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HB 6142

Businesses: other; requirements for data center decommissioning, dismantling, and remediation; provide for. TIE BAR WITH: HB 6135'26, HB 6140'26, HB 6141'26, HB 6137'26, HB 6138'26, HB 6139'26

2025-2026 Regular Session Introduced by Joey Andrews and 27 co-sponsors

Data centers must have a decommissioning plan with financial assurances (bond/LC/escrow) and annual review, tied to utility tariffs and approved by the commission.

bill electronically reproduced 06/25/2026
#businesses:other #property:other
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Bill Summary · HB 6142

Overview

House Bill 6142, introduced on June 25, 2026, would require a decommissioning plan and financial assurances for any data center decommissioning when the Michigan Public Service Commission (the “commission”) approves a tariff, rate, or contract between a data center and an electric utility. The proposal ties its enactment to passage of several related bills in the 103rd Legislature.

Purpose and Intent

  • To ensure that data centers undergoing decommissioning, dismantling, and remediation leave the site in a condition similar to that before construction.
  • To provide financial protection (via bonds, letters of credit, or escrow) to cover the costs of decommissioning and site remediation.
  • To establish ongoing oversight by the commission, including periodic review of the sufficiency of financial assurances every three years.

Key Provisions

  • The commission may not approve a data center–electric utility tariff, rate, or contract unless a decommissioning plan is included.
  • The decommissioning plan must:
    • Ensure decommissioning, dismantling, and remediation of the data center property to a pre-construction condition to the extent feasible.
    • Include a financial assurance mechanism such as:
    • Performance bond
    • Letter of credit
    • Escrow account
    • Require the financial assurance amount to equal the estimated decommissioning cost, as determined by the commission or an independent third party approved by the commission.
    • Be reviewed by the commission at least every three years to confirm there are sufficient funds to cover decommissioning, dismantling, and remediation.
  • Definition: A “data center” is a facility in Michigan comprising one or more buildings designed and used to house data center equipment for centralizing storage and processing of data.
  • Enactment condition: The act’s effective date depends on the passage and enactment of a specific set of related bills (HB 6135, HB 6139, HB 6137, HB 6140, HB 6138, HB 6141, as referenced in the bill’s Legislative package).

Who Is Affected

  • Data centers operating in Michigan that enter into tariffs, rates, or service contracts with electric utilities.
  • Electric utilities that enter into such tariffs, rates, or contracts with data center customers.
  • The Michigan Public Service Commission (as the approving and oversight authority) and potentially independent third-party evaluators engaged to determine decommissioning costs.

Procedural and Timeline Aspects

  • The bill specifies that approval of any data center–utility tariff, rate, or contract is contingent on the existence and adequacy of a decommissioning plan and financial assurances.
  • The commission must perform a three-year triennial review of the financial assurances to ensure sufficiency.
  • The bill includes an enactment clause that it will take effect only if several other related bills are enacted, creating a bundled package requirement for timely implementation.

Potential Impacts and Considerations

  • Financial risk management: Data centers would need to secure and maintain adequate decommissioning funding up front, reducing potential cleanup burdens on the state or ratepayers.
  • Long-term oversight: Regular reviews every three years would help ensure funds remain adequate as costs and technologies change.
  • Compliance burden: Utilities and data centers may face added compliance, auditing, and contingency planning requirements.
  • Market impact: If decommissioning requirements are perceived as burdensome, some data center projects or contract structures might be adjusted.

If you’d like, I can map this bill to the related companion bills (HB 6135, HB 6137, HB 6138, HB 6139, HB 6140, HB 6141) to explain how the package interacts and what each provides.

Compiled from official sources — confirm details with the bill’s official record.

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