Unlike other states, Pennsylvania has failed to get meaningful legislation to address energy affordability, to increase electric generation, rein in spiking state data center tax incentives and give communities the tools they need to address proposals by speculators and global tech companies.
Proposals That Did Pass
The final budget settlement included only three provisions in the Fiscal Code Bill-- Senate Bill 146--
-- Data Center Energy And Water Reporting: Requires data centers, with a peak capacity demand of more than 10 megawatts, to submit annual reports to the Department of Environmental Protection related to their energy and water usage for the preceding year. [Page 128]
-- Advanced Electric Transmission Line Technologies: Requires transmission siting applicants, such as electric distribution companies (EDCs), to evaluate the implementation of Advanced Transmission Technologies (ATTs) when constructing new or updating existing transmission lines, when submitting a siting application to the Public Utility Commission. [Page 132]
-- Electricity Load Forecast Accountability: Requires PJM to submit load forecasting information to the Public Utility Commission. PUC, along with the Office of the Consumer Advocate, can request to review contracts and agreements that affect load forecast assumptions, between interconnected customers and utilities. [Page 126]
A fourth legislative proposal was passed in another bill--
-- Small Modular Nuclear Power Reactor Fees: House Bill 2017 (Giral-D-Philadelphia) establishing fees for small modular nuclear power reactors. House Fiscal Note & Summary
20 House Proposals That Saw No Action
Twenty proposals were passed by the House-- many by lopsided bipartisan votes-- to address energy affordability, to increase electric generation, improve regulation of large loads and data center by the Public Utility Commission, rein in spiking costs of the data sales tax exemption and provide better tools and time for communities to evaluate data center proposals by speculators and global tech companies.
None of them saw action in the Senate and the Senate only passed one bill to address two data center issues so their members could put up symbolic votes-- House Bill 1667 (Takac-D-Centre) that repeals the data center sales tax exemption, eliminates the 6% Gross Receipts Tax on electric bills and makes other tax changes.
Here’s a list of what the House has passed so far--
-- Authorize PUC To Regulate Data Centers: House Bill 1834 (Matzie-D-Beaver) authorized the Public Utility Commission to regulate A.I. data centers and other large loads passed by a vote of 104 to 95-- Republicans opposed. (Passed House in March, now in Senate.) [Read more here]
-- Repeal Data Center Tax Exemption: House Bill 2198 (Vitali-D-Delaware) that would repeal the state data center sales tax exemption for computer equipment by a vote of 197 to 5. (Passed in June, now in the Senate.) [Read more here.]
-- Puts Conditions On Data Center Tax Exemption: House Bill 2650 (Webster-D- Montgomery) limiting the state data center sales tax exemption to A.I. data center developers who follow Gov. Shapiro's Responsible Infrastructure Development Standards (GRID) by a vote of 134 to 58-- Republicans opposed. (Passed House in June, now in Senate). [Read more here.]
-- Conditions Added To Data Center Sales Tax Exemption/Nondisclosure Agreements: House Bill 2359 (Giresi-D- Montgomery) bill adds GRID-like conditions on receiving the data center sales tax exemption and prohibits those getting the exemption from signing nondisclosure agreements was reported out of the House Appropriations Committee [House Fiscal Note & Summary] and passed by the House 171 to 31-- Republicans opposing. The bill now goes to the Senate for action.
-- Authorized Individual Municipal 6-Month Moratoriums: House Bill 2496 (Friel-D-Chester) giving individual municipalities authority to pause consideration of A.I. data center proposals for six months by a vote of 201 to 1-- Republican opposed. (Passed the House in June, now in the Senate). Read more here.
-- Public Meeting Notices: House Bill 2146 (Freeman-D-Lehigh) restoring the 24-hour notice rule for local government public meetings was passed by the House by a vote of 193-9 and now goes to the Senate for action. [Note: Senate passed similar legislation in June-- Senate Bill 1150 (Stefano-R-Somerset).]
-- Repeal Tax On Electricity, Utility Rate Reform: House Bill 2224 (Fiedler-D-Philadelphia) eliminates the 6% Gross Receipts Tax on electric bills saving $1.69 billion annually and changing the basis for determining rates for electric, natural gas, water and wastewater public utilities to a market-based return on equity unanimously passed by a vote of 202 to 0. (Passed the House in June, now in the Senate. [Read more here]
-- Community Solar Energy: House Bill 504 (Schweyer-D-Lehigh) authorizing Community Energy Programs to expand solar energy access across Pennsylvania (part of Governor’s Lightning Energy Plan) by a vote of 114 to 89- Republicans opposing. (Passed the House in May 2025, now in the Senate). [Read more here.]
-- Encouraging Warehouse Solar: House Bill 1260 (Rusnock-D-Berks) encourages the development of solar energy generation facilities at warehouses and distribution centers by a vote of 101 to 98-- Republicans opposed. (Passed House in March, now in Senate.) [Read more here.]
-- Encourage Geothermal Energy: House Bill 2076 (Venkat-D-Allegheny, Williams-R-Chester) to establish a framework for development of clean, safe geothermal energy to meet exploding base load energy demands by a vote of 118 to 83-- 16 Republicans supporting. (Passed House in May, now in Senate.) [Read more here]
-- Authorize Virtual Power Plants: House Bill 2264 (Davidson-D-Cumberland) to establish a framework for a virtual power plant to use existing energy resources more effectively, increase grid reliability and address rising energy bills by a vote of 107 to 95-- Republicans voting no. (House passed in June, now in the Senate.)
-- Make Available Electric Grid Capacity Maps: House Bill 2429 (Cerrato-D-Montgomery) requires electric utilities to make available maps showing the hosting capacity of transmission lines to allow for faster connection of generation by a vote of 110 to 92-- Republicans opposing. (Passed House in June, now in the Senate.
-- Retool PA Energy Financing Authority: House Bill 2347 (Fiedler-D-Philadelphia) making changes to the authority of the PA Energy Financing Authority to take advantage of available federal funding by a vote of 106 to 95-- 4 Republicans supporting. (Passed House in May, now in Senate.) [Read more here]
-- Update Act 129 Energy Efficiency Plans: House Bill 505 (Donahue-D-Lackawanna) updating Act 129 utility energy efficiency programs and adding natural gas utilities (part of Governor’s Lightning Energy Plan) by a vote of 102 to 101-- Republicans opposing. (Passed House in December 2025, now in the Senate).
-- Tax Credit Changes To Develop Clean Energy Generation: House Bill 500 (Inglis-D- Allegheny) -- the Pennsylvania Economic Development for a Growing Economy (EDGE) Tax Credit to develop new clean, reliable and affordable electric generation facilities (part of Governor’s Lightning Energy Plan) by a vote of 108 to 95-- Republicans opposing. (House passed in May 2025, now in the Senate.)
-- Advanced Clean Manufacturing Tax Credit: House Bill 1556 (Fiedler-D-Philadelphia) authorizing a clean manufacturing tax credit by a vote of 104 to 93- Republicans opposed. (Passed House in February, now in Senate.) [Read more here]
-- Model Data Center Zoning Ordinance: House Bill 2151 (Donahue-D-Lackawanna) directing DCED to develop a model zoning ordinance for voluntary use by local governments to regulate and mitigate the community impacts of A.I. data center developments by a vote of 124 to 77-- Some Democrats oppose, mostly Republicans. (House passed in April, now in the Senate.) [Read more here.]
-- Reporting Data Center Energy, Water Use: House Bill 2150 (Donahue-D-Lackawanna) by a vote of 133 to 68 requiring data centers in Pennsylvania to send information about their energy and water use to DEP and requires DEP to aggregate the information and create an annual report on data center impacts by a vote of 133 to 68-- Republicans voting no. (House passed in April, now in the Senate.) [Read more here.]
-- Reporting Data Center Water Use: House Bill 2246 (Webster-D-Montgomery) requiring data centers to report on and regulate water use, water quality and other information on water discharges to DEP by a vote of 116 to 84-- Republicans opposing. (Passed House in April, now in Senate.) [Read more here]
-- Nuclear Power Plant Fees: House Bill 2450 (Mehaffie-R-Dauphin) increases fees on nuclear power plants to support oversight by DEP by a vote of 199 to 3- Republicans voted no. (Passed the House in June, now in the Senate.)
Governor’s Statements:
-- Governor Shapiro’s Remarks as Prepared During 2026-27 Budget Signing Ceremony
-- 18 Budget Wins Secured by Governor Shapiro, Including Historic Investments in Education, More Funding for Vo-Tech, Additional State Troopers, and More
Related Articles This Week:
-- Budget First Look: At Best A Cost To Carry Environmental Budget, Supports Oil & Gas Program Operations, Several Data Center Provisions But Not A Moratorium Or Pause [PaEN]
-- A.I. Data Center Legislative Scorecard: Pennsylvania Failed To Finalize Meaningful Legislation On Energy Affordability, To Increase Electric Generation And Give Communities The Tools They Need To Cope With A.I. Proposals [PaEN]
-- Environmental/Energy Groups: Final State Budget Fails To Address Critical A.I. Data Center Issues And Skyrocketing Energy Bills [PaEN]
NewsClips:
-- Spotlight PA: PA Adopts $50.8 Billion Budget That Sends More Money to Poorest Schools, Skips Difficult Policy Questions
-- PennLive: Shapiro Signs Budget Deal That Goes Big On Education, Punts On Other Key Issues
-- PA Capital-Star: Gov. Shapiro Signs $50.8 Billion Compromise Budget, Despite Some Opposition In Both Parties
-- The Center Square: Shapiro Signs $50.8 Billion State Budget Amid Praise, Barbs
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