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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.

2025-2026 Regular Session Introduced by Lisa Boscola and 7 co-sponsors

Regulates PA commercial data centers to meet clean energy, reliability, transparency, and consumer protections, with new funding, oversight, and expedited interconnection.

Referred to Consumer Protection & Professional Licensure
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WeVote Research Nonpartisan
Bill Summary · SB 1323

Bill overview

SB 1323 (2025-2026, Pennsylvania) aims to regulate commercial data centers and establish a framework involving several state agencies to promote clean energy, reliability, and consumer protections related to data center operations. The bill creates dedicated fiscal accounts, outlines energy and interconnection requirements, and sets reporting, disclosure, and standards for backup generation and curtailment. It was referred to the Consumer Protection & Professional Licensure Committee as of May 20, 2026.

Purpose and intent

  • Establish a regulatory framework for commercial data centers to ensure reliable, clean, and affordable energy while addressing environmental and consumer protections.
  • Promote incremental clean firm energy resources tied to data center activity and streamline processes for interconnection and certification.
  • Create dedicated funds/accounts to support energy assistance improvements and energy independence initiatives.

Key provisions and changes

  1. Regulation of commercial data centers

    • Establishes regulatory duties and oversight related to commercial data centers by state agencies.
    • Likely includes requirements around energy procurement, reporting, and compliance with energy and reliability standards.

  2. Agency duties

    • Pennsylvania Public Utility Commission (PUC): to administer and enforce data center-specific energy standards, filings, and oversight.
    • Department of Human Services (DHS): to coordinate programs impacting energy assistance and customer protections for data center customers or affected households.
    • Pennsylvania Energy Development Authority: to support development and deployment of clean energy resources associated with data centers.

  3. New accounts and funding mechanisms

    • Data Center Low-Income Home Energy Assistance Program Enhancement Account: to fund enhancements to LIHEAP-like support or related energy assistance for data center communities or consumers.
    • Pennsylvania Energy Independence Account: to track funds and incentives aimed at energy independence and clean energy resources.

  4. Clean firm energy and resource requirements

    • Requires data centers to procure or demonstrate incremental clean firm energy resources (e.g., reliable, non-intermittent clean energy capacity) to support operations.
    • May involve standards, targets, or procurement obligations tied to data center activity.

  5. Contract filing and commission review

    • Data center-related energy contracts and arrangements may be subject to filing with and review by the PUC, ensuring compliance with thresholds and standards set by the act.

  6. Disclosure and transparency

    • Potential requirements for disclosure of energy usage, procurement plans, and performance metrics to the PUC and possibly to the public.

  7. Backup generation standards

    • Establishes criteria for backup power systems used by data centers, including environmental and reliability considerations (e.g., emissions, fuel type, runtime limits, reporting).

  8. Curtailment standards

    • Sets standards for curtailment procedures during energy supply constraints, prioritizing essential reliability and protecting vulnerable populations.

  9. Certification and expedited interconnection

    • Creates a pathway for expedited interconnection approval for data centers that meet certain clean energy and reliability criteria.
    • May include a certification process to verify compliance with standards before interconnection.

  10. Penalties and enforcement

    • Includes penalties for noncompliance with the act’s provisions, potentially involving fines, enforcement actions, or corrective measures.

Who/what would be affected

  • Commercial data centers operating in Pennsylvania or considering expansion/operation within the state.
  • State agencies: PUC, DHS, and the Pennsylvania Energy Development Authority, which would implement the new requirements and oversight.
  • Energy customers and ratepayers, particularly through enhanced energy assistance programs and potential rate or procurement mechanisms associated with data centers.
  • Clean energy developers and suppliers involved in supplying incremental clean firm energy resources to meet the act’s requirements.

Procedural and timeline aspects

  • The bill is in committee: referred to Consumer Protection & Professional Licensure as of May 20, 2026.
  • Specific effective dates, phase-in periods, and detailed timelines are not provided in the summary, but the act contemplates ongoing regulatory implementation, contract filing processes, and expedited interconnection procedures once enacted.

Potential impact (high-level)

  • Encourages data centers to engage with clean energy, reliability standards, and expedited interconnection pathways.
  • Aligns data center growth with energy assistance enhancements and state energy independence goals.
  • Increases regulatory oversight of data center energy contracts and operations.
  • Introduces new funding streams to support energy assistance and clean energy development related to data center activity.
  • Establishes clear penalties to enforce compliance with the new framework.

Compiled from official sources — confirm details with the bill’s official record.

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