hb983_00

As Introduced

136th General Assembly

Regular Session H. B. No. 983

2025-2026

To amend section 9.66 and to enact sections 3744.01, 3744.02, 3744.03, 3744.04, 3744.041, 3744.042, 3744.05, 3744.06, 3744.061, 3744.062, 3744.07, 3744.08, 3744.09, 3744.10, 3744.11, and 3744.12 of the Revised Code to impose various requirements concerning data centers, to name this act the Data Center Accountability and Citizen Protection Act, and to declare an emergency.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 9.66 be amended and sections 3744.01, 3744.02, 3744.03, 3744.04, 3744.041, 3744.042, 3744.05, 3744.06, 3744.061, 3744.062, 3744.07, 3744.08, 3744.09, 3744.10, 3744.11, and 3744.12 of the Revised Code be enacted to read as follows:

Sec. 9.66. (A) As used in this section:

(1) "Economic development assistance" means all of the following:

(a) The programs and assistance provided or administered by the department of development under Chapters 122. and 166. of the Revised Code and any other section of the Revised Code under which the department provides or administers economic development assistance;

(b) The programs and assistance provided or administered by a political subdivision under Chapters 725. and 1728. and sections 3735.67 to 3735.70, 5709.40 to 5709.43, 5709.61 to 5709.69, 5709.73 to 5709.75, and 5709.77 to 5709.81 of the Revised Code and any other section of the Revised Code under which a political subdivision provides economic development assistance;

(c) Assistance provided under any other section of the Revised Code under which the state or a state agency provides or administers economic development assistance;

(d) The tax credit authorized by section 5725.31, 5729.07, or 5733.42 of the Revised Code.

(2) "Liability" means any of the following:

(a) Any delinquent tax owed the state or a political subdivision of the state;

(b) Any moneys owed the state or a state agency for the administration or enforcement of the environmental laws of the state;

"Liability" includes any item described in division (A)(2) of this section that is being contested in a court of law.

(3) "Political subdivision" means any county, municipal corporation, or township of the state.

(4) "State agency" means every organized body, office, or agency established by the laws of the state for the exercise of any function of state government.

(B) A person who applies to the state, a state agency, or a political subdivision for economic development assistance shall indicate on the application for assistance whether the person has any outstanding liabilities owed to the state, a state agency, or a political subdivision. Such a person also shall authorize the state, state agency, or political subdivision to inspect the personal or corporate financial statements of the applicant, including tax records and other similar information not open to public inspection.

(C)(1) Whoever knowingly makes a false statement under division (B) of this section concerning an application for economic development assistance or who fails to provide any information required by that division is ineligible for the assistance applied for and is ineligible for any future economic development assistance from the state, a state agency, or a political subdivision.

(2) Whoever knowingly makes a false statement under division (B) of this section concerning an application for economic development assistance or who fails to provide any information required by that division shall return any moneys received from the state, a state agency, or a political subdivision in connection with that application.

~~(D)~~(D)(1) Individualized compensation and payroll information submitted to a political subdivision, a port authority created under Chapter 4582. of the Revised Code, or a tax incentive review council created under section 5709.85 of the Revised Code, from an applicant or recipient of economic development assistance, or of any grant, subgrant, exemption, credit, loan, award, cooperative agreement, or other similar and related form of financial assistance, and any information taken for any purpose from that information, is confidential and not a public record under section 149.43 of the Revised Code. However, the political subdivision, port authority, or tax incentive review council may use that information to the extent required to secure approval of an application, to verify information related to an applicant or recipient, and to comply with specific mandates imposed under the Revised Code, provided that under no circumstance shall the political subdivision, port authority, or tax incentive review council publicly disclose information, with respect to an applicant or a recipient, whether anonymized or not anonymized, that is not a public record open to public inspection.

(2) Division (D)(1) of this section does not apply to any development and supply agreement related to a data center or associated power generating facility.

Sec. 3744.01. As used in this chapter:

"Associated power generating facility" means an electric generating facility built primarily to supply electricity to a data center.

"Closed loop system" means a sealed cooling or heat-removal system in which the fluid being cooled or heated does not come into contact with the ambient atmosphere and such system does not expose, emit, or discharge air, water vapor, or wastewater discharge generated by the cooling or heat removal process directly to the ambient atmosphere, including outdoor air, water, or soils, except during scheduled maintenance or repairs.

"Data center" means one or more buildings or physical facilities or infrastructure, located on a single real property parcel or on contiguous, adjacent, or otherwise aggregated real property parcels that are used primarily or exclusively for digital information services such as the management, storage, processing, and dissemination of electronic data and information through the use of computer systems, servers, networking equipment, and related components, including equipment cooling systems, or virtual currency mining that has a peak electric load exceeding one megawatt.

"Expanded data center" means an existing data center that seeks to expand one or more buildings or physical facilities or infrastructure to house data center server components with a peak electric load exceeding one megawatt. "Expanded" does not include expansions that are needed to meet state requirements for building an on-site water treatment facility appropriately sized to meet state wastewater discharge requirements.

"Open loop system" means a cooling or heat-removal system that directly exposes, emits, or discharges air, water vapors, or wastewater discharge created by cooling or heat removal processes to the ambient atmosphere, including outdoor air, water, or soils.

"Pilot scale test results" means results of a study conducted in a laboratory or other setting wherein the capacity of the equipment is a fraction of what the results of the full scale facility would be.

"Voter-approved data center" means a data center that has been approved by a vote in accordance with section 3744.02 of the Revised Code.

Sec. 3744.02. (A) A citizen vote is required before any new or expanded data center, including the associated power generating facility, may be approved in any city, village, or township located within five miles of the perimeter of the proposed new or expanded data center.

(B) The owner of a data center shall submit a written request for approval to the legislative authority of the city or village, or the board of township trustees of the township, in which the proposed new or expanded data center is to be located. The owner shall include a plain description of the facility type, size, location, and associated power generating infrastructure and details of the closed loop systems for both the data center and the associated power generating facility as well as projected noise and light emission levels and range of reach. The owner may include benefits that the data center wishes to offer to residents in the community.

(C) The legislative authority or board of township trustees shall certify the question of the proposed new or expanded data center to the board of elections of the county in which the proposed new or expanded data center is to be located and to the board of elections of any county containing a city, village, or township that is located within five miles of the perimeter of the proposed data center. The legislative authority or board of township trustees shall include the information provided by the owner of the data center under division (B) of this section. The board of elections shall submit the question to the electors of each city, village, or township located within five miles of the perimeter of the proposed data center at the next special or general election held at least ninety days after the question is certified to the board of elections.

(D) A simple majority of votes cast is required for approval.

(E) The ballot shall plainly describe the facility type, size, location, and associated power generating infrastructure and details of the closed loop systems for both the data center facility and the associated power generating facility as well as projected noise and light emission level and range of reach shall be described in plain language on the ballot description and be accessible to all voters on the local board of elections web site not later than thirty days before the election. Any benefits that the owner of the data center wishes to offer to residents in the community may be listed in the ballot description.

(F) Except as provided in division (K) of this section, the vote shall occur before any permit, zoning approval, or development and supply agreement is executed. Any approvals or permits granted without a completed citizen vote is void.

(G) If a data center is proposed in a county, township, or municipal corporation that has zoning or other regulations in place applicable to data centers, approval under this section is required before and in addition to the application of those regulations. Approval under this section does not guarantee the data center may operate in the county, township, or municipal corporation. A county, township, or municipal corporation may impose its zoning and other regulations as provided by law.

(H) No emergency order, administrative action, or development agreement may substitute for or circumvent the citizen vote.

(I) If a data center is rejected by voters then the owner of the data center may not resubmit the data center for voter approval for two years from the date of the election at which the voters rejected the data center.

(J) Any member of a city council, village council, or township board who authorizes data center development or expansion to begin without approval by the electors under this section is guilty of misconduct in office under section 3.07 of the Revised Code. Any member of a zoning board who authorizes data center development or expansion to begin without a completed citizen vote is subject to immediate removal from office.

(K) This section does not apply to a new or expanded data center that is already under active construction and that has been issued all required permits before the effective date of this section. The owner of a data center that has been issued all required permits but has not begun active construction on the effective date of this section shall be required to cease construction until after the data center receives voter approval under this section. If the new or expanded data center is approved by voters as required under this section, any permits previously issued by the director of environmental protection remain valid so long as the data center is in compliance with all applicable federal and state wastewater discharge and air emissions regulations and is in compliance with the terms and conditions of such permits.

Sec. 3744.03. (A) In addition to air emission and wastewater discharge standards established under Chapters 3704. and 6111. of the Revised Code, as applicable, and not later than one year after the effective date of this section, the director of environmental protection shall adopt rules in accordance with Chapter 119. of the Revised Code that establish state air emission and wastewater discharge safety standards and limits for data centers and associated power generating facilities. Such rules shall establish all of the following:

(1) Standards and requirements concerning the discharge or emission of all nonregulated metals, glycols, and organics, including per- and polyfluoroalkyl substances, that are used in or produced by the cooling systems and cooling towers of a data center, any associated power generating equipment, and any associated power generating facility or are present in any wastewater discharged by a data center or facility;

(2) Requirements concerning wastewater discharge sampling and testing and air emissions sampling and testing;

(3) Requirements concerning attached air cleaning and emissions control facilities;

(4) Standards and requirements governing a data center and an associated power generating facility's use of best available control technology;

(5) Any other requirements or limits that the director deems necessary to ensure the protection of air and water quality in this state.

(B) The director shall make such standards and limits established under division (A) of this section publicly available on the environmental protection agency's web site.

(C) The director shall not, under any circumstances, issue any operating, discharge, or emissions permit to a data center or associated power generating facility that does not meet the standards adopted in rules by the director pursuant to division (A) of this section. The director also shall not grant a data center or associated power generating facility any waivers or exemptions from meeting such standards.

Sec. 3744.04. (A) As used in this section and sections 3744.041 and 3744.042 of the Revised Code:

(1) "Existing data center" means a data center operating in this state that was in operation prior to the effective date of this section.

(2) "Existing associated power generating facility" means any associated power generating facility of a data center operating in this state that was in operation prior to the effective date of this section.

(B) Beginning eighteen months after the effective date of this section, no owner of an existing data center shall do either of the following:

(1) Discharge any wastewater unless the data center has and utilizes an attached wastewater treatment facility that ensures compliance with wastewater discharge requirements for the data center, any associated power generating facility, and any associated power generating equipment;

(2) Operate the data center unless the data center, any associated power generating facility, and any associated power generating equipment uses the best available control technology for removal of metals and organics, including per- and polyfluoroalkyl substances. Technologies such as activated carbon and ion exchange shall be considered in the best available control technology review process.

(C) Beginning eighteen months after the effective date of this section, an existing data center owner shall ensure that the data center and any associated power generating facility is in compliance with all air emissions and wastewater discharge safety standards and limits specified in this chapter and rules adopted under it, and such owner is subject to applicable penalties for violations, including those specified in section 3744.08 and Chapters 3704. and 6111. of the Revised Code.

(D) Beginning eighteen months after the effective date of this section, the director of environmental protection shall revoke any operating, discharge, or emissions permit issued by the director to an existing data center or an existing associated power generating facility if both of the following apply:

(1) The data center or its associated power generating facility operates an open loop system;

(2) The data center or its associated power generating facility is not in compliance with division (B) of this section or any air emissions or wastewater discharge safety standards or limits established under this chapter, rules adopted under it, or any term or condition of a permit issued by the director.

Sec. 3744.041. (A) An owner of an existing data center that operates using an open loop system shall do both of the following regarding air emissions:

(1) Complete an independent air quality and public health impact assessment not later than ninety days after the effective date of this section and annually thereafter;

(2) Conduct independent biologic testing for cooling tower emissions for data centers and attached power generating facilities once during May or June and again during September or October.

(B) The entity that conducts the assessments and testing pursuant to divisions (A)(1) and (2) of this section shall be selected and supervised by the director of environmental protection.

(C) The results of the assessments and testing conducted pursuant to division (A) of this section shall be submitted to the director not later than thirty days after completion. The director shall promptly publicly post such results on the environmental protection agency's web site.

(D) All assessment and testing costs incurred shall be paid entirely by the data center owner.

Sec. 3744.042. Not later than eighteen months after the effective date of this section, the owner of any existing associated power generating facility that operates using an open loop system shall install and utilize attached air cleaning and emissions control facilities in accordance with rules adopted under section 3744.03 of the Revised Code.

Sec. 3744.05. (A) The director of environmental protection shall not issue an operating, discharge, or emissions permit to a voter-approved new or expanded data center or to an associated power generating facility, including a combustion turbine, natural gas plant, or any other electric generating facility built primarily to serve a data center, unless both of the following apply:

(1) The data center and any associated power generating facility utilizes a closed loop system for both the data center and the facility;

(2) The data center and any associated power generating facility is in compliance with this chapter and rules adopted under it, including any wastewater discharge or air emissions testing requirements.

(B) No owner of a voter-approved data center shall allow operation of the data center unless the data center has and utilizes an attached wastewater treatment facility that ensures compliance with wastewater discharge requirements for the data center, any associated power generating facility, and any associated power generating equipment.

(C) The director shall not issue a permit to install in accordance with Chapter 6111. of the Revised Code for a voter-approved data center or for an associated power generating facility, unless the owner of the data center submits to the director, in a manner established by the director, a plan that describes the design and amount of expected wastewater discharges.

(D) Upon completion of the construction of a voter-approved data center, the owner of the data center shall conduct wastewater discharge testing, including testing for any associated power generating facility, in accordance with rules adopted by the director. Results of such testing shall be provided to the director before the director issues the data center or facility an NPDES permit and before full operations commence.

(E) At every point in the design, commissioning, and operation of a voter-approved data center or an associated power generating facility, any required wastewater discharge or air emissions testing results shall be authenticated with the signature of the chief executive officer of the data center. False certification of a pilot scale test result for wastewater discharge or air emissions submitted to the director constitutes falsification under section 2921.13 of the Revised Code and the chief executive officer shall be subject to criminal prosecution.

(F) The owner of a voter-approved data center shall do both of the following with respect to the data center and any associated power generating facility:

(1) Use best available control technology;

(2) Minimize water consumption utilizing best available methodologies.

(G) The owner of a voter-approved data center is subject to applicable penalties, including those specified in section 3744.08 and Chapters 3704. and 6111. of the Revised Code, for violations of this chapter, rules adopted under it, and for violation of any term or condition of any issued permit.

Sec. 3744.06. If the director of environmental protection issues a permit to install in accordance with Chapter 3704. or 6111. of the Revised Code to a data center or associated power generating facility, the director shall specify, in such permit, both of the following:

(A) All applicable wastewater discharge limits or air emissions limits for the data center or facility, as applicable, including wastewater discharge limits or air emissions limits concerning any chemicals that were previously non-regulated chemicals;

(B) That, if the owner of the data center or the owner of the facility does not ensure that the data center or facility complies with any such regulation or limit, the owner of the data center or the owner of the facility is subject to applicable penalties for violations, including those specified in section 3744.08 and Chapters 3704. and 6111. of the Revised Code.

Sec. 3744.061. (A) A data center owner shall disclose all chemicals, cooling agents, and wastewater treatment substances that will be used in the data center and the associated power generating facility, the concentrations of such chemicals, agents, and substances, and any changes in the chemicals, agents, or substances to both of the following:

(1) The director of environmental protection;

(2) The legislative authority of the municipal corporation or township in which any part of the parcel or parcels on which the data center is located.

(B) The director and the legislative authority of the municipal corporation or township in which any part of the parcel or parcels on which a data center is located shall publicly disclose on its respective web site the disclosed chemicals, agents, and substances submitted under division (D)(1) of this section before the data center begins operations and prior to the implementation of any change in the chemicals, agents, or substances used.

(C) All wastewater discharged from a data center and any associated power generating facility shall meet the wastewater safety and discharge standards established by the director in rules adopted under section 3744.03 of the Revised Code for all chemicals contained in wastewater discharge prior to its discharge.

(D)(1) An independent third-party water testing company selected and supervised by the director shall conduct testing before any wastewater discharge or wastewater recycling.

(2) A data center owner shall submit, in a manner established by the director, all wastewater testing results to the director not later than thirty days after testing.

(3) The director shall publicly disclose such testing results on the environmental protection agency's web site not later than thirty days after the results are submitted to the director.

(E) All costs for wastewater testing, assessment, and monitoring shall be paid entirely by the data center owner.

Sec. 3744.062. (A) A data center owner shall install meters that monitor the levels of chemical additives in non-contact water supplies.

(B) In accordance with rules adopted under section 3744.03 of the Revised Code, the owner of an operating data center shall conduct sampling of wastewater discharge and air emissions on a weekly basis and shall adjust chemical levels accordingly. However, a data center owner may choose to continuously conduct such sampling. For an associated power generating facility's cooling emissions, sampling shall be conducted during spring and fall to ensure the control of biologics, including Legionella.

Sec. 3744.07. (A) If a data center or an associated power generating facility places a burden on the local water supply that reduces water pressure or water supply to any residence or business within a five-mile radius of the perimeter of the data center, the data center owner shall bear full financial responsibility for all costs of correcting that impact and shall pay a fine equal to five thousand dollars per day until the burden is resolved and corrected. These costs include, but are not limited to, all of the following:

(1) All costs of designing, engineering, permitting, and constructing any water infrastructure upgrades required to restore adequate water pressure;

(2) All costs of constructing water towers or storage facilities required to restore adequate water pressure;

(3) All costs of providing temporary water supply measures during the construction or operations of a data center or an associated power generating facility;

(4) All costs related to negative impacts on aquifers that supply water to private and public entities;

(5) Full reimbursement to any municipal corporation, township, or other water district for expenditures made to address water supply or water pressure impacts caused by a data center or an associated power generating facility.

(B) The owner of a data center shall take water pressure and water supply measurements of the applicable local water supply prior to the construction of the data center and the associated power generating facility. Such measurements shall be the baseline measurements, and the data center owner shall submit these baseline measurements to the department of natural resources' chief of the division of water resources.

(C) For the purposes of administering and enforcing this section, a rebuttable presumption is created that the owner of a data center is responsible for the burden placed on a local water supply if, at any time, within a five-mile radius of a data center or an associated power generating facility the water pressure and water supply measurements are lower than the baseline measurements submitted to the chief under division (B) of this section. The owner may rebut the presumption and bears the full burden of proving that the data center, the associated power generating facility, or both, are not responsible for the burden.

Sec. 3744.08. (A)(1) The director of environmental protection shall issue a written warning to a data center owner for exceeding any federal or state regulatory wastewater discharge or air emissions standards or limits, including any newly established regulatory wastewater discharge or air emissions standards established by the director for previously unregulated chemicals.

(2) A data center owner shall correct exceedances not later than ten business days after first exceeding a discharge or emissions limit.

(3) The data center owner shall report the exceedances and corrective actions taken by the data center owner to the director not later than ten business days after first exceeding a discharge or emissions limit.

(4) The data center owner shall pay a fine of not less than ten thousand dollars a day for such noncompliance until compliant. This fine shall be collected by the director and evenly disbursed to any municipal corporation or township located within a five-mile radius of the data center that is in violation of the established safe discharge or emissions levels. Any such disbursement shall be paid into the municipal corporation's or township's general fund, as applicable.

(B)(1) If the data center is not compliant with division (A) of this section after ten days, the owner shall pay an increased daily fine equal to twenty-five thousand dollars until it reaches compliance. This fine shall be collected by the director and evenly disbursed to any municipal corporation or township located within a five-mile radius of the data center that is in violation of the established safe discharge or emissions levels. Any such disbursement shall be paid into the municipal corporation's or township's general fund, as applicable.

(2) The director shall issue a written notice to the data center owner that all operating permits issued by the director to the data center will be revoked if its discharges or emissions are not compliant within thirty days.

(3) After thirty days of receiving notice under division (B)(2) of this section, if the data center or associated power generating facility is not in compliance with all applicable federal safety requirements and state safety requirements concerning wastewater discharge as determined by the director, then the director shall revoke the facility's NPDES permit issued under Chapter 6111. of the Revised Code.

(4) After thirty days of receiving notice under division (B)(2) of this section, if the data center or associated power generating facility is not in compliance with all applicable federal safety requirements and state safety requirements concerning air emissions as determined by the director, then the director shall revoke the facility's permit to operate issued under Chapter 3704. of the Revised Code.

Sec. 3744.09. (A) Beginning on the effective date of this section, all voter-approved data centers and the expanded portions of expanded data centers shall generate one hundred per cent of their own electricity through on-site or off-grid associated power generating facilities.

(B) All voter-approved data centers, associated power generating facilities, and the expanded portions of expanded data centers, after the effective date of this section, shall be built and operated fully independently of the public grid.

(C) For all voter-approved data centers, associated power generating facilities, and the expanded portions of expanded data centers, the Ohio ratepayers shall bear no cost associated with data center power generation or grid infrastructure under any circumstances.

Sec. 3744.10. Full public disclosure of all development and supply agreements is required. All such agreements are public records subject to section 149.43 of the Revised Code without exception. Division (D)(1) of section 9.66 of the Revised Code does not apply to any development and supply agreement related to a data center or associated power generating facility. No public official may be penalized for disclosing information about any such agreement. Any agreement related to data center development or supply in effect before the passage of this act shall be void after its passage and that information shall be available through public records request.

Sec. 3744.11. No person who participated in drafting or revising Ohio power siting board rules or public utilities commission of Ohio rules may represent any applicant before those bodies for three years.

No person who represented a data center or associated power generating facility applicant may take any position at the Ohio power siting board, public utilities commission of Ohio, or any related state agency for three years.

Sec. 3744.12. (A) As used in this section, "local tax incentive" means the programs and assistance provided or administered by a political subdivision under Chapters 725. and 1728. and sections 3735.67 to 3735.70, 5709.40 to 5709.43, 5709.61 to 5709.69, 5709.73 to 5709.75, and 5709.77 to 5709.81 of the Revised Code and any other section of the Revised Code under which a political subdivision authorizes the exemption of property from taxation, whether in whole or in part.

(B) No political subdivision shall authorize a local tax incentive for a data center or associated power generating facility on or after the effective date of this section. A local tax incentive authorized in violation of this division is void.

(C) Neither the tax commissioner nor any county auditor shall approve an application for tax exemption for a data center or associated power generating facility pursuant to section 5715.27 of the Revised Code on or after the effective date of this section.

Section 2. That existing section 9.66 of the Revised Code is hereby repealed.

Section 3. This act shall be known as the Data Center Accountability and Citizen Protection Act.

Section 4. This act is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, health, and safety. The reason for such necessity is to preserve the rights of Ohio citizens and local communities to participate in decisions regarding rapidly developing and expanding data centers and associated power infrastructure projects before irreversible development approvals and construction occurs. Therefore, this act shall go into immediate effect.