Responsible Data Center Development Act
The Responsible Data Center Development Act is more than a moratorium. The three-year pause gives Oregon time to develop a comprehensive, long-term framework for Data Center development, while standards in the Act address impacts that can't wait. For future development, those standards also provide predictability for local planners and leaders, communities, labor, and Data Center developers by establishing clear expectations before development resumes.
Below is the text of the model legislation for the bill. It is draft statutory language intended for submission to Legislative Counsel who will review, revise, and prepare it for introduction as a bill. It is a working draft that is continually being updated based on feedback from stakeholders and our legislative partners.
Explanations are inserted in-line in these boxes for informational purposes on this website, and will not be part of the bill. These are to explain the reasons for certain sections, and clarify things in plain language, and include some references. We will continue to update and add explanations.
A BILL FOR AN ACT
Relating to a temporary moratorium on certain large-scale data center developments; creating performance standards and conditions for data centers; establishing a task force on data center impacts; and declaring an emergency.
Be it enacted by the People of the State of Oregon:
SECTION 1. This Act shall be known and may be cited as the Responsible Data Center Development Act.
SECTION 2. The Legislative Assembly finds that:
(1) Large-scale data centers may impose substantial demands upon electrical transmission systems, electrical generation resources, water supplies, arable lands, natural habitat, land better suited for public or other use, emergency services, and local infrastructure.
(2) Oregon has experienced rapid growth in data center development without comprehensive statewide standards governing energy consumption, water use, greenhouse gas emissions, public health and other community impacts, or public reporting.
(3) Substantial electrical demand associated with data centers, when supplied by a grid that continues to rely in part on fossil-fuel generation, increases greenhouse gas emissions and materially impairs Oregon's ability to achieve the greenhouse gas emissions reduction goals set forth in ORS 468A.205.
(4) Large data center operations often generate continuous noise, including low-frequency noise. If not adequately mitigated, this noise may adversely affect public health, welfare, the quiet enjoyment of property, workplace conditions, pets, livestock, and wildlife.
(5) Exterior lighting associated with large data centers, including security lighting and building illumination, often contribute to light pollution, disrupt nearby residential areas and wildlife, and adversely affect Oregon's dark skies.
(6) The impacts of large data centers may extend beyond the jurisdiction in which the facilities are located and therefore constitute matters of statewide concern.
(7) AI currently exhibits several economic bubble characteristics including extremely rapid capital investment, concentrated stock-market gains, valuations dependent on very large future profits, limited demonstrated enterprise-wide returns, and growing reliance on debt and private credit. A majority of new datacenter capacity is for AI, so this economic uncertainty creates significant risk.
(8) Existing state and federal laws do not provide a comprehensive framework for evaluating cumulative energy demand, water consumption, environmental impacts, public health or community benefits associated with large data center development.
(9) The state should immediately adopt performance standards to reduce noise, light, water, and air pollution, and resource usage caused by existing data centers, and further consider additional standards, measures, and community-benefit requirements for such data centers.
(10) A pause in development of additional large-scale data centers is necessary to allow the task force to study and make recommendations, so the state can enact a comprehensive regulatory framework to protect public health, safety, welfare, natural resources, a reliable supply of electricity, and the general economic interests of Oregon residents.
SECTION 3. Definitions
(1) "Data Center" means a facility or combination of facilities under common ownership or control at the same site used primarily for:
(a) Computing infrastructure, not included in manufacturing;
(b) Artificial Intelligence (AI) factories or computing services;
(c) Data processing services;
(d) Web hosting services, not including software publishing;
(e) Streaming support services; or
(f) Other related services and functions as defined by rule.
(a) encompasses (b)-(f), but the additional (b)-(f) subsections are to clarify any potential future ambiguities.
(2) "Covered Data Center" means a data center that meets any of the following criteria:
(a) Has an electrical load of 5 megawatts or more;
(b) Contains 25,000 square feet or more of conditioned floor area used for Data Center operations; or
(c) Is expanded or modified in a manner that causes it to meet any threshold in this definition.
(3) "Covered Data Center" does not include facilities majority-owned, operated, or controlled by a public research institution and used primarily for research purposes.
(4) "Covered Data Center" does not include facilities majority-owned, operated, or controlled by a hospital or hospital system and used primarily to support the operation of that hospital or hospital system.
(5) "Prospective Data Center" means a proposed Covered Data Center for which the applicant or project proponent has not yet received all approvals, permits, authorizations, or other governmental actions necessary to commence construction or operation, or for which the applicant or project proponent has engaged in, requested, initiated, or is otherwise participating in any communication, meeting, pre-application discussion, inquiry, negotiation, or other contact with a municipality concerning site selection, siting, zoning, development, utility service, interconnection, land use, permitting, or other approvals for the project.
(6) "Data Center Project" means a project, proposal, or development activity involving a Covered Data Center or Prospective Data Center.
(7) "Non-disclosure Agreement" means a contract, agreement, or understanding, or any portion of such instrument, whether written or oral, that contains any provision, clause, or language that:
(a) Relates to a Prospective Data Center or Covered Data Center and provides that the contract, agreement, or understanding, or any term of such instrument, is confidential; or
(b) prohibits a municipality or the municipality's agent from disclosing, discussing, describing, or commenting upon information related to a Prospective Data Center or Covered Data Center.
(8) "Generator" means any standby, backup, emergency, or supplemental combustion, turbine, or engine-driven electrical generation equipment associated with a Covered Data Center.
(9) "Property Line" means the boundary line of the lot or parcel on which the Covered Data Center is located.
(10) "Emergency Generator Operation" means use of a Generator during a utility outage, brownout, voltage event, catastrophic equipment failure, fire, natural disaster, public safety emergency, or other comparable event that the Covered Data Center demonstrates poses an immediate threat to life, safety, or critical equipment necessary to prevent physical damage. Emergency Generator Operation does not include peak shaving, load management, demand response, routine backup testing, or economic dispatch.
“Emergency Generator Operation” is defined so that combustion generators are only allowed to be run during actual power emergencies. The specification that it does not apply to “peak shaving, load management, demand response” is intended to prevent Covered Data Centers from using combustion generation to compensate for a lack of available power when not an actual emergency, however, we are further investigating the implications to ensure that it does not force rolling brownouts on to other customers so this language may be modified soon if necessary.
(11) “Oregon Indian tribe” and “tribal government” have the meaning given those terms in ORS 294.805.
MORATORIUM
SECTION 4. Beginning on the effective date of this Act and continuing for a period of three years, no state agency, city, county, special district, or political subdivision of this state shall issue a permit authorizing the construction or expansion of a Covered Data Center.
SECTION 5. Notwithstanding any other provision of law, any application submitted or filed before the effective date of this Act for which all approvals, permits, authorizations, and other governmental actions necessary for final approval or commencement have not become final before the effective date shall be subject to Section 4 of this Act.
Final permit approvals are paused for the length of the moratorium. If final approval has not been granted, the Data Center project is paused. If final approval has been granted, the Data Center Project isn’t affected by the moratorium even if construction hasn’t begun. Unlike local land-use moratoriums that are subject to the “goalpost rule” under ORS 227.178(3)(a)(A) and ORS 215.427(3)(a)(A) that apply only to local land use changes, a Data Center Project cannot submit an application at the 11th hour to be exempted from the new statutes.
CONDITIONS AND PERFORMANCE STANDARDS
SECTION 6. Transparency.
(1) Non-disclosure Agreements:
(a) A municipality or an agent of a municipality may not enter into a Non-disclosure Agreement or provision with a prospective data center.
(b) A Non-disclosure Agreement entered into in violation of subsection (1)(a) of this section is void and unenforceable.
(c) If any provision of an agreement is void and unenforceable under subsection (1)(b) of this section, the remainder of the agreement shall remain enforceable to the extent permitted by this Act and other applicable law.
(2) All Data Center Projects shall be reviewed under Type III land use procedures. The applicant shall also post visible notice on the property, publish notice in a newspaper of general circulation, and provide notice to any neighborhood or community organization recognized by the local government whose boundaries include or are within 2 miles of the site, and the reviewing public body shall post notice on its website in a prominent location reasonably likely to be seen by members of the public.
A Type III land use hearing requires a public hearing, and notice given to residents in a very limited radius. This further requires further public notice, including on the municipality’s website and on the property itself. This addresses public frustration that many Data Center Projects seem to go unnoticed until it’s too late, without any opportunity for public comment.
(3) The reviewing public body shall post all materials submitted in connection with a Data Center Project application on a publicly accessible website, and shall maintain those materials on the website permanently.
(4) Required Disclosure:
(a) As part of any Data Center Project application or request for review, the applicant shall provide to the reviewing city, county, or other public body all nonexempt records concerning:
(A) The applicant;
(B) The owner or prospective owner of the Prospective Data Center;
(C) The prospective operator or occupant;
(D) The number of projected jobs; and
(E) The planned use of energy, water, land, and other resources.
(b) The reviewing public body shall post those records on a publicly accessible website.
(5) Annual Reporting:
(a) Each Covered Data Center shall file an annual report with the State disclosing:
(A) Total annual electricity consumption and the source of that electricity;
(B) Total annual water consumption, and the source of that water; and
(D) Number of full-time equivalent jobs on site.
(b) Any deviation of more than 10 percent from the most recent disclosure under subsection (3) must be explained in writing in the report.
(c) The report shall be filed with the State by February 15 of each year.
(d) The State shall post the report on a publicly accessible website.
(6) Redactions: Materials may be redacted only to the extent required or expressly authorized by applicable federal law protecting trade secrets or other confidential information. Any redaction shall be narrowly tailored, and the Covered Data Center or applicant shall provide a written explanation of the basis for each redaction. The burden of establishing the applicability of any claimed confidentiality protection rests solely with the Covered Data Center or applicant. The written explanation shall be posted on the publicly accessible website with the redacted materials.
SECTION 7. Responsible party bears costs.
(1) No tax abatements:
(a) Notwithstanding any other provision of law, no tax abatement, exemption, deferral, credit, or other preferential tax treatment shall be granted, claimed, renewed, extended, or authorized with respect to a Data Center Project, including, without limitation, any benefit otherwise available under:
(A) ORS 285C.050 to 285C.420 or any provision of the Oregon Enterprise Zone Act, including the standard enterprise zones, rural enterprise zones and long term rural enterprise zones;
(B) ORS 285C.350 to 285C.370 or any provision governing rural renewable energy development zones;
(C) ORS 285C.600 to 285C.635 or ORS 307.123 or any provision governing the strategic investment program;
(D) ORS 285C.095, ORS 285C.100, or any other provision governing electronic commerce zone designation or benefits; and
(E) ORS 285C.500 to 285C.506 or any provision governing the Oregon Investment Advantage Act.
(b) Existing data center projects: Notwithstanding any other provision of law, no tax abatement, exemption, deferral, credit, or other preferential tax treatment described in subsection (1) of this section may be renewed, extended, or continued after the expiration of the term for which the benefit was originally approved for an existing Data Center Project.
(c) No legacy extensions: A Data Center Project that is receiving, or has received, any tax abatement or preferential tax treatment described in subsection (1) of this section as of the effective date of this Act shall not be eligible for any extension, renewal, rollover, reauthorization, supplemental term, or additional period of benefit.
(d) Construction and pending applications: This section applies to any application, request, or proceeding for tax abatement or preferential tax treatment that has not received final approval as of the effective date of this Act.
No new tax abatements for the programs listed in (a), which should cover all tax abatement programs that Covered Data Centers would be eligible for. Existing abatements, or applications that have received final approval, would continue to receive those abatements but would not be eligible through the renewals that might be otherwise allowed by some of these programs.
(2) Infrastructure Improvements: A Covered Data Center or Data Center Project shall be responsible for all costs of infrastructure improvements associated with the construction, expansion, siting, operation, or continued use of the Covered Data Center or Data Center Project. Such infrastructure includes but is not limited to roads, walkways, bike paths and accessways, and water, wastewater, electric service, transmission, telecommunications, and stormwater facilities, and related improvements. Such costs shall be borne by the owner or operator of the Covered Data Center and shall not be shifted to the state, a local government, a public utility, or the general public, except as expressly provided by state law.
(3) Financial Assurance: Before commencing construction, the owner or operator of a Data Center Project shall provide a bond, irrevocable letter of credit, or other financial assurance in an amount determined by the reviewing public body to be sufficient to cover decommissioning, removal, cleanup, and site restoration in the event of bankruptcy, abandonment, dissolution, or cessation of operations.
The financial assurance is to cover decommissioning, if decommissioning becomes necessary. This would give the public body the financial resources for the decommissioning but does not obligate them to conduct any decommissioning they would not otherwise be obligated to do.
SECTION 8. Protect public health and safety.
(1) Buffer Zones; Minimum Separation Distances.
(a) Notwithstanding any other provision of law, a Covered Data Center shall not be sited, constructed, expanded, or operated within 1-1/4 (one and one-quarter) miles of any of the following:
(A) A public or private elementary school, middle school, high school, charter school, or other school providing primary or secondary education;
(B) A Child care facility;
(C) A hospital, urgent care facility, clinic, or other licensed medical facility providing inpatient or outpatient health care services;
(D) A jail, prison, detention facility, or other correctional facility;
(E) Farmworker housing or agricultural worker housing;
(F) A retirement community, assisted living facility, memory care facility, nursing facility, or other senior residential care facility;
(G) A rehabilitation facility, substance use treatment facility, behavioral health facility, or residential treatment facility;
(H) A wetland, estuary, conservation area, wildlife refuge, state natural area, or other protected natural resource area designated under state or federal law;
(I) Land zoned for residential use; or
(J) Tribal land, if the Data Center Project is located on nontribal land.
(b) This section applies to any expansion, enlargement, material alteration, reconstruction, or redevelopment of a Data Center Project, including a Covered Data Center lawfully operating before the effective date of this Act, but this section does not apply to the continued operation of a Covered Data Center lawfully operating before the effective date of this Act or to the operation of a Data Center Project that has received all final, nonappealable approvals required for construction and operation before the effective date of this Act.
(2) Light pollution standards for Covered Data Centers:
(a) All exterior lighting shall be fully shielded, downward-directed, and arranged so that no direct light is emitted above the horizontal plane or beyond the Property Line.
(b) Exterior lighting shall only use light sources with a correlated color temperature not exceeding 2200 Kelvin.
(c) Exterior lighting shall emit no more than two percent (2%) of total light output at wavelengths below 500 nanometers, a range associated with blue and blue-violet light.
(d) Searchlights, laser displays, architectural uplighting, façade lighting, and decorative lighting visible beyond the Property Line are prohibited.
(e) Compliance with subsections (2)(b) and (2)(c) of this Section shall be determined using generally accepted photometric or spectroradiometric measurement practices, as applicable.
Data centers are notorious for causing light pollution by lighting areas surrounding buildings for security. This section specifies lighting that would fulfill this function, but cause significantly less light pollution. Warmer light provides illumination to the areas closer to the light source without traveling as far, and these types of lamps are readily available for purchase. The color temperature is based on DarkSky International’s recommendations, and the blue light limit is based on rules from Hawaiʻi and Maui, and the Royal Astronomical Society of Canada’s dark sky guidelines. It is less strict than some other places such as Catalonia.
(3) Noise pollution standards
(a) Continuous noise: A Covered Data Center shall not emit continuous operational noise exceeding 55 decibels as measured at the Property Line, excluding generator noise during Emergency Generator Operation or testing as provided in subsections (5)(b) and (5)(c) of this section.
(b) Tonal and low-frequency noise:
(A) No Covered Data Center shall cause or permit the emission of low-frequency noise that exceeds the following tone-excess limits when measured at the Property Line:
(i) For one-third octave bands with center frequencies from 25 Hz through 125 Hz, the sound pressure level in any band shall not exceed the average level of the two adjacent one-third octave bands by more than 15 dB;
(ii) For one-third octave bands with center frequencies from 160 Hz through 400 Hz, the sound pressure level in any band shall not exceed the average level of the two adjacent one-third octave bands by more than 8 dB; and
(iii) For one-third octave bands with center frequencies from 500 Hz through 10,000 Hz, the sound pressure level in any band shall not exceed the average level of the two adjacent one-third octave bands by more than 5 dB.
(B) Compliance shall be determined using one-third octave band analysis performed in accordance with generally accepted acoustical measurement practices. The frequency ranges stated in this Section shall be construed as inclusive of the applicable preferred one-third octave band center frequencies within each stated range.
Data centers cause continuous noise, which is a significant nuisance and health hazard. Low-frequency noise in particular is a health hazard. The World Health Organization treats environmental noise as a public-health issue and identifies sleep disturbance, cardiovascular and metabolic effects, cognitive impairment, and stress. Additional studies show that low frequency noise is associated with sleep problems, concentration difficulties, and headache, including studies specifically related to low frequency noise from compressors, ventilation, and air conditioning equipment. (2023 review of epidemiological LFN/infrasound research; Baliatsas et al., 2016; Leventhall et al., 2003). One-third-octave-band analysis is a very established acoustic measuring technique, and is specifically recommended (Schust, 2004) for measuring low frequency noise as it relates to physiological and psychological health effects. This is not an obscure low frequency noise measurement technique and is recognized by OSHA.
A 55dB limit does not eliminate the sound impacts entirely, it is specified because it is feasible for data centers to achieve with existing technologies, and can significantly mitigate the impacts in comparison to higher volume noise emissions. Generators are exempted only during emergency operation, and maintenance & testing.
(4) Wastewater treatment: All waste water generated from a Covered Data Center shall be treated, at the sole expense of the Covered Data Center, before discharge to a sewerage system, or recharge or injection to groundwater.
(a) Wastewater discharged or otherwise released from a Covered Data Center shall comply with the following minimum treatment standards:
(A) Nitrate concentration shall not exceed 5 milligrams per liter, measured as nitrate-nitrogen.
(B) The sum of all PFAS analytes quantified using EPA Method 1633 shall not exceed 4 parts per trillion.
(C) Sampling and testing shall be conducted by an independent accredited third-party laboratory at least once every two weeks, or more frequently if required by rule, at the sole expense of the Covered Data Center.
(5) Generator Standards
(a) Diesel Generator Emissions: Any Generator that is diesel-fueled and associated with a Covered Data Center shall meet or exceed Tier 4 emissions controls or a more stringent successor emissions standard.
(b) Generators may only be run during Emergency Generator Operation, or during maintenance and testing as provided by subsection (5)(c) of this section.
(c) Generator maintenance and testing: Generators may be run for maintenance and testing only between 9:00 a.m. and 5:00 p.m., Monday through Friday, and only for a total of 120 minutes per Generator in any calendar month.
SECTION 9. Prioritize power, water, and land resources for people.
(1) Protected land: Notwithstanding any other provision of law, including any provision authorizing goal exceptions, variances, or zoning changes, no local government, state agency, or other land use authority may approve any action that would reclassify, rezone, redesignate, or otherwise make available any land classified as resource land, farm land, forest land, conservation land, or scenic area land for the siting, construction, expansion, or operation of a Covered Data Center.
Rezoning the specified types for the purpose of Data Centers is prohibited. This rezoning protection does not apply to indiustrial, commercial, employment zones, mixed commercial/industrial employment zones, mixed-use zones, and potentially other specialized local zones.
(2) Prohibition on water withdrawal from protected land: A Covered Data Center may not withdraw, divert, extract, or otherwise obtain water from any land classified as resource land, farm land, forest land, conservation land, or scenic area, or from any watershed, aquifer, surface water water, groundwater source, or other water source located on or appurtenant to such land.
A Covered Data Center can’t draw water from the specified protected land types, or buy, lease, or trade for water rights from these land types.
(4) Treaty rights and Tribal consultation:
(a) Nothing in this Act authorizes any action that would impair, diminish, abrogate, or contravene the rights of any federally recognized Indian tribe under applicable treaty, statutory, or constitutional law.
(b) Each Covered Data Center shall comply with all applicable federal and state requirements relating to tribal consultation and the protection of treaty rights.
(5) Priority Power Allocation:
(a) In allocating electricity service, transmission capacity, interconnection capacity, or other power-related resources, all electric utilities shall give priority to uses that serve the public, residential customers, or agricultural and farm operations.
(b) No electric utility shall curtail, defer, or deny service to residential or agricultural customers in order to accommodate a Covered Data Center.
(6) Resource Curtailment During Extreme Conditions: During any period of extreme heat, extreme cold, drought, water shortage, declared energy emergency, or other condition identified by rule, a Covered Data Center shall reduce or suspend use of electricity and water to the extent necessary to avoid interference with residential, agricultural, public health, or emergency uses.
(7) Water Rights; Reasonable Use; Domestic and Agricultural Priority:
(a) Any allocation, transfer, permit, certificate, or other authorization of water use for a Covered Data Center shall be conditioned on a finding that the allocation is reasonable, does not unreasonably interfere with existing domestic, municipal, residential, or agricultural uses, and is consistent with applicable water rights law.
(b) Nothing in this Act shall be construed to require the allocation of water to a Covered Data Center in a manner that would impair existing residential or agricultural needs.
(8) Electric utility applicability and rates:
(a) This Act applies to every electric utility and other provider of electricity in this state, including an electric company, consumer-owned utility, municipal electric utility, public utility district, electric cooperative, and any other entity that sells, distributes, transmits, furnishes, or otherwise provides electricity to retail customers in this state.
(b) Notwithstanding any other provision of law, each electric utility and other provider of electricity subject to this Act may establish, apply and collect separate rates, tariffs, charges, riders, surcharges, demand charges, minimum bills, standby charges and other pricing mechanisms for a Covered Data Center, including rates or charges that are higher than those applicable to other customer classes, subject to any approval required under applicable law.
(c) Nothing in this Act limits any otherwise available authority of an electric utility or other provider of electricity to adopt or implement differentiated rates or charges for a Covered Data Center.
(9) Load reduction; renewable energy; climate compliance:
(a) Any load reduction, demand response, peak-shaving, or other grid-balancing measure required of or implemented by a Covered Data Center during periods of peak demand shall be designed and administered in a manner consistent with Oregon’s greenhouse gas emissions reduction goals set forth in ORS 468A.205 and the clean energy targets set forth in House Bill 2021, 2021 Oregon Laws chapter 591.
(b) A Covered Data Center may satisfy a load reduction or demand response obligation under this Act only through measures supported by renewable energy, nonemitting electricity, or another resource that does not increase net greenhouse gas emissions associated with the Covered Data Center’s operations, as determined under applicable state law and regulatory approval.
(c) The Public Utility Commission or other applicable governing authority may adopt rules, tariffs, or reporting requirements necessary to verify compliance with this subsection.
SECTION 10. Contractor Labor Standards
The Contractor Labor Standards section is modeled on the incredible work of HB 2021 (2021) and HB 4059 (2022) that resulted in ORS 757.306. This section is currently an early draft as we work with stakeholders and our partners to refine it.
It gives contractors two options: Adhere to the specified labor standards, or work under a Project Labor Agreement with labor unions representing workers on the project.
(1) As used in this section:
(a) “Apprentice” and “apprenticeable occupation” have the meanings given those terms in ORS 660.010.
(b) “Apprenticeship training program” means the total system of apprenticeship that a particular local joint committee, as defined in ORS 660.010, operates, including the local joint committee’s registered standards and all other terms and conditions for qualifying, recruiting, selecting, employing and training apprentices in an apprenticeable occupation.
(c) “Construction” includes on-site and off-site construction and fabrication performed specifically for a Covered Data Center and covers through the 30th day after completion of the Covered Data Center. “Construction” does not include the manufacture, sale or delivery of commercially available equipment, materials, components or standard inventory items, unless fabricated specifically for the Covered Data Center.
(d) “Substantial modification” means a project involving the replacement, alteration or addition of physical, electrical or mechanical infrastructure at an existing Covered Data Center that:
(A) increases the facility’s permitted electrical capacity or design cooling capacity by 20 percent or more, or increases the facility’s permitted electrical capacity by 5 megawatts or more; or
(B) requires a substantial expansion or alteration of the facility’s electrical distribution, cooling, fire-suppression, structural or utility-interconnection infrastructure to support additional data-processing capacity. “Substantial modification” does not include routine maintenance or repair, replacement-in-kind, or the replacement or upgrade of information-technology equipment that does not require a substantial alteration of the facility’s physical, electrical or mechanical infrastructure.
(e) “Minority individual” and “woman” have the meanings given those terms in ORS 200.005.
(f) “Veteran” has the meaning given that term in ORS 408.225.
(2) The owner or operator of a Covered Data Center that is Constructed or Substantially Modified shall, within 30 days from the date the Construction or Substantial Modification begins, provide to the State Department of Energy a signed attestation or declaration stating, to the best of their knowledge and belief and subject to penalty of perjury as described in ORS 162.065, that during all periods of Construction all contractors and subcontractors working on the Construction or Substantial Modification will:
(a) Meet the following labor standards:
(A) Apprenticeship utilization:
(i) Except as provided in sub-subparagraph (ii) of this subparagraph, participate in an apprenticeship program registered with the State Apprenticeship and Training Council and with graduation rates equal to or higher than the national average for each respective trade in a manner consistent with the respective apprenticeship training programs, such that 15 percent of the total work hours on a given covered project is performed by apprentices in apprenticeable occupations; or
(ii) If less than 15 percent of total work hours on a given covered project is performed by apprentices in apprenticeable occupations, demonstrate good faith with meeting the requirement described in sub-subparagraph (i) of this subparagraph by providing documented and verifiable information including:
(I) Internet addresses of employment advertisements or job announcements;
(II) Dates, times, Internet addresses and attendance lists of a prejob conference with apprenticeship, preapprenticeship and workforce providers in construction;
(III) Contacts requesting apprentices with an apprenticeship program approved by the Bureau of Labor and Industries including the date, time, telephone contact, electronic mail contact and whether a response was provided within 48 hours of the request;
(IV) Contacts requesting apprentices from a union hall including the date, time, telephone contact, electronic mail contact and whether a response was provided within 48 hours of the request; and
(V) Documentation of job offers and number of job offers made to apprentices;
(B) Establish and execute a plan for outreach, recruitment and retention of women, minority individuals, veterans and people with disabilities to perform work under the contract, with the aspirational target of having at least 15 percent of total work hours performed by individuals in one or more of those groups;
(C) Have policies in place that are designed to limit or prevent workplace harassment and discrimination and that promote workplace diversity, equity and inclusion for communities who have been underrepresented in the data center sector, including women, veterans and Black, Indigenous and People of Color;
(D) Maintain a license and good standing to perform the work and remain eligible to receive a contract or subcontract for public works under ORS 279C.860;
(E) Materially demonstrate a history of material compliance in the previous seven years, or provide available history for new businesses, with the rules and other requirements of state agencies with oversight regarding workers’ compensation, building codes and occupational safety and health;
(F) Materially demonstrate a history of compliance, in the previous seven years, or provide available history for new businesses, with federal and state wage and hour laws;
(G) Provide quarterly reporting and recordkeeping to the owner or operator of the Covered Data Center and respond to records requests and verification;
(H) Pay no less than the prevailing wage rate for an hour’s work in the same trade or occupation in the locality where the labor is performed. Prevailing wage rate includes the calculation of wages and fringe benefits per trade and locality and will be treated as standards defined in ORS 279C.800 to 279C.870; and
(I) Offer health care and retirement benefits to the employees performing the labor on the project.
(b) The attestation or declaration must also include:
(A) The electrical capacity and physical footprint in square feet of the project;
(B) The geographic location of the project;
(C) The estimated workforce requirements of the project;
(D) A collated list of good faith effort documentation; and
(E) A description of any policies in place for ensuring the owner or operator of the Covered Data Center meets the requirements in this section.
(3) Project labor agreement:
(a) In lieu of providing an attestation or declaration described in subsection (2) of this section, the owner or operator of a Covered Data Center may provide a copy of a Project Labor Agreement if a Project Labor Agreement is used on the Construction or Substantial Modification of the Covered Data Center. The owner or operator of the Covered Data Center shall be exempted from the requirements described in subsection (2)(a) of this section. A submission under this subsection must include the project information described in subsection (2)(b)(A) to (C) of this section.
(b) As used in this subsection, “Project Labor Agreement” means a prehire collective bargaining agreement as described in 29 U.S.C. 158(f) that establishes the terms and conditions of employment for a specific construction project or contract.
(c) A Project Labor Agreement may include additional provisions that:
(A) Prohibit discrimination based on race, national origin, religion, gender, sexual orientation, political affiliation or membership in a labor organization in hiring and dispatching workers for the project;
(B) Permit qualified contractors and subcontractors to bid for and be awarded work on the project without regard to whether they are otherwise parties to a collective bargaining agreement;
(C) Permit and promote qualified business enterprises owned by women, minorities, veterans and disadvantaged individuals without regard to whether the individuals are otherwise parties to a collective bargaining agreement; and
(D) Guarantee against work stoppages, strikes, lockouts and similar disruptions of the project.
(4) Attestation records:
(a) The department shall retain an attestation or declaration filed with the department in a manner consistent with the department’s record retention policies.
(b) Notwithstanding any provisions of ORS 192.345 or 192.355, an attestation or declaration provided to the department pursuant to this section is subject to public records disclosure and the department shall provide a copy of the attestation or declaration upon request.
(5) Nothing in this section:
(a) Applies to a contract or subcontract with a tribal government, agent or instrumentality of an Oregon Indian tribe for a Covered Data Center located in whole or in part on the tribe’s reservation or on land held in trust by the United States for the benefit of the tribe, unless the tribal government elects to adopt the standards in this section for the contract or subcontract; or
(b) Affects the wage rates overseen by a tribal government, agent or instrumentality of an Oregon Indian tribe.
(6) Nothing in this section:
(a) Prohibits the inclusion of labor standards in addition to those required by subsection (2) of this section in contracts that are subject to this section; or
(b) Prohibits the owner or operator of a Covered Data Center from using a project labor agreement to meet the minimum requirements of subsection (2)(a) of this section.
SECTION 11. Applicability to Existing Covered Data Centers
(1) This section applies to:
(a) A Covered Data Center that is operating on the effective date of this Act; and
(b) A Data Center Project that has received final approval before the effective date of this Act, if the project may lawfully commence construction, installation, expansion, or operation on or after the effective date.
(2) Except as otherwise expressly provided in this Act, the requirements of this Act apply to a facility or project described in subsection (1) of this section as follows:
(a) The owner or operator shall provide the financial assurance required in Section 8(3) not later than the later of 60 days after the effective date of this act or before construction begins.
(b) Notwithstanding Section 6(5), each Covered Data Center operating on the effective date of this Act shall submit the report required by Section 6(5) for the preceding calendar year not later than 60 days after the effective date of this Act. Thereafter, each report shall be due as provided in 7(4)(b).
(c) For the light pollution standards specified in Section 8(2), noise pollution standards specified in 8(3), wastewater treatment standards specified in Section 8(4), compliance is required not later than 180 days after the effective date of this Act.
(d) Notwithstanding subsection 2(c) of this Section, for the noise pollution standards specified in Section 9(3) and wastewater treatment standards specified in Section 8(4), The Oregon Department of Energy, in consultation with the agency responsible for administering the applicable standard, may grant the existing data center a written extension of the compliance deadline for a specific noise-pollution or wastewater treatment requirement, item of equipment, or other corrective measure, if the Covered Data Center demonstrates by clear and convincing evidence that compliance within 180 days is not reasonably practicable. An extension granted under this subsection may not extend beyond 24 months after the effective date of this Act. The data center shall submit an extension request before the applicable 180-day deadline and shall include a compliance plan, the specific equipment or work required, evidence supporting the claimed lead time or constraint, and a schedule for achieving compliance. Granting an extension does not relieve the data center of any obligation to minimize the applicable impact or to comply with all requirements that can reasonably be implemented during the extension period.
(e) Generator emission standards specified in Section 9(5)(a) shall apply only to newly installed or replaced generators.
(3) Except as otherwise expressly provided in this Act, all provisions of this Act apply on the effective date of this Act.
TASK FORCE ON DATA CENTER IMPACTS
SECTION 12. Task Force on Data Center Impacts:
(1) The Task Force on Data Center Impacts is established.
(2) The task force consists of 13 members appointed as follows:
(a) The President of the Senate shall appoint one member from among members of the Senate;
(b) The Speaker of the House of Representatives shall appoint one member from among members of the House of Representatives;
(c) One member who is a representative of the office of the Governor; and
(d) Ten members jointly appointed by the President of the Senate and Speaker of the House who reside in the state and who:
(A) Represent geographic diversity.
(B) Represent, at minimum, the following areas of expertise:
(i) Community energy planning and grid reliability
(ii) Water resources and water quality
(iii) Air quality and emissions
(iv) Environmental protection
(v) Public health
(vi) Organized labor
(vii) Computer science and information technology
(viii) Tribal sovereignty
(C) At least one task force member must be a member of an Oregon Indian tribe.
(D) At least one task force member must be a member of a labor union.
(E) At least one task force member must be a representative of an environmental nonprofit organization.
(F) At least one task force member must be a representative of a public health organization.
(3) The task force shall study and consider the following matters as they relate to this state:
(a) Electricity usage by data centers, the impacts on electric utilities, infrastructure, and ratepayers, and measures needed to protect the public, residential users, and agricultural users;
(b) Water usage by data centers, the impacts on water resources, and measures needed to protect the public, municipalities, tribal communities, residential users, and agricultural users;
(c) Water pollution from data centers including nitrogen and PFAS, and measures needed to prevent water pollution and groundwater contamination;
(d) Air pollution from data centers, especially from electricity generators, and measures needed to prevent air pollution;
(e) The impact of data centers on the climate and Oregon's climate goals;
(f) Noise impacts of data centers, including noise volume and low-frequency noise impacts, and measures needed to prevent noise pollution;
(g) Light pollution impacts of data centers, and measures needed to prevent light pollution;
(h) Fire risk, including from combustible fuel storage, battery storage, and electrical equipment, the cost of the fire risk to fire departments and fire districts, and measures needed to mitigate fire risk;
(h) Jobs and employment, including the number, type, and length of jobs during construction and for ongoing operation;
(i) Strong workforce protections, including labor standards and onsite workforce requirement;
(j) Potential new community benefit opportunities to offset impacts, including but not limited to contributions to energy, affordable housing, daycare, electrical infrastructure, water infrastructure, transportation infrastructure, green space projects, or creative redevelopment of under-utilized commercial spaces or brownfields; and
(k) The general purpose and benefits to society and the economy to be contributed by the development of data centers, in comparison to the risks and costs.
(4) The task force shall consult with members of labor unions, energy policy and environmental organizations, consumer protection advocates, neighborhood groups, Oregon Indian tribes, and affected people or organizations the task force considers appropriate.
(5) A majority of the voting members of the task force constitutes a quorum for the transaction of business.
(6) Official action by the task force requires the approval of a majority of the voting members of the task force.
(7) The task force shall elect one of its members to serve as chairperson.
(8) The task force shall elect one of its members to serve as vice chairperson.
(9) If there is a vacancy for any cause, the appointing authority shall make an appointment to become immediately effective.
(10) The task force shall meet at times and places specified by the call of the chairperson or of a majority of the voting members of the task force.
(11) The task force may adopt rules necessary for the operation of the task force.
(12) The task force shall submit a report in the manner provided by ORS 192.245, and may include recommendations for legislation, to the interim committees of the Legislative Assembly related to energy and the environment, no later than September 15, 2029.
(13) The Department of Energy shall provide staff support to the task force.
(14) Members of the Legislative Assembly appointed to the task force are nonvoting members of the task force and may act in an advisory capacity only.
(15) Members of the task force who are not members of the Legislative Assembly are not entitled to compensation or reimbursement for expenses and serve as volunteers on the task force.
(16) All agencies of state government, as defined in ORS 174.111, are directed to assist the task force in the performance of the duties of the task force and, to the extent permitted by laws relating to confidentiality, to furnish information and advice the members of the task force consider necessary to perform their duties.
(17) Section 11 of this Act is repealed on December 31, 2029.
ENFORCEMENT AND PENALTIES
SECTION 13. Enforcement and Penalties:
(1) In addition to any other remedy provided by law, the Attorney General, the Oregon Department of Energy, the Department of Environmental Quality, the Department of Land Conservation and Development, and the Public Utility Commission may investigate an alleged violation of this Act within the agency’s jurisdiction and may request that the Attorney General bring an action in a court of competent jurisdiction to enforce this Act, restrain an actual or threatened violation of this Act, or recover a civil penalty authorized by this section.
(2) A Covered Data Center owner or operator that violates this Act, or any rule adopted under this Act, shall be assessed a civil penalty as follows:
(a) $250,000 for each violation.
(b) $25,000 for each day that the violation continues.
(c) If the enforcing agency determines that a violation was willful, the enforcing agency may impose an additional civil penalty of not more than $500,000 for each violation, and not more than $50,000 for each day the violation continues.
For perspective, profits for a 100 MW AI data center are approximately $50k per hour, so the specified fine is 5 hours of profit plus 30 minutes of profit for each additional day of violation. This profit margin scales with capacity, such that current profits are estimated around $500 per MW per hour for an AI data center. For other types of data centers, estimating profit in relation to capacity is less straightforward, but their substantial capital and operating costs indicate that profitability is similarly substantial.
(3) For a violation of a numerical limit or requirement, if the amount by which the Covered Data Center exceeds the applicable limit is less than 10 percent of that limit, and if the enforcing agency determines the violation was not willful, the agency may provide the Covered Data Center written notice and not more than 7 calendar days to remedy the violation. The enforcing agency is not required to provide an opportunity to remedy.
(4) The owner or operator of a Covered Data Center is liable for any violation of this Act committed by the owner, operator, employees, contractors, or agents acting within the scope of their duties or authority.
(5) The civil penalties imposed under this section are in addition to, and not in lieu of, any other remedy available at law or in equity, including injunctive relief, declaratory relief, specific performance, restitution, or recovery of costs and attorney fees if otherwise authorized by law.
(6) Civil penalties recovered under this section may be used only for administration and enforcement of this Act and for the mitigation of impacts caused by Covered Data Centers, as provided by law.
(7) The enforcing agency may adopt rules establishing procedures for notice, hearing, assessment, compromise, collection, and remission of penalties under this section, consistent with applicable law.
(8) A person or organization adversely affected by, or seeking to prevent, a violation of this Act may bring a civil action in a court of competent jurisdiction against the person or entity that committed the violation.
(a) In an action under this subsection, the court may:
(A) Enjoin or otherwise restrain the violation;
(B) Award actual damages or statutory damages in the amounts specified in subsection (2) of this Section;
(C) Award reasonable attorney fees and costs to a prevailing plaintiff; and
(D) Grant any other equitable relief the court considers appropriate.
(b) The remedies under this section are in addition to, and do not limit, any civil penalty or other remedy available to the state or a public body under this Act or any other law.
Private rights of action are a well-established enforcement mechanism, and is not a novel or radical concept. The Clean Water Act is the most well known, with successful lawsuits resulting in injunctions, penalties, and corrective action, including Friends of the Earth v. Laidlaw and Limu Coalition v. Pflueger.
LOCAL AUTHORITY
SECTION 14. Nothing in this Act preempts, limits, or otherwise affects the authority of a city or county to adopt or enforce conditions, standards, or requirements concerning data centers that are more restrictive than, equivalent to, or otherwise provide protections in addition to those established by this act.
RULEMAKING
SECTION 15. The Oregon Department of Energy may adopt rules necessary to implement this Act. In adopting rules under this section, the Department may consult with the Department of Environmental Quality, the Water Resource Department, the Public Utility Commission, the Department of Land Conservation and Development, Oregon Indian tribes, and affected persons the Department considers appropriate.
EMERGENCY CLAUSE
SECTION 16. Sections 1 to 6 and 7(b) to 15 of this 2027 Act being necessary for the immediate preservation of the public peace, health or safety, an emergency is declared to exist, and those sections take effect on passage.
SECTION 17. Section 7(a) of this Act takes effect on the 91st day following adjournment sine die.