The data center regulation bills on the table in PA
The Pennsylvania House has passed several bills aimed at regulating data center development across the state, including mandates for energy/water disclosure and payments into assistance programs. These bills face significant opposition in the Republican-controlled state Senate, where leadership seeks a more
The Pennsylvania House has passed several bills to regulate data center projects, addressing energy and water usage, as well as contributions to state programs. While these proposals received bipartisan support in the House, they face a major hurdle in the state Senate, where Majority Leader Joe Pittman (R., Indiana) expressed a preference for a more "holistic" approach to data center development rather than individual bills.
Governor Josh Shapiro has proposed incentives like expedited permitting for data centers meeting environmental standards, and the state Public Utility Commission has approved a framework for utilities to charge data centers for infrastructure upgrades. However, environmental lawyer Robert Routh notes that legislative action would create more impactful and enforceable "guardrails" for the industry.
Key legislation includes a bill sponsored by state Rep. Rob Matzie (D., Beaver) directing the PUC to enact binding rules for data centers using over 25 MW, mandating clean energy use (starting at 10%, rising to 32% by 2035), and requiring payments into low-income energy assistance and clean energy project funds. Other bills, from state Reps. Joe Webster (D., Montgomery) and Kyle Mullins (D., Lackawanna), focus on mandating disclosure for water and energy usage, with penalties for non-compliance. State Rep. Kyle Donahue (D., Lackawanna) introduced a bill for the Local Government Commission to create a model zoning ordinance for townships, covering aspects like height, noise, setbacks, and community benefits agreements.
Environmental advocates, such as Katie Blume of Conservation Voters of Pennsylvania, largely support these legislative efforts, emphasizing the need for communities to have tools to protect themselves. Conversely, the Data Center Coalition, an industry trade group, opposes the legislation, arguing it holds data centers to unfair standards not applied to other types of economic development and could deter future investment in Pennsylvania.