SB2181 104TH GENERAL ASSEMBLY

LRB104 10776 AAS 20856 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
SB2181

Introduced 2/7/2025, by Sen. Steve Stadelman

SYNOPSIS AS INTRODUCED:

New Act

Creates the Illinois Data Center Energy and Water Reporting Act. Defines terms. Provides that, beginning January 1, 2026, all data centers operating within the State shall annually report the data center's energy and water consumption to the Illinois Power Agency for the preceding calendar year. Sets forth requirements for the content of the report. Provides that reports shall be submitted to the Agency no later than March 31 of each year. Sets forth provisions concerning data confidentiality and public access to information and the enforcement of the Act and penalties. Provides that the Agency shall conduct a comprehensive study on the impact that data centers in the State are having on rate-paying customers. Sets forth requirements for the content of the study. Provides that the Agency shall submit a report detailing the findings of the study to the General Assembly and the Governor no later than 12 months after the effective date of the Act. Sets forth rulemaking provisions for the Agency. Effective immediately.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Illinois Data Center Energy and Water Reporting Act.

Section 5. Purpose. The purpose of this Act is to ensure transparency regarding the environmental impacts of data centers operating within the State by requiring the disclosure of energy and water usage data to the Illinois Power Agency.

Section 10. Definitions.

"Agency" means the Illinois Power Agency.

"Data center" means a facility used to house computer systems and associated components, including telecommunications and storage systems, where the primary function is the storage, management, and dissemination of data.

"Energy consumption" means the total amount of electricity or other forms of energy consumed by a data center, measured in kilowatt-hours.

"Water consumption" means the total amount of water consumed by a data center, including water used for cooling, measured in gallons.

Section 15. Reporting requirements.

(a) Beginning January 1, 2026, all data centers operating within this State shall annually report the data center's energy and water consumption to the Agency for the preceding calendar year.

(b) The report shall include:

(1) the total energy consumption for the previous calendar year, broken down by month and specifying the energy source;

(2) total water consumption for the previous calendar year, broken down by month and specifying whether the consumption was for cooling or another application; and

(3) any measures undertaken the previous calendar year to improve energy efficiency or reduce water usage.

(c) Reports shall be submitted to the Agency no later than March 31 of each year.

Section 20. Data confidentiality and public access.

(a) Proprietary information may be exempt from public disclosure. Aggregated and anonymized data shall be made available to the public.

(b) The Agency shall publish an annual report summarizing statewide energy and water consumption trends in data centers, including, but not limited to, legislative recommendations to address identified issues.

Section 25. Enforcement and penalties.

(a) Data centers that fail to comply with the reporting requirements under this Act may be subject to fines of up to $10,000 per violation.

(b) All funds collected under this Section shall be deposited into the Energy Efficiency Trust Fund.

Section 30. Data center impact study.

(a) The Agency shall conduct a comprehensive study on the impact that data centers in this State are having on rate-paying customers.

(b) The study shall include, but is not limited to, the following:

(1) the energy consumption of data centers and its effects on overall electricity demand in this State;

(2) the extent to which data centers contribute to electricity rate changes for residential, commercial, and industrial customers;

(3) the environmental impact of data centers in this State; and

(4) potential legislation to mitigate any negative impacts of data centers on rate-paying customers.

(c) In conducting the study, the Agency shall:

(1) consult with stakeholders, including, but not limited to, public utilities, data center operators, consumer advocacy groups, and environmental organizations;

(2) analyze data from public utilities and other relevant sources to assess the energy consumption and rate impacts associated with data centers; and

(3) consider best practices from other states in managing the energy and rate impacts of data centers.

(d) The Agency shall submit a report detailing the findings of the study to the General Assembly and the Governor no later than 12 months after the effective date of this Act.

Section 35. Rulemaking authority. The Illinois Power Agency shall have the authority to adopt rules necessary to implement the provisions of this Act.

Section 99. Effective date. This Act takes effect upon becoming law.