Executive order signing about data center development in PA with Gov. Shapiro.
00:00 - Good afternoon.
00:02 - Thank you for joining us today
00:04 - i'm here today to talk about data centers in the
00:08 - executive action I'll be taking in a few moments
00:11 - to put strict guardrails
00:13 - in place on proposed projects
00:16 - to rein in data center developers
00:19 - who are trying to run over our local communities
00:23 - and to protect Pennsylvania ones from higher costs.
00:27 - I think it's important to take an honest look at how quickly
00:31 - data center development has moved over the last year
00:35 - this technology is obviously moving quite rapidly
00:39 - last summer
00:40 - i announced
00:41 - two projects that will bring thousands
00:44 - of new jobs and over twenty billion dollars
00:47 - of investment to Pennsylvania in Salem township
00:51 - in luzerne county
00:53 - and in falls township in bucks county
00:56 - since then
00:57 - we have seen an unacceptable
01:00 - number author of speculative proposals
01:03 - for data center development
01:05 - that is swapping aren't commonwealth many of them led by developers
01:10 - who have no regard
01:11 - for local communities
01:14 - local leaders like Hampton township commissioner John Michael Smith who joins us
01:19 - here today
01:20 - along with Dave sanco the president
01:23 - of p sat so you will hear from in a few moments
01:26 - will they know this reality firsthand as to thousands
01:30 - of local officials across
01:33 - our commonwealth
01:34 - today
01:35 - there are reports of more than one hundred
01:38 - data center proposals under discuss Russian
01:41 - here in our commonwealth most of those proposals are completely speculative
01:47 - and many of them haven't even taken
01:49 - the formal steps to apply to the commonwealth
01:52 - and they'll never be built.
01:54 - Though they lack detailed plans
01:57 - they have insufficient financing
01:59 - they don't have access to electricity that they
02:02 - actually need to build these data centers
02:05 - they have no agreements with tech companies
02:08 - to use the space
02:09 - should it be built while there are no AI
02:13 - data centers up and running right now in Pennsylvania
02:16 - and only five
02:18 - have the permits that they would need to even begin operating
02:22 - these speculators are nevertheless
02:24 - scaring our communities
02:27 - being aggressive with township officials
02:29 - bullying
02:30 - our neighbors our fellow Pennsylvania ins
02:33 - and refusing
02:34 - to list then
02:35 - to the people
02:37 - and
02:37 - they are threatening to fundamentally change the character of our communities.
02:43 - As your governor
02:44 - it is my job
02:45 - to listen
02:46 - and to use my authority to accomplish things
02:49 - for the people of Pennsylvania
02:51 - to protect
02:52 - the people
02:53 - of Pennsylvania
02:54 - and i have have.
02:56 - Earlier this year in my budget address i introduced
02:59 - my grid requirements
03:01 - strict protections that require data centers
03:04 - to bring their own power
03:06 - and pay for all of the costs associated
03:09 - with that electricity.
03:12 - Be transparent with the local community
03:14 - hire
03:15 - local workers and provide benefits to the local community
03:19 - and
03:20 - to protect our air
03:22 - and our water
03:23 - the house passed those grid requirements as legislation
03:27 - importantly on a bipartisan
03:30 - basis
03:31 - to put those stay Sanders in place the senate
03:34 - has refused to even bring it up for
03:37 - a vote
03:38 - in fact
03:39 - the senate majority leader even said that he has no intention
03:43 - of taking any legislative action
03:45 - to regulate data center development in Pennsylvania.
03:49 - The absence of legislative approval
03:52 - has left me with no other option
03:54 - but to protect the people of Pennsylvania by taking executive action today
04:00 - to put this strictest guard rails in the nation in place
04:04 - to stop these predatory developers
04:07 - and these bad proposals
04:09 - from infecting our commonwealth.
04:12 - I've heard heard loud and clear
04:14 - from the good people of Pennsylvania
04:16 - as I've traveled across
04:18 - our commonwealth and i'm here to say today that we will not
04:23 - be bullied
04:24 - by these
04:25 - developers
04:26 - we will not be bulldozed
04:28 - by the lawyers
04:29 - for these
04:30 - big tech companies
04:32 - that will not happen here in the commonwealth
04:35 - we have a long history in Pennsylvania
04:38 - of industry running roughshod
04:40 - over our communities to make a buck
04:42 - that stops
04:43 - with me.
04:45 - I went to Archibald
04:46 - in lackawanna county earlier this year.
04:50 - I listened to neighbors talk about where six data center campuses
04:54 - made up of about fifty one giant warehouses
04:58 - have been proposed
04:59 - in a single borough
05:01 - of seventy five hundred people roughly
05:04 - seventeen square miles
05:06 - i sat in representative mullins office and
05:09 - listened
05:10 - intently to concerned residents
05:13 - and then.
05:14 - I walked the left field line
05:16 - of any stay back park
05:18 - that left field line where
05:20 - parents should gather to watch their kids
05:23 - play little league
05:24 - instead that's where
05:26 - the corner
05:27 - of one of those data centers
05:29 - was to be built.
05:31 - Archibald
05:32 - is one of the many communities across
05:35 - Pennsylvania
05:36 - were experiencing this.
05:38 - We're also seeing it
05:39 - where my family's from
05:41 - in Montgomery county
05:42 - where one developer is trying to bully his way into forcing
05:46 - data center projects through local opposition from the community and opposition
05:52 - from local elected
05:53 - officials.
05:54 - Instead of actually respecting
05:56 - those residents.
05:58 - Of listening to them
06:00 - of understanding their concerns and trying to work with them
06:04 - the developer instead is trying to sue his way
06:07 - into building those data centers
06:10 - and in it's place he is creating.
06:13 - A whoa whole lotta chaos
06:15 - and he's stoking a lot of fear and angst
06:17 - amongst the community even though he has no
06:21 - realistic path
06:23 - to getting power to any of these sites
06:26 - anytime
06:26 - soon.
06:28 - Here's something else he has
06:29 - no realistic path of getting
06:32 - and that is
06:33 - my support short
06:34 - i'm a hell no on that project i'm a hell no on many other projects
06:39 - across Pennsylvania and they will not happen
06:43 - on my watch
06:44 - Archibald and Monaco well they're are just two examples
06:48 - of the dozens of communities across Pennsylvania
06:52 - who are being overrun
06:54 - and overwhelmed by developers who don't give a damn about us
06:59 - and think
07:00 - that they can have their way.
07:03 - While today
07:04 - i am formally putting them
07:06 - on notice
07:07 - in a few moments i will sign that executive order to put in place
07:11 - the nation's strictest guard rails on
07:14 - AI data centers
07:15 - guard rails that will hold these greedy developers accountable
07:19 - that will stop bad projects and put more power
07:24 - back into the hands
07:25 - of the local
07:26 - communities.
07:28 - Starting today
07:29 - AI data center developers
07:31 - who want to do business in our commonwealth
07:33 - must respect our communities
07:35 - and abide
07:37 - by these stringent requirements
07:39 - and
07:40 - if they can agree to do that
07:42 - well they should stop considering Pennsylvania as a home
07:45 - for their project
07:47 - i want to be clear
07:48 - these are not voluntary standards
07:51 - these are legally binding require moments
07:55 - in order to operate
07:56 - in the commonwealth and here's how it will work
08:00 - first developers will be required to provide a notice
08:04 - of intent to comply
08:07 - with the grid requirements
08:08 - second
08:09 - they'll be required to present their detailed plans to secretary Shirley
08:14 - and her uncle credible team at de p
08:16 - who will scrutinize them
08:18 - and ensure that they are sufficient
08:21 - and third
08:22 - these developers must sign a legally
08:25 - binding consent order
08:27 - locking them into these grid requirements
08:31 - and setting strict penalties
08:33 - if they fail
08:34 - to comply
08:36 - now let me remind you
08:37 - what those requirements
08:39 - are
08:40 - first
08:41 - developers must bring their own power and pay for all of the costs associated
08:47 - with that electricity
08:48 - they will not be permitted to saddle homeowners and
08:52 - businesses with the added costs
08:55 - of their development
08:57 - and
08:57 - they must get increasingly
08:59 - significant portion of that power
09:02 - from clean energy sources like solar
09:05 - advanced nuclear
09:06 - and
09:07 - battery storage
09:08 - that's something i expect you will hear more
09:11 - about from dwan Robinson the managing director
09:14 - of the nr d see in a few moments
09:17 - second they must
09:19 - respect
09:20 - our local communities by being transparent
09:23 - with the community
09:25 - by hiring
09:26 - locally
09:27 - and by offering a robust
09:29 - community benefits
09:30 - agreement
09:31 - and
09:32 - importantly
09:33 - they must
09:35 - earn earn
09:35 - local legal approval
09:38 - before they can work with us
09:41 - let me put that succinctly
09:43 - if the local community doesn't approve a project
09:46 - the state won't approve it
09:48 - either
09:50 - and third
09:51 - developers must meet
09:53 - the constitutional obligation under article one
09:56 - section twenty seven
09:57 - which guarantees each and every Pennsylvania in the right to clean air
10:01 - and to pure
10:02 - water.
10:04 - That is fundamental
10:05 - to our commonwealth
10:07 - and they must commit to the highest standards
10:10 - of environmental protection
10:12 - if a developer refuses to comply with these
10:16 - since
10:16 - they will have no pathway of getting the necessary approvals needed
10:21 - to build a data center in Pennsylvania
10:24 - let me repeat
10:25 - if a developer refuses to comply with those requirements they will have
10:30 - no pathway of getting the necessary approvals
10:34 - to build
10:35 - a dataset center
10:36 - in
10:37 - Pennsylvania
10:38 - and
10:39 - they will be disqualified from receiving the existing
10:43 - exemption on sales tax on data center equipment
10:46 - that was put in place two years
10:49 - prior to me being elected as your governor
10:51 - these are the wealthiest
10:53 - companies in the world
10:54 - they shouldn't get a tax br rake
10:56 - for gouging our
10:58 - communities.
11:00 - This executive order
11:01 - takes additional steps
11:03 - beyond making our grid requirements now legally
11:06 - enforceable
11:08 - effective immediately i am removing all data center projects
11:12 - from the fast track permitting
11:15 - program
11:16 - and this is executive order
11:18 - makes any future data center project ineligible
11:22 - for fast track
11:23 - one thing that has become
11:26 - abundantly clear to me
11:28 - from listening
11:29 - to pennsylvanians
11:30 - is that while fast track permitting has proven to be an incredible asset
11:35 - to helping us land major your economic
11:37 - development projects like Eli Lilly in the lehigh valley and
11:42 - the bellwether district in Philadelphia that is seeing
11:45 - rapid growth.
11:46 - What's become clear to me is that it is not right for these kinds
11:51 - of data centre developments
11:53 - the feedback I've gotten from people in their communities
11:56 - that has really shaped my perspective
11:59 - on this matter
12:01 - and
12:01 - while curtailing the speed of projects is important
12:05 - ending the secrecy
12:07 - is important
12:08 - as well
12:09 - too often times developers
12:11 - refuse to even give
12:13 - basic information
12:15 - to neighbors
12:16 - law like
12:17 - which tech company will occupy the AI data center
12:20 - or where the power
12:22 - will come from
12:23 - well that practice ends
12:25 - today
12:26 - in this executive order
12:28 - making clear
12:29 - that non disclosure agreements
12:31 - will not be permissible
12:33 - for data center
12:34 - projects
12:36 - it is important that dive calipers understand
12:39 - they need to be open on every single detail
12:42 - with our communities
12:44 - and
12:45 - if they won't be
12:46 - well they're not welcome to do business
12:49 - in Pennsylvania.
12:51 - Additionally
12:52 - i am directing my new special counsel on energy affordability
12:57 - to engage with the Pennsylvania utility commission
13:00 - and help establish rules and procedures that ensure pennsylvanians are protected
13:05 - from demand
13:07 - from the demand that data centers put on our energy grid
13:11 - Patrick Cicero
13:12 - who you'll hear from in a few moments who i
13:14 - worked with in the attorney general's office
13:17 - works hard to protect consumers
13:20 - everyday
13:21 - specifically
13:22 - we are going to ensure that
13:24 - any infrastructure costs caused by data centers
13:28 - are paid
13:29 - by the AI data centers
13:31 - not by a Pennsylvania homeowner
13:33 - were a business owner
13:35 - even if a data center ultimately closes
13:38 - and can't pay.
13:40 - No one's utility bills should go up because these wealthy companies don't pay
13:45 - their fair share
13:47 - they should pay for every
13:48 - penny of electricity
13:50 - that they need
13:52 - and if emergency strikes
13:53 - hear me on this
13:55 - the energy demand and the energy demand becomes
13:58 - higher
13:59 - than the grid can supply data centers will be the first ones knocked off
14:04 - not grandma or grandpa
14:06 - in their homes
14:07 - you'll hear more about this
14:08 - from our outstanding PC chairman to frank
14:12 - one pleased is here with us
14:14 - today and i'm proud that he has endorsed
14:16 - this executive order.
14:19 - Taken together
14:20 - these steps will effectively block
14:23 - objectionable
14:25 - unwarranted
14:26 - and burdensome data center projects throughout the commonwealth
14:30 - of Pennsylvania
14:31 - i'm using the the full weight of my executive authority
14:34 - to put in place immediate
14:37 - protections for the people of Pennsylvania against bad faith developers
14:41 - of AI data centers
14:44 - to the good people of Pennsylvania
14:46 - who have taken the time to talk to me in your communities
14:50 - at your rest stops at coffee shops on
14:52 - walking trails and at ballgames
14:55 - those who have
14:56 - texted me
14:57 - and shared with me your thoughtful concerns online.
15:01 - I want you to know i hear you
15:03 - and i listened
15:05 - and i also
15:06 - want you to know that i thank you
15:08 - for taking the time to share your thoughts with me
15:11 - to give me
15:12 - your ign input
15:13 - your input was heard
15:15 - and it was considered.
15:17 - I know you want the right to weigh in
15:20 - on decisions about what your community looks like going forward
15:24 - in this executive order
15:25 - allows for that
15:27 - i know you want the right to be able to weigh in on what kind of community
15:30 - you raise
15:31 - your children in
15:33 - this executive order
15:34 - puts that power back
15:36 - in our local communities
15:38 - i know you want the right to be able to say no
15:40 - to bad projects and developers
15:43 - who
15:44 - don't listen
15:45 - to your concerns
15:46 - who treat you with disrespect
15:49 - we try to raise your utility costs or pollute your resources
15:53 - this executive order
15:54 - returns that power
15:55 - to the people
15:56 - today
15:57 - with this executive order
15:59 - i'm putting these developers
16:01 - on notice
16:02 - letting them know that we will not let them
16:04 - bully
16:05 - my fellow Pennsylvania
16:07 - we will not let them disregard
16:09 - your constitutional right
16:11 - to clean air
16:13 - and to pure water
16:14 - we will not let them drive up
16:16 - your utility bills
16:18 - if these companies want to do business here
16:21 - they need to comply
16:23 - with now the strictest
16:24 - guardrails in the nation
16:26 - on data center
16:27 - development
16:28 - and that starts
16:30 - today.
16:31 - Thank you
16:32 - for your attention
16:33 - and now it's my pleasure to bring up the secretary of the department
16:36 - of environmental protection
16:38 - gesturing.
16:45 - Thank you governor shapiro.
16:47 - For the last several months
16:49 - d p has heard from thousands of Pennsylvania residents
16:53 - who are concerned about the potential impacts of data centers in their communities
16:57 - during our open public comment periods during the permit process
17:01 - or they reached out to the agency through other channels including social media.
17:06 - At dp
17:07 - our role when it comes to data centers is to review the necessary permit applications
17:11 - and conduct inspections as we would
17:14 - any other large scale development.
17:16 - Data center projects
17:18 - touch multiple programs that dp overseas from storm water and erosion control
17:23 - to sewage planning safe drinking water and storage tanks.
17:28 - The shapiro administration is committed
17:30 - to being open and transparent about data center projects and is launching
17:35 - dps new data center permit tracker
17:38 - along with the previously released
17:40 - DC edi data center planning tool kit for local governments
17:44 - to the people of penn sylvania
17:46 - governor shapiro and the department of environmental protection
17:50 - have heard you
17:51 - and we are using the tools that we have available
17:54 - to address your concerns you have highlighted
17:56 - real
17:57 - valid concerns about the impacts of
18:00 - hyperscale data center development
18:02 - that they could have on your communities utility bills
18:05 - and the environment these concerns include energy costs
18:08 - noise pollution and water usage.
18:12 - The governor's grid requirements
18:14 - mandates
18:14 - that developers
18:16 - bring their own energy source
18:17 - provide open transparent communication with local communities
18:22 - hire and train local workers and enter into meaningful
18:25 - community benefit agreements that invest in local priorities.
18:30 - Meet the highest standards
18:31 - for environmental protection including strict
18:34 - water conservation requirements
18:36 - and for that agreement
18:37 - data center developers will have their permits
18:40 - reviewed
18:41 - but not issued
18:42 - until all local land use approvals are in hand.
18:47 - If a developer chooses
18:49 - to not follow the grade requirements
18:51 - d e p will not even review their permit applications until all local land
18:57 - use approvals are granted.
18:59 - Those permits will also not be sequenced or issued when their reviews are completed
19:05 - but rather they'll risk save their permits once
19:08 - all necessary environmental permits are complete
19:11 - and will be packaged together and issued at the same time.
19:16 - I want to make it clear
19:17 - our hope
19:18 - is that all data center developers will agree to the grid requirements and work with
19:23 - us as part of the permitting process.
19:25 - Those that do
19:26 - will have their permits reviewed as they submit them
19:30 - but not before they are approved by the local municipalities.
19:34 - For those that choose not two
19:36 - we will not review your permit applications
19:39 - until all local land use approvals are obtained
19:43 - and then we will review
19:44 - all permits at once.
19:47 - Dp will continue to work to protect Pennsylvania's air land and water
19:52 - and ensure local input from the people who actually live in these communities as
19:56 - emphasized during the permitting process.
19:59 - I would now like to introduce John Matthew Smith
20:02 - the hampden township commissioner to discuss more
20:05 - about the local role in determining the appropriateness
20:08 - of data center development in a given community.
20:18 - Thank you secretary Shirley and and thank you governor shapiro for giving communities
20:23 - like Hampton township a seat at the table.
20:26 - As a result of the government's executive order
20:28 - a data center developer must obtain local approvals
20:31 - before the commonwealth will issue it's own permits
20:34 - simply put
20:35 - if a community
20:37 - if a community doesn't approve the project
20:39 - the state
20:40 - won't approve the project either.
20:42 - This is how government should work state and local
20:44 - governments working together to protect our communities.
20:48 - When we created Hampton ordinance we tried to put real enforceable protections in
20:52 - place for things like the environment
20:54 - energy costs
20:55 - transparency
20:56 - jobs and community involvement.
20:59 - When government
21:00 - what govern
21:01 - what governor shapiro is doing tech
21:03 - many of the same concerns
21:04 - address them at the state level
21:06 - this gives communities like Hampton township another layer of protection
21:10 - while still allowing it to make
21:12 - decisions locally
21:13 - that's really what local control is about
21:15 - development is fine
21:16 - but the community gets to set reasonable rules for what happens in it's own backyard.
21:21 - At this time i'd like to
21:23 - introduce that
21:24 - mister
21:24 - David
21:25 - sanko executive director of peace sets.
21:29 - For sure.
21:38 - Data centers have quickly become one of the most
21:40 - significant issues facing Pennsylvania local communities
21:43 - township meetings have been filled
21:45 - to capacity
21:46 - residents seeking
21:48 - information and sharing concerns
21:50 - about these
21:51 - proposed projects some even have had moved to larger larger spaces
21:55 - over the past couple of years
21:56 - local officials have invested significant time.
21:59 - In learning about data centers and learning about their potential impacts
22:03 - on any participated in peace as training we offered and some travel to.
22:08 - Functioning facilities in other states just to gain a
22:11 - firsthand knowledge
22:12 - of the opportunities
22:14 - and challenges that these projects
22:16 - present.
22:17 - Their work is paying off communities are carefully
22:20 - evaluating proposals asking informed questions
22:23 - making.
22:24 - Thoughtful decisions
22:26 - based on local circumstances
22:28 - and
22:28 - so some projects are moving forward
22:30 - where they make sense.
22:33 - Everything fits somewhere but everything
22:36 - does not fit
22:37 - everywhere.
22:39 - Today's announcement is important
22:40 - because it
22:41 - reinforces the fundamental principle that land use decisions are
22:45 - estimated to local level by the officials who know their community
22:48 - understand
22:49 - local conditions
22:51 - such as geography and public safety capacities
22:54 - and are accountable to the residents they serve.
22:57 - As a former local government official gov berners shapiro understands the importance
23:01 - of local decision making in the value of a strong partnership
23:04 - between state local governments who all serve the same constituents.
23:09 - I've been around Harrisburg
23:10 - through eight governors and they
23:12 - they all talked the talk
23:14 - about cooperating with local governments
23:16 - but this governor with today's executive order
23:19 - is walking the walk.
23:21 - By directing his cabinet not to permit
23:24 - issue permits before local leaders have had all their questions answered
23:27 - and make a decision the governor on behalf of the comp
23:29 - Pennsylvania township and all local governments
23:32 - across the commonwealth
23:33 - thank you for your advocacy and leadership in prioritizing
23:36 - local decision making.
23:39 - With that i'm going to introduce a
23:41 - divine Robinson
23:43 - for the nrdc.
23:53 - Good afternoon everyone
23:55 - my name is dwan Robinson and i am the managing director of playspace advocacy for
23:59 - climate and energy with the natural resources defense council.
24:02 - I lead a team at nrdc of state and regional policy advocates all across the country
24:09 - and in every singer will state
24:11 - that i work in.
24:13 - Data center soak up the political oxygen
24:16 - and cities and states are scrambling to develop solutions
24:20 - and that's why i am very proud to stand here today
24:24 - with governor shapiro
24:25 - because you are taking initiative and helping to show true leadership on this issue
24:30 - with a very smart
24:32 - very innovative approach
24:34 - to the data center problems that communities are facing
24:36 - left unchecked data centers and the AI boom
24:40 - will strain our energy grid.
24:42 - It will increase fossil fuel pollution.
24:45 - It will drive up energy bills for Pennsylvania families.
24:49 - One of the most sick inefficient ways
24:52 - to lower energy bills today is to require data
24:55 - centers to bring more of their own clean energy
24:59 - to power their facilities
25:01 - and to do it faster
25:03 - and this eo puts us down that path and helps us to fight
25:05 - climate change along the way which is a great bonus
25:08 - and governor i'd also be remiss if i didn't also briefly mention
25:12 - a highlight of your second aspect of your grid principles
25:16 - in many ways we do not know the full environmental toll
25:20 - that data centers have on communities
25:22 - and as such i am so glad that you are focused on increasing transparency
25:27 - and ensuring that communities have a real voice in this process
25:30 - so i am very be thankful to governor shapiro
25:33 - to your administration
25:35 - for your leadership and holding data centers to a higher standard
25:38 - and for your partnership within our
25:40 - c as we work to provide clean
25:42 - affordable and reliable energy in communities all across Pennsylvania
25:46 - so thank you very much.
25:48 - And next i will invite up to the state Patrick
25:51 - Cicero for the Pennsylvania utility law project
25:53 - thank you.
26:00 - Thank you to an
26:01 - thank you governor
26:02 - and.
26:03 - My name is Patrick Cicero i service of counsel
26:05 - at the Pennsylvania until the law project
26:08 - at the Pennsylvania utility law project our work seeks to ensure that Pennsylvania is
26:12 - experiencing poverty have access to safe
26:14 - reliable and affordable utility service
26:17 - this has always been difficult
26:18 - now more than ever
26:20 - what we're seeing today is a compounding threat
26:23 - rising
26:24 - energy bills driven by data center low growth
26:26 - and a regulatory system that cannot move fast
26:29 - but for too long has also been tilted against communities and
26:32 - consumers.
26:34 - In two thousand and twenty five nearly two hundred and ninety thousand pennsylvanians
26:37 - had their electric service shut off for nonpayment
26:39 - because they could not afford to pay their bill
26:42 - that has a fourteen percent increase over two thousand and twenty four.
26:45 - Our office represents families who are one bill away from losing their heat in
26:49 - November or their energy source in July
26:52 - a young family watching their utility bill gets more
26:55 - expensive every single year not because they're using more
26:58 - but because of decisions that have been made far away from their homes our office
27:03 - estimates that in the last eighteen months bills have gone up for the average family
27:07 - with average usage one hundred and seventy five dollars
27:10 - this is just a result of the energy increases caused by pjm
27:15 - you can double that if you want to count the Poles and wires distribution increases
27:19 - that have been approved at the public utility mission
27:21 - our system is broken
27:23 - this eo begins to fix that
27:26 - not only is energy an affordable it is increasingly scarce
27:29 - we have a multibillion dollar price increase
27:32 - and less reliable grid
27:34 - this is exactly why the action taken today matters
27:37 - energy affordability transparency workforce development
27:41 - environmental protection
27:42 - those four pillars say something simple
27:45 - if you want the commonwealth's tax benefits
27:47 - if you want expedited permitting interconnection you need to be responsible
27:53 - you don't get a free ride on the back of everyday Pennsylvania ones
27:56 - we cannot have a system where billion dollar companies get economic windfalls
28:01 - and a grandmother in Pennsylvania gets stuck paying the electricity bill.
28:05 - This is where the pvc comes in
28:07 - it needs to be vigilant and ensure that all costs
28:09 - caused by data centers are paid for by data centers
28:13 - they should include a requirement that data centers
28:15 - contribute to the universal service programs
28:17 - that keep low income families connected to essential utility service
28:21 - to to be clear
28:22 - we should welcome community led investment
28:25 - we should welcome community determined economic development
28:28 - we must also ensure that development for data
28:31 - centers does not lead to economic regression
28:33 - for Pennsylvania communities and families
28:36 - the executive order does just that is another step in balancing the scale on behalf
28:40 - of the communities in which we all live
28:42 - i appreciate the governor for taking this decisive and fair action
28:46 - and it gives me great pleasure to introduce my friend and the chairman of our public
28:49 - utility commission Stephen to frank.
29:01 - Hello
29:02 - my name's Stevie franken i have the great honor and privilege of serving as chairman
29:06 - of the Pennsylvania public utility commission.
29:09 - Thank governor shapiro for bringing us all together today
29:12 - and taking this very important step that he's about to take.
29:17 - Our grid in Pennsylvania is at a pivotal moment.
29:20 - The decisions we make.
29:22 - Will affect
29:23 - generations for decades to come.
29:26 - It will affect the reliability of this grid
29:29 - as well as the affordability of this grid.
29:32 - At the
29:32 - public utility commission our priorities are clear.
29:36 - Maintaining reliability
29:38 - while protecting your four ability
29:40 - for the existing customers on that grid.
29:45 - Recently earlier this year at the commission we took steps to implementing a large
29:49 - low tariff a model large load tariff
29:52 - and we believe
29:53 - this is the next step to that
29:55 - we said at the time that was only the beginning that was only the first step
29:59 - in making sure
30:01 - the cost causes of of infrastructure upgrades are paying for those
30:06 - what that large low tariff did was
30:08 - it.
30:09 - Suggested a
30:10 - contribution to the universal service fund.
30:13 - It requires significant deposits to be made
30:17 - to hopefully weed out some of those speculative.
30:21 - Developers that the governor spoke of.
30:24 - That's just the first step
30:26 - we have a lot more work to do here.
30:29 - Currently and part of
30:30 - the budget from two years ago
30:32 - the general assembly passed
30:34 - we are looking at load forecasts now
30:36 - and how those load forecasts
30:38 - are being submitted to pjm
30:41 - are they accurate forecasts because we know if we have an accurate load forecasts
30:45 - that could lead to increased costs to our
30:48 - our
30:48 - consumers
30:49 - throughout the pjm footprint.
30:52 - We're also focused on one basic principle fairness
30:55 - and that is growth
30:57 - pays for growth.
30:58 - Pennsylvania families and small businesses
31:01 - should not be asked to subsidize infrastructure needed
31:04 - to serve some of the largest energy users in the world.
31:09 - Additionally we have to realize that our utility systems our.
31:14 - Sectors are becoming more and more complementary
31:17 - we're using natural gas more
31:19 - to create electricity than we ever did before
31:22 - and we have to realize is we're building out that infrastructure
31:26 - we have to be cognizant of that the use of nature oil gas and
31:29 - and the role that that's playing
31:31 - in some of the
31:32 - development here
31:34 - additionally the governor's.
31:36 - Executive order
31:37 - calls for clean uses of power as well
31:40 - and we also support that.
31:44 - As i said we're transforming our grid
31:46 - and we have to get this right because if we don't get this right now
31:50 - it's going to be much more difficult
31:52 - to to
31:53 - recoup some of those costs that are being paid
31:56 - and.
31:57 - I applaud the governor again for bringing all the key parties here together
32:01 - for this executive or order.
32:03 - Economic development and consumer protection are not competing goals they're
32:08 - complementary goals and our response our responsibility is to make sure
32:12 - we create a framework that delivers both.
32:15 - This will require collaboration across government
32:18 - regulators
32:19 - consumer advocates utilities
32:21 - customers
32:22 - and our regional and federal partners.
32:25 - Again the commission looks forward to
32:27 - doing our part
32:28 - as an independent regulator
32:30 - supporting responsible growth
32:32 - while protecting the reliability and affordability of our existing ratepayers
32:37 - and with that i would turn the microphone back
32:38 - over to the governor and that he would get
32:40 - thanks to.
32:41 - Think.
32:43 - Thank you chairman de frank
32:44 - i'm going to sign the executive order and then I'll return to the podium
32:47 - to answer some questions.
33:11 - Laughs.
33:25 - Before i.
33:27 - Take those questions i do just want to say a special thanks to several
33:31 - leaders who helped us
33:33 - reach this day
33:35 - i want to say a special thank you to my executive
33:38 - deputy chief of staff
33:39 - Amanda warn
33:40 - my deputy chief of staff
33:42 - we are going to clap for
33:43 - Amanda Rosie i think.
33:46 - Though
33:50 - my w chief of staff
33:51 - Sam Robinson appreciate you very much.
33:55 - Though
33:58 - my deputy policy cep secretary Jacob finkel.
34:02 - Just a font to one of our deputy general counsels Jacob boyer we're incredibly
34:08 - grateful to each and every one of them and
34:11 - including many voices on the outside and i see him here
34:15 - wearing his signature hat i want to thank Rob bear for being
34:18 - a constant and strong voice for the working
34:21 - people here in the commonwealth of Pennsylvania
34:24 - we appreciate you and we hear them as well and they're reflected
34:28 - in this executive order and of course
34:30 - want to thank each member
34:32 - who spoke
34:33 - here today
34:34 - with that
34:35 - Rosie let me know what questions
34:37 - to answer.
34:39 - It
34:41 - is.
34:42 - Aggressive
34:43 - projects
34:44 - to announce.
34:47 - Ceo.
34:49 - Earlier at least some of the change earlier get it.
34:53 - Events or
34:55 - scenario.
34:57 - Well
34:58 - as i said
34:59 - in Autumn there are more than one hundred
35:01 - speculative projects that are out there right now
35:04 - and only five
35:06 - even have permits
35:08 - to move forward none are actually operational.
35:11 - This executive order comes on the heels of me back in
35:14 - February announcing the grid requirements so strengthened
35:18 - through the voices of the people of Pennsylvania who I've listened to.
35:23 - In addition to that
35:25 - what you have seen during that
35:26 - interim time period.
35:29 - Our whole bunch of developers
35:30 - who have come here to Pennsylvania we've tried to run roughshod
35:33 - over our communities
35:35 - and then finally you've seen
35:37 - a senate of Pennsylvania that's refused to act
35:39 - on regulatory policy that the house has passed
35:43 - and that leads us
35:45 - to today where i have no other choice
35:48 - then but to take this egg executive action
35:50 - to protect the good people of Pennsylvania from these predatory developers and from
35:55 - these projects that would negatively impact our communities.
35:59 - Im sorry
36:08 - that
36:08 - you are.
36:10 - It all
36:17 - to the environment.
36:19 - Then.
36:23 - Again there are only about five projects to dive even
36:26 - received permits to go forward the problem is there's.
36:30 - One hundred
36:31 - projects or so that are wreaking havoc on our communities that are
36:35 - never going to be built
36:36 - what we're doing today is taking concrete action to listen
36:41 - to the voices of the people
36:43 - to put local leaders
36:44 - back in charge
36:46 - of their communities
36:47 - and to make very very clear
36:49 - what the rules of the road are
36:51 - to be able to do business here in Pennsylvania
36:54 - this executive order
36:55 - represents the most stringent
36:58 - requirements in the entire country
37:00 - and my
37:01 - word to developers is you'd better follow
37:04 - these requirements
37:05 - otherwise you shouldn't plan to do business here.
37:20 - Without question yes i'm utilizing my legal authority as governor
37:25 - and understand that if you want to build a
37:27 - project here in the commonwealth of pence Albania
37:29 - you will now be subject to a consent order
37:32 - which will be a legally
37:34 - binding agreement
37:35 - between the developer and the commonwealth of Pennsylvania with penalties
37:39 - should you not meet
37:41 - each and every requirement under grid including
37:45 - the requirements set forth by the local government.
37:48 - Is.
37:50 - Little weird.
37:51 - Is
37:55 - that something
37:56 - what i back is what i signed here today which is the most stringent legal
38:02 - requirements in the entire country
38:04 - setting out
38:05 - clear rules of the road and making clear to developers
38:08 - if you do not follow grid
38:10 - we don't want your business we don't want you here
38:13 - you should look elsewhere
38:14 - thank you all very very much
38:17 - and and.