Narrative of Resolution:
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Support New York State Assembly Bill A10141A to Protect Ratepayers, Safeguard Electric Grid Reliability and Ensure Responsible Data Center Development
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RESOLUTION INTRODUCED BY CATHERINE SCOTT, CHAIR OF THE HEALTH AND HUMAN SERVICES COMMITTEE, AND NADIA RAJSZ CHAIR OF THE LEGISLATURE URGING THE ENACTMENT OF NEW YORK STATE ASSEMBLY BILL A10141A TO PROTECT RATEPAYERS, SAFEGUARD ELECTRIC GRID RELIABILITY, AND ENSURE RESPONSIBLE DATA CENTER DEVELOPMENT
WHEREAS, Sullivan County recognizes the growing importance of digital infrastructure to the modern economy while also acknowledging the need for responsible planning and oversight of large-scale energy consumers; and
WHEREAS, the rapid expansion of data centers throughout the United States has resulted in unprecedented increases in electricity demand, placing significant pressure on electric generation resources, transmission systems, and utility infrastructure; and
WHEREAS, according to estimates from the International Energy Agency, data centers consumed approximately 183 terawatt-hours of electricity in the United States in 2024-more than four percent of all electricity used nationwide-with demand projected to more than double by 2030; and
WHEREAS, large-scale data centers may consume electricity at levels equivalent to those used by tens of thousands of households and businesses, potentially contributing to higher energy costs for residents, local governments, schools, healthcare facilities, farms, and small businesses; and
WHEREAS, New York State ratepayers should not be required to subsidize infrastructure upgrades, increased generation capacity, transmission expansion, or other system improvements needed primarily to serve private data center developments; and
WHEREAS, Sullivan County residents, including seniors on fixed incomes, working families, agricultural producers, and small business owners, already face rising energy costs and economic pressures, making the protection of affordable utility service a matter of significant public concern; and
WHEREAS, Sullivan County's economy depends upon affordable and reliable electric service for its agricultural sector, tourism industry, healthcare facilities, educational institutions, local governments, and small businesses, all of which could be adversely affected by increased utility costs; and
WHEREAS, rural communities often have limited electric infrastructure capacity and may face disproportionate challenges associated with transmission upgrades, generation expansion, and utility cost recovery resulting from large-scale industrial electricity demand; and
WHEREAS, the Legislature finds that communities such as Sullivan County should not bear indirect costs associated with data center development occurring elsewhere in the state unless there is a demonstrated and equitable public benefit to local residents and ratepayers; and
WHEREAS, New York's electric grid must remain reliable and resilient in order to support public safety, economic development, emergency services, and the daily needs of residents and businesses; and
WHEREAS, Assembly Bill A10141A would establish a temporary moratorium on permits for new data center construction while state agencies evaluate the potential impacts of such facilities on electricity and natural gas infrastructure, energy reliability, environmental objectives, and utility rates; and
WHEREAS, the temporary pause contemplated by Assembly Bill A10141A would provide New York State with an opportunity to develop a comprehensive framework to ensure that future data center development proceeds in a manner that protects existing ratepayers, preserves grid reliability, and promotes equitable allocation of infrastructure costs; and
WHEREAS, several jurisdictions in the United States and abroad have undertaken enhanced review, restrictions, or temporary pauses on certain data center development proposals in response to concerns regarding electric demand, grid reliability, and ratepayer impacts; and
WHEREAS, Sullivan County believes that thoughtful planning, transparency, and sound public policy should precede the approval of energy-intensive development projects whose impacts may extend far beyond the communities in which they are located; and
WHEREAS, the Legislature finds that Assembly Bill A10141A represents a prudent and responsible approach to balancing economic development with the interests of New York residents, businesses, local governments, and utility ratepayers;
NOW, THEREFORE, BE IT RESOLVED, that the Sullivan County Legislature strongly supports New York State Assembly Bill A10141A and urges its prompt enactment by the New York State Legislature and approval by the Governor; and
BE IT FURTHER RESOLVED, that the Sullivan County Legislature calls upon New York State policymakers to ensure that the costs associated with data center development are borne by the entities creating such demand and not shifted to residential consumers, agricultural producers, small businesses, municipalities, schools, hospitals, or other utility customers; and
BE IT FURTHER RESOLVED, that the Sullivan County Legislature urges the State of New York to undertake a comprehensive assessment of the long-term effects of large-scale data center development on electric rates, grid reliability, environmental goals, water resources, transmission infrastructure, and local communities before authorizing additional facilities; and
BE IT FURTHER RESOLVED, that the Sullivan County Legislature encourages the development of policies that require large energy-consuming facilities to demonstrate sufficient infrastructure capacity and financial responsibility for the costs they impose on the electric system; and
BE IT FURTHER RESOLVED, that the Clerk of the Legislature shall transmit certified copies of this Resolution to the Governor of the State of New York, the Speaker of the New York State Assembly, the President Pro Tempore of the New York State Senate, the members of the New York State Legislature representing Sullivan County, and all other parties deemed appropriate.