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PRINTER'S NO. 1555
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 724
Session of
2026
INTRODUCED BY L. WILLIAMS, COLLETT, KIM, KEARNEY, CAPPELLETTI,
VOGEL, SAVAL AND COMITTA, MARCH 31, 2026
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 31, 2026
AN ACT
Providing for regulation of large load customers and public
utilities and for community benefits agreements between large
load customers and community-based organizations;
establishing the Data Center LIHEAP Enhancement Fund; and
imposing duties on the Department of Human Services and the
Pennsylvania Public Utility Commission.
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
Fair Share 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:
"Bureau of Investigation and Enforcement." The Bureau of
Investigation and Enforcement within the commission.
"Commission." The Pennsylvania Public Utility Commission.
"Community benefits agreement." A legally binding contract
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negotiated and agreed to between developers and community-based
organizations that serves to mitigate local impacts of
development in which benefits are specific, measurable,
actionable, relevant to the community's needs, time-bound and
supported by the broader community.
"Community-based organization." A workforce development and
training organization, labor union, local government entity,
environmental advocacy organization or public or private
nonprofit organization or entity that is representative of the
host community or a significant segment of the host community
and works to meet community needs.
"Fund." The Data Center LIHEAP Enhancement Fund established
under section 5(a).
"Host community." A municipality within which a large load
customer's facility is located and any other municipality within
a 10-mile radius of the facility's borders.
"Large load customer." A facility, campus of facilities or
array of interconnected facilities in this Commonwealth that
meets all of the following criteria:
(1) Is used by a business entity or other enterprise to
operate, manage or maintain a computer, group of computers or
other organized assembly of hardware and software for the
primary purpose of processing, storing, retrieving or
transmitting data.
(2) Has a gross aggregate electric peak demand, not
reflecting any reductions attributable to co-located electric
generation, of 25 megawatts or greater.
(3) Is interconnected to a public utility at a single
point of interconnection or multiple interconnection points
within 20 miles of each other or is interconnected to
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multiple public utilities within this Commonwealth at
multiple interconnection points within 20 miles of each
other.
"Low-Income Home Energy Assistance Program" or "LIHEAP." A
federally funded program that provides financial assistance in
the form of cash and crisis grants to low-income households for
home energy bills and is administered by the Department of Human
Services.
"Public utility." As defined in 66 Pa.C.S. § 102 (relating
to definitions).
"Ratepayer." A retail customer of a public utility that
purchases electric service for consumption.
"Renewable energy." Solar, wind energy, biomass or
hydroelectric power.
"Socially disadvantaged population." A group whose members
have been subjected to racial, ethnic or gender prejudice
because of their identity as a member of the group.
"Universal service and energy conservation." As defined in
66 Pa.C.S. §§ 2202 (relating to definitions) and 2803 (relating
to definitions).
Section 3. Duties of commission.
(a) Temporary regulations.--
(1) In order to facilitate the prompt implementation of
this act, the commission shall promulgate temporary
regulations no later than 120 days after the effective date
of this paragraph, inclusive of a public comment period of at
least 30 days.
(2) Temporary regulations under this subsection shall
expire not later than two years after publication.
(3) The commission may promulgate temporary regulations
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that are not subject to:
(i) Section 612 of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of
1929.
(ii) Sections 201, 202, 203, 204 and 205 of the act
of July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(iii) Sections 204(b) and 301(10) of the act of
October 15, 1980 (P.L.950, No.164), known as the
Commonwealth Attorneys Act.
(iv) The act of June 25, 1982 (P.L.633, No.181),
known as the Regulatory Review Act.
(4) The commission's authority to promulgate temporary
regulations under this subsection shall expire two years
after the effective date of this paragraph. Prior to the
expiration of this authority, the commission shall initiate
the process to promulgate final regulations in accordance
with State law and subsection (b) so that the final
regulations take effect upon the expiration of the temporary
regulations or promulgation of the final regulations,
whichever occurs first.
(b) Regulation requirements.--Regulations promulgated under
subsection (a) shall include, at a minimum, provisions relating
to all of the following:
(1) Deposits or financial security required from large
load customers.
(2) Calculations of contributions in aid of construction
for transmission and distribution infrastructure.
(3) Minimum contract terms between large load customers
and public utilities that require a large load customer to
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satisfy minimum contract terms for at least 15 years if the
large load customer ceases operations or otherwise materially
changes its service requirements.
(4) Load ramping schedules to ensure infrastructure
adequacy.
(5) Exit or early termination fees.
(6) Measures to prevent circumvention of the large load
customer's threshold through multiple facilities,
interconnection points or metering points.
(7) Utility tracking of all costs to serve large load
customers and verification that revenues collected exceed
costs incurred.
(8) Curtailment of some or all of a large load
customer's load prior to the loads of other customer types to
the maximum extent practicable during emergency conditions.
(9) Measures to limit the amount of electricity an
electric generation supplier as defined in 66 Pa.C.S. § 2803
(relating to definitions) can provide to a large load
customer to no more than 25% of the energy produced in a
calendar year.
(10) An end-of-contract process providing sufficient
notice prior to the expiration, renewal or material
modification of a large load customer's service contract with
a public utility.
(11) Requirements that large load customers contribute
to the public utility's universal service and energy
conservation program, consistent with the requirements for
those programs in 66 Pa.C.S. §§ 2203(6), (7), (8), (9) and
(10) (relating to standards for restructuring of natural gas
utility industry) and 2804(8) and (9) (relating to standards
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for restructuring of electric industry).
(12) Adoption of a rebuttable presumption for cost
recovery as provided under section 4(c).
(13) Minimum contract terms for and Bureau of
Investigation and Enforcement enforcement of the requirement
of large load customers to enter community benefits
agreements under section 7.
(14) Certification and expedited interconnection
standards under section 8.
Section 4. Recovery of costs.
(a) Cost recovery.--A public utility may not recover from
ratepayers that are not large load customers, whether through
base rates, riders, surcharges or any other ratemaking
mechanism, costs that would not have been incurred but for the
requirements of the large load customer.
(b) Cost of service study.--A public utility that serves or
is reasonably expected to serve large load customers shall be
required to submit a full cost of service study when seeking a
rate increase under 66 Pa.C.S. § 1308 (relating to voluntary
changes in rates) to support the public utility's proposed
allocation of shared or indirect costs that benefit multiple
customer classes, including large load customers.
(c) Rebuttable presumption.--
(1) There shall be a rebuttable presumption that costs
as described in subsection (a) are exclusively for the
benefit of the large load customer and that the costs shall
be assigned to the large load customer.
(2) A public utility may not assign costs to ratepayers
that are not large load customers based on generalized,
ancillary or theoretical benefits to those ratepayers absent
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actual, quantifiable evidence demonstrating that the costs
incurred were necessary for a purpose other than the
electricity demand of the large load customer or where the
costs incurred produce less value to such ratepayers, on a
unitized basis, than the value that alternative public
utility investment could have produced absent the
requirements of the large load customer.
Section 5. Contributions to Low-Income Home Energy Assistance
Program.
(a) Fund.--
(1) The Data Center LIHEAP Enhancement Fund is
established as a separate fund in the State Treasury.
(2) The Department of Human Services, in collaboration
with the State Treasurer, shall administer the fund.
(3) The Department of Human Services shall use the money
from the fund to implement a supplemental program to enhance
the Low-Income Home Energy Assistance Program. The
supplemental program shall include a summer cooling
component.
(b) Sources of money.--The fund shall consist of all of the
following:
(1) Payments made under subsection (c).
(2) Interest accrued on the money in the fund.
(3) Money from any other source authorized for this
purpose by Federal or State law.
(c) Annual payments.--No later than June 30 of each year,
each large load customer shall make a payment to the fund of
$10,000 per megawatt based on its gross aggregate electric peak
demand, not reflecting any reductions attributable to co-located
electric generation.
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(d) Continuing appropriation.--Money in the fund is
appropriated on a continuing basis to the Department of Human
Services for the purposes of this section.
(e) Regulations.--The Department of Human Services, in
collaboration with the State Treasurer, shall promulgate
regulations necessary to implement this section.
Section 6. Renewable energy requirements.
A public utility that enters into a contract for electric
service with a large load customer on or after the effective
date of this section shall ensure that not less than 25% of the
electricity supplied under the contract is generated from
incremental renewable energy sources that have been certified by
the commission, consistent with section 8, to constitute
incremental additions of accredited unforced capacity.
Section 7. Local agreements.
(a) Community benefits agreement party requirements.--
(1) A large load customer shall enter into one community
benefits agreement with at least three community-based
organizations that serve residents of the host municipalities
and have operated in the host communities for at least three
years.
(2) At least half of the community-based organizations'
signatories must have a mission to serve socially
disadvantaged populations. Documentation of the community-
based organizations' mission to serve socially disadvantaged
populations shall include the community-based organizations'
articles of incorporation or an affidavit describing
organizational activities, partnership activities, business
plans, historical documents, curricula and any other relevant
programming.
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(b) Community benefits agreement contents.--A large load
customer shall pay an amount to be determined by the parties and
memorialized in the community benefits agreement under
subsection (a). The amount to be paid shall not be less than 10%
of the overall cost of the project and can be made in one-time
or recurring payments. Residents of the host community shall be
the intended beneficiaries of the community benefits agreement.
The specific terms of community benefits agreements may vary and
may include any of the following:
(1) Workforce development, job quality and job access
provisions that include:
(i) Terms of employment, including wages and
benefits, employment status, workplace health and safety,
scheduling and career advancement opportunities.
(ii) Worker recruitment, screening and hiring
strategies and practices, targeted hiring planning and
execution, investment in workforce training,
apprenticeships and education and worker input and
representation in decision making affecting employment
and training.
(2) Funding for or provision of specific environmental
benefits that do not primarily benefit the large load
customer, including monitoring and strengthening
environmental or public health plans and actions.
(3) Funding for public infrastructure projects and
public safety, including annual contributions to local fire
and first responders, to compensate for increased need of
specialized training and gear.
(4) Funding for or provision of specific community
improvements or amenities, including park and playground
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equipment, urban greening, enhanced safety crossings, paving
roads and bike paths.
(5) Funding for affordable housing, home repair,
efficiency and weatherization programs.
(6) Commitments to periodically meet with community-
based organizations and the public to review monitoring
reports on electricity consumption, water consumption, water
discharge and air pollution.
(7) Financial assistance to assist municipal or citizen-
led air and water quality monitoring.
(8) Funding that supports individuals or community-based
organizations from the host community to intervene in public
utility ratepayer cases.
(9) Funding to a nonprofit or community-based
organization.
(10) Funding and reimbursement of costs for technical
assistance and support, including consulting attorneys,
consulting other community-based organizations, negotiation
trainings, facilitator services, monitoring activities and
any other services the community-based organization deems
relevant.
(c) Effect of agreements.--
(1) A community benefits agreement shall be legally
binding and inure to the benefit of the parties and their
successors and assigns.
(2) Nothing in this act shall prevent a municipality
from enacting local ordinances with additional community
benefits.
(d) Community benefits agreement public meeting
requirement.--
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(1) Prior to community-based organizations proffering
signatures, a large load customer must hold a public meeting
to discuss the drafted contents of the agreement with the
host community. The large load customer shall publish notice
of the public meeting in a local newspaper of general
circulation and on the large load customer's publicly
accessible Internet website at least two weeks in advance but
not more than one month prior to the public meeting date.
(2) The large load customer shall make available the
full content of the agreement prior to the start of the
public meeting by posting the agreement to the large load
customer's publicly accessible Internet website and printing
paper copies for public meeting attendees.
(e) Enforcement.--
(1) A large load customer shall file a copy of each
community benefits agreement with the Bureau of Investigation
and Enforcement. The Bureau of Investigation and Enforcement
shall review the community benefits agreement and certify
that the community benefits agreement satisfies the signatory
requirements.
(2) The Bureau of Investigation and Enforcement shall
maintain a public database of all executed community benefits
agreements in this Commonwealth.
Section 8. Certification and expedited interconnection for
large load customers bringing incremental energy
resources.
(a) Certification program.--
(1) The commission shall establish a program to certify
large load customers that have brought or plan to bring
incremental energy resources.
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(2) Certification shall be based on a binding financial
commitment by a large load customer, including a power
purchase agreement, to enable an incremental energy resource
or resources, located within the territory of PJM
Interconnection, L.L.C., or its successors, equivalent on a
one-for-one accredited unforced capacity basis, including a
reasonable reserve margin, tied to the large load customer's
ramp and utilization schedule, through any combination of the
following:
(i) Placement in service of a new generation
resource or combined generation and storage resource.
(ii) Uprate or expansion of an existing generation
resource to the extent of the uprated capacity.
(iii) Participation in a demand response product, if
participation continues for the duration of the
certification period or until the large load customer has
brought additional energy capacity equivalent to the
capacity value of the demand response product.
(iv) Another incremental addition of accredited
unforced capacity as measured by the applicable regional
transmission organization or independent system operator.
(b) Interconnection priority.--The commission shall require
electric distribution companies to prioritize the
interconnection of large load customers certified under
subsection (a) and, for interconnections subject to State
jurisdiction, to prioritize the interconnection of paired
generation resources or storage resources associated with a
certified large load customer.
Section 9. Transparency, filing and enforcement.
(a) Filing requirement.--
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(1) A public utility shall file with the commission a
copy of each contract executed with a large load customer,
including a copy of its community benefits agreements, upon
certification by the Bureau of Investigation and Enforcement
under section 7, on or after the effective date of this
paragraph.
(2) The public utility shall include with the filing
sufficient documentation to permit the commission to conduct
the review under paragraph (3).
(3) The commission shall review each contract under
paragraph (1) to determine all of the following:
(i) The impact on the grid system of PJM
Interconnection, L.L.C., regional transmission
organization or its successor.
(ii) The effect on the reliability of that grid
system.
(iii) The impact on ratepayers.
(iv) Compliance with the requirements of this act.
(4) A public utility shall provide a copy of a contract
filed under this section to the Office of Consumer Advocate,
the Office of Small Business Advocate and the Bureau of
Investigation and Enforcement.
(b) Void contract provisions.--Any provision of a contract,
agreement or similar instrument executed with a large load
customer on or after the effective date of this subsection shall
be void and unenforceable if the provision has the purpose or
effect of either:
(1) preventing the commission, the Bureau of
Investigation and Enforcement or a public utility from
carrying out their duties under this act; or
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(2) preventing or restricting the disclosure of any
terms of the contract.
(c) Enforcement.--A violation of this act shall be subject
to enforcement by the commission and the Bureau of Investigation
and Enforcement under 66 Pa.C.S. Ch. 33 (relating to violations
and penalties).
Section 10. Effective date.
This act shall take effect in 60 days.
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