Bill
S 867
Establishes a Data Center Development Office to streamline siting, permitting, operation, and decommissioning of SC data centers with tiered permits, water efficiency requirements,
Purpose and overall aim
- Establishes the Data Center Development Act to regulate and streamline the siting, permitting, operation, and transition of data centers in South Carolina.
- Creates a dedicated Data Center Development Office within the Department of Environmental Services (DES) to oversee the program, with a focus on regulatory certainty, efficiency, infrastructure adequacy, and environmental considerations.
- Balances data center growth with protections for ratepayers, local communities, natural resources, and environmental compliance.
Key definitions and scope
- Data center: facility or group of buildings with computer systems and related infrastructure, with a connected load of 1 MW or more.
- Data center operator: entity that owns, operates, or controls a data center.
- Tier 1–Tier 3: tiered classifications based on connected load (Tier 1: 1–10 MW; Tier 2: 11–50 MW; Tier 3: >50 MW).
- Infrastructure adequacy: sufficiency of electricity generation, transmission, water supply, wastewater treatment, and transportation to serve a proposed data center.
- Water efficiency, operational efficiency, and environmental impact considerations are central to siting and ongoing compliance.
Main Provisions and Changes
1) Establishment of the Data Center Development Office (49-35-20)
- Location: Within the Department of Environmental Services; head by a DES director.
- Exclusions: Office does not regulate electricity consumption (Public Service Commission retains authority for electricity).
- Functions:
- Pre-application consultations; processing and issuance of data center siting permits.
- Serve as single point of contact; maintain site inventory; develop best practices.
- Coordinate among state agencies; provide technical assistance; timely processing of applications.
- Conduct comprehensive reviews of the chapter every 3 years; annual reports to key state bodies; guidance in consultation with a Data Center Industry Advisory Committee.
- Develop and update guidance on site selection, infrastructure adequacy, environmental reviews, and efficiency.
2) Data Center Industry Advisory Committee (49-35-20(E))
- Composition (10 members): data center industry rep, utility rep, ratepayer advocate, environmental advocate, water utility/management district rep, local government land-use rep, South Carolina Energy Office rep, Office of Regulatory Staff rep, Public Service Commission rep, and a nonvoting ex officio staff member.
- Terms: 4-year terms; initial terms include some 2-year appointments; reappointment possible.
- Duties: advise on implementation, share best practices, review regulatory updates; meet at least twice yearly.
3) Siting Permits and Application Process (49-35-30)
- Data centers may not begin operations without an office siting permit (in addition to local/state approvals).
- Pre-application consultations required once a notice of intention is filed.
- Tier-based permitting timelines:
- Tier 1: expedited review, decision within 60 days; limited infrastructure/environmental review; water conservation via best practices (not prescriptive tech mandates).
- Tier 2: standard review, decision within 90 days; focus on major infrastructure and a site-specific environmental statement; water conservation plan per office guidance.
- Tier 3: comprehensive review, decision within 120 days; detailed infrastructure adequacy, full environmental statement, regional water resources impact, air quality, traffic, and mitigation analysis; full compliance demonstrated.
- Extensions allowed by mutual agreement or extraordinary circumstances; permits last for the duration of operations if a service contract is in place.
4) Operational and Resource Standards (49-35-40)
- The office issues performance-based operational efficiency standards (not controlling electricity consumption, which is PSC’s remit).
- Water efficiency standards: multiple approaches allowed (closed-loop cooling, direct-to-chip, immersion cooling, high-efficiency air cooling, water recycling, etc.).
- Water Use Effectiveness (WUE) metrics: Tier 1/2 caps at 2.0 L/kWh; Tier 3 cap at 1.5 L/kWh; alternative metrics allowed if equally effective.
- Variances: allowed for climate, superior environmental performance, or site-specific factors.
- Annual reporting: data centers report water consumption, WUE, and significant operational changes; confidential information exempt from FOIA.
5) Infrastructure Adequacy, Environmental Review, Buffers, and Brownfields (49-35-50, 49-35-60, 49-35-70, 49-35-80)
- Location assessments focus on water supply, wastewater capacity, fiber connectivity, and road access; deficiencies must be cured within a reasonable timeframe.
- Presumptively suitable locations: existing industrial parks with capacity, previously developed industrial/commercial sites, and brownfield sites identified by DES.
- Environmental impact assessments consider water/wastewater impacts, significant resources, and transportation; minor impacts may be disregarded.
- Brownfield credits (E): up to 25% remediation costs (capped at $5 million) and 2% of total capital investment (capped at $10 million) as state tax credits; eligibility requires DES certification and compliance with all requirements.
- Buffer requirements: site-specific buffers, with presumptive distances in sensitive areas (e.g., 0.5 miles from refuges; 0.25 mile from endangered species habitat; wetlands buffers per permits).
6) Public Service Commission Role on Rates and Agreements (49-35-60)
- PSC retains jurisdiction over electricity rates, agreements, cost allocation, and infrastructure investments to serve data centers.
- PSC must encourage energy efficiency practices and may favor data centers achieving high efficiency (PUE < 1.3) in rate decision-making.
- Rate structures: various options including traditional rates with separate accounting, upfront contributions, minimum revenue guarantees, graduated rates, or hybrid approaches; all must protect ratepayers.
- Expedited rate-approval procedures: decisions within 60 days if no material concerns.
- Standard contracts for electric service to data centers; ensure fair cost allocation and predictability.
7) Decommissioning and Land Use (49-35-70, 49-35-80)
- Tier 2/3 decommissioning plans required; costs must be estimated and funding secured (financial assurances).
- Instruments allowed: corporate guarantees, letters of credit, surety bonds, escrow, etc.
- Cessation duties: site cleanup, removal or repurposing of above-ground structures, site restoration, waste disposal, and environmental remediation as needed.
8) Local Government Interaction (49-35-80)
- Local zoning and land-use approvals remain under local authority; data centers must comply with local rules and the act’s standards.
- Office coordination with local governments; permitting decisions not to be delayed by zoning processes.
9) Noise, Light, and Vibration (49-35-90)
- Reasonable measures to minimize noise, vibration, and light:
- Noise limits at property boundary (max 60 dBA Leq 7am–10pm; 50 dBA Leq 10pm–7am; with case-by-case adjustments).
- Monitoring baselines pre-operation, six months post-opening, and every three years.
- Noise-reduction measures, equipment with lower vibration profiles, and potential vegetative buffering.
- Lighting: shielded, downward-directed lighting, motion timers, interior window treatments, warmer color temperatures; security lighting exempt where necessary.
10) Confidentiality and Public Disclosure (49-35-100)
- Confidential information includes facility designs, customer data, security plans, proprietary tech, and trade-secret data.
- Certain information (compliance confirmations, aggregate energy/water data, enforcement summaries) remains public.
11) Interaction with Other Environmental Laws; Prospective Application (49-35-110, 49-35-120)
- Provisions supplement but do not supersede other environmental laws; compliance with this act satisfies state-level environmental review for data center operations.
- DES enforcement; cooperation with other agencies as needed; two-year transition period prioritizing technical assistance over enforcement.
Effective date and implementation
- Provisions are prospective; apply to applications submitted after the act’s effective date.
- DES to promulgate regulations within 180 days of enactment, with industry input via the advisory committee.
- Two-year transition period prioritizes technical assistance to industry.
Impact and who is affected
- Data center operators: new permitting, site selection, reporting, and compliance requirements; potential tax credits for brownfield sites; varied rate structures negotiated with PSC.
- Utilities and ratepayers: clarified cost allocation, potential incentives for efficiency, and expedited PSC processes.
- Local governments: retain zoning authority but must cooperate with DES and adhere to the act’s standards.
- DES and the Data Center Industry Advisory Committee: primary governance and oversight roles.
Notes
- The bill emphasizes regulatory certainty, streamlined permitting, environmental safeguards, water efficiency, and ratepayer protection, while maintaining PSC authority over electricity consumption and rates.
- Tax credits for brownfield redevelopment aim to encourage redevelopment and remediation.
If you’d like, I can provide a side-by-side comparison with existing SC law or highlight sections most relevant to a particular stakeholder (e.g., utilities, local governments, or data center operators).
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
