In one paragraph
Tennessee's HB 2054 (Camper; companion SB 1999 by Lamar) is an electricity-rate bill, not a rule on AI systems. As introduced, the "Data Center, Artificial Intelligence, and Clean Transition Tariff Accountability Act" would let the Public Utility Commission approve clean transition tariffs for large energy-intensive users, including data processing and AI training facilities, and keep grid costs off residential and small-business customers. It was taken off notice in subcommittee March 4, 2026 and did not pass.
Plain-English summary, written with AI assistance. The official text controls.
What it means for business
None: the bill did not pass. Had it passed, facilities with 25 MW or more peak demand, or primarily doing data processing, AI training or similar work, would have borne grid costs of their new load, with new duties for local power companies.
Key provisions
- Would add a new part to Title 65, Chapter 4 (Secs. 65-4-601 to 65-4-609)
- A "large energy-intensive user" would be a facility with peak demand of 25 MW or more, or one primarily engaged in data processing, AI training, cloud computing, high-performance computing, or crypto-adjacent operations
- The Tennessee Public Utility Commission could approve clean transition tariffs letting such users voluntarily buy new clean power for 100% of their incremental load, with no cost recovery from residential or small-business customers
- Local power companies serving such users would have to require a clean transition tariff or equivalent TVA-approved rate structure and have the user bear proportional grid-upgrade costs
- The Commission would report annually from January 1, 2027 and could adopt rules
- Would take effect July 1, 2026 and apply to new or expanded large users seeking service on or after that date; status: taken off notice in the House Business and Utilities Subcommittee March 4, 2026, not passed before the 114th General Assembly's 2026 session adjourned
Latest legislative action
Mar 4, 2026. Taken off notice for cal in s/c Business and Utilities Subcommittee of Commerce Committee; died when the 114th Tennessee General Assembly (2025-2026) ended April 23, 2026
Sponsors (showing 5 of 8)
| Name | Role |
|---|---|
| Briggs | Primary |
| Campbell S | Primary |
| Camper | Primary |
| Eldridge | Primary |
| Jackson | Primary |
Topics and industries
Related topics
Affected industries
This page is general information, not legal advice. Summaries are AI-assisted and may contain errors; read the statute for the controlling text and talk to a lawyer about your situation. Full disclaimer · Report an error