NEWS: Legislation to Codify Gov. Shapiro's GRID Standards Introduced in House | Commonwealth of Pennsylvania

Harrisburg, PA - Today, Representative Joe Webster introduced HB 2650 in the House, which would codify Governor Josh Shapiro's Responsible Infrastructure Development (GRID) Standards in law and require data center developers seeking Commonwealth tax benefits to meet strict standards protecting consumers, communities, and the environment while increasing transparency and accountability for large-scale data center projects. The bill has been assigned to the House Finance Committee and Senators John Kane and Steve Santarsiero plan to introduce companion legislation in the coming days.

HB 2650 would establish a clear framework to ensure projects receiving Commonwealth support going forward protect energy affordability, engage local communities, create family-sustaining jobs, and meet strong environmental standards.

"I've heard directly from Pennsylvanians who are concerned about what data center development could mean for their utility bills, their communities, and our environment - and I share those concerns," said Governor Shapiro. "Pennsylvanians deserve strong, enforceable standards that protect ratepayers, support good-paying jobs, strengthen environmental protections, and ensure developers are accountable to the communities where they build - and I'm glad Representative Webster and Senators Kane and Santarsiero are leading the effort to codify these standards in the General Assembly. I look forward to working with leaders in the legislature to protect our communities and hold data center developers accountable."

This legislation establishes the requirements for GRID certification, including protecting energy affordability, promoting transparency, engaging local communities, supporting workforce development, and strengthening environmental protection.

"Governor Shapiro challenged us all with his GRID program, to 'right the ship' and make sure development in Pennsylvania benefits Pennsylvanians. That's not the case right now with regard to data centers and everyone knows it: data centers get all of the perks and local municipalities carry all of the risk," said Representative Webster, PA's 150th House District. "This bill has strict and enforceable restrictions on energy use, water and noise regulation. It provides an enforceable mechanism for community benefits and local jobs. And it cuts the tax give-away from 25 years to 10. Combining this legislation with the package of bills already passed in the House and awaiting attention in the Senate creates a framework supportive of our local municipalities, and it gives them some tools to get data center development on a better track."

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. 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.

Senators Kane and Santasiero plan to introduce companion legislation in the coming days.

"Across Pennsylvania, local communities are being asked to shoulder what can feel like an insurmountable challenge: protecting their land, natural resources, infrastructure, and overall quality of life in the face of rapidly expanding data center development. Sitting back and doing nothing is simply not an option. Our municipalities have been clear. They need help, they need standards, and they deserve a seat at the table," said Senator Kane, PA's 9th Senatorial District. "This legislation answers that call by establishing Governor Shapiro's GRID proposal into law and creating meaningful safeguards for communities across our Commonwealth. With these protections in place, we can ensure that economic development does not come at the expense of our neighborhoods, electric grid, water resources, or Pennsylvania families. This bill gives communities the power to help determine how and whether these projects move forward, while ensuring developers operate responsibly, transparently, and in partnership with the people who call these towns home."

"By codifying Governor Shapiro's GRID plan, this bill will protect communities and the environment, safeguard our electric grid, protect rate payers, and promote the use of clean power," said Senator Santasiero, PA's 10th Senatorial District. "With the rapid growth in AI across Pennsylvania and the United States, it is important that the General Assembly act quickly to pass this critical legislation."

The Shapiro Administration has also worked closely with Representative Rob Matzie and the co-sponsors of House Bill 1834 - which passed in the House in late March - to help establish baseline standards for how data centers should operate in Pennsylvania. HB 2650 builds on that foundation by establishing the GRID certification process in law and requiring developers receiving Commonwealth tax benefits to meet strong accountability standards.

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.

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.

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.