The increasingly contentious debate over the Fiscal Year 2025-26 is now two months into the new fiscal year, with no clear end in sight. Both chambers returned to Harrisburg briefly in August to fire new salvos across the rotunda, the result of which was some entertaining public theater, but no agreement on a spending plan for the Commonwealth, and chaos for transit passengers in Southeastern PA.

Senate Republicans passed a flat $47.6 billion budget and a new transit funding plan, advocated by Philadelphia’s lone Republican Senator, freshman Sen. Joe Piccozzi.

In response to the latter proposal, Governor Shapiro’s press secretary stated, “While Governor Shapiro appreciates Senate Republicans finally acknowledging the need to fund mass transit systems across the commonwealth, this is clearly not a serious, long-term proposal that can pass both chambers.”. The Senate proposal utilized $1.2 billion from the PA Public Trust Fund to cover both transit and rural infrastructure.

Gov. Shapiro proposed a $51.5 billion plan in February, which was immediately and aggressively panned by conservatives in both chambers.

House Democrats recently passed a $50.6 billion state budget, and the Senate GOP responded with a flat-funding approach, citing decreasing revenue projections, and a need to hold onto reserves for further deficits in future years.

Both chambers are currently scheduled to return to session in September.

The committee held a public hearing on August 11 in Archbald, PA, to discuss data center development. 

Chairman Dave Argall (R-Schuylkill) opened the hearing on data centers in Pennsylvania, expressing interest in understanding the implications of the proposed data centers in his district and their impact on local communities. He noted the committee’s role in identifying problems and solutions for the issue and encouraged input from attendees.

Sen. Rosemary Brown (R-Monroe) emphasized the importance of understanding the necessity of data centers due to the increasing reliance on technology. She highlighted the need to balance technological demands with resource and environmental protection. She stated the hearing’s goal was to educate and provide information on the benefits and risks of data centers.

Nate Gerace, representing U.S. Sen. Dave McCormick (R-PA), discussed the economic activity in the Northeast and the success of an energy and innovation summit in Pittsburgh. He expressed optimism about Pennsylvania being a prime location for innovation, particularly in artificial intelligence (AI). He highlighted U.S. Sen. McCormick’s commitment to leadership and innovation.

Merle Madrid, senior manager, Amazon Web Services (AWS) Public Policy, announced a $20 billion investment in Pennsylvania for data center infrastructure expansion, expected to create at least 1,250 new jobs and support thousands in the local construction and data center supply chain. He discussed AWS’s recent investment in Green Castle, Franklin County. He emphasized the importance of these investments for Pennsylvania’s future, including partnerships with educational institutions for training programs. He highlighted AWS’s commitment to community development and environmental sustainability. He recalled the launch of the Amazon Northeastern Pennsylvania Community Fund and efforts to innovate data center designs for reduced environmental impact. He discussed AWS’s investment in generating carbon-free power. He recognized its partnership with the Susquehanna nuclear power plant to support their data centers’ energy needs.

John Augustine, president and CEO, Penn’s Northeast, spoke about the economic development potential of data centers in northeastern Pennsylvania. He highlighted the region’s evolution and the significant increase in warehouse and distribution centers since COVID-19. He noted the growing interest in data centers, with 15 companies considering the region, stressing the importance of making informed decisions. He argued that the rapid growth of AI and the strategic location of northeastern Pennsylvania make it an ideal candidate for data center development. He recognized Pennsylvania’s advantages for data center development, including abundant clean energy, robust electrical and fiber networks and a cooler climate. He recalled the 2021 data center tax credit and provided statistics on job creation, local spending and tax revenue benefits from data centers. He cited a proposed data center in York County as an example of a significant local tax revenue increase. He discussed the benefits and advancements in data center technology, such as environmentally friendly practices and the significant tax revenue and economic opportunities data centers bring to regions. “I encourage our elected officials to look at the facts and not listen to the hype,” he concluded.

Abby Smith, president and CEO, Team Pennsylvania, emphasized the importance of the current shift towards data center construction for economic growth, security and innovation, particularly in the context of AI. She highlighted the need for strategic deployment of data centers to advance Pennsylvania’s core industries. She noted the importance of AI and digital infrastructure as essential components of economic development. She announced that Team Pennsylvania will release a 10-year roadmap to integrate AI, data centers and energy into a strategic ecosystem, aiming to make Pennsylvania a global AI hub.

Neal Lesher, director of government affairs, Pennsylvania Chamber of Business and Industry (PA Chamber), emphasized Pennsylvania’s strategic advantages in attracting next-generation digital infrastructure. He stressed the importance of leveraging these assets to support data centers and AI-driven technologies. He highlighted the need for policies supporting investments in reliable energy generation and a resilient electric grid. He praised Pennsylvania’s educational institutions for meeting industry demands through skilled trades and STEM degrees. He cited successful economic opportunities presented by data centers already constructed in Virginia. He commended the Senate for making Pennsylvania’s tax code more competitive. He urged the need for a clear strategy to position Pennsylvania as a leader in the next major economic transformation.

Chairman Argall noted hearing input from Schuylkill County’s leading economic development organization on data centers. He asked what determines a real data center project and what the real determining factors are, such as local planning, zoning, energy sources and the workforce. Augustine discussed the key factors influencing the development of data centers, including the importance of speed to market, electricity supply limitations and the need for new electricity generation. He highlighted the importance of local community acceptance and the proper use of zoning and permitting. He recognized the industry’s struggle to find good employees and the potential for data centers to bring high-tech jobs to areas. He differentiated between actual data center users and those speculating on the suitability of their land for data center developments. Chairman Argall talked about the impact of data centers versus distribution centers in the Hazleton area, noting that data centers result in fewer trucks and jobs but potentially offer higher pay. He questioned whether the property tax impact of both types of facilities is similar. Madrid stated that data centers have a significant ratio of services required versus their property tax impact. He explained that this benefits community infrastructure with substantial tax revenue and minimal long-term community impact after construction. He hesitated to compare the impacts of data centers to distribution centers directly.

Sen. Brown asked Augustine for more details about the shift away from using large fans in data centers, specifically wondering about changes in technology, noise levels and public concerns regarding the sound emitted by these facilities. Augustine discussed the evolution of cooling systems in data centers and Bitcoin facilities, highlighting the shift to immersion cooling and the use of closed-loop systems that minimize environmental impact and water usage. He noted the potential for using ambient temperatures to cool facilities during colder months. Sen. Brown asked about the timeline associated with data center construction. She wondered if there is a follow-up for the surrounding communities to review waterpower, the construction impacts and the running of the center has on its surroundings. Madrid highlighted advancements in technology that have reduced noise and Amazon’s commitment to working with local communities to meet sound requirements. He detailed that the typical timeline from breaking ground to operational status for a building is about a year and confirmed ongoing engagement with communities.

Sen. Lisa Baker (R-Luzerne) discussed the community’s concerns regarding Amazon’s $20 billion investment and engagement process in their area. She inquired about the duration of Amazon’s involvement and the parties engaged. Madrid confirmed the June 2025 announcement as a significant milestone, highlighting the extensive engagement with local officials that began 16-18 months prior. He emphasized the importance of collaborating with local leaders to discuss the benefits and opportunities of their projects. He stressed the positive impact on energy transmission costs for residential ratepayers in Loudoun County as an example of the benefits brought by their investments. Sen. Baker highlighted the concerns with the PJM grid and the prices of utilities spiking in her area. She wondered how Amazon will engage with that issue without negatively impacting the local community. Madrid explained the PJM grid’s benefits from Pennsylvania’s energy policies, emphasizing the state’s leading role in energy generation and its diverse energy mix. He highlighted the energy demand driven by digital advancements and criticized some states for removing baseload power for unproven technologies. He noted Loudoun County’s position as a dense area of data centers, benefiting from energy investments by large operators like Amazon, which have lowered transmission costs for local residents. He discussed Amazon’s investments in carbon-free energy sources, including small modular reactors, totaling nearly $1 billion. Sen. Baker highlighted the importance of water issues and workforce development, discussing Luzerne County Community College’s role in preparing the workforce. Madrid detailed Amazon’s commitment to being water positive by 2030 and using AI to prevent water system leaks. He compared the water usage of modern data centers to that of similarly sized office buildings due to efficiency improvements.

Sen. Kristen Phillips-Hill (R-York) expressed concerns about the impact of neighboring states’ energy decisions on Pennsylvania and the need for data centers to benefit local communities. Smith emphasized the need for Pennsylvania to capture the economic benefits of data center development. She advocated for investments from technology companies to make technological advancements tangible within communities. She argued for leveraging these investments to transform the economy and enhance community vitality.

Christine Martin, president, PPL Electric Utilities, highlighted her organization’s role in serving 1.5 million customers and its focus on transmission and distribution. She addressed the significant electric demand from data centers, with 14.4 gigawatts under advanced agreement, nearly double PPL's current system peak. She detailed PPL’s $20 billion investment through 2028 in the grid to enhance its reliability and resiliency. She explained that PJM's regional transmission system spans 13 states and D.C., with costs for regional reliability projects shared proportionally by benefiting customers. She highlighted the need for new transmission lines and substations due to increasing electricity demand. She recognized efforts to leverage existing rights of way and to engage with communities during project development. She discussed Pennsylvania’s role as an energy leader and a net generation exporter. She raised concerns about power supply for data centers but specified that she does not control electric generation supply or prices. She highlighted SB 897, which could allow companies to build generation capacity if the market fails to meet demand. She stressed that data center loads are not the cause of current capacity price increases but acknowledged they add stress to supply. She expressed hope to work more with local communities and the state legislature on this issue moving forward.

Jonathan Lutz, Pennsylvania Associate Director, American Petroleum Institute (API), testified about the state’s increasing electricity demand and the need for additional energy resources. He highlighted the role of the API in supporting the natural gas and oil industry. He pointed out the significant growth in electricity demand due to AI and reshoring of manufacturing, advocating for natural gas as a solution for meeting this demand. He discussed the significance of the Homer City development project, a 4.5 gigawatt initiative utilizing Pennsylvania's natural gas. He recognized the doubling of natural gas production in the state since 2013, leading to low residential natural gas prices and a 41% reduction in carbon dioxide emissions from the power sector since 2005. He urged the expansion of natural gas infrastructure and the need for permitting reform to unlock economic opportunities and ensure energy security.

Andrew Dehoff, executive director, Susquehanna River Basin Commission (SRBC), explained the commission’s role in managing the Susquehanna River's water resources. He highlighted the significant water usage by hyper-scale data centers for cooling purposes, which can strain local water resources. He expressed concern over the additional water demand from new power plants intended to support these data centers. He noted that SRBC has only permitted one data center water use so far. He advocated for proactive engagement with industry leaders to ensure environmentally sustainable development. Dehoff stressed the role of agencies like SRBC in securing a sustainable water supply for all users.

Kristen Bowman Kavanagh, executive director, Delaware River Basin Commission (DRBC), spoke about the commission’s role in managing the water resources of the Delaware River Basin, emphasizing its importance in supplying drinking water to over 14.2 million people. She discussed the impact of data centers on the basin’s water supply and quality, noting the potential need for larger facilities to operate their own water withdrawal systems. She highlighted the importance of careful water allocation, especially during droughts. She elaborated on DRBC’s efforts to manage freshwater flows and balance the needs of various water users, including data centers. She detailed the use of reservoirs, the requirement for large water users to have drought management plans and the challenges posed by consumptive uses. She stressed the need for transparency and collaboration with utilities, co-regulators and data center operators to ensure reliable access to clean water and protect the watershed’s health.

Patrick Henderson, vice president of government affairs and communication, Marcellus Shale Coalition, discussed Pennsylvania’s growth as a natural gas producer and the challenges of transportation that have led to stagnation in production. He advocated for pipeline expansion to enhance market access and noted the potential for increased natural gas demand from data centers. He emphasized the economic and employment benefits of supporting natural gas infrastructure and market-driven generation expansion. He detailed the restructuring of Pennsylvania’s electric markets in 1996, the benefits it brought, and the decline in new generation starting in 2019 due to policy uncertainties. He highlighted the shift of queued capacity for new electric generation to neighboring states. Henderson stressed the importance of permitting certainty and opposing harmful state policies to maximize opportunities, particularly with data centers. He thanked the committee for holding the hearing and for the Senate Republican Caucus’s focus on the issue of AI and data centers.

Tony Nokovich, vice president of engineering, Pennsylvania American Water, discussed the impact of data centers on water demand and infrastructure. He outlined issues related to seasonal water demand fluctuations, distribution system impacts and water quality management. He suggested policy measures for the General Assembly to consider, including water demand forecasting, infrastructure cost sharing and operational resilience. He expressed hope that these solutions would support the growth of data centers while ensuring reliable water services.

Chairman Argall recognized Sen. Brown’s method of encouraging constituents to send her questions to share with the committee for each hearing, noting he would like to use that method moving forward. He detailed the comparison of green versus gray fields, highlighting the relocation of new industries to areas in Pennsylvania that were devastated by coal mining. He wondered if this is a practice that should be encouraged by the state legislature or if it should be left to local planning and zoning officials. Martin detailed legislation that reduces liability and addresses cleanup costs for brownfield site development. She suggested reviewing this law to ensure it aligns with current needs and acknowledged that local governments control land use but believed promoting redevelopment in previously used areas could be beneficial. Chairman Argall discussed the varying water resources in the communities he represents, noting the contrast between areas with limited water due to the decline of garment factories and coal mines, and others with more water available than 50 years ago.

Sen. Brown inquired about the extent of coordinated efforts among key players in the water sector to address water-related issues collectively, especially regarding proposed data centers and their water sources. Dehoff explained that several agencies have held discussions to address water management issues, particularly in relation to potential data center developments. He stated SRBC was tracking 15 or 16 potential developments, with only one permitted so far. He highlighted incentives offered to encourage the use of lower quality water and the importance of understanding water-saving technologies. Sen. Brown emphasized the importance of ensuring economic development is conducted properly in relation to water usage. She stressed the need for state and local governments to quickly gain a better understanding of water quality and resources.

Chairman Argall inquired about the potential use of water left behind in Schuylkill County’s deep and strip mines. Dehoff stated that treating this water would require some level of treatment, depending on specific conditions. Martin explained that the discussion on brownfield and existing industrial sites highlighted the potential for utilizing existing infrastructure, such as transmission infrastructure and substations, for new developments.

Gerace asked about Pennsylvania’s role as a top electricity exporter and second-largest natural gas producer in the U.S. He wondered if this attracts data centers to the state and if these policies could leverage economic opportunities for reliable, affordable power and enhance American energy security. Henderson agreed that the abundance of natural gas in Pennsylvania is a significant driver for data centers and large energy users due to its affordability, cleanliness and reliability. He suggested reducing regulatory barriers and highlighted efforts towards permitting reform to maintain Pennsylvania’s competitive edge in energy. Lutz emphasized the large amount of natural gas that exists in Pennsylvania, noting a doubling of production in the last 10 years. He emphasized the power capacity for the data centers exists, recognizing their affordability. He stressed the need for permitting reform at the state and federal levels to make the qualifications more reliable and predictable for new industries.

Sen. Baker discussed the presence of Marcellus Shale in Susquehanna and Wyoming counties and the challenge of insufficient pipelines for transporting gas to power data centers. She emphasized the need for collaboration to construct necessary pipelines to utilize the gas resources fully, wondering where the connection between labor and these new industries exists. Henderson highlighted the importance of pipeline infrastructure for transporting natural resources, detailing federal support for interstate infrastructure projects. He discussed the challenges of building pipelines in the Northeast and expressed optimism about the future of planning and building interstate pipelines. 

Robert Durkin, president, Greater Scranton Chamber of Commerce, outlined the region’s economic history and its evolution through three iterations of the “Scranton Plan,” each developed in response to changing industries. He described the post–World War II shift from coal and rail to manufacturing, later to back-office and finance, and now to targeted sectors including advanced manufacturing, food and beverage, health care, energy and technology. He highlighted data centers as a prime opportunity, citing local resources such as reliable energy, educational institutions and workforce development efforts. Durkin stressed the goal of attracting and retaining talent, creating direct and indirect family-sustaining jobs, and pursuing growth through inclusive community planning.

John Yudichak, president, Luzerne County Community College, thanked the committee for focusing on data center development. He highlighted the college’s role in serving over 7,000 students and meeting workforce needs across multiple counties, including partnerships with major energy companies, manufacturers, and local businesses. He said Pennsylvania’s 15 community colleges educate more than 240,000 students, maintain 2,000 industry partnerships and keep 90% of graduates in-state. He added that the state faces an acute workforce shortage, projected at 218,000 workers without postsecondary credentials by 2032, especially in regions where data centers are growing. Yudichak highlighted a new statewide technology and trades workforce consortium led by several community colleges, built on three pillars: career and technology academies for high school students, micro-credential programs to upskill current workers and a construction/trade pre-apprenticeship academy in partnership with unions. He emphasized that community colleges are best positioned to close the skills gap and lead Pennsylvania’s workforce into the AI and data center era.

Holly Fishel, policy and research director, Pennsylvania State Association of Township Supervisors (PSATS), thanked the committee for the invitation to testify and explained that local governments play a critical role in land use decisions, balancing resident interests with development needs under the state’s Municipalities Planning Code. She noted that AI-driven data centers are an emerging land use, and townships are updating ordinances with public input to determine appropriate locations and mitigate negative impacts. She stressed that municipalities can plan for data centers but cannot ban them, and that zoning, subdivision and land development rules ensure proper siting and infrastructure. Fishel opposed any state preemption of local land-use authority, citing the need for community-specific rules on setbacks, noise, light, height, water use and emergency access. She warned that improper planning could harm residents’ water supplies or strain emergency services. She said that she supports streamlined state permitting but cautioned against eliminating oversight. She added that data centers have a place in Pennsylvania but argued that they should be developed thoughtfully to avoid long-term harm.

Esch McCombie, co-chair, McNees Real Estate Group, noting his focus on land use law for the private sector, argued that data centers are essential for Pennsylvania’s economic growth, benefiting industries like healthcare, education and finance, but that the state has fallen behind in development. He highlighted that municipalities could gain localized benefits, such as tax revenue and jobs, by encouraging projects. He added that common concerns like power demand, water use, and noise are engineering and planning challenges, not project-ending issues. He stressed the need for timely development and urged municipalities to create zoning ordinances that define data centers as permitted uses to provide certainty and efficiency for developers. He emphasized the importance of early dialogue among developers, utilities and local officials to address infrastructure and community concerns. McCombie stated that with clear regulations and solutions to resource challenges, Pennsylvania could become a leader in the sector.

Kristopher Gazsi, assistant director and legal counsel, Pennsylvania Local Government Commission, said the bipartisan commission serves as a research arm for the General Assembly and acts as a liaison between communities and legislators, without endorsing specific policies. He noted that local governments want more communication from industry and the state to address community worries about large data centers, especially in rural areas. He added that some communities, like Lancaster City, are using tools such as community benefits agreements to resolve issues early and secure local support. He emphasized that economic benefits may start small due to incentives like tax abatements but can grow over time. He also said now is the time for municipalities to review zoning ordinances and comprehensive plans before developers move in. Gazsi highlighted opportunities for data centers to repurpose underused properties, including brownfields and certain Superfund sites. He stressed the importance of addressing resource needs, noise issues and municipal capacity, particularly in small communities with limited public safety or planning resources. He concluded that these considerations should be part of early planning and public engagement.

Sen. Dawn Keefer (R-Cumberland) thanked Chairman Argall and Sen. Brown for hosting the discussion, calling it an important conversation. She stated that some municipalities have raised concerns about being unable to fully evaluate the impacts and benefits of data centers because they are not receiving complete information. She noted that, in some cases, local officials have been required to sign nondisclosure agreements, preventing them from knowing key details such as water and electricity usage. She added that data center operators claim such information could put them at a competitive disadvantage but argued that the lack of transparency leaves municipalities and communities unable to make fully informed decisions. She cited recent drought conditions in her region as an example of why water usage data is critical. She highlighted that this lack of information is a significant hurdle for local governments and said state legislators should help position municipalities to make responsible, informed choices for their communities. She asked how this issue is being addressed in existing agreements with the Chamber of Commerce. Durkin answered that they had held independent meetings with leadership, staff, and utilities, including PPL, UGI, Pennsylvania American and the Lackawanna Sewer Basin Authority to better understand potential impacts. He added that about two weeks earlier, they brought in two experts with experience in Northern Virginia data centers, who shared videos and photos, and met with Lackawanna County Commissioners, municipal officials from Jessup and Archibald and their staffs. He explained the discussions addressed questions on issues like water and sound, stressing that communities need to work together and use available resources to bring in fact-based expertise. He noted that misinformation can spread easily online, sharing an example of a constituent opposing data centers based on something seen on TikTok, and pointing out the irony that such platforms and AI require data centers to function.

Sen. Keefer said it was good to bring in experts, though many were “self-proclaimed” and directly involved in data center development. She noted that when discussing water usage and consumption rates, it appeared the river basin commissions were not included in the conversation, even though they handle water quantity issues. She added that a recent auction price was up 22% from 2024 and could rise another 5% next year, with the primary driver being data center expansion. She stressed the need to fully understand potential impacts on electric and water bills, infrastructure capacity, and the return on investment for communities. Fishel said they have been encouraging members through webinars to learn about this “brand new use” and share experiences when working with developers on potential sites. She noted they provide sample ordinance language from various townships and that some members visited Loudoun County to study data center impacts. She added that ordinances can require documentation showing an adequate water supply, agreements with suppliers, or withdrawal permits from basin commissions. She said these requirements may not be determined upfront but should be part of the official record during the planning process. Chairman Argall asked whether that implies that the local municipality could ask utility companies to show that they have a safe and adequate water supply and accept or reject them based on that information. Fishel confirmed that it would be at least part of the planning requirements.

Sen. Brown thanked the speakers for their testimony and expressed strong support for the Local Government Commission, noting its detailed information helps the legislature address complex topics. She said she was glad PSATS is working with members such as local supervisors and borough associations. She highlighted that the role of local elected officials has shifted from occasional voting to ongoing education, trend monitoring and public engagement, often while holding other jobs. She stressed that officials and the public alike need reliable, detailed information to make informed decisions and said improving access to such resources is essential. She requested a copy of the community benefit mentioned in Lancaster County and said discussions on these issues would continue. Gazsi indicated that he would send the available information regarding Lancaster’s community benefits agreement, noting that the process had not yet been completed but was under consideration. He also mentioned a research paper, described as a think tank report, attached to his testimony, which discusses the use of community benefit agreements, particularly in power plant development, and noted that some communities are beginning to explore their application for data center projects.

Chairman Argall acknowledged the value of detailed information and thanked Sen. Brown for addressing constituent questions in advance. He noted that some concerns, particularly regarding water, energy and noise impacts, had been addressed. He then raised a new question related to potential impacts on local school districts, specifically whether data center developments would increase student populations and necessitate building more schools. He suggested, based on the testimony so far, that because data centers employ relatively few people, there should be no significant negative impact on school districts, and sought confirmation on that point. McCombie responded that research indicates data centers tend to have positive effects on local schools. He stated that the Cumberland Valley School District, which faced a $7.5 million budget deficit last year, is expected to receive between $10 million and $20 million from a proposed data center development in Middlesex Township. He emphasized that data centers typically create relatively few jobs, though generally well-paying, many requiring only an associate degree or less, and therefore do not place significant additional demands on school districts. He added that while some increase in student numbers might occur, it would be minimal compared to large manufacturing facilities bringing hundreds or thousands of new employees.

Tony Seiwell, international representative, Laborers’ International Union of America, addressed the committee regarding data center development, emphasizing the importance of local hiring for data center construction projects. He argued that prioritizing local workers ensures that wages earned stay within the community and support local economies. He acknowledged that the high demand for labor means not all workers can be local but stressed maximizing local employment opportunities. He highlighted concerns about wages, advocating that projects receiving public tax incentives should pay prevailing local wages, even though these jobs are primarily in the private sector. He pointed out that tax benefits given for computer equipment at data centers should come with wage requirements benefiting local workers. Seiwell expressed support for data centers, noting that they bring significant work opportunities for union laborers and emphasized the need for projects to be done safely and with proper community considerations, such as noise and water impacts. He appreciated the hearing as a platform to address misinformation and open dialogue on data center impacts.

1. David Sload, president and CEO, ABC Keystone Chapter, spoke on workforce challenges linked to data center construction in central Pennsylvania. He noted his chapter represents over 700 companies and 30,000 workers. He described data centers as large facilities needing specialized infrastructure that local contractors can build. He highlighted a critical shortage of construction workers, with 29,000 needed in Pennsylvania and 41% of the current workforce retiring by 2031, and emphasized the need to expand apprenticeship programs, citing Pennsylvania’s 4-to-1 journeyman-to-apprentice ratio. He mentioned proposed bills, HB677 and SB439, aimed at adjusting these ratios to increase apprenticeship opportunities. He stressed partnerships with technical schools and community colleges but noted legal barriers slowing workforce growth. He urged updating 1961 construction laws to reflect modern safety and labor needs without compromising safety. He called for urgent reform to prepare for expected data center growth.

Chairman Argall noted that if the union and ABC can work out those issues, he would suspect a proposed legislation on it to pass the House and Senate unanimously. Seiwell agreed that there is demand for solutions and that not everything is centered around just apprenticeship. He added that addressing the questions around the hirings for those centers and building a coalition around that would be crucial.

George Hayden, president, Hayden Power Group, highlighted his company’s 50 years of experience and commitment to quality work and community investment. He stated that he supports the expansion of internships, pre-apprenticeship, apprenticeship programs and articulation agreements with schools, emphasizing their role in bridging education and industry to prepare a skilled, diverse workforce. He explained how these programs provide hands-on experience and help students build practical skills, confidence and clear career pathways. He noted articulation agreements align coursework with industry standards, reducing redundancy and easing the transition from classroom to on-the-job training. Hayden opposed project labor agreements (PLAs), stating they hinder fair competition, restrict opportunities for merit shop and non-union workers and limit access for those entering apprenticeship programs. He noted the current workforce shortages, stressing the importance of partnerships with local schools to develop new training pathways, ensuring the industry meets current and future demands, including those from data center construction. He reaffirmed his commitment to policies supporting career development in the electrical trades and thanked the committee again.

Chairman Argall stated that the building trades require a lot of different workers, but that he imagines electricians are very important. Sload confirmed, adding that they are the largest trade in the country right now. Chairman Argall continued that he has heard that to satisfy the need for electricians for building data centers, some will have to come from out of state. He inquired if his assumption is correct. Sload agreed, stating that for most projects in Pennsylvania, they already have to bring in workers from outside the state. Seiwell explained that, given the current number of data centers underway, the workforce demand is not yet overwhelming. He argued, however, that with potentially 12 to 14 more data centers proposed, there is uncertainty about how many will proceed due to permitting and community objections. He noted that recruiting efforts are ongoing from all sides, including himself and the unions, but acknowledged that if all 14 projects move forward, the available workforce would not be sufficient to staff them all.

HB1798 RE: Requiring Bonding for Contractors Performing Work on Adjoining Properties (by Rep. Patrick Gallagher, et al)

The Contractor Bonding for Adjoining Properties Act provides for bonding requirements for contractors performing work on adjoining properties; and imposes penalties. Provides definitions. Mandates a contractor performing a home improvement project or a new home construction project on adjoining property to purchase a surety bond of $500,000 for each property adjoining the property on which the home improvement project or a new home construction project is being performed. Stipulates that the bond shall only be used to cover damages to a property caused by a home improvement project or a new construction project on an adjoining property. Requires proof of bonding to be submitted to the municipality. Subjects a contractor found to be in violation to a civil penalty of $10,000 for the first offense and a civil penalty of $20,000 for each subsequent offense.

Referred to House Housing and Community Development Committee, 8/13/2025

SB160 RE: General Appropriation Act of 2025. (by Sen. Scott Martin)

Provides appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the commonwealth, the public debt and the public schools for the fiscal year July 1, 2025, to June 30, 2026, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2025; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2025, to June 30, 2026, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2025; to provide for the appropriation of federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2025, to June 30, 2026, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2025; and to provide for the additional appropriation of federal and state funds to the Executive and Legislative Departments for the fiscal year July 1, 2024, to June 30, 2025, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2024. Section 8101 shall take effect immediately. The remainder of this act shall take effect July 1, 2025, or immediately, whichever is later.

Re-reported as committed from Senate Appropriations Committee, read third time, and passed Senate, 8/12/2025  (27-22)

Referred to House Appropriations Committee, and defeated in committee, 8/13/2025 

SB983 RE: Warehouse Solar for Consumers (by Sen. Nick Miller, et al)

The Commercial/Industrial Rooftop Solar Act provides for commercial/industrial rooftop solar generation; establishes the Commercial/Industrial Rooftop Solar Program; and promulgates regulations. Directs the Pennsylvania Public Utility Commission to establish the Commercial/Industrial Rooftop Solar Program. Directs electronic distribution companies (EDC) to provide monthly payments to any commercial/industrial rooftop solar project generator equal to the full value of electricity generated by the project and exported to the EDC. Provides qualifications for entry into the program. Stipulates that a rooftop project is entitled to receive payments for the duration of the project’s serviceable life. Permits projects to be built to maximize the usable space of a commercial/industrial rooftop. Permits the operation of multiple projects. Provides for alternative energy credits. Stipulates that the interconnection of projects will proceed pursuant to existing interconnection procedures and standards promulgated by the commission. Provides for approval of projects by the commission. Stipulates required wages and employee benefits for projects. Stipulates that project owners have entered into an executed interconnection agreement with the EDC or have obtained customer-generated approval from the commission. Directs the commission to promulgate necessary regulations.

Referred to Senate Consumer Protection and Professional Licensure Committee, 8/27/2025

HB1784 RE: Frivolous Complaints Against Licensed Practitioners (by Rep. Parke Wentling, et al)

Amends Title 63 (Professions and Occupations (State Licensed)), in powers and duties, further providing for civil penalties. Permits the commissioner to impose a civil penalty on a person who files a frivolous complaint against a licensee. Specifies that the amount of the civil penalty shall be established by regulation of the commissioner and shall not exceed $1,000 per violation. Directs the commissioner to provide notice to the complainant and afford the complainant an opportunity to respond per 2 Pa.C.S. (relating to administrative law and procedure) prior to the imposition of a civil penalty. Asserts that all proceedings to impose a civil penalty under this subsection shall be conducted per section 3105 and any applicable regulations of the commissioner. Defines “frivolous complaint.” Referred to House Professional Licensure Committee, 8/10/2025 

HB257 RE: Transit Funding (by Rep. Ed Neilson, et al)

Amending Titles 4 (Amusements), 74 (Transportation) and 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in interactive gaming, further providing for interactive gaming tax; in sustainable mobility options, further providing for definitions, for fund and for operating program and providing for annual performance evaluation and for operating a controlled substance injection site near infrastructure of a local transportation organization; in metropolitan transportation authorities, further providing for special prosecutor for mass transit; in public-private transportation partnerships, providing for metropolitan transportation authority projects; in licensing of drivers, further providing for persons ineligible for licensing, license issuance to minors and junior driver's license, for learners' permits, for application for driver's license or learner's permit by minor and for examination of applicant for driver's license; in miscellaneous provisions relating to operation of vehicles, providing for the offense of interference with operation or movement of a public transit vehicle and for sentencing enhancement for drug delivery on transit; in lighting equipment, further providing for use and display of illuminated signs; in taxes for highway maintenance and construction, providing for supplemental funding for three and four digit highway construction; and establishing the Supplemental Funding for Three and Four Digit State Routes Account in the Motor License Fund.

House Democrat Bill Analysis: hb257-house-democratic-caucus-summary.pdf

Amended on Senate floor, read third time, and passed Senate, 8/12/2025 (27-22)

Defeated in House Rules Committee, 8/13/2025

HB1770 RE: Creating a First in Math Initiative (by Rep. Robert Freeman, et al)

Amends the Public School Code, in terms and courses of study, providing for supplemental mathematics program for kindergarten through grade five. Directs the Department of Education (PDE) to select a mathematics program to supplement and complement school entities’ existing mathematics curricula for kindergarten through grade five learners, beginning with the 2025-2026 school year. Outlines the qualifications that need to be met. Provides for course design goals. Prohibits PDE from charging a fee for the program. Directs PDE to establish a measurement of outcomes. Requires a report to the General Assembly.

Referred to House Education Committee, 8/4/2025

HB1788 RE: Transit Funding (by Rep. Sean Dougherty, et al)

Amends Titles 74 (Transportation) and 75 (Vehicles) of the Pennsylvania Consolidated Statutes, in sustainable mobility options, further providing for operating program; in metropolitan transportation authorities, providing for supplemental performance reporting; providing for Public Transportation Trust Fund transfer and annual increase; establishing the Road and Bridge Project Fund and the Road and Bridge Project Sinking Fund; in public-private transportation partnerships, providing for applicable authority projects; in lighting equipment, further providing for use and display of illuminating signs; in taxes for highway maintenance and construction, further providing for supplemental funding for three and four digit highway construction; and establishing the Three and Four Digit State Route Account.

Referred to House Transportation Committee, 8/6/2025 

Reported as committed from House Transportation Committee, read first time, and re-committed to House Rules Committee, 8/8/2025

Re-reported as committed from House Rules Committee, read second time, and re-committed to House Appropriations Committee, 8/10/2025 

Re-reported as committed from House Appropriations Committee, amended on third consideration, read third time, and passed House, 8/11/2025 (108-95)

Referred to Senate Transportation Committee, 8/15/2025 

HB1820 RE: Increased Transportation Funding (by Rep. Kerry A. Benninghoff, et al)

Amends Title 75 (Vehicles), in taxes for highway maintenance and construction, providing for transfers and for Supplemental Roads and Bridges Account. Outlines the transfer amounts from the Budget Stabilization Reserve Fund to the Supplemental Roads and Bridges Account and the dates of transfers. Explains that the Supplemental Roads and Bridges Account is a restricted account in the Motor License Fund. Specifies what is to be deposited into the account. Asserts that money is deposited into the account on a continuing basis to the department for the purpose of funding projects related to the construction, reconstruction, rehabilitation, maintenance and repair of roads and bridges in the commonwealth.

Referred to House Transportation Committee, 8/25/2025