GAINES TOWNSHIP, Mich. — Michigan's House of Representatives is reconsidering two new bills detailing tax incentives for data centers.
Bills SB 237 and SB 238 were recently passed by the state Senate in early May. After issues were raised detailing specific climate safeguards, the bills are now being reconsidered.
Climate action groups, including Marta Johnson representing the Climate Cabinet, gathered in front of the state's largest data center, Switch Grand Rapids.
“Our goal is to secure wins for clean energy, climate, jobs and front-line communities most impacted by climate change," explained Johnson.
As the writing currently stands, it doesn't protect ratepayers from unexpected increased rates in energy from data centers.
"This legislation creates a new type of entity for data center enterprises to be able to get local tax dollars without any local oversight," said Johnson.
Without proper oversight, taxpayer money can be used in covering the increased costs.
“One large data center can require 1 million to 5 million gallons of water per day. That's at least two times the daily limits placed on Nestle's water-bottling operations," explained Marshall Kilgore, director of Engagement for the West Michigan Environmental Action Council.
With the bills being reconsidered, Climate Action Groups hope to see writing for environmental promises.
"We really need to have the correct language that protects ratepayers and requires efficiency, water regulation, and for data centers to bring their own renewable energy," emphasized Johnson.
As concerns are arising, groups here in Grand Rapids emphasize one thing:
“Not to rally against data centers, but to emphasize the collective effort required from all businesses to benefit our community," explained Kilgore.
Climate Cabinet hopes to see considerations for SB 237 and SB 238 to be completed by next week.
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