Energy - As introduced, enacts the "Bring Your Own Generation Act." - Amends TCA Section 39-17-1002; Section 67-6-102 and Title 68.

SB 2681, the "Bring Your Own Generation Act" (BYOG), requires large data centers and AI facilities in Tennessee with peak demand over 100 megawatts to generate 50% of their electricity from new onsite clean energy sources. It imposes a 100% surcharge on these facilities to fund grid upgrades for clean energy, with the revenue deposited into the Tennessee Environmental Protection Fund. The bill also prohibits using fossil fuel power purchase agreements for state economic incentives or state-subsidized fossil fuels for primary power at qualified data centers. This bill directly affects major data center operators and aims to accelerate clean energy integration without shifting costs to other utility customers. The bill is pending in the Senate Commerce and Labor Committee as of March 2026.