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.

PRINTER'S NO.   2257

                   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 AND HOWARD, SEPTEMBER 2, 2025

     REFERRED TO COMMITTEE ON ENERGY, SEPTEMBER 4, 2025


                                    AN ACT
 1   Providing for regulation of commercial data centers by the
 2      Pennsylvania Public Utility Commission, for recovery of
 3      costs, for contributions to the Low-Income Home Energy
 4      Assistance Program, for renewable energy requirements and for
 5      filing and enforcement; establishing the Data Center LIHEAP
 6      Enhancement Fund; and imposing duties on the Pennsylvania
 7      Public Utility Commission and the Department of Human
 8      Services.
 9      The General Assembly of the Commonwealth of Pennsylvania
10   hereby enacts as follows:
11   Section 1.   Short title.
12      This act shall be known and may be cited as the Data Center
13   Act.
14   Section 2.   Definitions.
15      The following words and phrases when used in this act shall
16   have the meanings given to them in this section unless the
17   context clearly indicates otherwise:
18      "Commercial data center."   A facility, campus of facilities
19   or array of interconnected facilities in this Commonwealth that
20   meets all of the following criteria:
 1            (1)   Is used by a business entity or other enterprise to
 2      operate, manage or maintain a computer, group of computers or
 3      other organized assembly of hardware and software for the
 4      primary purpose of processing, storing, retrieving or
 5      transmitting data.
 6            (2)   Has a peak demand of 25 megawatts or greater.
 7      "Commission."     The Pennsylvania Public Utility Commission.
 8      "Fund."     The Data Center LIHEAP Enhancement Fund established
 9   under section 5(a).
10      "Low-Income Home Energy Assistance Program" or "LIHEAP."      A
11   federally funded program that provides financial assistance in
12   the form of cash and crisis grants to low-income households for
13   home energy bills and is administered by the Department of Human
14   Services.
15      "Public utility."     As defined in 66 Pa.C.S. § 102 (relating
16   to definitions).
17      "Ratepayer."     A retail customer of a public utility that
18   purchases electric service for consumption.
19      "Renewable energy."     Solar, wind energy, biomass or
20   hydroelectric power.
21   Section 3.     Duties of commission.
22      (a)   Temporary regulations.--
23            (1)   In order to facilitate the prompt implementation of
24      this act, the commission shall promulgate temporary
25      regulations no later than 90 days after the effective date of
26      this subsection.
27            (2)   Temporary regulations under this subsection shall
28      expire not later than two years after publication.
29            (3)   The commission may promulgate temporary regulations
30      that are not subject to:

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 1                   (i)    Section 612 of the act of April 9, 1929
 2             (P.L.177, No.175), known as The Administrative Code of
 3             1929.
 4                   (ii)    Sections 201, 202, 203, 204 and 205 of the act
 5             of July 31, 1968 (P.L.769, No.240), referred to as the
 6             Commonwealth Documents Law.
 7                   (iii)    Sections 204(b) and 301(10) of the act of
 8             October 15, 1980 (P.L.950, No.164), known as the
 9             Commonwealth Attorneys Act.
10                   (iv)    The act of June 25, 1982 (P.L.633, No.181),
11             known as the Regulatory Review Act.
12             (4)   The commission's authority to promulgate temporary
13      regulations under this subsection shall expire two years
14      after the effective date of this subsection. After the
15      expiration of this authority, the commission shall promulgate
16      final regulations in accordance with State law and subsection
17      (b).
18      (b)    Regulation requirements.--Regulations promulgated under
19   subsection (a) shall include, at a minimum, provisions relating
20   to all of the following:
21             (1)   Deposits or financial security required from
22      commercial data centers.
23             (2)   Calculations of contributions in aid of construction
24      for transmission and distribution infrastructure.
25             (3)   Minimum contract terms between commercial data
26      centers and public utilities.
27             (4)   Load ramping schedules to ensure infrastructure
28      adequacy.
29             (5)   Exit or early termination fees.
30             (6)   Measures to prevent circumvention of the commercial

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 1      data center threshold through multiple facilities,
 2      interconnection points or metering points.
 3            (7)   Utility tracking of all costs to serve commercial
 4      data centers and verification that revenues collected exceed
 5      costs incurred.
 6            (8)   Curtailment of some or all of a commercial data
 7      center's load during emergency conditions.
 8            (9)   An end-of-contract process providing sufficient
 9      notice of a commercial data center's renewal or closure.
10   Section 4.     Recovery of costs.
11      A public utility may not recover from ratepayers, whether
12   through base rates, riders, surcharges or any other ratemaking
13   mechanism, costs that:
14            (1)   are directly attributable to the provision of
15      electric service to a commercial data center; and
16            (2)   would not have been incurred but for the electricity
17      demand of the commercial data center.
18   Section 5.     Contributions to Low-Income Home Energy Assistance
19                  Program.
20      (a)   Fund.--The Data Center LIHEAP Enhancement Fund is
21   established as a restricted fund in the State Treasury. The
22   Department of Human Services, in collaboration with the State
23   Treasurer, shall administer the fund. The Department of Human
24   Services shall use the money appropriated from the fund under
25   subsection (d) to implement a supplemental program to enhance
26   the Low-Income Home Energy Assistance Program. The supplemental
27   program shall include a summer cooling component.
28      (b)   Sources.--The fund shall consist of all of the
29   following:
30            (1)   Payments made under subsection (c).

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 1            (2)   Interest accrued on the money in the fund.
 2            (3)   Money from any other source authorized by Federal or
 3      State law.
 4      (c)   Annual payments.--No later than June 30 of each year,
 5   each commercial data center shall make a payment to the fund in
 6   accordance with the following schedule based on peak demand:
 7            (1)   At least 25 megawatts but less than 75 megawatts:
 8      $250,000.
 9            (2)   At least 75 megawatts but less than 100 megawatts:
10      $400,000.
11            (3)   100 megawatts or more: $500,000.
12      (d)   Appropriation.--Money in the fund is appropriated on a
13   continuing basis to the Department of Human Services for the
14   purposes of this section.
15      (e)   Regulations.--The Department of Human Services, in
16   collaboration with the State Treasurer, shall promulgate
17   regulations necessary to implement this section.
18   Section 6.     Renewable energy requirements.
19      A public utility that enters into a contract for electric
20   service with a commercial data center on or after the effective
21   date of this section shall ensure that not less than 25% of the
22   electricity supplied under the contract is generated from
23   renewable energy sources.
24   Section 7.     Filing and enforcement.
25      (a)   Filing requirement.--
26            (1)   A public utility shall file with the commission a
27      copy of each contract executed with a commercial data center
28      on or after the effective date of this section.
29            (2)   The public utility shall include with the filing
30      sufficient documentation to permit the commission to conduct

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 1      the review under paragraph (3).
 2            (3)   The commission shall review each contract under
 3      paragraph (1) to determine all of the following:
 4                  (i)    The impact on the grid system of the PJM
 5            Interconnection, L.L.C., regional transmission
 6            organization or its successor.
 7                  (ii)    The effect on the reliability of that grid
 8            system.
 9                  (iii)    The impact on ratepayers.
10                  (iv)    Compliance with the requirements under sections
11            4 and 6.
12      (b)   Enforcement.--A violation of this act shall be subject
13   to enforcement by the commission under 66 Pa.C.S. Ch. 33
14   (relating to violations and penalties).
15   Section 8.     Effective date.
16      This act shall take effect in 90 days.




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