PA House passes bills to increase oversight of data centers, protect local communities

The Pennsylvania House of Representatives has passed two key pieces of legislation, House Bill 2150 and House Bill 2151, to enhance oversight and protect communities from the impacts of rapid data center development within the commonwealth. This legislative action comes amidst growing concerns from communities over data centers' significant energy and water consumption, rising utility bills, zoning policies, and environmental impacts like air and noise pollution, as well as the loss of farmland. House Bill 2150, sponsored by Rep. Kyle Mullins (D-Lackawanna), passed 133-68 and establishes annual energy and water reporting requirements for data center facilities. It also mandates the state Department of Environmental Protection and Public Utility Commission to jointly issue an annual report on these impacts. Rep. Mullins emphasized the need for "complete and total openness regarding the resources" data centers utilize, citing a "speculative gold rush" that has raised more questions than answers. The bill is supported by numerous environmental groups including the Sierra Club of PA and the Natural Resources Defense Council. House Bill 2151, sponsored by Rep. Kyle Donahue (D-Lackawanna), passed 124–77. This bill requires the Local Government Commission to develop an optional model ordinance for municipalities to regulate data centers. Rep. Donahue stated that many communities lack consistent guidelines for managing issues like noise, facility size, and water consumption, and this framework would help ensure responsible placement and operation while safeguarding residents' quality of life. This bill also garnered support from environmental groups and the PA Boroughs Association. These bills are part of a broader legislative effort, following the March passage of the Protect Our Families Act (H.B. 1834) to prevent ratepayers from subsidizing data center electricity demands. Additional proposed legislation includes H.B. 2246 for water usage plans, H.B. 2359 to prevent NDAs between officials and data center companies, and H.B. 2061 requiring prevailing wages for tax break eligibility. Rep. Elizabeth Fiedler (D-Philadelphia), Chair of the House Energy Committee, expressed hope for Senate cooperation on these "critical protections."