Pennsylvania Legislature Advances Bills to Regulate Data Center Development
Multiple bills are moving through the Pennsylvania legislature concerning data center development. These bills address issues like a potential six-month moratorium on applications, oversight of energy and water consumption, clean energy mandates, transparency, fire safety, and the removal of tax exemptions for equipment. The legislative efforts aim to give municipalities more control, protect ratepayers and natural resources, and ensure transparency from data center developers.
The Pennsylvania legislature is actively considering a suite of bills aimed at regulating data center development across the state. With several pieces of legislation having passed the House and advancing to the Senate, elected officials are addressing widespread concerns from residents regarding electricity consumption, water usage, noise pollution, and the potential takeover of farmland. The legislative push reflects a bipartisan sentiment against unchecked data center expansion within local communities.
Key proposed measures include HB 2496, sponsored by Rep. Paul Friel, which would grant municipalities a six-month moratorium on considering new data center applications. Rep. Robert F. Matzie's HB 1834 aims to give the Pennsylvania Utilities Commission oversight of data center energy use, prevent utility price increases for residents due to data center infrastructure upgrades, and mandate that data centers procure a rising percentage of clean energy by 2035. Additionally, bills are in committee to prevent data centers from gaining public utility status, which would otherwise allow them to preempt local zoning and invoke eminent domain.
Other significant legislation includes HB 2150 by Rep. Kyle Mullins, requiring data center developers to disclose operational details and report energy and water usage to the Department of Conservation and Natural Resources for environmental impact assessments. Governor Shapiro's HB 2650 seeks to codify Responsible Infrastructure Development (GRID) Standards, linking state support to developers' adherence to energy affordability, community engagement, job creation, and environmental criteria, with companion legislation proposing penalties for non-compliance. Furthermore, HB 2198, sponsored by Rep. Greg Vitali, aims to reverse a 2021 law granting tax exemptions for data center equipment purchases, citing significant lost state revenue. Finally, HB 2535 by Rep. Christina Sappey addresses fire safety standards and emergency response coordination, while Rep. Joe Ciresi's HB 2359 seeks to ensure transparency by prohibiting NDAs between government agencies and data centers regarding development.