Here’s where Lehigh Valley legislators stand on data center regulation as lawmakers prepare to return to session
Pennsylvania lawmakers are preparing to return to session with several bills aimed at regulating data centers. Proposals include empowering local governments to enact moratoriums, repealing a state tax break for data center equipment, and requiring data centers to fund grid upgrades and clean energy. These efforts follow Gov. Josh Shapiro's executive order and ongoing discussions about environmental and energy impacts.
Pennsylvania lawmakers, including those from the Lehigh Valley, are preparing to return to the General Assembly session this fall with several proposals to regulate data center development. These efforts follow Governor Josh Shapiro's executive order on data center regulation and are more ambitious than the limited budget provision passed before summer recess, which only required annual energy and water use reporting from data centers.
Key legislative proposals include Senate Bill 1345, introduced by Sen. Jarrett Coleman (R-Lehigh), which would allow municipalities to impose an 18-month moratorium on "high impact" data center applications (25 MW or more) for environmental studies and zoning amendments. House Bill 2533, sponsored by Rep. Jamie Walsh (R-Luzerne) and co-sponsored by Rep. Gary Day (R-Lehigh), similarly proposes an 18-month local moratorium. House Bill 2496, with bipartisan support including Lehigh Valley representatives, passed the House and moved to Senate committees, proposing a six-month local pause.
Other bills aim to repeal tax breaks, increase transparency, and protect consumers. Senate Bill 1344 and House Bill 2198 sought to eliminate the sales and use tax exemption for data center equipment. House Bill 2359, co-sponsored by over 50 legislators, focuses on disclosure rules for operators seeking state tax breaks, including occupants, energy/water usage, and certifying no nondisclosure agreements with government agencies. House Bill 1834 proposes making data center operators responsible for grid upgrade costs and contributions to a low-income heating assistance fund, while also requiring them to provide clean energy or pay into a fund for new clean energy resources. House Bill 2650 aims to codify Governor Shapiro's Responsible Infrastructure Development standards into law. Despite bipartisan support for some measures, both legislative chambers have yet to agree on a path forward for comprehensive regulations.