TN HB2463

Data centers with peak demand of 100 MW or more must pay a clean energy transition surcharge equal to 100% of the proportional costs of adding new clean energy resources and transmission upgrades to the grid

New data centers or AI facilities exceeding 100 MW peak load must derive 50% of their electricity from new, carbon-free energy sources located onsite or through direct interconnection

Fossil fuel power purchase agreements cannot qualify for state economic development incentives or reduced utility rates, and qualified data centers cannot use state-subsidized fossil fuel generation for primary power

Surcharge revenues will be deposited into the Tennessee Environmental Protection Fund, with the State Energy Policy Council ensuring no costs are shifted to other utility customers

Effective date: July 1, 2026