On July 12, the Senate and House passed and Gov. Josh Shapiro signed into law a $50.84 billion General Fund budget. There are no new taxes and no transfer from the Rainy Day Fund.
The General Fund budget is contained in House Bill 2400 and the related Fiscal Code bill -- Senate Bill 146-- includes relatively minor provisions related to data centers, including language on load forecasting, water and energy use reporting and using advanced transmission line technology. (see House Fiscal Note)
No provisions were included to repeal or set conditions for data centers receiving the state sales tax exemption and no pause or moratorium on considering data center proposals reached the Governor’s desk.
Separate legislation-- House Bill 2017 (Giral-D-Philadelphia) establishing fees for small modular nuclear power reactors-- was also sent to the Governor meant to encourage this new generation technology. House Fiscal Note & Summary
The Senate did move Senate Bill 1345 (Coleman-R-Lehigh) authorizing a local moratorium on data center applications for up to 18 months that was heavily amended and reported out of the Senate Rules Committee, but it now sits on the Senate Calendar stalled until this fall.
Other provisions in the Fiscal Code bill would allocate just over $19 million to pay for the operation of the Oil and Gas Program, but would take the money from nine other programs that regulate waste haulers, regulate sewage facilities planning, support the Chapter 105 permitting program and brownfields reuse, among others. (see House Fiscal Note)
Other provisions would establish new, reduced standards to “attainable bottom” for conventional and shale gas wells and sets a few, very general standards for utica and deep shale gas permitting. (see House Fiscal Note)
There are also provisions regulating food processing residuals and food processing residuals brokers. (see House Fiscal Note)
A new $20 million supplemental appropriation is included for the Hazardous Sites Cleanup Act Program requested by the Governor. (House Budget Summary)
County conservation districts and river basin commissions received the same as last year.
On the DCNR side, $145 million is transferred from the Oil & Gas Lease Fund to support DCNR staff and operations (see spreadsheet) and in-lieu of tax payments will be paid from Gaming [Gambling] Fund (see House Fiscal Note).
These bills were given final approval by the Senate and House and sent to the Governor--
-- General Fund Budget - House Bill 2400
-- Click Here for budget spreadsheet
-- Fiscal Code Bill - Senate Bill 146 -- House Fiscal Note & Summary
-- $19.026 Million To Support Oil & Gas Program Operations to make-up for drop in permit application fees paid by the oil and gas industry. The money would be transferred from a combination of these funds which would no longer be available to support these programs--
-- Waste Transportation Safety Account (regulating waste haulers)
-- Alternative Fuels Incentive Grant Fund
-- Used Tire Pile Remediation Account
-- Solid Waste Abatement Fund (Supports Waste Facility Permitting)
-- Coal Refuse Disposal Control Fund (Coal Refuse Pile Remediation)
-- Bituminous Mine Subsidence and Land Conservation Fund (Deep Coal Mining)
-- Sewage Facilities Program Administration (Act 537 Planning, On-lot Septic Systems)
-- Dams And Encroachment Fund (Chapter 105 Permits)
-- The Industry Land Recycling Fund (Supporting brownfields reuse) [Page 181]
-- Transfer of $580 Million From Special Funds To Be Named Later [Page 182]
-- New $20 Million Supplemental Appropriation to the Hazardous Sites Cleanup Fund (House Budget Summary)
-- Deep Shale Gas, Utica Shale Permits: Setting permit requirements the same for Marcellus Shale and deeper shale gas well and, if no spacing order has been entered, the 330 foot setback from the nearest outside boundary line of the lease does not apply [not related to setbacks from structures] [Page 33]
-- Attainable Bottom In Well Plugging: Establishes minimum oil and gas well plugging requirements and directs the Environmental Quality Board to adopt regulations for plugging not addressed in this new language. Also requires evaluation of wells plugged every three years. [Page 34]
-- 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. No later than June 30 of each year, the PUC shall issue a report, submit it to the General Assembly and publish it on its publicly available website. {Page 126]
-- 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.
The reports required to be submitted no later than July 1, 2027, and each July 1 thereafter. DEP, in consultation with the Public Utility Commission, is required to publish annual reports on the energy and water usage trends.
Those reports would be made available on DEP’s publicly available website and be provided to the General Assembly.
This provision also imposes a civil penalty of $10,000 per day if a data center fails to comply.
Penalties collected pursuant to this provision would be deposited into the low-income Customer Assistance Program (CAP) for the service territory in which the data center in violation is located. [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 (PUC).
Language creates a rebuttable presumption that an electric distribution company (EDC) has considered ATTs on proposed infrastructure if an ATT analysis is conducted.
Authorizes the PUC to, as a condition of approving an application, order ATTs to be integrated to help address the need identified in the application, if it's determined to be in the public interest.
The Public Utility Commission is also required to adopt regulations related to ATT assessment requirements, no later than one year from the effective date of this provision and provide for methods which applicants can utilize to meet such requirements. [Page 132]
-- Regulating Food Processing Residuals: Establishing best management practices for land application of food processing residuals, regulating FPR haulers and brokers and giving the State Conservation Commission, as well as DEP and the Department of Agriculture enforcement authority. [Page 14]
-- Oil & Gas Lease Fund Transfer To Environmental Stewardship Fund (Growing Greener) eliminated, like last year. [Page 3]
-- Personal Income Tax Transfer To Pay For Growing Greener II Bond Payments [Page 181]
-- DCNR In-Lieu Of Tax Payments to be paid from Gaming Revenue. [Page 108]
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
[Posted: July 12, 2026] PA Environment Digest
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