Pennsylvania HB 1834: 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

PRIOR PRINTER'S NOS. 2257, 2846 PRINTER'S NO. 3061
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1834
Session of
2025
INTRODUCED BY MATZIE, INGLIS, DEASY, NEILSON, MULLINS, HADDOCK,
DONAHUE, PROBST, HILL-EVANS, GIRAL, SANCHEZ, CURRY,
D. WILLIAMS, DAVIDSON, HOWARD, FRANKEL, MALAGARI, BOROWSKI,
BOYD, PROKOPIAK, SCOTT, MARKOSEK, STEELE, SMITH-WADE-EL,
CIRESI, FREEMAN, FRIEL, WEBSTER, McNEILL, WAXMAN, TAKAC,
O'MARA, KHAN, KRAJEWSKI, GUENST, HANBIDGE, DOUGHERTY, RIVERA
AND GREEN, SEPTEMBER 2, 2025
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
MARCH 23, 2026
AN ACT
Providing for regulation of large load users by the Pennsylvania
Public Utility Commission, for cost responsibility, for
contributions to the Low-Income Home Energy Assistance
Program, for renewable energy requirements and for contract
filing, commission review and enforcement; establishing the
Data Center Low-Income Home Energy Assistance Program
Enhancement Account and the Pennsylvania Energy Independence
Account; and imposing duties on the Pennsylvania Public
Utility Commission, the Department of Human Services and the
Pennsylvania Energy Development Authority.
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
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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
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.
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(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
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 FUR