HB 2650

PRIOR PRINTER'S NO. 3626  PRINTER'S NO.   3683
                THE GENERAL ASSEMBLY OF PENNSYLVANIA
                    HOUSE BILL
                    No. 2650
                                           Session of
                                             2026
INTRODUCED BY WEBSTER, PROBST, STEELE, KHAN, McNEILL, SANCHEZ,
   WARREN, N. NELSON, FRIEL, BOROWSKI, BRIGGS, CIRESI,
   PROKOPIAK, BOYD, M. BROWN AND D. WILLIAMS, JUNE 16, 2026
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
   JUNE 23, 2026
                               AN ACT
1 Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
2    act relating to tax reform and State taxation by codifying
3    and enumerating certain subjects of taxation and imposing
4    taxes thereon; providing procedures for the payment,
5    collection, administration and enforcement thereof; providing
6    for tax credits in certain cases; conferring powers and
7    imposing duties upon the Department of Revenue, certain
8    employers, fiduciaries, individuals, persons, corporations
9    and other entities; prescribing crimes, offenses and
10    penalties," in tax credit and tax benefit administration,
11    further providing for definitions; in computer data center
12    equipment incentive program, providing for certification
13    prohibition; providing for Governor's Responsible
14    Infrastructure Development certification and standards; and
15    imposing duties.
16    The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18    Section 1.    The definition of "tax benefit" in section 1701-
19 A.1 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
20 Reform Code of 1971, is amended to read:
21 Section 1701-A.1.    Definitions.
22    The following words and phrases when used in this article
23 shall have the meanings given to them in this section unless the
1 context clearly indicates otherwise:
2    * * *
3    "Tax benefit."    For purposes of this article, a tax benefit
4 authorized under any of the following:
5(1)   Article XVII-A.
6(2)   Article XVIII-C.
7(3)   Article XIX-B.
8(4)   Article XIX-D.
9(5)   Article XXIX-C.
10(6)   Article XXIX-D.
11(6.1)    Article XXIX-D.1.
12(7)   The act of October 6, 1998 (P.L.705, No.92), known
13    as the Keystone Opportunity Zone, Keystone Opportunity
14    Expansion Zone and Keystone Opportunity Improvement Zone Act.
15    * * *
16    Section 2.     The act is amended by adding a section to read:
17 Section 2902-D.    Certification prohibition.
18    The department may not certify any computer data center under
19 this article after the effective date of this section.
20    Section 3.     The act is amended by adding an article to read:
21ARTICLE XXIX-D.1
22GOVERNOR'S RESPONSIBLE INFRASTRUCTURE
23DEVELOPMENT CERTIFICATION AND STANDARDS
24 Section 2901-D.1.    Scope of article.
25    This article relates to the Governor's Responsible
26 Infrastructure Development (GRID) Certification and Standards.
27 Section 2902-D.1.    Definitions.
28    The following words and phrases when used in this article
29 shall have the meanings given to them in this section unless the
30 context clearly indicates otherwise:
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1    "Alternative compliance payment."     A per-megawatt-hour
2 payment at the alternative compliance payment rate made to PEDA
3 by a computer data center if the computer data center elects to
4 satisfy its clean firm energy procurement requirement under
5 section 2903-D.1(a)(5)(vii)(B) through payment in lieu of
6 procurement.
7    "Alternative compliance payment rate."     A rate expressed in
8 dollars per megawatt-hour determined by the department annually
9 by doubling the estimated average levelized cost of electricity
10 from solar photovoltaic technology, as published by the United
11 States Energy Information Administration's most recent Annual
12 Energy Outlook.
13    "Clean firm energy."     Energy derived from nuclear energy,
14 hydroelectric power, including pumped storage, geothermal
15 energy, fuel cells, solar energy, including solar energy paired
16 with storage resources, wind energy, including wind energy
17 paired with storage resources, clean hydrogen-fueled energy
18 generation, battery energy storage systems and long-duration
19 storage resources that meet all of the following:
20(1)     The resource is dispatchable or capable of providing
21    firm service so that the resource can deliver electricity on
22    demand with an availability factor consistent with standards
23    established by the commission.
24(2)     The resource constitutes incremental capacity,
25    including any of the following:
26(i)    Placement in service of a new clean firm energy
27generation facility on or after January 1, 2025.
28(ii)   An uprate or efficiency improvement at an
29existing clean firm energy generation facility completed
30on or after January 1, 2025, that increases accredited
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1capacity or net output.
2(iii)   Placement in service of a battery energy
3storage system on or after January 1, 2025, that provides
4at least two hours of continuous discharge, or another
5duration determined by the commission to provide reliable
6capacity value.
7(iv)    Placement in service of a long-duration storage
8resource on or after January 1, 2025, that provides not
9less than four hours of continuous discharge capability
10and firm service as determined by the commission.
11    "Clean firm energy generation."      Electricity generated from
12 clean firm energy. The term does not include a battery energy
13 storage system or long-duration storage resource. The term
14 includes solar energy paired with storage resources and wind
15 energy paired with storage resources.
16    "Clean hydrogen-fueled energy generation."     Hydrogen produced
17 through a process with a life cycle greenhouse gas emissions
18 rate of less than four kilograms of carbon dioxide equivalent
19 per kilogram of hydrogen.
20    "Commission."    The Pennsylvania Public Utility Commission.
21    "Common parent."    The most senior corporation owning or
22 controlling a unitary business that includes an owner or
23 operator.
24    "Computer data center."    All or part of a facility that may
25 be composed of one or more businesses, owners or tenants, that
26 is or will be predominantly used to house working servers or
27 similar data storage systems and that may have uninterruptible
28 energy supply or generator backup power, or both CLOSED-LOOP  <--
29 cooling systems, towers and other temperature control
30 infrastructure.
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1    "Computer data center equipment."   Equipment located on the
2 same land parcel as the computer data center that is used to
3 outfit, operate or benefit a computer data center and component
4 parts, installations, refreshments, replacements and upgrades to
5 the equipment, notwithstanding whether any of the equipment is
6 affixed to or incorporated into real property, including:
7(1)   Equipment necessary for the transformation,
8    generation, distribution or management of electricity that is
9    required to operate computer servers or similar data storage
10    equipment, including battery energy storage devices,
11    uninterruptible energy supplies, conduit, gaseous fuel
12    piping, cabling, duct banks, switches, switchboards,
13    batteries and testing equipment.
14(2)   Equipment necessary to cool and maintain a
15    controlled environment for the operation of the computer
16    servers or data storage systems and other components of the
17    computer data center, including mechanical equipment,
18    refrigerant piping, gaseous fuel piping, adiabatic and free
19    cooling systems, cooling towers, water softeners, air
20    handling units, indoor direct exchange units, fans, ducting
21    and filters.
22(3)   Water conservation systems, including facilities or
23    mechanisms that are designed to collect, conserve and reuse
24    water.
25(4)   Software, including enabling software and licensing
26    agreements, computer servers or similar data storage
27    equipment, chassis, networking equipment, switches, racks,
28    cabling, trays and conduits.
29(5)   Monitoring equipment and security systems.
30(6)   Modular data centers and preassembled components of
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1    any item described in this definition, including components
2    used in the manufacturing of modular data centers.
3(7)     Other tangible personal property that is essential
4    to the operations of a computer data center.
5    "Department."    The Department of Revenue of the Commonwealth.
6    "Environmental justice community."    A geographic area
7 characterized by increased pollution burden and vulnerable
8 populations based on demographic, economic, health and
9 environmental data and duly identified by the Department of
10 Environmental Protection.
11    "Facility."    One or more parcels of land located in this
12 Commonwealth and any structures and personal property contained
13 on the land.
14    "GRID."     The Governor's Responsible Infrastructure
15 Development.
16    "Incremental capacity."     Additional capacity or additional
17 net energy output from an energy resource in an amount
18 determined based on the unforced capacity value assigned to the
19 resource under PJM's applicable capacity accreditation rules
20 that meets all of the following:
21(1)     Results from the placement in service of a new
22    resource on or after January 1, 2025.
23(2)     Results from an uprate or efficiency improvement
24    completed on or after January 1, 2025, at an existing clean
25    firm energy generation resource or long-duration storage
26    resource, to the extent that the improvement increases
27    accredited capacity or net output available to the grid.
28(3)     For a battery energy storage system or long-duration
29    storage resource, results from the installation of new
30    storage equipment or the expansion or repowering of an
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1    existing storage facility completed on or after January 1,
2    2025, that increases discharge duration, rated capacity or
3    firm service capability.
4(4)   Is verified and certified by the commission as
5    representing additional accredited capacity or additional net
6    energy output that would not have been available to the bulk
7    electric system in this Commonwealth absent the investment
8    identified under paragraph (1), (2) or (3).
9    "Locational deliverability area."    A geographic area within
10 the PJM region that has limited transmission capability to
11 import capacity to satisfy such area's reliability requirement
12 as specified in Reliability Assurance Agreement, Schedule 10.1.
13 PJM Intra-PJM Tariffs, OATT, Definitions - L - M - N, 19.0.0 as
14 accepted by the Federal Energy Regulatory Commission docketed at
15 ER20-646-000 and any updated Federal Emergency Regulatory
16 Commission docketed schedule.
17    "New investment."    Construction, expansion or build out of
18 data center space at either a new or an existing computer data
19 center on or after the effective date of this section, and the
20 purchase and installation of computer data center equipment,
21 except for items described under paragraph (4) of the definition
22 of computer data center equipment.
23    "Owner or operator."   The term includes a single entity,
24 multiple entities or affiliated entities that own or operate a
25 computer data center.
26    "PEDA."   The Pennsylvania Energy Development Authority.
27    "Pennsylvania climate change connectivity."    A geographic
28 area recognized as important for wildlife habitat connectivity
29 identified by the Pennsylvania Game Commission Wildlife Action
30 Plan Conservation Opportunity Area Tool.
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1    "PJM Interconnection, L.L.C." or "PJM."   The regional
2 transmission organization approved by the Federal Energy
3 Regulatory Commission to coordinate wholesale electricity
4 markets and transmission operations within a geographic region.
5    "Proof of work crypto-asset mining."   The process of
6 performing computations to add a valid block of data to a
7 blockchain, excluding computations required to validate
8 individual transactions, typically in exchange for a reward or
9 fee.
10    "Qualification period."   Any of the following:
11(1)   With respect to the owner or operator of a computer
12    data center certified under this article, a period of time
13    beginning on the date of tax exemption certification of the
14    computer data center and expiring at the end of the tenth
15    full calendar year following the calendar year in which the
16    owner or operator filed an application for certification.
17(2)   With respect to a qualified tenant of the owner or
18    operator of a computer data center certified under this
19    article, a period of time beginning on the date that the
20    qualified tenant enters into an agreement concerning the use
21    or occupancy of the computer data center and expiring at the
22    earlier of the expiration of the term of the agreement or the
23    end of the tenth full calendar year following the calendar
24    year in which the qualified tenant enters into the agreement.
25    "Qualified tenant."   An entity that contracts with the owner
26 or operator of a computer data center that is certified under
27 this article to use or occupy part of the computer data center
28 for at least 100 kilowatts per month for two or more years.
29    "Solar ready."   A structure that allows for solar
30 photovoltaic panels to be installed on at least 40% of the roof
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1 area, including preinstalled conduit, and provides sufficient
2 space to install inverters and other necessary equipment.
3    "Tax exemption."     The tax exemption provided under section
4 2905-D.1.
5    "Telecommunications provider."        A provider of
6 telecommunications services as defined in 61 Pa. Code § 60.20
7 (relating to telecommunications service).
8    "Tenant."     An entity that contracts with the owner or
9 operator of a computer data center to use or occupy part of the
10 computer data center.
11    "Tier 4 equivalent."     A combination of an electrical
12 generator and an engine mounted together to form a single piece
13 of equipment, equipped with all of the following:
14(1)   A selective catalytic reduction system or equivalent
15    for nitrogen oxides control.
16(2)   A diesel oxidation catalyst system or equivalent for
17    carbon monoxide control.
18(3)   A diesel particulate filter or equivalent for
19    particulate matter control.
20    "Unitary business."     A single economic enterprise that is
21 made up either of separate parts of a single business entity or
22 of a commonly controlled group of business entities that are
23 sufficiently interdependent, integrated and interrelated through
24 their activities so as to provide a synergy and mutual benefit
25 that produces a sharing or exchange of value among them and a
26 significant flow of value to the separate parts.
27    "Viewshed."     The geographical area of a landscape or
28 environment that is visible from one or more specific vantage
29 points.
30 Section 2903-D.1.     Application for GRID certification.
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1    (a)   Contents.--To be considered for GRID certification, the
2 owner or operator of a data center shall submit to the
3 department an application on a form prescribed by the department
4 that includes all of the following:
5(1)   The owner or operator's name, address and telephone
6    number.
7(2)   The address of the site where the proposed data
8    center will be located including, if applicable, information
9    sufficient to identify a specific portion of a facility
10    comprising the data center.
11(3)   The name of the common parent of any unitary
12    business that will:
13(i)    be responsible for management and operation of
14the GRID project on a permanent basis after the facility
15commences commercial operation; or
16(ii)    utilize at least 50% of the facility's
17capacity.
18(4)   Building size in square feet and campus acreage.
19(5)   An energy plan that includes all of the following:
20(i)    Expected energy generation or storage facilities
21that will be co-located with the GRID project, if any.
22(ii)    Percent of electricity used from nonemitting
23sources and an explanation of how the electricity will be
24procured.
25(iii)    Expected average annual power usage
26effectiveness.
27(vi)    Expected heat reuse at a connected or co-
28located facility.
29(vii)    A plan detailing the owner or operator's plan
30to build, bring or buy incremental capacity including:
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1(A)    sufficient electricity to meet its full
2energy demands from incremental capacity located
3within the same PJM locational deliverability area as
4the proposed GRID project, or if the incremental
5capacity is not located within the same PJM
6locational deliverability area as the GRID project,
7submit documentation to demonstrate that the new
8generation or storage resource is deliverable to the
9GRID project and incremental to existing supply,
10through contracts, interconnection or other
11verifiable means, consistent with PJM and utility
12tariff structures; and
13(B)    electricity procured from incremental clean
14firm energy resources located within this
15Commonwealth in an amount not less than the following
16percentages of the GRID project's annual electricity
17consumption:
18(I)    Beginning January 1, 2027, and ending
19January 1, 2030, 10%.
20(II)    Beginning January 1, 2030, and ending
21January 1, 2035, 14.5%.
22(III)   Beginning January 1, 2035, 32%.
23(IV)    A GRID project that does not procure
24incremental clean firm energy sufficient to
25satisfy the required amounts under subclause (I),
26(II) or (III) in a given year shall make an
27alternative compliance payment to PEDA.
28(viii)     As follows:
29(A)    A commitment to pay, through base rates,
30surcharges or other ratemaking mechanisms, costs
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1caused in whole or in part by the interconnection,
2service or load of a GRID project, including costs
3associated with emergency ancillary services,
4transmission, distribution, network upgrades or
5dedicated facilities if:
6(I)    the costs are directly attributable to
7the provision of electric service to the GRID
8project; or
9(II)   the costs would not have been incurred
10but for the electricity demand of the GRID
11project.
12(B)   Compliance with this subparagraph may be
13demonstrated if a GRID project presents a copy of its
14Electronic Service Agreement, showing that it
15purchases electricity from an electric distribution
16company under an electric service tariff with terms:
17(I)    no less stringent than those detailed in
18the commission's final Large Load Customer Model
19Tariff (Docket M-2025-3054271); and
20(II)   further addressing the GRID project
21facility's contributions to embedded system
22costs.
23(ix)    Submittal of filings to the commission and
24      adherence to commission regulations governing commercial
25      data centers.
26(x)    Design and construction of a GRID project
27      facility with a floor area exceeding 100,000 square feet
28      in a solar ready manner that facilitates and optimizes
29      the installation of solar photovoltaic panels on
30      unoccupied roof area of the building or other areas of
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1      the building.
2      (6)    A community outreach plan that includes all of the
3  following:
4(i)    A commitment to notify and consult with the
5      public in the area in which the GRID project will be
6      located by:
7(A)   holding publicly accessible meetings;
8(B)   consulting with municipal leaders in the
9host jurisdiction and potentially affected adjoining
10jurisdictions during GRID project development; and
11(C)   accepting public comments on design
12decisions including viewshed impact mitigation, noise
13impact mitigation and building façade design.
14(ii)    A detailed timeline and number of planned
15      publicly accessible meetings in the jurisdiction in which
16      the GRID project will be located that the owner or
17      operator will hold to inform the public about the GRID
18      project in addition to any public meeting required by
19      law.
20      (7)    A community benefit plan including a commitment to
21  do all of the following:
22(i)    Make at least $250,000,000 of cumulative new
23      investment.
24(ii)    Create at least 200 jobs during the
25      construction phase of development, each paying the
26      applicable prevailing minimum wage and benefit rates as
27      determined for each applicable craft or classification by
28      the Department of Labor and Industry under act of August
29      15, 1961 (P.L.987, No.442), known as the Pennsylvania
30      Prevailing Wage Act.
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1(iii)    Create 50 new jobs each paying at least 125%
2      of Pennsylvania's average Statewide wage on or before the
3      fourth anniversary of GRID certification.
4(iv)    Pay annual compensation of at least $1,500,000
5      to employees employed full time at the GRID project site
6      for each year of the certification after the fourth
7      anniversary.
8(v)    Provide a hiring plan for recruiting and
9      training local workers, including local workforce
10      participation in site preparation and site construction,
11      and use registered apprenticeship programs and skilled
12      construction labor.
13(vi)    Engage in good faith discussions with the
14      jurisdiction in which the GRID project will be located to
15      develop a community benefit agreement that addresses the
16      following:
17(A)   Detail about planned development phases.
18(B)   Noise, vibration and lighting study
19requirements and mitigation techniques.
20(C)   A traffic study.
21(D)   Air quality protection requirements
22consistent with Federal and State law.
23(E)   A plan for addressing aesthetic concerns,
24including landscaping or visual buffers.
25(F)   An emergency management plan that addresses
26training, coordination and reasonable resource needs
27of the emergency management professionals and first
28responders responsible for the jurisdiction in which
29the GRID project will be located.
30(G)   Financial contributions toward local
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1priorities.
2(H)   Annual reporting to the jurisdiction in
3which the GRID project will be located addressing
4community benefit agreement progress.
5(I)   Other items as determined by the
6jurisdiction in which the GRID project will be
7located.
8      (8)   A REGIONAL BENEFITS PLAN, INCLUDING A COMMITMENT TO        <--
9  DO ALL OF THE FOLLOWING:
10(I)    IDENTIFY THE REGIONAL IMPACT AREA, WHICH SHALL
11      INCLUDE ALL OF THE FOLLOWING:
12(A)   EACH MUNICIPALITY LOCATED WITHIN A 25-MILE
13RADIUS OF THE GRID PROJECT.
14(B)   EACH COUNTY LOCATED WITHIN A 25-MILE RADIUS
15OF THE GRID PROJECT.
16(C)   ANY SCHOOL DISTRICT, EMERGENCY SERVICE
17PROVIDER OR WATER, SEWER OR TRANSPORTATION AUTHORITY
18LOCATED WITHIN A 25-MILE RADIUS OF THE GRID PROJECT
19WHOSE INFRASTRUCTURE OR SERVICE AREA IS REASONABLY
20EXPECTED TO BE AFFECTED BY THE GRID PROJECT.
21(II)    PROVIDE DOCUMENTATION THAT THE OWNER OR
22      OPERATOR WILL DELIVER WRITTEN NOTICE TO EACH POLITICAL
23      SUBDIVISION AND PUBLIC AUTHORITY IDENTIFIED UNDER
24      SUBPARAGRAPH (I) AND OFFER AT LEAST ONE INFORMATIONAL
25      MEETING TO EACH ENTITY FOR THE PURPOSE OF RECEIVING
26      COMMENTS ON ANTICIPATED REGIONAL IMPACTS.
27(III)    SUMMARIZE EXPECTED REGIONAL IMPACTS, INCLUDING
28      TRAFFIC, EMERGENCY SERVICES, WATER AND WASTEWATER USE,
29      STORM WATER, AIR QUALITY AND NOISE, BASED ON STUDIES
30      PREPARED FOR THE COMMUNITY BENEFIT AGREEMENT UNDER
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1      PARAGRAPH (7).
2(IV)    DESCRIBE SPECIFIC MITIGATION ACTIONS THE OWNER
3      OR OPERATOR WILL UNDERTAKE TO ADDRESS REGIONAL IMPACTS
4      IDENTIFIED UNDER SUBPARAGRAPH (III). MITIGATION ACTIONS
5      MAY INCLUDE:
6(A)   TRANSPORTATION IMPROVEMENTS LOCATED OUTSIDE
7THE HOST JURISDICTION.
8(B)   SUPPORT FOR COUNTY LEVEL EMERGENCY
9MANAGEMENT PLANNING.
10(C)   REGIONAL AIR QUALITY MONITORING OR
11ENVIRONMENTAL RESTORATION.
12(D)   WATERSHED OR STORM WATER IMPROVEMENTS.
13(E)   OTHER COMMITMENTS IDENTIFIED DURING
14CONSULTATION WITH REGIONAL AUTHORITIES.
15(V)    PROVIDE FINANCIAL CONTRIBUTIONS TO SUPPORT
16      PROJECTS OR SERVICES THAT PRODUCE MEASURABLE BENEFITS
17      WITHIN THE REGIONAL IMPACT AREA. CONTRIBUTIONS MAY BE
18      MADE DIRECTLY TO AFFECTED MUNICIPALITIES, SCHOOL
19      DISTRICTS, EMERGENCY SERVICE PROVIDERS OR PUBLIC
20      AUTHORITIES.
21      (8) (9)     A sustainability plan that includes all of the      <--
22  following:
23(i)    Details regarding how the owner or operator will
24      deploy best available technology to limit water and
25      energy consumption by the data center by obtaining
26      certification under a recognized performance-based
27      facility standard system or systems applicable to data
28      centers addressing energy and water use as adopted by the
29      department.
30(ii)    A commitment to minimize local air pollutants
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1      by doing all of the following:
2(A)    Utilizing a backup energy system that relies
3on zero-emission energy generation or storage or
4backup generators with emissions equal to or less
5than the emissions achieved by a Tier 4 or Tier 4
6equivalent generator.
7(B)    Implementing operational practices such as
8reduced generator runtime and limits on backup
9generation utilization to emergency use and limited
10testing and maintenance consistent with Federal and
11State air quality laws and regulations.
12(C)    Including at least three air quality
13monitors at the site providing continuous record of
14the air quality.
15(D)    Creating a detailed plan for recordkeeping
16of the air quality, which shall be made available to
17government or private entities upon request.
18(iii)    For GRID projects located in an area
19      identified as Pennsylvania climate change connectivity,
20      an explanation of defined measures to minimize and
21      ameliorate impacts to wildlife habitat or offset net loss
22      of habitat and ecological function and a commitment that
23      the owner or operator shall make good faith efforts to
24      fund and collaborate with private conservation and public
25      resource entities to support the monitoring of impacts to
26      land, water and biological resources.
27(iv)    (A)    For GRID projects located in an
28environmental justice community, including an
29explanation of defined measures to offset any
30increased environmental exposures or net
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1environmental effects and making good faith efforts
2to fund and collaborate with municipal, civic and
3private industries to positively impact the
4population characteristics of the environmental
5justice community.
6(B)   The good faith efforts made under clause (A)
7may incorporate the commitments and plans required
8for the application.
9      (9) (10)     A water plan that includes all of the  <--
10  following:
11(i)    Estimated average annual water consumption.  <--
12(ii)    Anticipated maximum daily water demand.
13(iii)    Source of water to be utilized, including the
14      water quality standard use designation under 25 Pa. Code
15      Ch. 93 (relating to water quality standards) of the
16      source of water, if any.
17(iv) Expected average annual water usage
18      effectiveness.
19(v)    Waste or treated water discharges, if any.
20(vi)    Whether the facility will utilize a closed-loop
21      or open evaporative cooling system.
22(vii)    A commitment to not adversely impact the
23      quantity or quality of water for other uses or users,
24      including designated and existing uses under 25 Pa. Code
25      Ch. 93.
26(I)    ANTICIPATED WASTE OR TREATED WATER DISCHARGES,       <--
27      IF ANY.
28(II)    ESTIMATED AVERAGE ANNUAL WATER CONSUMPTION.
29(III)    ANTICIPATED MAXIMUM DAILY WATER DEMAND.
30(IV)    SOURCE OF WATER TO BE UTILIZED, INCLUDING THE
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1      WATER QUALITY STANDARD USE DESIGNATION UNDER 25 PA. CODE
2      CH. 93 (RELATING TO WATER QUALITY STANDARDS) OF THE
3      SOURCE OF WATER, IF ANY.
4(V)    EXPECTED AVERAGE ANNUAL WATER USAGE
5      EFFECTIVENESS.
6(VI)    A COMMITMENT TO UTILIZE THE BEST AVAILABLE
7      TECHNOLOGIES AND OTHER EFFICIENCY MEASURES TO MITIGATE
8      IMPACTS TO THE QUANTITY OR QUALITY OF WATER FOR OTHER
9      USES OR USERS, INCLUDING DESIGNATED AND EXISTING USES
10      UNDER 25 PA. CODE CH. 93.
11(VII)    FOR GRID PROJECTS THAT HAVE A PHYSICAL
12      FOOTPRINT, POINT SOURCE OF WATER WITHDRAWAL OR POINT
13      SOURCE OF STORM WATER DISCHARGE LOCATED WITHIN A
14      WATERSHED DESIGNATED AS HIGH QUALITY WATERS UNDER 25 PA.
15      CODE CH. 93, THE WATERSHED OF A DESIGNATED PUBLIC WATER
16      SYSTEM SOURCE UNDER 25 PA. CODE CH. 109 (RELATING TO SAFE
17      DRINKING WATER) OR 1,000 FEET OF A TRIBUTARY WHICH FLOWS
18      INTO A PUBLIC WATER SYSTEM SOURCE UNDER 25 PA. CODE CH.
19      109, A HYDROGEOLOGICAL STUDY SHALL BE SUBMITTED TO THE
20      DEPARTMENT. THE FOLLOWING SHALL APPLY:
21(A)   THE HYDROGEOLOGICAL STUDY SHALL INCLUDE:
22(I)    AN ASSESSMENT OF BASELINE WATER QUALITY
23AT ALL RELEVANT TRIBUTARY MONITORING POINTS.
24(II)    CONSUMPTIVE USE AND STORM WATER
25DISCHARGE ON BOTH SURFACE WATER AND GROUNDWATER
26SOURCES.
27(III)    IDENTIFICATION OF SPECIFIC MITIGATION
28MEASURES TO PROTECT WATER SOURCES.
29(B)   THE STUDY SHALL BE PREPARED BY A
30PROFESSIONAL GEOLOGIST WITH RELEVANT EXPERIENCE IN
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1HYDROGEOLOGICAL ANALYSIS AND LICENSED IN THIS
2COMMONWEALTH.
3(C)    THE DEPARTMENT SHALL TRANSMIT THE STUDY TO
4THE DEPARTMENT OF ENVIRONMENTAL PROTECTION WITHIN 10
5DAYS OF RECEIPT OF THE STUDY.
6(D)    THE DEPARTMENT OF ENVIRONMENTAL PROTECTION
7SHALL HAVE 45 DAYS TO REVIEW THE STUDY AND PROVIDE
8WRITTEN COMMENTS TO THE DEPARTMENT ON WHETHER THE
9STUDY WAS CONDUCTED IN A SATISFACTORY MANNER.
10(E)    THE DEPARTMENT MAY NOT ISSUE A GRID
11CERTIFICATION TO GRID PROJECTS LOCATED IN A WATERSHED
12DESIGNATED AS EXCEPTIONAL VALUE WATERS UNDER 25 PA.
13CODE CH. 93.
14(VIII)       IF THE GRID PROJECT IS WITHIN THE
15      JURISDICTION OF A RIVER BASIN COMMISSION, DOCUMENTATION
16      THAT THE OWNER OR OPERATOR HAS RECEIVED APPROVAL FOR
17      WATER WITHDRAWAL FROM THE RELEVANT RIVER BASIN
18      COMMISSION.
19(IX)    IF THE GRID PROJECT HAS A PHYSICAL FOOTPRINT,
20      POINT OF SOURCE OF WATER WITHDRAWAL OR POINT OF SOURCE OF
21      STORM WATER DISCHARGE LOCATED WITHIN AN AREA DESCRIBED
22      UNDER SUBPARAGRAPH (VII), THE OWNER OR OPERATOR SHALL
23      COMMIT TO PERFORMING BASELINE WATER QUALITY MONITORING AT
24      THE APPLICABLE TRIBUTARY POINTS UTILIZED FOR WATER
25      WITHDRAWAL OR DISCHARGE, AS APPROVED BY THE DEPARTMENT OF
26      ENVIRONMENTAL PROTECTION, PRIOR TO THE COMMENCEMENT OF
27      CONSTRUCTION AND ANY GROUND DISTURBANCE. THE COMMITMENT
28      UNDER THIS SUBPARAGRAPH SHALL INCLUDE THE FOLLOWING:
29(A)    UPON THE COMMENCEMENT OF COMMERCIAL
30OPERATIONS, THE OWNER OR OPERATOR SHALL SUBMIT ANNUAL
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1WATER QUALITY REPORTING DATA FROM THE APPROVED
2TRIBUTARY POINTS TO THE DEPARTMENT OF ENVIRONMENTAL
3PROTECTION FOR REVIEW.
4(B)   UPON REVIEW OF THE ANNUAL REPORTING DATA,
5THE DEPARTMENT OF ENVIRONMENTAL PROTECTION MAY
6REQUIRE CORRECTIVE ACTION IF THE REPORT IDENTIFIES
7MATERIAL DEGRADATION OF THE WATER SOURCE AT THE
8APPLICABLE TRIBUTARY POINTS.
9(C)   IF THE MATERIAL DEGRADATION OF THE WATER
10SOURCE IS NOT CORRECTED BY THE OWNER OR OPERATOR TO
11THE SATISFACTION OF THE DEPARTMENT OF ENVIRONMENTAL
12PROTECTION, THE DEPARTMENT SHALL REVOKE A GRID
13CERTIFICATION OF A COMPUTER DATA CENTER ISSUED UNDER
14THIS ARTICLE.
15      (11)    A NOISE AND VIBRATION MITIGATION PLAN THAT INCLUDES
16  ALL OF THE FOLLOWING:
17(I)    DOCUMENTATION THAT THE GRID PROJECT WILL COMPLY
18      WITH AN APPLICABLE LOCAL LAW, ORDINANCE OR REGULATION
19      RELATING TO SOUND OR VIBRATION LIMITS, INCLUDING A
20      REQUIRED PERMIT, STUDY OR CERTIFICATION DEMONSTRATING
21      COMPLIANCE.
22(II)    IF THE JURISDICTION IN WHICH THE GRID PROJECT
23      WILL BE LOCATED DOES NOT HAVE AN APPLICABLE ZONING
24      ORDINANCE RELATING TO NOISE OR VIBRATION STANDARDS, A
25      DESCRIPTION OF THE MITIGATION MEASURES THAT THE OWNER OR
26      OPERATOR WILL TAKE TO MITIGATE NOISE AND VIBRATION
27      IMPACTS ON THE SURROUNDING COMMUNITY. THE DESCRIPTION
28      SHALL INCLUDE ANY OF THE FOLLOWING DESIGNED TO MINIMIZE
29      NOISE IMPACTS:
30(A)   OPERATIONAL PRACTICES.
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1(B)    ENGINEERING CONTROLS.
2(C)    MONITORING ACTIVITIES.
3    (b)   Acceptance.--The department shall begin accepting
4 applications for GRID certification no later than 30 days after
5 the effective date of this section.
6 Section 2904-D.1.       Review of applications.
7    After receiving a complete and correct application for GRID
8 certification under section 2903-D.1, the department shall
9 review the application and issue a written certification that
10 the computer data center qualifies for the GRID certification or
11 provide written reasons for its denial.
12 Section 2905-D.1.       Tax exemption.
13    (a)   Exemption.--The tax imposed under Article II shall not
14 be imposed upon the sale at retail or use of computer data
15 center equipment purchased for installation in a GRID certified
16 computer data center, if purchased by any of the following:
17(1)   An owner or operator of a computer data center
18    certified under this article.
19(2)   A qualified tenant of a computer data center
20    certified under this article.
21    (b)   Exemption period.--A tax exemption approved under this
22 article shall apply during the qualification period.
23    (c)   Exclusions.--The following shall not qualify for a tax
24 exemption:
25(1)   A telecommunications provider's computer data center
26    that does not have retail or wholesale customers being billed
27    or paying for services and that provides a majority of
28    services for internal use or use by the telecommunications
29    provider's subsidiaries.
30(2)   Computer data center equipment used by the certified
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1    computer data center for any of the following purposes:
2(i)    Generating electricity for resale purposes to a
3power utility.
4(ii)    Generating, providing or selling more than 5%
5of its electricity outside of the certified computer data
6center.
7(iii)   Proof of work for crypto-asset mining as
8determined by the department.
9(3)   Any item of tangible personal property for use both
10    inside and outside the computer data center.
11(4)   Primary electric generation equipment.
12 Section 2906-D.1.       GRID ready report.
13    (a)   Requirement.--Prior to commencing commercial operations,
14 a GRID project must submit a GRID ready report, verified by a
15 qualified third-party entity, to the department for review
16 providing updated information regarding any material change to
17 any item required in the application for GRID certification
18 under section 2903-D.1 and must specifically report or provide:
19(1)   Confirmation that any changes to the energy plan
20    have not imposed additional costs on other utility
21    ratepayers.
22(2)   Confirmation that it has fully implemented its
23    community outreach plan.
24(3)   Confirmation that it has made the cumulative new
25    investments and created the jobs required in its community
26    benefit plan, including its executed community benefit
27    agreement.
28(4)   The status of compliance with its sustainability
29    plan commitments.
30(5)   The status of compliance with its water plan
20260HB2650PN3683  - 23 -
1    commitments.
2(6)   CONFIRMATION THAT IT HAS SUBMITTED ALL DOCUMENTATION <--
3    REQUIRED UNDER ITS NOISE AND VIBRATION MITIGATION PLAN AND,
4    IF APPLICABLE, THE STATUS OF COMPLIANCE WITH THE MITIGATION
5    MEASURES SPECIFIED UNDER SECTION 2903-D.1(A)(11)(II).
6(7)   CONFIRMATION THAT ITS REGIONAL BENEFITS PLAN HAS
7    BEEN FULLY IMPLEMENTED.
8    (b)   Failure to meet commitments.--If EXCEPT AS PROVIDED  <--
9 UNDER SECTION 2909-D.1(E), IF the department determines that the
10 commitments of section 2903-D.1 have not been satisfied, the
11 department shall revoke the GRID certification of a computer
12 data center.
13 Section 2907-D.1.     Annual reporting.
14    (a)   Requirement.--The owner or operator of a computer data
15 center certified under this article must file on an annual basis
16 with the department, on a form prescribed by the department, a
17 report verified by a qualified third-party entity, including all
18 of the following:
19(1)   Documentation that the computer data center is
20    continuing to meet the conditions in its application filed
21    under section 2903-D.1.
22(2)   The amount and source of water used by the computer
23    data center and a certification that its water use has not
24    adversely impacted the quantity or quality of water for other
25    uses or users including designated and existing uses under 25
26    Pa. Code Ch. 93 (relating to water quality standards).
27(3)   The amount of electricity used by the computer data
28    center.
29(4)   The total amount of sales or use tax exempted under
30    this article.
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1(5)   AN ANNUAL CERTIFICATION SIGNED BY AN OFFICER OF THE   <--
2    OWNER OR OPERATOR THAT IDENTIFIES WHETHER THE OWNER OR
3    OPERATOR COMPLETED EACH COMMITMENT CONTAINED IN THE COMMUNITY
4    BENEFIT PLAN REQUIRED UNDER SECTION 2903-D.1(A)(7) DURING THE
5    PRECEDING YEAR AND, IF NOT, IDENTIFIES EACH COMMITMENT THAT
6    REMAINS IN PROGRESS AND THE STEPS THE OWNER OR OPERATOR IS
7    TAKING TO COMPLETE EACH COMMITMENT.
8(5) (6)   Any other information required by the  <--
9    department.
10    (b)   Fourth anniversary.--On or before the fourth anniversary
11 of GRID certification, the owner or operator or qualified tenant
12 of a computer data center must show that it met the requirements
13 of section 2903-D.1(a)(6)(i).
14    (C)   PUBLIC POSTING.--THE DEPARTMENT SHALL MAKE THE  <--
15 INFORMATION SUBMITTED UNDER SUBSECTION (A)(5) AVAILABLE ON THE
16 DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET WEBSITE. THE
17 DEPARTMENT SHALL WITHHOLD FROM PUBLIC DISCLOSURE PROPRIETARY
18 INFORMATION CONSISTENT WITH SECTION 2911-D.1.
19    (D)   MUNICIPAL COMMENTS.--A MUNICIPALITY IN WHICH A GRID
20 PROJECT IS LOCATED, OR A MUNICIPALITY OR PUBLIC AUTHORITY
21 LOCATED WITHIN 25 MILES OF THE GRID PROJECT, MAY SUBMIT WRITTEN
22 COMMENTS TO THE DEPARTMENT IF THE MUNICIPALITY OR PUBLIC
23 AUTHORITY HAS REASON TO BELIEVE THAT THE OWNER OR OPERATOR IS
24 NOT SATISFYING ONE OR MORE COMMITMENTS CONTAINED IN THE
25 COMMUNITY BENEFIT AGREEMENT. THE DEPARTMENT SHALL REVIEW THE
26 COMMENTS AND, AS NECESSARY, REQUEST ADDITIONAL INFORMATION FROM
27 THE OWNER OR OPERATOR TO EVALUATE COMPLIANCE.
28 Section 2908-D.1.    Compliance.
29    (a)   Reporting.--An owner or operator or qualified tenant
30 eligible for GRID certification shall comply with reporting,
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1 filing and compliance requirements under this act.
2    (b)     Tax laws.--An owner, operator or qualified tenant may
3 not receive a certification under this article unless the owner,
4 operator or qualified tenant is in full compliance with State
5 tax laws.
6 Section 2909-D.1.     Revocation of certification.
7    (a)     Revocation.--If EXCEPT AS PROVIDED UNDER SUBSECTION (E), <--
8 IF the department determines that the requirements of this
9 article have not been satisfied, the department shall revoke a
10 GRID certification of a computer data center issued under this
11 article.
12    (b)     Appeal.--The owner or operator of the computer data
13 center may appeal a GRID certification revocation. Appeals filed
14 under this section shall be governed by Article II.
15    (c)     Recapture.--If a GRID certification is revoked under
16 this section, the qualification period of any owner or operator
17 or qualified tenant of the computer data center shall expire and
18 the department shall recapture from the owner or operator or
19 qualified tenant all or part of the tax exemption received by
20 the owner or operator or qualified tenant under this article.
21 The department may give special consideration or allow a
22 temporary exemption from recapture of the tax exemption if there
23 is extraordinary hardship due to factors beyond the control of
24 the owner or operator or qualified tenant. The department may
25 require the owner or operator or qualified tenant to file
26 appropriate amended tax returns in order to reflect any
27 recapture of the tax exemption.
28    (d)     Limitation on assessment.--Notwithstanding the
29 limitation on assessment and collection in section 258, the
30 department shall assess any tax determined not to be properly
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1 exempted under this article within five years from the date an
2 owner or operator or qualified tenant of a computer data center
3 purchases property exempt from a tax. A taxpayer may consent to
4 an extension of the period as set forth in section 261.
5    (E)   CORRECTIVE ACTION PLAN.--BEFORE THE DEPARTMENT REVOKES A <--
6 GRID CERTIFICATION ON THE BASIS THAT AN OWNER OR OPERATOR FAILED
7 TO COMPLY WITH A COMMUNITY BENEFIT COMMITMENT UNDER SECTION
8 2903-D.1(A)(7), THE DEPARTMENT SHALL PROVIDE WRITTEN NOTICE TO
9 THE OWNER OR OPERATOR THAT IDENTIFIES THE DEFICIENCY AND
10 PROVIDES THE OWNER OR OPERATOR WITH NOT LESS THAN 60 DAYS TO
11 SUBMIT AND IMPLEMENT A CORRECTIVE ACTION PLAN TO ADDRESS THE
12 DEFICIENCY. THE DEPARTMENT SHALL REVOKE THE GRID CERTIFICATION
13 IF THE DEPARTMENT DETERMINES THAT THE OWNER OR OPERATOR FAILED
14 TO SUBMIT OR IMPLEMENT THE CORRECTIVE ACTION PLAN OR FAILED TO
15 ADDRESS THE DEFICIENCY UNDER THE CORRECTIVE ACTION PLAN.
16 Section 2910-D.1.       Regulations, implementation and guidelines.
17    (a)   Authority.--The department may promulgate regulations
18 necessary to carry out the provisions of this part.
19    (b)   Temporary regulations.--
20(1)   In order to facilitate the prompt implementation of
21    this article, the department may promulgate temporary
22    regulations that shall expire no later than three years
23    following the publication of the temporary regulations. The
24    department may promulgate temporary regulations not subject
25    to:
26(i)    Section 612 of the act of April 9, 1929
27(P.L.177, No.175), known as The Administrative Code of
281929.
29(ii)    Sections 201, 202, 203, 204 and 205 of the act
30of July 31, 1968 (P.L.769, No.240), referred to as the
20260HB2650PN3683  - 27 -
1Commonwealth Documents Law.
2(iii)    Sections 204(b) and 301(10) of the act of
3October 15, 1980 (P.L.950, No.164), known as the
4Commonwealth Attorneys Act.
5(iv)    The act of June 25, 1982 (P.L.633, No.181),
6known as the Regulatory Review Act.
7(2)   The department's authority to adopt temporary
8    regulations under paragraph (1) shall expire three years
9    after the effective date of this section. Regulations adopted
10    after this period shall be promulgated as provided by law.
11    (c)     Implementation and guidelines.--The department shall
12 work with other agencies and offices as necessary to implement
13 this article and publish written guidelines and prescribe forms
14 and procedures as necessary to carry out the provisions of this
15 article.
16 Section 2911-D.1.       Confidential information.
17    Notwithstanding section 731 of the act of act of April 9,
18 1929 (P.L.343, No.176), known as The Fiscal Code, or the
19 confidentiality provisions of this act, information contained in
20 the application form described under section 2903-D.1 and any
21 report required under sections 2906-D.1 and 2907-D.1, including
22 information concerning the identity of a qualified tenant, shall
23 be public. An applicant may request that trade secret,
24 confidential proprietary information or information which
25 creates a reasonable likelihood of endangering the applicant, as
26 defined in section 102 and 708(b)(3) of the act of February 14,
27 2008 (P.L.6, No.3), known as the Right-to-Know Law, be withheld
28 from disclosure. Disclosure shall be at the discretion of the
29 department.
30 Section 2912-D.1.       Maintenance of records.
20260HB2650PN3683  - 28 -
1    (a)   Duties.--The owner or operator or qualified tenant
2 shall:
3(1)   Maintain detailed records of investments created by
4    the computer data center, including costs of buildings and
5    computer data center equipment and tax exemptions received by
6    the owner or operator or qualified tenant.
7(2)   Maintain purchase journals for examination by the
8    department.
9    (b)   Retention.--The records required under subsection (a)
10 shall be kept available at all times for inspection by
11 authorized personnel of the department and shall be retained if
12 the contents of the records may become material in the
13 administration of this article.
14 Section 2913-D.1.    List of tenants.
15    An owner or operator of a certified computer data center
16 shall provide, to the extent permissible under Federal law, the
17 department with a list of qualified tenants, including the
18 commencement and expiration dates of each qualified tenant's
19 agreement to use or occupy part of the GRID certified computer
20 data center. The list shall be provided to the department
21 annually and upon request by the department.
22 Section 2914-D.1.    Sale or transfer.
23    Except as provided under section 2908-D.1, a computer data
24 center shall retain its GRID certification notwithstanding a
25 transfer, sale or other disposition, directly or indirectly, of
26 the computer data center.
27 Section 2915-D.1.    Certificate of exemption.
28    (a)   Application.--An owner or operator or qualified tenant
29 of a computer data center certified under this article may apply
30 for a sales and use tax GRID certificate of exemption in a
20260HB2650PN3683  - 29 -
1 manner prescribed by the department on or before October 1,
2 2027, and renew each October 1 thereafter.
3    (b)   Notification.--No later than 60 days after receipt of a
4 correct and complete application under subsection (a) for a
5 sales and use tax GRID certificate of exemption, the department
6 shall issue a sales and use tax GRID certificate of exemption to
7 each applicant approved by the department.
8    (c)   Exempt purchases.--The owner or operator or qualified
9 tenant of a certified computer data center shall prepare and
10 deliver a properly executed sales and use tax certificate of
11 exemption to a vendor from which the owner or operator or
12 qualified tenant purchases exempt computer data center
13 equipment.
14    (d)   Continued compliance.--
15(1)   The owner or operator or qualified tenant of a GRID
16    certified computer data center eligible for a sales and use
17    tax GRID certificate of exemption shall comply with the
18    reporting, filing and compliance requirements under this
19    article.
20(2)   An owner, operator or qualified tenant may not
21    receive a sales and use tax GRID certificate of exemption
22    under this article unless the owner, operator or qualified
23    tenant is in full compliance with State tax laws.
24 Section 2916-D.1.    Limitation.
25    (a)   Prohibition.--The department may not certify any
26 computer data center under this article after December 31, 2032.
27    (b)   Eligibility.--Except if certified under Article XXIX-D
28 prior to February 3, 2026, a data center shall not be eligible
29 for tax benefits associated with Article XIX-B, Article XVIII-C
30 or the act of October 6, 1998 (P.L.705, No.92), known as the
20260HB2650PN3683  - 30 -
1 Keystone Opportunity Zone, Keystone Opportunity Expansion Zone
2 and Keystone Opportunity Improvement Zone Act.
3 Section 2917-D.1.    Zoning.
4    Nothing in this article shall affect the zoning authority of
5 a municipality.
6    Section 4.     This act shall take effect immediately.
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