AGP Executive Report

Heat & Grid Strain: A brutal heat wave pushed electricity demand to record levels across the Philadelphia region, with PECO and PJM crews on standby as air-conditioning loads stress the system. Energy Policy: The Pennsylvania Public Utility Commission urged residents to conserve and manage bills during the surge, offering practical steps like thermostat tweaks, filter changes, and reducing heat-producing appliances. Data Centers vs. Emissions: A new report warns Pennsylvania data-center “behind-the-meter” gas plants could drive major climate pollution, while residents in Luzerne County and elsewhere push back on transmission upgrades and new proposals. Food Safety: FDA classified a nationwide recall of Zapp’s and Dirty potato chips at its highest risk level over possible Salmonella contamination. Public Health: Cyclosporiasis cases tied to contaminated produce are climbing across multiple states, with doctors warning many infections are missed due to routine lab testing gaps. Retail & Expansion: Weis Markets opened a new Millsboro store, adding fresh food, pharmacy, and in-store dining options. Industry Growth: Reju opened its first U.S. research and development center in Conshohocken to scale polyester recycling technology. Local Business/Compliance: A Lower Pottsgrove doctor agreed to pay $100,000 to resolve alleged Controlled Substances Act record-keeping and handling violations. Convenience Retail IPO: Cumberland Farms filed for a U.S. IPO as the convenience-store market rebounds.

Energy Reliability: The U.S. Department of Energy declared a heat-wave emergency and told PJM to take steps to avoid blackouts, including conserving power by curtailing electricity use at data centers during peak demand in the Mid-Atlantic that includes Pennsylvania. Retail & Grocery M&A: Kroger announced plans to buy Giant Eagle for $1.65 billion, keeping Giant Eagle stores and pharmacies operating under the same name across western Pennsylvania and nearby states. Food Industry & Antitrust: Egg producers tied to alleged price-fixing agreed to pay $3.3 million and donate 53 million eggs as part of multistate DOJ-linked settlements, with Pennsylvania included in the distribution footprint. Local Land Use & Data Centers: In Jefferson County, commissioners urged municipalities to act on data-center impacts while working toward county SALDO guidance, focusing on water sourcing and environmental review concerns. Workforce & Agriculture: Rep. Glenn “GT” Thompson backed the Securing Agriculture’s Workforce Act to reform the H-2A guest worker program, aiming to help farms hire for longer periods and reduce costs. Public Safety: Pennsylvania’s fire commissioner pushed fireworks safety guidance for the Fourth of July weekend, emphasizing supervision, alcohol/drug avoidance, and keeping firefighting supplies nearby.

Utility Labor Standoff: Peco and IBEW Local 614 returned to bargaining with a Fourth of July strike deadline looming, as the union presses for wages, healthcare, and retirement benefits while extreme heat and storms raise the stakes for outage repairs. Energy & Permitting: A new report warns “behind-the-meter” gas plants feeding U.S. data centers could drive emissions on par with major countries, arguing these projects can dodge lengthy public review. Federal Courts (Energy/Tax): The 3rd Circuit weighed FERC’s handling of public input in a hydro case and also ruled that hidden bank accounts can count as tax evasion. Food Industry & Antitrust: DOJ and multiple state AGs reached a $3.3M settlement with major egg producers over alleged price-fixing, including 53 million eggs donated to food banks. Retail Consolidation: Kroger agreed to buy Giant Eagle for $1.65B, expanding across Ohio, Pennsylvania, West Virginia, Maryland, and Indiana, with integration expected after regulatory review. Manufacturing/Business Moves: Machined Metals Manufacturing Group acquired Hitech Screen Changers, renaming it Hitech Screen Changers under extrusion veteran Mike Mitchell. Pennsylvania Economy: Labor & Industry released May regional jobs data for the Philadelphia area, showing a 4.4% unemployment rate.

Energy Bills & Utility Regulation: Pennsylvania lawmakers advanced a major plan to cut electric bills by eliminating a 5.9% state tax on electricity sales, while also reshaping how utility profits are regulated—leaving open questions about how to cover a roughly $1.7B budget gap. Data Centers & Local Scrutiny: In Kline Township, residents and planners grilled Amazon Web Services over a proposed hyperscale campus, with concerns about traffic, water, and the lack of clear answers; the broader debate continues as Harrisburg weighs moratoriums and transparency rules. Antitrust & Food Industry: The DOJ and 17 states reached a settlement with major egg producers Cal-Maine, Versova, and Hickman’s over alleged price-fixing tied to the Urner Barry egg index, requiring $3.3M plus 53M donated eggs. Manufacturing Workforce Pipeline: Lawrence County’s Advanced Manufacturing Pre-Apprenticeship Program marked its largest cohort, training 42 students with stipends and credentials via Pennsylvania College of Technology and federal/state funding. Extreme Heat & Operations: A Pittsburgh-area extreme heat warning entered its second day, with communities adjusting schedules and activating cooling centers to protect workers and residents. Business Moves: Greycourt & Co. named Elliot Ivey COO in Pittsburgh, expanding operational leadership for ultra-high-net-worth investment services.

Antitrust & Food Supply: Pennsylvania’s AG Dave Sunday is part of a multistate DOJ-backed settlement targeting egg price-fixing, with Cal-Maine Foods, Versova/Centrum, and Hickman’s Egg Ranch ordered to end illegal coordination tied to the Urner Barry egg price index—plus $3.3M and 53M eggs (including millions headed to food banks, with Pennsylvania receiving 3.4M). Manufacturing & Defense: Bell Textron won a $43.2M contract for advanced helicopter gearboxes, work tied to U.S. Marine Corps H-1 upgrades and deliveries through 2030. Energy & Grid Resilience: FirstLight announced 2026 community grants across Massachusetts, Connecticut, and Pennsylvania, funding water rescue gear, EMS training, and other local sustainability and safety projects. Small Business Relief: SBA disaster loans are now available for Pennsylvania small businesses, nonprofits, and residents hit by the June 11 Oak Forest apartment complex fire. State Fair & Industry Showcase: U.S. Sens. McCormick and Fetterman will help secure a Pennsylvania presence at the Great American State Fair via private partnerships, after Gov. Shapiro’s earlier decision not to participate. Public Safety (Heat): Philadelphia declared a Heat Health Emergency for July 1–4, with cooling resources and hydration guidance for residents and visitors.

Delaware River Dredging: Curtin Maritime won a $12.7M U.S. Army Corps of Engineers contract for maintenance dredging in the Delaware River, with work in Morrisville and completion expected by March 11, 2027. Aviation & Regional Growth: Clearfield-Jefferson Counties Regional Airport Authority recommended Contour Airlines as the next Essential Air Service provider for DuBois Regional Airport, proposing nonstop service to Atlanta and Chicago with a $6.2M annual federal subsidy. Transportation Infrastructure: PennDOT is set to start July 6 on Davey Hill Road slide repairs in Deerfield Township, using gabion retaining walls and reconstruction; the $449,449 state-funded project targets completion by October 2026 with detours during work. Energy/Weather Risk: A heat advisory begins Tuesday for the Pittsburgh area through Friday night, with heat indexes near 100 degrees and warnings about heat illness. Consumer & Food Industry: Multistate action tied to egg price coordination secured 53 million eggs for food banks, including Pennsylvania’s share via the broader settlement. Legal/Telecom Compliance: A federal court in Pennsylvania ruled TCPA do-not-call rules can apply to text messages, keeping pressure on marketing outreach practices.

Utility Regulation: Pennsylvania House lawmakers voted 202-0 to curb utility profit “return on equity,” aiming to cut electricity bills about 6.5% as the bill heads to the state Senate. Food & Fraud Oversight: The Trump administration sued Pennsylvania and three other states over alleged failure to turn over SNAP (food stamp) data to USDA, seeking injunctions tied to fraud and waste claims. Agriculture Watch: USDA’s latest corn condition update shows a slight dip in ratings but an overall improvement in the Crop Condition Index, with Pennsylvania corn rated low on the very poor/poor scale. Real Estate Tech: Bright MLS is expanding Google visibility via a partnership with HouseCanary, pushing more listings into search results. Local Construction Impact: UGI is shutting down traffic overnight in a Lancaster County borough for natural gas main work through Thursday morning. Workforce & Education: Luzerne County Community College won a $1M Dual Credit Innovation Grant to expand college-level coursework for rural and underserved students across the region. Data Center Planning: Lehigh Township advanced a proposed standalone data center ordinance draft, with residents raising questions on water use, noise, and building height. Business/Industry Legal: A federal judge delayed Luigi Mangione’s trial schedule to January, a reminder of how legal timelines can ripple into broader planning.

Organic Oversight: U.S. Sens. Dave McCormick (R-Pa.) and Adam Schiff (D-Calif.) co-introduced the Risk-Based Oversight for Integrity Act to modernize USDA organic certification by focusing inspections on higher-risk operations and cutting burdens for compliant farms. Food Safety & Inspections: Pennsylvania Department of Agriculture restaurant checks flagged issues including black mold-like residue on refrigeration door gaskets, missing date marking, sanitizer test strip problems, and improper handwashing practices. Pennsylvania Retail Expansion: Wawa is building a second Franklin County store in Antrim Township at Buchanan Trail East and Grindstone Hill Road, with plans for more central Pa. locations. State Fair Presence: After Shapiro’s administration said Pennsylvania couldn’t secure a sponsor, Sen. John Fetterman and Sen. Dave McCormick arranged a private, no-taxpayer-funded Pennsylvania booth for the Great American State Fair in Washington, D.C. Local Business Awards: Centre County Chamber of Business & Industry opened nominations for the 2026 Centre County Business Awards, including categories for small business, emerging business, and business leader. Energy/Infrastructure Deal Watch: Williams is reportedly nearing a $5.5B acquisition of Momentum Midstream, a move that would expand gas pipeline reach to Gulf Coast LNG export terminals.

Data Centers & Water: East Rockhill supervisors authorized a revised data center ordinance after residents raised alarms on noise, groundwater depletion, and environmental impacts, adding tighter standards like quarterly noise reporting, updated setbacks, and expanded environmental review. Mining & Water Quality: Pennsylvania regulators are weighing a draft permit that would let LCT Energy discharge treated minewater into headwater streams feeding a stocked trout area in the Laurel Highlands, with public comment due June 30. Energy Prices & Policy: Trump again criticized gasoline prices for not dropping as fast as crude oil and said DOJ is investigating potential “gouging,” as pump prices lag behind oil declines. Gaming Regulation: A Pennsylvania bill would impose strict rules on “skill game” machines—estimated at about 70,000 statewide—aiming to close the gap between regulated gambling and largely unregulated pay-to-play devices. Public Health: Shapiro’s administration launched a senior-focused overdose prevention initiative (WISE) in four high-rate counties using opioid settlement funds. Workforce & Agriculture: A new federal pathway would let dairy farms use migrant labor via H-2A, a move that could reshape labor availability for Pennsylvania’s broader food supply chain.

Firearms Litigation: Clearfield County wrongful-death suit over a 2024 Kel-Tec P-17 shooting is headed to an out-of-court settlement, with claims also aimed at Rural King over the gun purchase. Food Safety & Inspections: Pennsylvania Department of Agriculture restaurant checks flagged issues ranging from cilantro stored on the floor to refrigeration labeling gaps and sanitizer test-strip shortages. Retail & Jobs: Urban Outfitters’ Navy Yard HQ in Philadelphia is expanding, adding a new 117,000-square-foot photo studio and planning hundreds of new hires. EV Infrastructure: Westmoreland County is ending a 2022 deal for park chargers after the startup Kilocharge appears inactive, leaving residents without promised public charging. Gaming Revenue: Pennsylvania set a new record for monthly gaming revenue in May, with online casino gains driving the climb. Industrial Decarbonization: Gov. Shapiro and DEP highlighted a RISE PA grant for Sanofi Pasteur in Monroe County to cut greenhouse gases and natural-gas use while modernizing egg-waste processing equipment. AI & Workforce: A regional report says tens of thousands of jobs in the Scranton/Wilkes-Barre area are “AI-exposed,” while demand rises for AI-ready skills. Energy Materials Innovation: Penn State research suggests discarded plastic bottles could be turned into battery-grade graphite, linking waste reduction to EV supply chains. Pennsylvania at America’s 250 Fair: McCormick and Fetterman secured private sponsors so Pennsylvania industries and agriculture can be represented at the Great American State Fair after the state’s planned booth fell through.

AI & Consumer Protection: Pennsylvania sued Character.AI to stop chatbots from posing as doctors, after a bot claimed a fake Pennsylvania medical license—raising the bigger question of who’s responsible when AI “advice” harms people. Public Safety & Community: Weisenberg Township approved a 27-acre ag security area in Kutztown and highlighted fire department plans for its anniversary, including CPR and vehicle rescue demos. Retail & Jobs: Walmart is rolling out its “store of the future” remodels in Bucks County, aiming for faster shopping and better service—while local restaurants like Corry say worker shortages are forcing them to cut dinner hours. Gaming Oversight: Pennsylvania’s Supreme Court backed the view that skill games are slot machines under state law, tightening the legal fight over unregulated, untaxed machines. Food & Enforcement: DOJ sued Minnesota, Kentucky, Michigan, and Pennsylvania to force SNAP eligibility data handover to USDA, escalating the federal-state battle over benefits records. Local Business/Industry: A Chester County dam decommissioning plan has residents worried about what comes next, while Kutztown’s community center progress continues alongside township planning.

Data Centers & Local Control: Pennsylvania towns are reacting to data center proposals as lawmakers debate oversight and incentives, with residents in places like Venango County and Scrubgrass Township pushing back over power, land use, and community impacts. Energy & Grid Policy: The state’s approach is also in flux as officials weigh how to “behave better” while still enabling growth, and separate bills target tax breaks tied to data centers. Public Works & Transportation: PennDOT says the I-81 paving project in Franklin County is nearing completion, with remaining barrier and resurfacing work expected to finish by mid-July. Community Development & Housing/Institutions: Allegheny County approved up to $18M in financing support for the Tree of Life rebuilding project, with major construction slated to begin this fall. Recreation & Accessibility: The Conestoga River Club plans a universally accessible, non-motorized boat launch on the Conestoga River, backed by a $50,000 Fish and Boat Commission grant, aiming for construction in early 2027. Manufacturing & Industry Culture: Zippo will host an America250PA-McKean County concert and fireworks at the Zippo/Case Museum & Flagship Store, highlighting the region’s manufacturing heritage. Agriculture: Warren County commissioners proclaimed June as Dairy Month, underscoring dairy’s job and economic impact across Pennsylvania. Workforce & Child Care: Pennsylvania announced a $25M child-care recruitment and retention push, with additional funding proposed to expand support for child care workers.

SEPTA Funding Push: A Pennsylvania Supreme Court ruling says many “skill games” are really illegal slot machines unless licensed and taxed like casino slots, and transit advocates are now pressing lawmakers to dedicate a slice of that revenue to public transportation. State Budget Deadline: With the June 30 budget expiration looming, negotiations between Gov. Josh Shapiro and General Assembly leaders are still fluid; Shapiro’s $53.3B plan centers education funding, plus proposed transit money and flexible relief funds, while Republicans push back. Data Center Tax Fight: Pennsylvania lawmakers are splitting hard over Shapiro’s data center incentives—one House bill would repeal the sales tax break tied to major data center purchases, while another keeps Shapiro’s “responsible development” approach with conditions. Local Government Costs: Cranberry Township is bracing for higher winter road salt prices and a higher state-mandated purchasing minimum under PennDOT’s COSTARS program. Environmental Charges: CERTA co-owners face felony charges tied to alleged hydraulic fluid dumping and Connoquenessing Creek contamination in 2022. Workforce & Training: Keystone State ChalleNGe Academy graduated its first Class of 2026, pairing education and career training with thousands of hours of community service. Cannabis Business Update: Trulieve announced it plans to terminate an automatic securities disposition plan tied to CEO share sales.

Data Centers & Local Impact: Pennsylvania lawmakers advanced three data center bills—codifying Shapiro’s GRID standards, ending some operator tax breaks, and letting municipalities impose a 180-day pause while updating rules—while a separate proposal would require data centers to fund property taxes for residents over 65. Food & Agriculture: Elk County Conservation District warned residents about poison hemlock and how to spot it; meanwhile, Pennsylvania Department of Agriculture restaurant inspections showed several Lancaster County mobile food facilities passing with no violations, with one follow-up flagging improper food storage. Workforce & Business: Kreider Farms COO/president Tom Beachler announced retirement after 46 years at the Lancaster County egg and processing giant. Housing & Community Development: Clearfield County’s Mature Resources Foundation won a $250,000 PHARE grant to expand Village of Hope in West Decatur. Organic Farming Policy: U.S. Sen. Dave McCormick (R-Pa.) joined a bipartisan push to cut red tape for organic farmers by forcing USDA to assess and remove barriers to federal programs. Energy & Industry Context: A Pennsylvania river group sued a mineral facility over water pollution, adding pressure on extraction and permitting.

Data Centers & State Policy: The PA House passed two competing data center bills—one backing Gov. Josh Shapiro’s “responsible” incentives and standards, and another moving to repeal the sales tax break tied to major data center purchases, setting up a sharp intra-party fight over how fast (and how strictly) the state should grow the sector. Environmental & Water: A Pennsylvania river group sued a mineral facility in federal court, alleging long-running illegal stormwater discharges that flow into the Delaware River. Energy & Industry Safety: Fire crews responded to incidents at Pennsylvania refineries, including a Monroe Energy blaze in Trainer that triggered a shelter-in-place order, while another Delaware County refinery fire left injuries reported. Steel & Community Impact: Environmental advocates urged Nippon Steel/U.S. Steel to modernize aging steelmaking in western Pennsylvania and Gary, arguing promised upgrades could fall short without replacing older blast-furnace operations. Defense & Innovation: Sen. Dave McCormick said President Trump will headline the 2026 Pennsylvania Defense and Innovation Summit in Carlisle. Consumer Health: The FDA upgraded the Utz/Zapp’s and Dirty potato chip recall to a Class I event over potential Salmonella presence. Elections Oversight: AG William Tong won another federal court ruling blocking Trump efforts to interfere with state election administration, with Pennsylvania included in the coalition.

Housing & Construction Policy: Congress passed a bipartisan housing affordability bill that would expand Pennsylvania’s Whole-Home Repairs-style program nationwide, but President Trump abruptly canceled the signing ceremony and is tying it to voter-ID demands, leaving the rollout in limbo. Budget Pressure: Pennsylvania lawmakers are nearing the June 30 budget deadline with a multibillion-dollar gap and may lean on the state’s rainy day fund (about $8B) or use one-time accounting moves to balance the books. Data Centers & Local Planning: Woodward Township supervisors in Lycoming County are moving to protect against incoming data centers via a “curative amendment” with a 180-day grace period, while other communities debate moratoriums and zoning changes. Manufacturing & Defense: Sen. Dave McCormick announced Trump will headline the 2026 Pennsylvania Defense and Innovation Summit in Carlisle on July 14-15. Workplace & Health: Pennsylvania mothers are pushing the Family Care Act to create statewide paid family and medical leave, arguing current gaps force many to return to work too soon. Public Safety: A six-alarm fire in Allentown damaged nearby homes and led to power shutoffs for over 1,600 customers.