ICYMI: Legislation to Codify Gov Shapiro's GRID Standards into Law | Commonwealth of Pennsylvania

Harrisburg, PA - Today, the House Finance Committee voted to advance HB 2650, introduced yesterday, in a bipartisan vote. HB 2650 would codify Governor Josh Shapiro's Responsible Infrastructure Development (GRID) Standards in law and require data center developers seeking Commonwealth tax benefits to ensure projects receiving Commonwealth support going forward protect energy affordability, engage local communities, create family-sustaining jobs, and meet strong environmental standards. Senators John Kane and Steve Santarsiero plan to introduce companion legislation in the coming days.

HB 2650 would replace the current exemption from paying sales tax with a new GRID certification framework built around strict accountability standards, transparency, and ongoing compliance requirements. Requirements for GRID certification would include protecting energy affordability, promoting transparency, engaging local communities, supporting workforce development, and strengthening environmental protection.

"I've heard directly from Pennsylvanians who are concerned about what data center development could mean for their communities, and GRID helps restore the balance of power, ensuring local communities have a say in the process," said Governor Shapiro. "I'm glad the House Finance Committee worked quickly and in a bipartisan fashion to advance legislation codifying these standards and I look forward to continuing to work with leaders in the legislature, because if companies want to build data centers in Pennsylvania, they have to meet strong, commonsense standards that protect our communities and our Commonwealth."

Projects that receive GRID certification would become eligible for Commonwealth tax benefits and would be required to demonstrate ongoing compliance through annual reporting and verification requirements.

As demand for artificial intelligence and data center infrastructure continues to grow, these bills would ensure Pennsylvania remains competitive for major investment opportunities while requiring developers to meet clear standards that protect ratepayers, local communities, workers, and the environment.

Built around four core principles, the GRID Standards focus on protecting energy affordability, promoting transparency and community engagement, supporting workforce and economic development, and strengthening environmental protection.

Governor Shapiro's GRID Standards have earned support from a broad coalition of environmental advocates, organized labor, industry leaders, and local government stakeholders who recognize the need for clear, enforceable standards governing data center development in Pennsylvania.