]ty 9 s]vice at ! "t ( su* transf]1 7,c7 ! basis ( su* p]son 9 su* prop]ty :i* is tak5 into acc\nt "u subsection 7b77#a7 %all be ! basis ( su* p]son 9 su* prop]ty at ! "t ( su* transf]1 & 7,d7 su* prop]ty %all n be tak5 into acc\nt = purposes ( det]m9+ any cr$it all[$ "u ?is section to su* utility4 7#b7 ,qualifi$ transf] prop]ty ,= purposes ( ?is subsection1 ! t]m qualifi$ transf] prop]ty means prop]ty transf]r$ f a p]son to a utility if-- 7,a7 su* prop]ty is qualifi$ prop]ty ) respect to su* utility1 & 7,b7 su* p]son & su* utility ent] into a b9d+ writt5 agreem5t "u :i* su* p]son is treat$ z eligible = ! cr$it all[$ "u ?is section ) respect to su* prop]ty 9 lieu ( su* utility4 7e7 ,t]m9ation ,?is section %all n apply to any qualifi$ inve/m5t ) respect to any qualify+ wat] reuse project unless su* project is plac$ 9 s]vice n lat] ?an ! date :i* is #aj ye>s aft] ! date ( ! enactm5t ( ?is section4 4 7b7 ,"p ( inve/m5t cr$it ,section #df ( su* ,code is am5d$ by /rik+ & at ! end ( p>agraph 7#g71 by /rik+ ! p]iod at ! end ( p>agraph 7#h7 & ins]t+ 1 &1 & by add+ at ! end ! foll[+ new p>agraph3 7#i7 ! qualify+ wat] reuse project cr$it4 4 7c7 ,cl]ical am5dm5t ,! table ( sections = subp>t ,d ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #dh;,e ! foll[+ new item3 4 7d7 ,effective date ,! am5dm5ts made by ?is section %all apply to qualify+ wat] reuse projects 7z def9$ 9 section #dh;,f ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by ?is section7 ! con/ruction ( :i* beg9s aft] ! date ( ! enactm5t ( ?is ,act4