2 data center bills pass PA House by large margins
Two data center bills have passed the Pennsylvania House of Representatives with bipartisan support. One bill codifies Governor Shapiro's voluntary "GRID standards" for developers seeking state tax breaks, requiring them to meet energy, environmental, and community engagement criteria. The other empowers municipalities to enact a six-month pause on data center applications to develop local zoning ordinances.
The Pennsylvania House of Representatives has passed two significant bills concerning data center development with large bipartisan majorities, sending them to the state Senate for further consideration.
One bill, HB 2650, codifies Governor Josh Shapiro's voluntary "GRID standards," which would replace the current sales tax exemption for data center equipment with a new certification framework. Developers seeking state tax benefits would need to meet strict standards regarding energy affordability, community engagement, job creation, and environmental protection. Opponents, including the Better Path Coalition and No False Climate Solutions, have criticized this bill as a "paper tiger," arguing that its voluntary nature allows developers to bypass regulations by simply declining the tax break.
The second bill, sponsored by state Rep. Paul Friel (D-26th Dist.), passed with a near-unanimous 201 to 1 vote. This legislation empowers municipalities to impose a six-month pause on data center development applications. This "pause window" is intended to provide local governments sufficient time to research, draft, and pass comprehensive land-use ordinances to regulate data centers, addressing concerns like water and energy usage and other potential community harms. State Rep. Chris Pielli (D-156th Dist.), a co-sponsor, emphasized the need for local governments to protect residents from rapid, unregulated industrial development.