Lawmakers, Moore administration officials and environmentalists have reached a compromise on the data center bill, allowing the state’s leading environmental groups to drop their opposition to the bill.
Gov. Wes Moore (D) has made legislation to help attract data center industry to Maryland a top priority this legislative session.
A major data center campus is in the early stages of development at the site of the old Alcoa aluminum plant in Frederick County. Last year, one of the companies scheduled to participate in the development withdrew from the project after the Public Service Commission did not agree to an expedited review of the company’s plans to use 168 diesel generators as backup power. The governor was disappointed. site.
In response, the Moore administration introduced legislation that would ease certain environmental procedures required to attract data centers to the state.
Frederick, in particular, is poised to benefit from its proximity to data center hubs in Northern Virginia. Other areas in the state are also being considered as potential sites for data center campuses, including land near the Calvert Cliffs nuclear power station in Lusby.
However, data centers consume large amounts of energy and rely on large diesel generators for backup power. As a result, several environmental groups oppose the measure, including the Maryland League of Conservation Voters, a key ally of the governor. LCV announced earlier this month that it would use votes on the bill as part of its annual Congressional Scorecard.
This was a notable break given Moore’s partnership with LCV. Despite the potential threat that environmental groups would use the vote to evaluate lawmakers, Senate Bill 474 passed the Senate in mid-March on a 43-3 vote, led by Sen. Sarah K. Elfreth (D-Anne.・Arundel) was the only one who agreed. , Clarence K. Lamb (D-Howard, Anne Arundel) and Karen Lewis Young (D-Frederick) voted against.
In the weeks since, environmental leaders, key lawmakers and former House Majority Leader Eric Ruedke, Moore’s legislative liaison, have been working on a compromise. The bill currently directs 15% of all tax revenue the state collects from data center operators to go into the state’s Strategic Energy Investment Fund, which the Maryland Energy Department will use to support clean energy and climate change initiatives. used to fund programs.
The House Economic Affairs Committee voted on the amended bill Friday afternoon, and it is expected to be debated in the House early next week. As a result, the Maryland LCV dropped its opposition to the bill and its official position became neutral. It told lawmakers that their votes on the bill would not be counted in the group’s annual report.
Kristen Harbeson, political director of LCV Maryland, acknowledged the “difficult and complex situation” in a letter to lawmakers Friday, but the group said the revised version of the bill is a reasonable compromise. He said that he was considering it.
“We believe that the funds raised to achieve climate goals through the … amendment will address climate impacts without hindering the development of new industries,” she wrote.
If the amended bill passes the House, it must return to the Senate for consent.
Meanwhile, Young’s bill, SB 861, which would require the state to consider ways to require data center companies operating in Maryland to reduce their greenhouse gas emissions over a period of time, is pending in the Senate Education Committee. There is. Energy and the environment, where it may remain.
