On Monday, the PA House of Representatives voted to pass key legislation to protect communities from the impacts of data center development.
According to a press release from PA House, developers have been siting projects in the Commonwealth due to its prime, mid-Atlantic location, significant energy production, skilled workforce and a favorable business environment, including a generous tax incentive for data center projects.
Officials say while data center developments can drive economic growth, these projects consume tremendous amounts of energy and water. In addition to rising utility bills, communities throughout the commonwealth have expressed concerns over zoning policies, detrimental environmental impacts such as air pollution and noise pollution, as well as the loss of productive farmland and rural land.
Monday’s House passage of H.B. 2150 and H.B. 2151 moves the commonwealth closer to commonsense transparency requirements and protections for communities on the frontlines of this data center boom.
House Bill 2150, sponsored by Rep Kyle Mullins, D-Lackawanna, passed 133-68. This bill boosts transparency by establishing annual energy and water reporting requirements for data center facilities. It also requires the state Department of Environmental Protection and Public Utility Commission to jointly issue an annual report on the impacts of data center water and energy use, the release says.
“I stand with the residents of my district in their outrage over the lack of transparency with data center development,” Mullins said. “If data centers are approved anywhere, locally or across the state, we must demand complete and total openness regarding the resources that they propose to utilize. We must do everything we can to stop the speculative gold rush that has produced far more questions than answers.”
Officials say the bill is supported by a variety of environmental groups, including the Sierra Club of PA, Conservation Voters of PA, Clean Air Council, PA Environmental Council, Clean Water Action, PennFuture, and the Nurtural Resources Defense Council.
House Bill 2151, sponsored by Rep Kyle Donahue, D-Lackawanna, passed 124–77. The bill requires the bipartisan, bicameral Local Government Commission to develop an optional model ordinance, which municipalities could use to regulate data centers. He said these resources can be critical for municipalities which lack the time or financial ability to craft an ordinance from scratch.
“Many communities throughout the Commonwealth currently lack consistent guidelines to manage issues like noise, facility size, water consumption and other effects data centers may have on nearby neighborhoods,” Donahue said. “House Bill 2151 would offer municipalities an optional framework to help ensure data centers are placed and operated responsibly while safeguarding residents’ quality of life. As data center development expands rapidly across the state, their impact on surrounding communities is significant and that growth should not come at the expense of the people who live, work and go to school nearby.”
In addition to earning the support of environmental groups like the Sierra Club of PA, PennFuture, the PA Environmental Council, Clean Water Action, and Conservation Voters of PA, the bill is also supported by the PA Boroughs Association.
The release says both bills were originally referred to the House Energy Committee, chaired by Rep. Elizabeth Fiedler, D-Phila. While in committee, Fiedler convened a public hearing on the bills during which committee members heard feedback from environmental and local government stakeholders.
“As chair of the House Energy Committee, I’ve prioritized bills like H.B. 2150 and H.B. 2151 that protect our communities and environment and keep energy costs as low as possible for hardworking people,” Fiedler said. “Since these bills passed the House with bipartisan support, I’m hopeful that my colleagues in the Senate will work with us to get these critical protections across the finish line.”
These bills are part of a comprehensive effort to address the impacts of data centers in Pennsylvania. In March, the House passed the Protect Our Families Act, H.B. 1834, which prevents ratepayers and small customers from footing the bill for large data center electricity demands. That bill, which was referred to the Senate Consumer Protection and Professional Licensure Committee, awaits consideration.
Additional legislation to protect Pennsylvanians may be considered this spring, including Rep. Joe Webster’s H.B. 2246 requiring data centers to submit water usage plans for state oversight; Rep. Joe Ciresi’s H.B. 2359 preventing local officials from signing non-disclosure agreements with data center companies; and Fiedler’s H.B. 2061 protecting workers and communities by requiring data center developers to pay workers Pennsylvania’s prevailing wage to be eligible for tax breaks.