MONTGOMERY — Two bills restricting data center incentives and cost-sharing passed the Senate on Thursday.
One bill by State Sen. Andrew Jones (R-Centre) would limit the maximum exemption period for abatements available for data processing centers to 20 years beginning Jan. 1, 2027, would require data processing centers to pay state sales and use taxes on purchases made by certain large data processing centers beginning Jan. 1, 2027, and provide for the distribution of proceeds from the taxes, and would extend the sunset date for data processing center abatements.
Jones told reporters on Thursday, "We want to be competitive, but we don't want to give sweetheart deals."
"Alabama's data center incentives are a little bit too rich. We're about 15th in the nation in terms of our incentives. Obviously, data centers coming in, they use a ton of power," he added. "Part of the affordability package is making sure we have a sustainable amount of data centers that are here. Ultimately, supply and demand, it's going to drive up the costs of energy for consumers. What this does in a nutshell is takes our incentives to average in the Southeast and makes us more in line with our neighboring states so we're not giving away the store."
Another bill by State Sen. Lance Bell (R-Pell City), included in the Alabama Affordability Protection Plan, passed the Senate unanimously on Thursday and prohibits cost shifting from data centers to Alabama businesses and families.
Energy Alabama, a clean energy advocacy group, said it opposed a Public Service Commission expansion bill passed by the Senate on Thursday but supported Bell's bill.
"Energy Alabama is disappointed by the Senate's passage of SB 360. We believe Alabamians want to preserve their voice and the power of their vote for utility regulators. Alabamians are looking for legislation that will meaningfully reduce their utility bills as fast as possible," a spokesperson for Energy Alabama said in a statement on Thursday. "The House has not yet voted on SB 360, and there is still time to get this right. We urge every Alabamian who wants real reform to contact their House representative and direct their attention to HB 475, legislation led by Rep. Mack Butler that would require rate reviews under oath, meaningfully reduces utility profits, and keeps the PSC fully accountable to voters. Energy Alabama is glad to see the passage of SB 270, from Senator Lance Bell, today. SB 270 protects Alabama's residential and small business electric customers from being forced to pay for the costs of the large electric demand required to power commercial data centers. Data centers should pay their own way in Alabama, and that's exactly what this bill forces them to do."
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