Feeding the Best That Will Eat Us
Downloadable reports, legal documents, meeting minutes, and public records
Feeding_the_Best_that_Will_Eat_Us_-_The_Data_Center_Trap.pdf
This is a policy analysis report by Jeff A. Pierson examining Idaho's data center tax exemption law HB 521 and its impact on agricultural electricity rates. The report documents how agricultural electricity demand charges rose 138% between 2021-2026 while data centers received tax exemptions, and analyzes proposed reform bills HB 895 and HB 897 aimed at addressing these issues.
Open Meeting Law Concerns
- Idaho Power's Director of Economic Development and Innovation told legislators she didn't have information on rate differentials between large industrial customers and agricultural customers during committee hearings, indicating a transparency problem in public proceedings
Decisions Made
- HB 521 passed 30-1 in the Senate in 2020
- 2023 legislators identified double-exemption problem with data centers using both HB 521 sales tax exemption and urban renewal district benefits
- HB 895 and HB 897 are 2026 reform attempts applying only to new projects after April 1, 2026
Energy, Data Centers & Ordinances
- HB 521 granted broad sales and use tax exemptions to large-scale data centers with $250 million investment and 30+ jobs
- Agricultural electricity demand charges rose from $6.94 to $16.50 per kilowatt (138% increase) between 2021-2026
- HB 895 restricts consumptive water use for cooling unless supplied by city or water district
- HB 897 requires full cost recovery from data centers and limits exemption to server equipment only for new projects
- Data centers can consume 20+ megawatts of electricity
- Meta's Kuna data center represents $800 million investment with ~100 permanent employees
- Typical 100-MW data center uses 300,000 gallons of water daily
- Data centers nationally consumed 176 terawatt-hours in 2024 (4.4% of US electricity)
Constitutional & Social Concerns
- Concerns about regulatory capture where public institutions have been effectively captured by interests they are supposed to balance
- Rural communities bearing costs of industrial development while tech companies capture benefits
- Displacement of agricultural communities by data center development
- Lack of adequate representation for farming communities in legislative processes
- Double-exemption problem allowing data centers to stack multiple tax incentives
Upcoming Dates & Activities
- April 1, 2026 - effective date for HB 897 reforms applying to new data center projects
- Next issue announcement: The BESS Threat covering NextEra's 220MW Battery Storage Facility in Eden, Idaho
Key Points
- Data center tax exemptions
- Agricultural electricity rate increases
- HB 521 analysis
- HB 895 and HB 897 reform legislation
- Water consumption by data centers
- Agricultural land conversion
- Jerome County agricultural impact
- Urban renewal district tax capture
- Full cost recovery requirements
- Eastern Snake Plain Aquifer protection
Feeding_the_Beast_-_Issue_2.docx
This policy analysis examines how Idaho's 2020 data center tax exemption law (HB 521) has resulted in agricultural customers bearing increased electricity costs while data centers receive subsidies. The document argues that agricultural electricity demand charges rose 138% between 2021-2026 compared to 19% general inflation, and analyzes proposed 2026 reform bills HB 895 and HB 897 as insufficient solutions.
Key Points
- Idaho Power's agricultural electricity demand charges increased from $6.94 to $16.50 per kilowatt (138% increase) between 2021-2026, far exceeding the 19% general inflation rate during the same period
- HB 521 (2020) provided broad tax exemptions to data centers with minimal requirements - only 30 permanent jobs and $250 million investment - while requiring no full cost recovery for infrastructure or water use notifications
- Data centers can potentially double-dip incentives by taking HB 521 sales tax exemptions while locating in urban renewal districts that redirect property taxes away from schools and general services
- Proposed 2026 reform bills HB 895 and HB 897 address water notification requirements and full cost recovery but only apply to new projects after April 1, 2026, leaving existing exemptions intact
- The document identifies a pattern where prime agricultural land suitable for farming is also attractive for data center development, particularly near infrastructure like Jerome County's Midpoint Substation
Feeding_the_Beast_that_Will_Eat_Us_-_Why_Lava_Ridge_Isnt_Over.pdf
AI summary not available for this document.
Feeding_The_Beast_-_Issue_1.docx
This document is the first in a policy accountability series examining energy development in southern Idaho, focusing on the cancelled Lava Ridge Wind Project, the approved SWIP-N transmission line, and ongoing energy infrastructure developments. The author argues that despite Lava Ridge's cancellation, the underlying transmission infrastructure and regulatory framework remain in place to enable future large-scale energy projects that serve California markets at Idaho ratepayers' expense.
Key Points
- The Lava Ridge Wind Project was cancelled in August 2025 by Interior Secretary Doug Burgum, but the SWIP-N transmission line enabling such projects received approval from the Idaho Public Utilities Commission in December 2025
- SWIP-N is a $1+ billion, 285-mile transmission line where Idaho Power owns 23% for 500 MW northbound capacity while California ISO funds 77% for over 1,100 MW southbound capacity to serve California markets
- A new 462-megawatt small modular nuclear reactor project has been proposed by Sawtooth Energy on the same Jerome County site as the cancelled wind project, raising concerns about groundwater impacts and project viability
- The document raises questions about the Idaho Public Utilities Commission's independence, noting it is funded by fees from the utilities it regulates and commissioners are appointed by the Governor
- The author presents specific questions demanding answers from Idaho legislators, the IPUC, Idaho Power, and local officials regarding transparency, ratepayer costs, and regulatory oversight of energy infrastructure decisions