Pennsylvania Gov. Shapiro Issues Executive Order on Data Center Standards
Pennsylvania Governor Josh Shapiro has signed an executive order establishing stricter environmental and transparency standards for new data center developments in the state. The order aims to streamline permitting for developers who adhere to these GRID standards while making it more challenging for those who do not. It also makes local zoning approvals a precondition for state permits and updates the state's data center sales tax exemption to require compliance with GRID standards.
Pennsylvania Governor Josh Shapiro has signed a new executive order imposing stricter environmental and transparency standards for data center developments across the state. The order, which is not a moratorium but rather a regulatory overhaul, establishes two tracks for data centers with peak demands over 25 MW.
Developers who agree to the Governor's Responsible Infrastructure Development (GRID) standards via a "consent order and agreement" and secure local approvals will receive state permits on a rolling basis. Those who do not comply with GRID standards will face a much more difficult permitting process, requiring all applications to be submitted simultaneously before any permits are issued. This approach aims to reduce speculative proposals that cause community concern without guaranteed projects.
Furthermore, the executive order unilaterally updates the state's data center sales tax exemption guidelines, making compliance with GRID standards a prerequisite for receiving the exemption. The administration asserts that this executive order will also encourage electric utilities to prioritize power curtailment for data centers during emergencies and prevent associated utility costs from being passed on to consumers. Governor Shapiro believes he is within his authority to enact these changes, though the order includes a severability clause.