Credit: Tom Sofield/LevittownNow.com
A local state senator is planning to introduce a bill that will put Gov. Josh Shapiro’s Responsible Infrastructure Development (GRID) framework for data center projects into state law.
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State Sens. Steve Santarsiero, of the 10th Senatorial District, and John Kane, who represents parts of Chester and Delaware counties, are partnering on the upcoming Senate bill. The two lawmakers are Democrats.
Santarsiero and Kane’s proposal mirrors a parallel push in the House.
State Rep. Joe Webster, a Democrat from Montgomery, introduced House Bill 2650 to codify the governor’s standards.
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The proposed legislation advanced on Wednesday after the House Finance Committee voted 15-11 on the House version of the bill.
If passed, the legislation would replace the current sales tax exemption with a rigorous GRID certification framework for new data centers.
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In a way to be able to qualify for state tax perks, developers would have to comply with ongoing transparency, strict accountability, and mandatory yearly reporting and verification protocols.
The new rules would apply only to future development and would not impact projects already approved.
Under the Democratic governor’s proposed framework, developers would submit an application detailing how their projects intend to hit required benchmarks. The measures include protecting energy affordability, fostering workforce and economic development, ensuring community engagement and transparency, and enacting environmental safeguards.
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“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,” Santarsiero said. “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.”
Approved applications would have to be certified jointly by the state Office of Transformation and Opportunity and the Pennsylvania Department of Revenue.
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Certified projects would then gain entry into the Permit Fast Track Program, a system designed to accelerate and streamline the permitting process across multiple state regulatory agencies.
To keep certification, data center developers would be mandated to hit specific spending targets and create jobs that pay above the state’s average wage. The framework also dictates that companies seek public feedback and implement clean energy mandates for larger-scale projects.
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Shapiro said the codified GRID plan would establish “enforceable standards that protect ratepayers, support good-paying jobs, strengthen environmental protections, and ensure developers are accountable to the communities where they build.”
The Data Center Coalition, an industry group whose top-tier members include Amazon, Google, and Microsoft, previously expressed concern that the GRID standards would saddle companies with a complicated framework that could challenge future development across the state, according to the Pennsylvania Capital-Star.
