If it becomes law, H.B. 646’s study commission would be tasked with holding at least four public meetings, producing a report of best practices and considerations for data centers, and making legislative recommendations for the Ohio General Assembly.
The mandatory topics of investigation include data centers’ impact on the environment, the electrical grid, consumer utility rates, farmland, the local economy, along with noise and light pollution.
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H.B. 646 also requires the commission to look into data centers’ “value to national security and the development of artificial intelligence” and into reports of “foreign propaganda intended to create opposition to data centers.”
Three commission members would be appointed by the governor, five by the Ohio House speaker, and five the Ohio Senate president — three positions held by Republicans. The commission would have to include two lawmakers from each party.
Bill joint-sponsor Rep. Gary Click, R-Vickery, told his colleagues Wednesday that the appointees, collectively, will bring a broad range of expertise.
The bill calls for subject matter experts in data center operations, agriculture, electric cooperatives, water and environmental impacts of data centers, public utilities, and economic development and tax incentives, along with experts in local government.
“I believe this is going to put us in a great position to move forward and to say what is best for Ohio when it comes to these data centers,” Click said.
Rep. Ismail Mohamed, D-Columbus, said Democrats generally support the initiative, but that it’s imperative that the commission also include subject matter experts from labor unions and construction trades.
However, Democrats’ proposed amendment to require those voices on the commission was voted down by the House’s Republican supermajority by a vote of 53-41.
Rep. Josh Williams, R-Sylvania, argued against the amendment based on a lack of discussion and said he felt the more appropriate time to make such a change is during Senate review.
Area Rep. Tom Young, R-Washington Twp., expressed his support for the overall bill on Wednesday in a statement to this news outlet.
“This is about getting in front of this issue. Not chasing it later. This commission is extremely important,” Young said. “We need to understand the total economic and environmental impact on everyone affected.”
Before the vote, House Speaker Matt Huffman, R-Lima, said the commission would offer a more public platform to discuss the elimination of a tax exemption Ohio offers data centers to avoid paying sales tax on building materials.
“I don’t think these entities should have special treatment, given today’s climate,” Huffman said. “Maybe it made sense 15 years ago to try to attract them, but there are many other benefits to coming to Ohio besides this particular exemption.”
Lawmakers tried to get rid of this exemption in Ohio’s most recent operating budget, but the exemption was spared with a veto from Gov. Mike DeWine on the grounds that data centers have brought “billions” in construction work to the state and that the exemption is still an important lure.
Huffman has said he disagrees with the Republican governor’s decision but he has not yet called a vote to override it, which would require 60 votes on the House floor.
DeWine’s line of reasoning has been echoed by House Minority Leader Dani Isaacsohn, but the Cincinnati Democrat has ultimately shied away from telling reporters how he and his minority caucus would vote if the override were brought to the floor.
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Avery Kreemer can be reached at 614-981-1422, on X, via email, or you can drop him a comment/tip with the survey below.
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