Pennsylvania House Committee Advances Legislation on Data Center Standards, Municipal Pauses
The Pennsylvania House Finance Committee advanced HB 2650, which aims to codify Gov. Shapiro's GRID standards, imposing strict energy, community, workforce, and environmental requirements on data center developers seeking state tax benefits. Concurrently, the House Local Government Committee advanced HB 2496, a bill that would grant municipalities the authority to enact a 180-day pause on data center applications to update their land use ordinances.
The Pennsylvania House Finance Committee has voted to advance HB 2650, a bill that seeks to codify Governor Josh Shapiro’s Responsible Infrastructure Development (GRID) Standards into law. This legislation would impose stringent requirements on data center developers seeking state tax benefits, ensuring projects prioritize energy affordability, local community engagement, job creation, and robust environmental standards. Developers would need to obtain GRID certification through an ongoing compliance framework, including annual reporting, to qualify for Commonwealth tax benefits.
Separately, the House Local Government Committee unanimously advanced HB 2496, a bill sponsored by State Representative Paul Friel (D-Chester). This proposed legislation would empower Pennsylvania municipalities to enact a temporary 180-day pause on data center application considerations by adopting a resolution. During this pause, municipalities could review and revise their land use ordinances specifically for data centers, with any applications filed during the pause subject to the newly adopted rules. State Representatives Kyle Mullins (D-Lackawanna) and Kyle Donahue (D-Lackawanna), co-sponsors of the bill, emphasized that this measure would provide local officials with the necessary time and tools to properly evaluate large data center developments and update regulations amid unprecedented sector growth, preventing communities from being rushed into long-term decisions.