Lawmakers advance bill to boost oversight of new data center water use

Pennsylvania state lawmakers have advanced a bill that would mandate data center developers submit comprehensive reports on their anticipated water usage to the commonwealth prior to beginning operations. The proposed legislation, sponsored by Rep. Joe Webster (D-Montgomery), is part of a broader effort to increase oversight of the rapidly expanding data center sector, particularly given its role in the artificial intelligence boom. The required reports would detail water sourcing, projected consumption, and water temperatures upon intake and return, along with evidence that the project will not adversely affect water quality or quantity. The State Department of Environmental Protection would gain authority to reject projects deemed harmful to state waterways or other water users. Rep. Webster emphasized the need for "guardrails" to ensure data centers benefit Pennsylvania residents. However, the measure faces some opposition. Rep. Jack Rader (R-Monroe) expressed concerns about excessive governmental layers, advocating for "local control" over such issues. Rep. Dallas Kephart (R-Clearfield) criticized a provision allowing the Environmental Quality Board, largely composed of unelected officials, to establish a development fee, arguing this should be a legislative prerogative. The fee would cover program implementation costs and contribute to the state’s Clean Water Fund. Despite Republican opposition, the bill passed its committee vote with bipartisan support, including two Republicans, Rep. Tom Mehaffie (Dauphin County) and Rep. Brenda Pugh (Luzerne County), joining all Democrats. It now awaits a full vote in the House and the Republican-controlled Senate, and ultimately requires Governor Josh Shapiro’s signature to become law. Separately, House Democrats are also advancing a bill for annual energy and water consumption reports from data centers to the State Department of Conservation and Natural Resources, which passed the House Energy Committee along partisan lines.