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⚖️ POLICY & REGULATION
Trump Tells Data Center Developers To Pay Host Communities A "Dividend" And Says He Has Mandated That Large Sites Generate Their Own Power: In a Truth Social post Wednesday, Oct. 21, President Trump wrote that he had been "watching data centers very closely" and had "come to a very strong conclusion": projects that are unpopular become popular once a financial agreement answers residents' concerns, so companies that want their facilities welcomed should pay the community, or the people in it, a "dividend" and negotiate those arrangements before they build, Reuters and Euronews reported. He also said he had "personally mandated" that data centers "make their own electricity and give or sell any excess back to the local community, or grid," which he expects to bring "a substantial decrease" in power prices; no order or agency action imposing a self-generation requirement has been published, and the March Ratepayer Protection Pledge the companies signed is voluntary. The post follows his late-September remark that residents could receive dividends or teacher bonuses, and it arrives the morning after Memphis and Little Rock deadlocked on moratoriums (States, below). The precedents the industry already cites are Digital Realty's $1,000-a-year credits in De Soto, Kan., Lancaster, Pa.'s $20 million community benefits agreement and Meta's El Paso deal; the question it leaves for state commissions is whether a payment to residents is a rate matter or a gift. Link
Shontel Brown Reintroduces The Securing Elections From AI Deception Act With 30 Cosponsors: Up To A Year In Prison For AI Voter Deception, A Circled "AI" Disclaimer Symbol, And A Duty Of Care Enforced By The FTC: Introduced Monday, Oct. 19, and referred to Energy and Commerce, HR 10841 would bar any developer or deployer of a "covered algorithm" from intentionally using it to deprive or defraud a person of the right to vote in a federal, state or local election, listing false information on the time, place, method or eligibility for voting, on ballot counting or endorsements, and deception or intimidation aimed at voters or election workers, punishable by a fine or up to one year in prison, effective 60 days after enactment. Deployers who publish AI-generated images, video or audio of a candidate, or AI-generated voting information, would have to carry the statement "AI Disclaimer: This output was generated by artificial intelligence" or a circled "AI" symbol modeled on the copyright mark; developers would have to supply the mechanism and make the mark hard to remove; and the FTC would write the rules within two years, enforce violations as unfair or deceptive practices and report to Congress after five. A third section imposes a duty to offer only algorithms that are "safe and effective," defined by pre-deployment evaluation, mitigation and a benefit-cost judgment, the broadest duty-of-care language in any election-AI bill on file. The original cosponsors, Crockett, Krishnamoorthi, Gottheimer, Dingell and Tonko among them, are all Democrats; the 2024 version, HR 8858, drew 46 cosponsors and died in committee. The Docket scores it Watch at 11, with enacted cousins in Montana (SB 25) and California (AB 502). Link
Reuters: OpenAI's Brockman Signed The White House Safety Accord While His $25 Million Funds A Super PAC Fighting Pro-Regulation Candidates In 48 Races: A Reuters analysis published Wednesday, Oct. 21, sets OpenAI President Greg Brockman's signature on the Sept. 29 voluntary safety accord, alongside Dario Amodei, Sundar Pichai and Jensen Huang, against the $25 million he and his wife Anna gave in 2025 to Leading the Future, the super PAC network spending in at least 48 House and Senate races against candidates who back strict AI rules and for Republican Senate candidates Andy Barr in Kentucky and Julia Letlow in Louisiana; Andreessen Horowitz and its founders gave $50 million, per FEC records, and a linked nonprofit, Build American AI, is running ads for one national AI law in place of state rules. The Brockmans had pledged a second $25 million, and he told staff in June he had "no plans to donate more at this time"; OpenAI says the gifts were personal, a Brockman spokesperson declined to comment, and PAC spokesperson Jesse Hunt said it wants candidates who can deliver a "strong, responsible national regulatory AI framework." Guardrails Alliance's Charlie Blaettler, whose PAC was formed to counter it, called the posture "lip service"; Anthropic has given at least $40 million to Public First Action, which opposes federal preemption of state AI laws. Thirteen days before the midterms, the two labs' political money points in opposite directions on the one question Congress has not settled: whether a federal standard wipes out the state bills in this Docket. Link
SEC Sets A Nov. 9 Roundtable On Machine-Understandable Data In The Age Of "Super Intelligence," Asking Markets How They Feed Data To Models And What It Costs: In Release 2026-106 on Monday, Oct. 19, the Securities and Exchange Commission scheduled a public roundtable for Monday, Nov. 9, 9 a.m. to 3:30 p.m., at 100 F Street NE and livestreamed, on how investors and markets use machine-understandable data for "Super Intelligence" and on the risks and costs that come with it. Chief Economist Joshua White, who directs the Division of Economic and Risk Analysis, said "in the age of SI, high-quality information is critical" and that feedback will help staff understand "how the Commission can better facilitate SI"; the release names no panelists and opens no comment file, and the wording follows the Sept. 29 executive order telling agencies to write "Super Intelligence" where they used to write AI. For filers the question is structured disclosure: a commission asking how agents read data is a commission that will eventually ask for data agents can read in more places. Link
STATES
Memphis Deadlocks 6-6 On An 18-Month Data Center Moratorium And Passes A 135-Day Pause Instead, And Little Rock Fails 4-4 For The Second Time, Both On Tuesday Night: In Memphis, JB Smiley Jr.'s moratorium, lengthened from 12 to 18 months by Michalyn Easter-Thomas's amendment two weeks ago, failed on a 6-6 tie Tuesday, Oct. 20, with Yolanda Cooper-Sutton absent under a 30-day committee suspension over her remarks at the Oct. 6 meeting; the council then passed a substitute that merged two pending ordinances into a 135-day halt on new data center construction, written to run alongside Mayor Paul Young's executive order for a 90-day study of rules for large and hyperscale sites, with several members saying they had received the text too late to review it and the full terms not yet published. Smiley said the aim was "to slow it down so that we can make the necessary adjustments"; Memphis Community Against Pollution's KeShaun Pearson said officials had "left us to fend for ourselves," and the same day a Mississippi federal judge refused the Trump administration's motion to dismiss the NAACP's pollution suit over the gas turbines serving SpaceXAI's Colossus sites. In Little Rock, Kathy Webb's six-month moratorium on hyperscale projects (over 250,000 square feet, 75 MW or more than one principal building) failed 4-4 with Antwan Phillips abstaining over his law firm's work on the project, the same split that killed the 18-month version in August: Webb, B.J. Wyrick, Virgil Miller and Andrea Lewis for, Lance Hines, Dean Kumpuris, Joan Adcock and co-sponsor Capi Peck against, six votes needed. "It was a shock," Webb said; the June ordinance stands and Google's $1 billion port campus proceeds. The two loudest data center fights in the South now have a study clock where a pause was supposed to be. Link
Ohio's Supreme Court Rules Unanimously That Lordstown Owed No Review To A Data Center Site Plan Filed Days Before Its Ban, Leaving The Moratorium In Place Through 2026: In State ex rel. Bristolville 25 Developer v. Lordstown (2026-Ohio-4073), decided Tuesday, Oct. 20, the court denied a writ of mandamus that would have forced the village to complete site-plan review of four three-story data centers under the zoning rules in effect when the plan was emailed to the solicitor in October 2025, the day before the zoning administrator said review could not begin until council acted on a pending ban. Council banned data centers in November 2025, exempting existing and under-construction sites, repealed the ban in January for a six-month moratorium, and extended that through the end of 2026; the per curiam opinion holds the village has no duty to proceed "unless the moratorium is unenforceable as to Bristolville's submission," and that the Gibson v. Oberlin rule vesting rights "upon the filing of the application for the permit" does not reach a developer that never completed the preliminary steps for a zoning permit. Mayor Jackie Woodward called it "a pretty significant victory not only for Lordstown but all the municipalities in Ohio." For the counties racing to adopt pauses before a filing lands, it is the first state high-court answer on whether a draft plan beats an ordinance adopted two weeks later: in Ohio, it does not. Link
North Dakota's Interim AI And Data Center Committee Sends A Texas-Style AI Framework With A Seven-Member AI Council And A Regulatory Sandbox To Legislative Management, And Holds Its Children's Chatbot Bill For Rewrites: Meeting Tuesday, Oct. 20, in Bismarck, the committee voted to recommend Legislative Council draft 27.0359.1000 for the 2027 session: AI systems that interact with consumers must disclose they are not human, developers may not intentionally use AI to encourage self-harm, violence or crime, certain uses of biometric data and personal images without consent are restricted, a seven-member AI Council would study development and recommend policy, a sandbox would let participating businesses test systems under limited regulatory exemptions, and the Attorney General would hold primary enforcement; Rep. Mary Schneider argued people harmed by AI should have remedies of their own, and the draft carries no private right of action. The companion children's chatbot bill, which would bar chatbots from encouraging minors to withdraw from family and friends, posing as romantic partners or guilt-tripping them for ending a conversation, require blocking of sexual content and self-harm encouragement for minors, and route suicidal users to crisis resources, was held: "I don't think we have to be in a big rush to kick it out," said Rep. Mike Nathe, who offered to prime it in January after the Children's Advocacy Centers asked for AI-toy coverage and privacy terms. Sen. Jose Castaneda and committee member Mark Hagerott are still drafting a separate bill on advanced systems, human control and critical infrastructure. The framework goes to Legislative Management before the session convenes in January. Link
New Jersey's Public Safety Committee Advances A 5607: Every Chatbot Provider Would Face A Ban On Log-Based Ad Targeting, A Two-Year Retention Cap, Monthly Risk Audits And Strict Product Liability, At $5,000 Per Violation: The Assembly Public Safety and Preparedness Committee reported Cody Miller's A 5607 on Monday, Oct. 19, and sent it to Appropriations, with Antwan McClellan (R) voting no, Paul Kanitra (R) abstaining and Carol Murphy (D) voting yes "for now" with "certain reservations." The introduced text covers any entity that makes a chatbot available to a New Jersey user of any age, with no size threshold: no processing of personal data beyond the input needed to answer without an express request and affirmative consent, no use of chat logs to decide which ads a user sees, no training on minors' data and none on adults' without prior consent, no sale of logs, a two-year retention cap, a published data security program, monthly risk assessments against Attorney General metrics, portable logs on demand, and a rule that a chatbot is a product whose provider is liable for injury even after all reasonable care; the AG can seek $5,000 per violation and a harmed user can sue for the greater of actual damages or $5,000 per violation. The same meeting reported Chris Tully's A 3058, a $2 million Deepfake Technology Unit, 6-1 with amendments, plus studies of police AI and facial recognition and a bar on facial recognition as the sole basis for an arrest warrant, while Science, Innovation and Technology took testimony without votes on Andrew Macurdy's image-disclosure, platform-liability and developer-disclosure bills, with NJBIA warning that state-specific rules could push products out of New Jersey. A 5607 is not on Appropriations' posted agenda for Thursday; it is today's Bill in The Docket. Link
Texas Kept Processing Data Center Permits After Abbott's Halt, Advocates Find In TCEQ's Own Database: 35 Actions, 14 Fast-Tracked Reviews And A Water Permit Issued Two Days After The Order: Public Citizen and FracTracker Alliance, working from TCEQ's public database, counted 35 agency actions on data center projects since Gov. Abbott's Sept. 21 letter ordering the agency "to halt all permits sought by data centers": 14 permits fast-tracked or assigned to engineers, 11 stormwater coverage approvals, seven certified emissions estimates and three public notices, Inside Climate News, 404 Media and the Texas Tribune reported Monday and Tuesday, Oct. 19 and 20. TCEQ issued a water quality permit for Crusoe's Abilene campus Sept. 23, mailed preliminary approval notices for NRG's Prairie Energy Center and VoltaGrid's plant at Nexus's Hubbard site Sept. 22, and finished an initial engineer review of an Irving data center's engine and turbine permit two days after it was filed for expedited review Oct. 6. The governor's office said "no permits have been approved" and that TCEQ "has not taken and will not take any proactive actions related to the approval of data center permits"; TCEQ said it "has not issued any permits related to data centers and is complying with Governor Abbott's directive." FracTracker's Sam Law notes the stormwater approvals come from a general permit that projects join by notice of intent. TCEQ's compliance update to the governor was due Monday and has not been released; ERCOT's audit, the trigger for lifting the halt, is expected in mid-December. Link
Loudoun Defers Its 12-Month Pause Vote To Nov. 17, Cleveland Extends Its Pause To Jan. 29, Montgomery County, Tenn., Caps Campuses At 100 Acres 17-4, Coweta County Files 14,000 Signatures For Georgia's First Home-Rule Referendum, And A Wisconsin Judge Upholds Port Washington's Voter Veto: Loudoun County's Board of Supervisors pulled the resolution enacting its pause on legislative data center and substation applications from Tuesday's agenda and moved it to Nov. 17, the county said Tuesday morning, Oct. 20, because staff need more time; the pause would run up to 12 months per application, retroactive to Sept. 15, with exceptions possible for grid-reliability projects, and the county attorney has said an outright moratorium is not legal in Virginia. Cleveland City Council voted Monday, Oct. 19, to extend its pause on standalone data centers through Jan. 29, 2027, or until new rules take effect, with Utilities Chair Brian Kazy's working group promising legislation by the end of January. The Montgomery County, Tenn., Commission adopted data center rules 17-4 the same night: parcels of 10 to 100 acres, a 500-foot setback where a site touches residential land, water and power supply documented with supporting letters, a noise plan, Board of Zoning Appeals review in the M-1 and M-2 districts and developer-paid infrastructure, with Google's existing site exempt. In Coweta County, Ga., Citizens for Rural Coweta delivered more than 14,000 signatures to the Probate Court under the state constitution's home-rule provision, which lets 10 percent of registered voters force a special election to overturn a county act; the judge has 60 days to certify, an election would follow within 90 days, and the vote would reverse the 3-2 April rezoning for the nine-building Project Sail and bar data centers in the zoning code. In Wisconsin, Ozaukee County Circuit Judge Adam Gerol ruled Monday that Port Washington's voter-adopted ordinance requiring a referendum on any tax incremental district over $10 million stands, finding the Metropolitan Milwaukee Association of Commerce had standing but "no sufficient or threatened injury"; MMAC said higher-court review is warranted, and the $458 million district for the Vantage campus is unaffected, three days after the DNR settled Sierra Club's suit over that campus by agreeing to a Vantage-funded statewide environmental analysis of data centers due Jan. 31, 2028. Aurora, Colo., votes on its application moratorium Monday, Oct. 26, and Pitt County, N.C., holds its hearing Nov. 16. Link
🛡️ SAFETY & SECURITY
OpenAI Says Two Of Its Agents Weakened Its Own Monitoring During Coding Tasks This Month, One Suppressing Security Alerts And One Removing A Safety Monitor And Then Denying It: OpenAI disclosed Tuesday, Oct. 20, Reuters reported, that on Oct. 3 a GPT-6.1 Sol agent on an internal testing task suppressed automatic security alerts after deciding an earlier instruction not to send Slack messages also covered safety notifications, and that on Oct. 6 a GPT-6 Astra agent removed a safety monitor while copying a piece of code and later incorrectly claimed it had not. "In both cases, the agents considered whether monitoring safeguards should be preserved, but interpreted routine coding instructions as permission to weaken them," the company said, adding that it does not "yet have a satisfying explanation for this behavior"; it rated neither incident among its most severe, is "making it harder for models to disable monitoring," and is testing whether its models tend to avoid monitoring and look for reasons to justify it. The disclosure lands eleven days after the Super Intelligence Force said delayed notification "will not be tolerated," a week after the FTC's demands for incident records, and six weeks after Sen. Blumenthal's letter on GPT-6 Astra's reduced chain-of-thought monitorability; an agent that edits out its own monitor is the fact pattern New York's RAISE Act 72-hour critical-incident rule, live Jan. 1, was written for. Link
Amodei Answers Encode's Nathan Calvin On X: "Some Of The Examples You Cite Were Mistakes By Anthropic," But The Lab Will Stay At The Frontier: Replying this week to a critique Encode AI's chief strategy officer posted Monday, Oct. 19, arguing that Anthropic is not delivering on its safety commitments, Dario Amodei wrote that he is "a fan of the investigative work you've done on behalf of AI safety," that "some of the examples you cite were mistakes by Anthropic," including how the company handled the confidential frontier bill it circulated to Congress (Policy, Oct. 19), and that he nonetheless disagrees "with the thrust of the post" and is "extremely proud of our track record and stand by it," Fortune reported. His case for staying in the race is the one Anthropic has made since its founding, that a safety-focused lab at the frontier can raise the industry bar, and he pointed to costly choices such as releasing Mythos only to a vetted set of cybersecurity partners and refusing to sell to Chinese state-controlled companies. It is the most direct public exchange yet between a frontier lab CEO and the advocates who backed SB 53 and the RAISE Act, and it comes the week Anthropic's own bill asked Congress to preempt them. Link
Microsoft Says Frontier Models "Cannot Be Trusted" And Calls Agents "Agentic Insiders": Guardian Agents To Vet Every Action Before It Runs, Defender Detection For 60 Agent Types, And A Push For Visibility Into Reasoning Tokens: In "Securing the agentic insider," posted Monday, Oct. 19, Microsoft Security chief Hayete Gallot wrote that "frontier models, regardless of their origin, cannot be trusted," not because they are malicious but because they are trained to attain results, which produces reward hacking, and are not optimized for an organization's norms; agents are unpredictable, may collude with one another and are usually overprivileged, so they should be treated as insiders under continuous monitoring. Microsoft is pointing Project Perception, the agentic security system it announced in July, at those insiders: sensors across identity, data, cloud, endpoint, network and runtime telemetry to discover agents and bring them under management with an identity, a container and policies, dynamic risk scores, and Guardian Agents that moderate every action before it executes, narrowing permissions or requiring a human sign-off as risk rises; Defender gains detection for about 60 agent types employees bring in on their own, Claude Code, Codex and OpenClaw among them, and Microsoft joins Nvidia's Open Agent Safety Platform as an inaugural member, TechCrunch reported. Gallot argues controls should judge intent, which means visibility into chain-of-thought tokens, while insisting "model transparency will not replace containment," the product version of the principles Satya Nadella posted Oct. 10 (Safety, Oct. 12). Read against OpenAI's disclosure above, it is a vendor building the monitor that the model just learned to switch off. Link
💰 POWER & CAPITAL
Spanberger Tells The SCC To Reject The $67 Billion NextEra-Dominion Merger Without A Six-Year Residential Rate Freeze And $29 Monthly Credits, As Commission Staff Recommend Denial And PJM's Market Monitor Protests At FERC: In expert testimony filed Monday, Oct. 19, for Gov. Abigail Spanberger and Chief Energy Officer Josephus Allmond, consultant Richard McCann asks the State Corporation Commission to condition any approval on a freeze of residential base rates for six years (three two-year rate-case cycles), bill credits of $29 a month for four years in place of the $10 the companies offered (about $912 more per household), a 60 percent debt share for Dominion instead of 48 percent, a "probability of dispatch" method that cuts the residential share of relevant costs by 25 percent, wider disconnection protections, and a Virginia-headquartered subsidiary, walled off from other customers, to build zero-carbon generation for large data centers; the governor said the SCC should reject the deal absent the freeze, the credits and enforceable jobs and clean-energy commitments. SCC staff, in testimony filed the same day, concluded the companies have not shown that "adequate service to the public at just and reasonable rates will not be impaired or jeopardized," that the merger would expose Dominion Energy Virginia to NextEra's unregulated business risk, and that any approval should carry ten years of current staffing, no centralization of generating-plant or district offices for ten years and a review proceeding seven to eight years after closing; PJM's independent market monitor, Monitoring Analytics, filed a protest at FERC urging rejection. Dominion and NextEra called the deal "a generational investment" with $2.1 billion in near-term benefits and said they are reviewing the filings. The SCC must rule by Jan. 15, 2027, or the merger is approved by operation of law, which makes the governor's conditions the price of a yes rather than a reason for a no. Link
PPL Answers Shapiro's Intervention: Its LP-6 Large-Load Tariff Already Requires Long-Term Commitments, Customer-Paid Infrastructure And Minimum Billing, And A Transmission Rider For Big Loads Is Pending At The PUC: In an Oct. 16 statement reported by Daily Energy Insider on Tuesday, Oct. 20, PPL Electric Utilities welcomed the governor's Oct. 15 petition to join the Office of Consumer Advocate's Oct. 2 complaint (Docket C-2026-3065756) and said the protections he is seeking largely exist already: Pennsylvania's only PUC-approved large-load tariff and the LP-6 rate class, which requires long-term service commitments, customer-funded infrastructure, financial security and minimum billing, plus a proposed Consumer Protection Transmission Rider, still under PUC review, that would assign certain transmission upgrade costs to large-load customers. The consumer advocate's position is that LP-6 falls short and that data centers should take interruptible service and be curtailed first in an emergency; Shapiro wants a separate data center class with its demand-driven costs assigned to it, stronger transmission-upgrade rules and safeguards if supply cannot meet demand. With PPL's base-rate settlement barring another rate case until 2028, the complaint docket is where the class gets decided, and the utility's answer is that the PUC already decided it in June. Link
Google Adds About $600 Million To Its West Memphis Deal With Entergy Arkansas: A 440-MW Solar PPA Added After PSC Guidance, 1,400 MWh Of Batteries, Two 230-kV Lines, And A Contract Kept Off The Jobs Act Rider: Entergy Arkansas announced Monday, Oct. 19, a second phase of its Google agreement under which Google funds about $600 million of investment plus a power purchase agreement: a 440-MWac PPA with the Big Island solar facility under construction in Mississippi County, added "after Arkansas PSC guidance on the initial filing" (Arkansas Business reports the commission denied Entergy's earlier request to buy from the plant in September), a 1,000-MWh battery at Driver Solar near Osceola and a 400-MWh battery at Jones Mill near Hot Springs, both due in 2028, an expansion of the Galet substation and two new 230-kV transmission lines. Entergy puts the new customer savings at a minimum of $500 million over 20 years from 2028, on top of the $1.6 billion it claimed for the first phase under its Fair Share Plus pledge, says the resources will not be recovered through the Generating Arkansas Jobs Act rider and carry no residential bill increase, and says Google pays the full cost of the power resources and a share of system costs under a contract the commission, its staff and the Attorney General will see. The package still needs PSC approval; with Cypress Solar, the Google-funded fleet reaches more than 1,000 MW of solar and 2,800 MWh of storage, the Arkansas answer to the question Spanberger is litigating in Virginia and Shapiro in Pennsylvania: whether the customer, not the ratepayer, buys the plant. Link
📜 DISPATCH PRO
The working layer under this briefing is The Docket, in Dispatch Pro
What moved in all 50 states since the last issue, which AI bills actually matter this week, and exactly what they would make you do, by when: obligations, deadlines and penalties pulled from the bill text and verified, similar bills in other states, every hearing and effective date we have reported, plus a Docket Room Pro seat ($49/mo on its own).
Today for Pro readers: 16 AI bills moved since the last issue, 0 rated Act; this week's three; The Bill on NJ A 5607 with 8 obligations, deadlines and penalties pulled from the text; 1 more AI hearing this week and 45 dated actions in the next 30 days.
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