New Shapiro order could face challenges -

Pennsylvania Governor Josh Shapiro's August 18 executive order, which establishes comprehensive requirements for data center developers, is facing potential legal challenges regarding the scope of gubernatorial authority. John Quigley, a former two-time state cabinet secretary, questioned the governor's power to implement certain provisions of the order without legislative action.

The order mandates that data center projects meet standards for energy affordability, community engagement, workforce development, transparency, and environmental protection to obtain state permits. It notably removes data centers from the Department of Environmental Protection's (DEP) fast-track permitting process and prohibits non-disclosure agreements for such projects. Governor Shapiro issued the order in response to over 100 proposed data center projects and stated that community support is crucial for state backing.

Quigley highlighted areas of concern, including the order's directive for the governor's counsel to engage with the independent Public Utility Commission (PUC) on energy costs, and the mandate for the state Revenue Department to alter guidelines for data center tax exemptions. He questioned the governor's authority to modify a legislative program. The order also directs DEP to review applications only with local approval and expedite those aligned with the administration's GRID standards, which were part of a House bill not acted upon by the Republican-controlled Senate. Quigley noted a "severability clause" in the order, suggesting the administration anticipates some provisions may not withstand legal scrutiny.