Bresnahan Introduces Bill to Keep Data Center Decisions in Local Hands

WASHINGTON, DC: Today, U.S. Representative Rob Bresnahan, Jr. (PA-08) introduced the Local Control Protection Act, legislation to curb large corporations' ability to litigate and attempt to overturn local decisions regarding data centers and ensure approved developments maintain a benefit to the community.

"We should never let billion-dollar corporations supersede the voices of those who live in the community," said Rep. Bresnahan. "My legislation will protect small boroughs and townships who decide against a data center from the legal wrath of billion-dollar corporations. What's best for Northeastern Pennsylvania always comes first. The people who live here, work here, and raise their families here are the ones who know what's best for our communities."

When a local planning commission or borough council votes to deny a data center, a well-resourced developer can, and often will, sue the local municipality to override their decision. This leaves community leaders with an impossible choice: approve projects their constituents don't want or drain their budgets fighting a lawsuit they may not be able to sustain.

"Over the past year, we have watched developers try to strong-arm their way into our communities," continued Rep. Bresnahan. "The greed of these out-of-state corporations should not dictate how people in Northeastern Pennsylvania live their lives, and I'm determined to see that my constituents get to decide what is put in their backyards."

The Local Control Protection Act is designed to protect municipalities and counties from being sued in Federal court by developers for denying data center applications. The protection would apply when the denial is based on documented findings, concerns about public health, infrastructure, community character, water, or similar concerns. Additionally, the legislation bars Federal agencies from approving permits related to the construction or operation of a data center if the developer has initiated or is maintaining legal action in any court seeking to challenge or overturn a local zoning denial.

If a community does vote to approve a data center development, and the developer seeks federal incentives to build, the Local Control Protection Act would require the project to demonstrate a real benefit to the community. The legislation requires a publicly filed, legally enforceable community benefit agreement for projects, including a road, water, and utility infrastructure mitigation, environmental and noise monitoring protocols. Each agreement must also include a public Local Workforce Utilization Plan requiring developers to prove they recruited and hired from the region before bringing in outside labor, partnered with local apprenticeship programs, career and technical education centers, and community colleges to train the workforce, and gave local contractors and subcontractors first consideration whenever qualified firms are available.

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