Beshear had promised not to allow data center projects that could negatively impact ratepayers, but the statement came without any enforcement mechanism.
Thursday, the governor laid out what his new executive order will mandate.
"This establishes the framework to ensure that data center companies looking to do business in Kentucky — which will ultimately be a very local decision on whether to welcome them — but that any company looking at Kentucky, at minimum, is required to demonstrate they will be good neighbors," Beshear announced.
More specifically, the order sets out four major requirements.
- Developers must submit energy plans demonstrating their projects will not boost costs for residents or businesses.
- The Public Service Commission must reject utility rate increases intended to cover data center costs.
- Permits for projects that could harm air or water quality must be denied.
- And developers would be required to comply with all environmental laws and public engagement rules.
"Now, I'd previously set these out as my expectations, and I was asked the question, well, what teeth does it have? Well, today, you saw those teeth. This executive order is going to set a baseline. If you cannot meet it, you're not coming to Kentucky," the governor added.
The order comes after Beshear recently stated he was not made aware of the details of a $100 billion data center project in Paducah.
The state estimates more than 30 communities, including Lexington, have implemented data center moratoriums or similar policies as officials grapple with the influx of interest by developers.
Lexington residents will have a chance to sound off on the city's draft data center policy at the Urban County Council's August 24th work session.
UPDATE (4 PM): Senate President Robert Stivers, R-Manchester, released a statement regarding Beshear's order. Read the full statement below.
"It's about time the governor came around to the legislature's way of thinking. His executive order largely echoes the same principles I outlined in my recent opinion piece: if data centers require new infrastructure, the developers, not Kentucky ratepayers, should bear the cost.
“If we're going to establish a lasting framework for data centers, it should be done the right way, through the legislative process, with input from all involved parties. That's how you produce sound policy that protects ratepayers, respects communities and provides certainty for businesses investing in Kentucky."
“Unlike an executive order issued for headlines, the General Assembly is taking a deliberate approach. We're coordinating with our federal delegation, including Congressman Brett Guthrie, to ensure Kentucky's policies complement, not conflict, with federal efforts.
“While the governor has finally embraced the right premise, this is more political theater than public policy. The governor should spend more time in Kentucky than in South Carolina or New Hampshire where he’s obviously been more focused on improving his feeble presidential ambitions.
“I would like to thank the governor for drawing attention to where we have been all along.”