Pennsylvania SB 1323: An Act providing for the regulation of commercial data centers; imposing duties on the Pennsylvania Public Utility Commission, the Department of Human Services and the Pennsylvania Energy Development Authority; establishing the Data Center Low-Income Home Energy Assistance Program Enhancement Account and the Pennsylvania Energy Independence Account; providing for clean firm energy requirements, contract filing, commission review, disclosure requirements, backup generation standards, curtailment standards and certification and expedited interconnection for commercial data centers bringing incremental clean firm energy resources; and imposing penalties.

Bill Text

PRINTER'S NO. 1717
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1323
Session of
2026
INTRODUCED BY FLYNN, SAVAL, SANTARSIERO, FONTANA, BOSCOLA,
MALONE, KANE AND SCHWANK, MAY 20, 2026
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MAY 20, 2026
AN ACT
Providing for the regulation of commercial data centers;
imposing duties on the Pennsylvania Public Utility
Commission, the Department of Human Services and the
Pennsylvania Energy Development Authority; establishing the
Data Center Low-Income Home Energy Assistance Program
Enhancement Account and the Pennsylvania Energy Independence
Account; providing for clean firm energy requirements,
contract filing, commission review, disclosure requirements,
backup generation standards, curtailment standards and
certification and expedited interconnection for commercial
data centers bringing incremental clean firm energy
resources; and imposing penalties.
TABLE OF CONTENTS
Section 1. Short title.
Section 2. Definitions.
Section 3. Duties of commission.
Section 4. Prohibition on cost shifting and recovery of costs.
Section 5. Contributions to Low-Income Home Energy Assistance
Program.
Section 6. Pennsylvania Energy Independence Account.
Section 7. Clean firm energy requirements.
Section 8. Contract filing and commission review.
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Section 9. Annual report.
Section 10. Disclosure requirements.
Section 11. Backup generation standards.
Section 12. Curtailment standards.
Section 13. Certification and expedited interconnection for
commercial data centers bringing incremental clean
firm energy resources.
Section 14. Enforcement.
Section 15. Construction.
Section 16. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Data Center
Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Alternative compliance payment." A per-megawatt-hour
payment made by a commercial data center under section 7(e) if
the commercial data center elects to satisfy its clean firm
energy procurement requirement through payment in lieu of
procurement.
"Backstop procurement of capacity." An emergency or backstop
procurement of capacity by the applicable regional transmission
organization or its successor organization.
"Clean firm energy." Energy derived from nuclear energy,
hydroelectric power, including pumped storage, geothermal
energy, fuel cells, solar energy, including solar energy paired
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with storage resources, wind energy, including wind energy
paired with storage resources, clean hydrogen-fueled energy
generation, battery energy storage systems and long-duration
storage resources that meet all of the following:
(1) The resource is dispatchable or capable of providing
firm service so that the resource can deliver electricity on
demand with an availability factor consistent with standards
established by the commission.
(2) The resource constitutes incremental capacity,
including any of the following:
(i) Placement in service of a new clean firm energy
generation facility on or after January 1, 2025.
(ii) An uprate or efficiency improvement at an
existing clean firm energy generation facility completed
on or after January 1, 2025, that increases accredited
capacity or net output.
(iii) Placement in service of a battery energy
storage system on or after January 1, 2025, that provides
at least two hours of continuous discharge or another
duration determined by the commission to provide reliable
capacity value.
(iv) Placement in service of a long-duration storage
resource on or after January 1, 2025, that provides not
less than four hours of continuous discharge capability
and firm service as determined by the commission.
"Clean firm energy certificate." A tradable instrument
representing one megawatt-hour of eligible incremental clean
firm energy, issued and retired through a registry established
by the commission to demonstrate additionality and
deliverability consistent with section 7 and regulations
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promulgated under this act.
"Clean firm energy generation." Electricity generated from
clean firm energy. The term does not include a battery energy
storage system or long-duration storage resource. The term
includes solar energy paired with storage resources and wind
energy paired with storage resources.
"Clean hydrogen." Hydrogen produced through a process that
results in a lifecycle greenhouse gas emissions rate of less
than four kilograms of carbon dioxide equivalent per kilogram of
hydrogen.
"Clean oil furnace." An oil-fired furnace that meets all of
the following:
(1) Is E