KY SB319

Data centers with peak electric load over 50 megawatts built on land taxed as agricultural within the previous 10 years must file a decommissioning plan and secure a bond before operating, with requirements to remove all facilities and restore land to agricultural condition at end of useful life

Bond amounts must be determined by an independent licensed engineer with no financial interest in the project, calculated as the net present value of decommissioning costs minus salvage value, with the state cabinet named as primary beneficiary

If a data center ceases operations for 30+ days or fails to cure a bond cancellation within 15 days of notice, the cabinet may claim the bond and complete decommissioning

New memorandum of agreement provisions require data center companies to engage with local officials on energy efficiency practices (technology upgrades, airflow management, HVAC improvements) and water conservation measures (recycling, rainwater harvesting, using reclaimed water)

Sales and use tax exemption terms range from 15 years for project organizers, 25 years for standard qualified projects, and up to 50 years for projects with capital investment of at least $450 million