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SB 1048

Public utilities: electric utilities; project labor agreements and prevailing wage and fringe benefit rates; require for certain data center contracts. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 10ii.

2025-2026 Regular Session Introduced by Rosemary Bayer and 8 co-sponsors

The bill would block utility contracts with data centers unless construction uses registered apprenticeships, pays at or above prevailing wage, and uses a project labor agreement o

SENATE CO-SPONSOR(S) NAMED: SEAN MCCANN
#publicutilities:electricutilities
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WeVote Research Nonpartisan
Bill Summary · SB 1048

Overview

Senate Bill 1048 (2025-2026, Michigan) proposes amendments to 1939 PA 3 that would require electric utilities to contract with data centers only if certain labor standards are met. Specifically, it adds a new Sec. 10ii that conditions approval of contracts, tariffs, discounts, or rates with data centers on apprenticeship participation, prevailing wage compliance, and, where possible, the use of project labor agreements or collective bargaining agreements.

Purpose and intent

  • To ensure that construction and maintenance of data centers receive labor standards aligned with apprenticeship training, prevailing wage requirements, and collaborative labor-management arrangements.
  • To tie state regulatory approval for data center projects to adherence to defined workforce practices.

Key provisions

  1. Regulatory condition for data center contracts

    • Beginning on the act’s effective date, the Michigan Public Utility Commission (the “commission”) may not approve any contract, tariff, discount, or rate between an electric utility and a qualified data center unless all of the following are satisfied:
      • Apprenticeship requirements: Data center construction/maintenance projects must use apprenticeship programs that are registered and in good standing with the U.S. Department of Labor under the National Apprenticeship Act (29 U.S.C. 50–50b).
      • Wage and fringe benefits: Workers on the construction or maintenance work must be paid at a minimum wage standard that is at least the higher of:
      • The prevailing wage and fringe benefit rates in the project locality as determined by Michigan’s 2023 Public Act 10 (MCL 408.1101 to 408.1126) or the federal Davis-Bacon Act (40 U.S.C. 3141–3148), whichever provides the higher wage and fringe benefits.
      • Project labor agreement/collective bargaining: Where allowed by law, the entities performing the construction work must enter into a project labor agreement (PLA) or operate under a collective bargaining agreement (CBA) for the work performed.

  2. Definitions

    • Data center: A facility in Michigan comprised of one or more buildings designed and used for housing data center equipment for centralized data storage and processing.
    • Project labor agreement (PLA): A prehire collective bargaining agreement that binds all contractors and subcontractors on a construction project, ensures non-discrimination so non-signatory contractors can compete for work, guards against strikes/lockouts, provides dispute resolution procedures, and promotes labor-management cooperation and compliance with law.

Affected parties

  • Electric utilities regulated by the Michigan Public Service Commission.
  • Qualified data centers seeking to enter into contracts, tariffs, discounts, or rate arrangements with electric utilities.
  • Construction workers, apprentices, and trades involved in data center projects in Michigan.
  • Employers, unions, and contractors involved in data center project labor agreements or CBAs.

Procedural and timeline aspects

  • Status: Introduced June 18, 2026; referred to the Senate Committee on Energy and Environment.
  • Effect: The provision would take effect on the amendatory act’s effective date (the date the act becomes law). From that point, the commission must assess and approve data center-related utility contracts only if the outlined labor standards are met.

Potential impacts

  • Higher labor standards for data center construction and maintenance projects in Michigan.
  • Encouragement of apprenticeship participation and adherence to prevailing wage requirements in large data center developments.
  • Increased use of PLAs or CBAs where permissible, which could affect procurement practices and project timelines.
  • Possible impact on the cost structure and competitiveness of data centers seeking utility services or favorable terms, depending on local wage rates and PLA/CBA terms.
  • Alignment with broader labor and workforce development objectives through reinforced apprenticeship pipelines and standardized wages.

Notes for readers

  • The bill focuses narrowly on data centers and the conditions under which utility contracts or rates may be approved.
  • The specific wage calculations reference Michigan’s 2023 PA 10 and the federal prevailing wage framework (Davis-Bacon), selecting the higher applicable rate.
  • Details on implementation, enforcement, and any potential exemptions or transition provisions would be clarified as the bill moves through committee and potential amendments.

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

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