Nearby voters would decide whether data center projects proceed

Voters in nearby cities, villages, and townships would decide whether a proposed data center project may proceed. The vote covers a new or expanded data center and its associated power generating facility. It includes each city, village, or township within five miles of the proposed project. A simple majority of votes cast must approve the project. The vote must happen before permits, zoning approval, or a development and supply agreement. Approvals granted without a completed vote would be void. A project already under active construction with all required permits before the section takes effect is exempt. A permitted project that has not begun active construction must stop until voters approve it. The question goes to the next special or general election held at least 90 days after it is sent to the county board of elections.

The environmental director would set air and wastewater rules for data centers and related power plants. The rules cover data centers and power plants built primarily to supply them. Requirements also apply to existing centers and voter-approved new or expanded centers as specified in the bill. The rules would cover testing, pollution controls, and chemicals used in cooling, including metals, glycols, organic chemicals, and PFAS. Existing centers would need attached wastewater treatment and pollution controls, and would have to meet the chapter's air and wastewater limits. Voter-approved new or expanded centers would need closed-loop cooling and wastewater treatment to receive permits or operate. The director would adopt the rules within one year after this section takes effect. Requirements for existing centers would begin 18 months after it takes effect.

Data center owners would have to pay for certain water supply problems and testing. The water repair and fine rule applies when a data center or associated power plant affects a home or business within five miles. Baseline measurements must be taken before construction. If a center or its associated power plant reduces water pressure or supply to a nearby home or business, the owner would pay the costs of fixing the impact and a $5,000 daily fine until it is resolved. The owner may rebut the presumption that it caused a drop in nearby water measurements, but must prove it was not responsible. Owners would pay for required testing and monitoring; independent testers selected and supervised by the environmental director would conduct water testing.

Covered data centers would have to generate their own power and operate independently of the public grid. The rules cover voter-approved data centers, their associated power plants, and the expanded portions of expanded data centers. Ohio ratepayers would bear no cost for the covered facilities' power generation or grid infrastructure. These rules would apply beginning on the effective date of this section.

Local governments could not approve tax incentives for data centers or their associated power plants, and development and supply agreements would be public records. The tax restrictions and agreement disclosure rules cover data centers and associated power generating facilities. Tax incentives approved in violation of the proposed rule would be void. The tax commissioner and county auditors also could not approve property tax exemptions for these facilities. Agreements already in effect before the act's passage would become void after passage, and their information could be requested through public records. The tax restrictions would apply on or after this section takes effect. Existing agreements would become void after the act's passage.