S.Amdt. 6837

SA 6837. Mr. WARNER submitted an amendment intended to be proposed by
him to the bill H.R. 9340, to amend the Public Utility Regulatory
Policies Act of 1978 to establish a Federal standard relating to the
recovery of the full, incremental costs of upgrades that serve large-
load customers, and for other purposes; which was ordered to lie on the
table; as follows:

At the end, add the following:

SEC. 3. EXEMPTING AI DATA CENTERS FROM BONUS DEPRECIATION.

(a) In General.--Section 168(k) of the Internal Revenue
Code of 1986 is amended--
(1) in paragraph (9)--
(A) in subparagraph (A), by striking ``or'' at the end,
(B) in subparagraph (B), by striking the period at the end
and inserting ``, or'', and
(C) by adding at the end the following new subparagraph:
``(C) any property used in an AI data center.'', and
(2) by adding at the end the following new paragraph:
``(11) AI data center.--
``(A) In general.--For purposes of paragraph (9)(C), the
term `AI data center' means a permanent or semipermanent
structure, or group of such structures, which--
``(i) is dedicated to--

``(I) the centralized accommodation, interconnection, and
operation of information technology and network
telecommunications

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equipment (including not less than 1 graphics processing
unit), and
``(II) providing data storage, processing, and transport
services, and

``(ii) at least 20 percent of which is used for developing
or operating artificial intelligence.
``(B) Exclusion.--
``(i) In general.--For purposes of paragraph (9)(C), the
term `AI data center' shall not include any structure or
group of structures described in subparagraph (A) which has
obtained the LEED Green Building Rating System certification
at the Platinum or Gold level.
``(ii) Alternate standard.--The Secretary of Energy and the
Administrator of the Environmental Protection Agency may
jointly--

``(I) establish or identify an alternate standard that is
equivalent to or exceeds the standard described in clause
(i), and
``(II) as an alternative to the standard described in
clause (i), allow the use of such alternate standard for
purposes of the exclusion provided under such clause.

``(C) Definitions.--For purposes of this paragraph--
``(i) Artificial intelligence.--The term `artificial
intelligence' has the meaning given such term in section 5002
of the National Artificial Intelligence Initiative Act of
2020 (15 U.S.C. 9401).
``(ii) Graphics processing unit.--The term `graphic
processing unit' means a specialized electronic circuit
designed to accelerate image rendering, graphics processing,
and parallel computation tasks.
``(iii) LEED green building rating system.--The term `LEED
Green Building Rating System' means the most recent version
of the Leadership in Energy and Environmental Design green
building rating system for--

``(I) Building Design and Construction, or
``(II) Operations and Maintenance,

as developed by the U.S. Green Building Council.''.
(b) Application of Leased Property Rules to AI Data
Centers.--Section 168 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(o) Application of Leased Property Rules to AI Data
Centers.--In the case of any AI data center (as defined in
subsection (k)(11)) which is subject to a lease, the
depreciation deduction provided by section 167(a) shall be
determined pursuant to the rules under section 1.167(a)-
11(e)(3)(iii) of title 26, Code of Federal Regulations (as in
effect on the date of enactment of this subsection).''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after the date of
enactment of this Act.

SEC. 4. DATA CENTER DISCLOSURES.

(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) Affected community.--The term ``affected community''
means a community that--
(A) is subject to the jurisdiction of the same unit of
local government as a covered data center; or
(B) is served by the same electric utility, water
authority, or drinking water utility as a covered data
center.
(3) Affected unit of local government.--The term ``affected
unit of local government'' means any unit of local government
within the jurisdiction of which a covered data center or
affected community is located.
(4) Applicable recipient.--The term ``applicable
recipient'', with respect to a disclosure under subsection
(b) or a report under subsection (c), means--
(A) if the applicable covered data center is located in an
electing State, the electing State; and
(B) if the applicable covered data center is not located in
an electing State, the Secretary and the Administrator.
(5) Covered data center.--
(A) In general.--The term ``covered data center'' means a
data center, including a dual-use data center and a data
center that is co-located or otherwise shares commercial
space with a dedicated Federal data center, the power demand
of which is 25 megawatts or more.
(B) Exclusion.--The term ``covered data center'' does not
include a dedicated Federal data center.
(6) Data center.--The term ``data center'' has the meaning
given the term in section 453(a) of the Energy Independence
and Security Act of 2007 (42 U.S.C. 17112(a)).
(7) Data center operator.--The term ``data center
operator'' means any person that operates a covered data
center.
(8) Dedicated federal data center.--The term ``dedicated
Federal data center'' means a data center that is owned and
operated exclusively by or for the Federal Government
(including any element of the intelligence community (as
defined in section 3 of the National Security Act of 1947 (50
U.S.C. 3003))).
(9) Dual-use data center.--The term ``dual-use data
center'' means a data center that provides services to both
the Federal Government and 1 or more non-Federal interests.
(10) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(11) Electing state.--The term ``electing State'' means a
State that--
(A) has elected to receive disclosures and reports under
this section;
(B) has established a system for receiving those
disclosures and reports; and
(C) has notified the Secretary and the Administrator that
the State will--
(i) receive those disclosures and reports; and
(ii) submit to the Secretary and the Administrator an
annual compilation of those disclosures and reports under
subsection (d)(1).
(12) Power usage effectiveness.--The term ``power usage
effectiveness'' has the meaning given the term in the
document published in 2026 by the International Organization
for Standardization and the International Electrotechnical
Commission entitled ``Information technology -- Data centres
key performance indicators -- Part 2: Power usage
effectiveness (PUE)'' and numbered ISO/IEC 30134-2:2026 (or a
successor document).
(13) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
(14) State.--The term ``State'' means--
(A) each of the several States of the United States;
(B) the District of Columbia;
(C) the Commonwealth of Puerto Rico;
(D) the United States Virgin Islands;
(E) Guam;
(F) American Samoa;
(G) the Commonwealth of the Northern Mariana Islands;
(H) an Indian tribe included on the list published by the
Secretary of the Interior under section 104 of the Federally
Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131);
(I) the Federated States of Micronesia;
(J) the Republic of the Marshall Islands; and
(K) the Republic of Palau.
(15) Water usage effectiveness.--The term ``water usage
effectiveness'' has the meaning given the term in the
document published in 2022 by the International Organization
for Standardization and the International Electrotechnical
Commission entitled ``Information technology -- Data centres
key performance indicators -- Part 9: Water usage
effectiveness (WUE)'' and numbered ISO/IEC 30134-9:2022 (or a
successor document).
(b) Initial Disclosures.--
(1) In general.--Not later than 180 days before the date on
which a covered data center commences operations, the data
center operator shall submit to the applicable recipient an
initial disclosure that includes an estimate of the
information described in paragraphs (1) through (4) of
subsection (c) for the 1-year period beginning on the date on
which the covered data center is expected to commence
operations.
(2) Existing data centers.--Not later than 180 days after
the date of enactment of this Act, each covered data center
operating as of that date of enactment shall submit to the
applicable recipient an initial disclosure that includes the
information required to be included in an annual mandatory
report under subsection (c) for the most recent calendar year
ending before that date of enactment.
(3) Federal data centers.--
(A) Dual-use data centers.--With respect to a dual-use data
center--
(i) this subsection and subsection (c) shall only apply to
the extent prescribed by the Director under subsection
(e)(1)(D); and
(ii) in providing initial disclosures under this subsection
or submitting an annual report under subsection (c) as so
prescribed, the data center operator shall comply with all
applicable requirements established under subsection (e),
including the standards established under paragraph (1)(D) of
that subsection and any exemptions from disclosure
established under paragraph (2)(C) of that subsection.
(B) Dedicated federal data centers.--This subsection and
subsection (c) shall not apply to a dedicated Federal data
center.
(c) Annual Mandatory Report.--Not later than December 31 of
each year, each data center operator shall submit to the
applicable recipient an annual report that describes, for the
most recent preceding calendar year, the following
information for each applicable covered data center operated
by the data center operator:
(1) Water access and usage.--
(A) The total number of gallons of water withdrawn or
consumed each month by the covered data center during the
year covered by the report.
(B) The source of the water so withdrawn or consumed by the
covered data center, such as a municipal drinking water
system, groundwater, surface water, or reclaimed water.
(C) The annual average water usage effectiveness of the
covered data center.
(D) Any water rights, permits, or long-term supply
agreements held by a data center operator for a covered data
center, including the term and quantity of water subject to
those rights, that permit, or that agreement.
(2) Electricity access and usage.--
(A) The total electricity contracted for or consumed by the
covered data center each month during the year covered by the
report, measured in megawatt-hours, and the peak electricity
demand of the covered data center during that year, measured
in megawatts.
(B) If the covered data center uses behind-the-meter power
generation, the method used to generate that power, including
the

[[Page S5080]]

percentage of total electricity consumed by the covered data
center from each behind-the-meter generation source type,
calculated on an actual-dispatch basis.
(C) The total greenhouse gas emissions of the covered data
center in carbon dioxide-equivalent metric tons (calculated
on the basis of energy consumption).
(D) The annual average power usage effectiveness of the
covered data center.
(E) Any long-term power purchase agreements or utility
service agreements to which the covered data center operator
was a party during the year covered by the report,
including--
(i) the term of the power purchase agreement; and
(ii) the quantity of power covered by the power purchase
agreement.
(3) Backup power.--
(A) The types of backup power maintained for the covered
data center, including generators, batteries, and all other
sources of backup power.
(B) The total backup capacity maintained for the covered
data center.
(C) The quantity of fuel stored on-site for backup power.
(D) The total hours that the covered data center operated
using backup power during the year covered by the report.
(E) The annual emissions of carbon dioxide, and criteria
pollutants for which there are national ambient air quality
standards under section 109 of the Clean Air Act (42 U.S.C.
7409), from backup power during the year covered by the
report.
(4) Property setback.--The setback requirements for data
center facilities in the State in which the covered data
center is located, including any zoning variances, special
use permits, or conditional approvals relating to the use of
a facility or setback by the data center operator.
(d) Reports to EPA and DOE.--
(1) In general.--Each electing State shall annually submit
to the Secretary and the Administrator a compilation of--
(A) the disclosures submitted to the electing State under
subsection (b); and
(B) the reports submitted to the electing State under
subsection (c).
(2) Publication.--The Secretary and the Administrator shall
make publicly available on the website of the Department of
Energy and the Environmental Protection Agency, respectively,
an annual report that includes each of--
(A) the disclosures submitted directly to the Secretary and
the Administrator under subsection (b);
(B) the reports submitted directly to the Secretary and the
Administrator under subsection (c);
(C) the compilations submitted to the Secretary and the
Administrator under paragraph (1); and
(D) any information submitted to the Secretary and the
Administrator under subsection (e)(3), in accordance with any
standards established under subsection (e)(1)(C).
(e) Disclosures for Federal Data Centers.--
(1) In general.--Not later than 180 days after the date of
enactment of this Act, the Director shall establish standards
for--
(A) the compilation by appropriate Federal officials, as
determined by the Director, of information relating to each
dedicated Federal data center and dual-use data center
utilized by the Federal Government;
(B) the submission of that information to the committees of
Congress with jurisdiction over those Federal officials;
(C) the publication of that information pursuant to
subsection (d)(2)(D), if applicable; and
(D) with respect to dual-use data centers, disclosure and
reporting by the applicable data center operator under
subsections (b) and (c).
(2) Requirements.--The standards established under
paragraph (1) shall--
(A) to the maximum extent practicable, require the
disclosure of information consistent with the information
required to be disclosed under subsection (c) with respect to
covered data centers;
(B) simultaneously--
(i) promote data center accountability and transparency;
and
(ii) protect national security; and
(C) include exemptions from disclosure to protect national
security, as appropriate.
(3) Submission of information for publication.--If the
Director determines appropriate, the standards established
under paragraph (1) may require appropriate Federal
officials, as determined by the Director, to submit to the
Secretary and the Administrator for publication under
subsection (d)(2)(D) such information as is appropriate for
publication under that subsection.
(4) Coordination.--In carrying out this subsection,
including the development of exemptions under paragraph
(2)(C), the Director shall coordinate with appropriate
officials of--
(A) the Office of the Director of National Intelligence;
(B) the Central Intelligence Agency;
(C) the Department of Defense;
(D) the Department of Homeland Security;
(E) the Department of Justice;
(F) the Department of Energy;
(G) the Department of Commerce;
(H) the Department of the Treasury; and
(I) any other relevant Federal agency, as determined by the
Director, including any Federal agency utilizing a data
center for purposes relating to national security.
(f) Prohibition on Use of Nondisclosure Agreements or
Confidentiality Agreements To Conceal Information or Avoid
Required Disclosures.--
(1) In general.--Notwithstanding any provision of State
contract law or any agreement to the contrary, no
nondisclosure agreement, confidentiality agreement, or
similar contract or agreement shall operate--
(A) to prevent, limit, delay, or penalize disclosure by any
party to the contract or agreement to the Secretary, the
Administrator, or an electing State of any information
required to be disclosed to the Secretary, the Administrator,
or the electing State under this section;
(B) to prevent, limit, delay, or penalize disclosure by an
electing State to--
(i) the Secretary or the Administrator of any information
required to be disclosed to the Secretary or the
Administrator under this section; or
(ii) an affected unit of local government of any
information provided to the electing State under this
section; or
(C) to require any party to the contract or agreement to
seek approval from a data center operator before responding
to a request for information from the Secretary, the
Administrator, or an electing State made pursuant to
subsection (g)(4).
(2) Voidability.--Any provision of a nondisclosure
agreement, confidentiality agreement, or similar contract or
agreement that purports to restrict disclosure in a manner
prohibited under paragraph (1) is void as against public
policy and unenforceable to the extent of such restriction.
(3) No liability for compliance.--No electric utility,
water authority, drinking water utility, unit of local
government, or State agency shall be liable to a data center
operator under any nondisclosure agreement, confidentiality
agreement, or similar contract or agreement for any
disclosure made in compliance with the requirements of this
section.
(4) Federal preemption.--To the extent that any provision
of State contract law would render enforceable a provision of
a nondisclosure agreement, confidentiality agreement, or
similar contract or agreement prohibited or rendered
unenforceable under this subsection, such provision of State
law is preempted by this Act.
(5) Rule of construction.--Nothing in this section
prohibits a data center operator from entering into a
nondisclosure agreement, confidentiality agreement, or
similar contract or agreement covering information that is
not required to be disclosed to the Secretary, the
Administrator, or an electing State under this section.
(g) Enforcement.--
(1) Negligent violations.--Any data center operator that
negligently fails to submit a disclosure required under
subsection (b) or a report required under subsection (c)
shall be subject to a civil penalty of not more than $50,000
for each day of noncompliance.
(2) Knowing violations.--Any data center operator that
knowingly fails to submit a disclosure required under
subsection (b) or a report required under subsection (c), or
that knowingly submits a false or materially misleading
disclosure or report, shall be subject to a civil penalty of
not more than $100,000 for each day of noncompliance.
(3) State enforcement.--An electing State may impose fines
and engage in other enforcement activities consistent with
this section and applicable State law.
(4) Requests for information.--The Secretary and the
Administrator, acting jointly, or an electing State may issue
to an electric utility, water authority, or drinking water
utility a request for information relating to matters
required to be disclosed by a data center operator under
subsection (b) or (c).
(h) Rulemaking.--Not later than 180 days after the date of
enactment of this Act, the Secretary and the Administrator
shall jointly promulgate such regulations as are necessary to
carry out this section, including regulations establishing--
(1) standardized formatting for the disclosures under
subsection (b) and the reports under subsection (c); and
(2) procedures for submission to, and review by, the
Secretary and the Administrator of disclosures under
subsection (b), reports under subsection (c), and
compilations under subsection (d)(1).
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