Lewis Young’s Workgroup Calls for Tougher Maryland Data Center Rules
Recommendations presented at Hood College address tax breaks, cooling water, backup power, government NDAs, noise and electronic waste.
HERE'S WHAT WE KNOW
The volunteer workgroup presented recommendations at Hood College; the report does not describe enacted legislation. Proposals include ending certain tax incentives, restricting groundwater cooling, barring government NDAs and reviewing cumulative generator emissions. Members also proposed battery backup, monitoring, electronic-waste plans and financial assurances for facility cleanup.
A volunteer workgroup convened by state Sen. Karen Lewis Young is calling for a broad set of Maryland data center regulations, from ending tax incentives to banning government nondisclosure agreements with companies.
Members presented their recommendations at Hood College on Monday, according to The Frederick News-Post. The proposals are workgroup recommendations, not newly enacted requirements.
Lewis Young outlined changes to tax policy, including repeal of the state sales and use tax exemption for qualifying data centers and restrictions preventing counties from granting property tax exemptions. She also called for companies to disclose projected tax revenue after credits and abatements.
Energy recommendations focused on greater solar use and a transition from diesel backup generators to batteries. Retired Federal Energy Regulatory Commission employee Elizabeth Law argued that improved battery technology could support that transition.
Water use was another major concern. Hood College aquatic scientist Kevin Sellner recommended prohibiting groundwater use for cooling, requiring conservation plans, protecting residential needs during droughts and identifying pollutants in discharged water.
On air quality, Kathy Kinsey of Mobilize Frederick called for regulators to examine the combined effects of diesel generators across projects, rather than limiting analysis to individual projects under separate ownership. She also recommended air-quality monitoring at facilities using diesel backup power.
Elizabeth Bauer of Envision Frederick County proposed barring government agencies from entering nondisclosure agreements with data center companies. She called for public disclosure of anticipated electricity and water needs when projects seek approvals.
The workgroup also addressed what happens when equipment becomes obsolete or a facility closes.
Patrice Gallagher of Waste-Not Frederick and Envision Frederick recommended approved plans for disposing of, reusing or recycling batteries and electronic equipment, with reporting requirements. She also called for decommissioning plans backed by escrow accounts, deposits or bonds to cover possible cleanup.
Dave Arndt of the Maryland Legislative Coalition argued that existing noise rules are poorly suited to facilities operating around the clock. He recommended monitoring and strong penalties for violations of new standards, including substantial fines or shutdowns.
The recommendations bring tax policy, environmental oversight and public disclosure into one proposed framework. The supplied report does not describe legislative adoption, a final bill or an implementation date. It also does not include a data center industry response to the package.
Any resulting requirements would depend on the specific measures advanced and approved through the relevant government processes.
WHAT IT MEANS
The package would substantially change how data centers seek approvals and account for their impacts if its recommendations become law or policy. Residents should distinguish the workgroup’s proposed standards and supporting claims from existing requirements and independently established findings about any specific facility.
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