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Oklahoma lawmakers to make final changes to data center customer protection bill

The Oklahoma state capitol in Oklahoma City on Wednesday, February 7, 2024.
Ben Felder
/
The Midwest Center for Investigative Reporting
The Oklahoma state capitol in Oklahoma City on Wednesday, February 7, 2024.

House Bill 2992, signed on to by more than 30 lawmakers from both aisles, was sent to a conference committee for adjustments last week.

Introduced by Rep. Brad Boles, R-Marlow, the Data Center Customer Protection Act of 2026 seeks to keep data center grid connection costs from being passed on to regular Oklahomans. Sen. Grant Green, R-Wellston, co-authored the legislation.

The measure requires the Oklahoma Corporation Commission, which regulates the state’s utilities, to protect rates for households and businesses as large-load customers like data centers and cryptomining operations plug into the grid.

An amended version of the bill passed the Senate floor last week, but the changes were rejected by the House two days later. Boles did not specify what parts of the amendment triggered the rejection. A conference committee was formed to develop final wording.

The Senate amendment specified data center developers would be required to notify the Corporation Commission, county commissioners and any property owners within five miles at least 60 days before the proposed transaction. A public meeting would need to be set and circulated in local newspapers.

Boles, who is running for a seat on the Corporation Commission, said in an email the committee agreed on new language for the bill. A draft of the text shared with StateImpact shows the measure now requires developers to notify regulators and abutting property owners within 60 days after the purchase. No public meeting requirements are mentioned.

Developers could be fined $1,500 per day if found in violation of the requirements, which would be enforced by the county.

Several Oklahoma communities, like Sand Springs, have voiced opposition to data centers because of high water usage concerns, fears over electricity prices rising and other issues. A recent report from AARP found that 86% of 850 surveyed Oklahomans said they worry about their electricity reliability as data centers come online. The survey also said 88% were concerned about water availability.

On Monday, Boles said he hopes to get the bill signed out of the conference committee, passed through both chambers and sent to the governor this week.

StateImpact Oklahoma is a partnership of Oklahoma’s public radio stations which relies on contributions from readers and listeners to fulfill its mission of public service to Oklahoma and beyond. Donate online

Chloe Bennett-Steele is StateImpact Oklahoma's environment & science reporter.
StateImpact Oklahoma reports on education, health, environment, and the intersection of government and everyday Oklahomans. It's a reporting project and collaboration of KGOU, KOSU, KWGS and KCCU, with broadcasts heard on NPR Member stations.
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