On July 22, Gov. Josh Shapiro joined U.S. Environmental Protection Agency Administrator Michael S. Regan, Department of Environmental Protection Acting Secretary Jessica Shirley, President of the Allegheny-Fayette Labor Council Darrin Kelly and local elected leaders to celebrate the Shapiro Administration securing nearly $400 million to fund efforts to help Pennsylvania companies lower climate emissions while creating good-paying jobs and supporting Pennsylvania’s economy.

EPA Administrator Michael S. Regan announced that the Department of Environmental Protection has been selected to receive a more than $396.1 million grant for the Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) project – 10% of the federal funds available for this program nationwide, making Pennsylvania one of the largest grant winners in the country.

The RISE PA Program

The RISE PA program is a part of the Commonwealth of Pennsylvania’s application to the EPA’s Climate Pollution Reduction Grant (CPRG) program, part of the 2022 Inflation Reduction Act.

The RISE PA Program will create a statewide industrial decarbonization incentive program and reduce greenhouse gas (GHG) and other emissions from Pennsylvania’s industrial sector, the highest-emitting sector in the Commonwealth.

Incentives and grants ranging from $25,000 to $300 million will be offered for small-, medium-, and large-scale decarbonization projects at industrial facilities.

The financial support of the grant will address current funding gaps for industrial decarbonization projects in Pennsylvania. 

The project will deliver the following benefits to reduce GHGs and support communities--

-- Accelerate industrial decarbonization by funding shovel-ready projects at hundreds of facilities. 

Reduce GHG emissions by at least 20% at each selected facility for the medium- and large-scale awards.

-- Leverage between $283 million and $973 million in additional private capital for industrial decarbonization projects.

-- Create high-quality jobs by ensuring prevailing wage requirements as established by the U.S. Department of Labor and apprenticeship requirements are met.

-- Improve air quality by reducing hazardous air pollutants, toxins, and other harmful substances.

-- Enhance the physical and economic wellbeing of low-income and disadvantaged communities.

-- Invest in equitable workforce development activities to meet increased job demands.

-- Provide replicable and scalable strategies to reduce GHG emissions in hard-to-abate sectors.

Click Here for more on Pennsylvania’s RISE PA Plan.

Announcement

“My Administration is taking real action to address climate change while continuing to create energy jobs and grow the economy – and today, I’m proud to announce that thanks to our partnership with the Biden-Harris Administration, Pennsylvania has been awarded $396 million in federal funding to start a new initiative called RISE PA,” said Gov. Josh Shapiro. “This is one of the largest federal grants Pennsylvania has ever received, and through RISE PA, we will offer grants for companies working to make their operations more efficient. This investment will help us reduce toxic air pollution, create thousands of jobs, invest in our energy sector, and continue Pennsylvania’s legacy of energy leadership.”

“President Biden believes in the power of community-driven solutions to fight climate change, protect public health, and grow our economy. Thanks to his leadership, the Climate Pollution Reduction Grants program will deliver unprecedented resources to states, local governments, and Tribes to fund the solutions that work best in their communities,” said EPA Administrator Michael S. Regan.

“Selected recipients have put forward ambitious plans to advance sustainable agriculture, deploy clean industrial technologies, cut emissions and energy costs in homes and commercial buildings, and provide cost- and energy-efficient heating and cooling to communities, creating economic and workforce development opportunities along the way.”

According to the 2023 Pennsylvania Greenhouse Gas Inventory Report, the industrial sector is Pennsylvania’s highest greenhouse gas (GHG) emitting sector, accounting for just over 30 percent of the Commonwealth’s total GHG emissions.

Under RISE PA, Pennsylvania will establish a competitive grant program to reduce pollution from industrial sources.

RISE PA could reduce 5.2 million tons of carbon by 2050 – or about 10% of Pennsylvania’s annual industrial emissions.

Examples of eligible initiatives could include installing energy-efficient heat recovery systems to reduce the energy required to heat or cool an industrial facility, electrifying an industrial plant by swapping out diesel-powered generators with equipment that runs on electricity, and capturing coal mine methane from mining operations.

All of these projects would cut pollution and address climate change while creating good jobs and helping companies cut costs.

The DEP applied for and received an initial $3 million from the EPA in January to develop a Priority Climate Action Plan focused on reducing emissions in the Commonwealth’s industrial sector.

DEP worked with industry, labor, and environmental leaders to craft the application for RISE PA, which will provide funding for industries to reduce carbon and benefit the health and safety of Pennsylvania communities.

“Thanks to this grant from the Environmental Protection Agency and the Biden-Harris Administration, Pennsylvania will continue to be an industrial leader and a leader in environmental protection,”  said Pennsylvania DEP Acting Secretary Jessica Shirley. “My family has a long history of working blue-collar manufacturing jobs like millions of Pennsylvanians. The Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) program that will be funded through this grant has the potential to create good paying union jobs, reduce millions of tons of greenhouse gases, and increase manufacturing competitiveness in Pennsylvania.”

Prospective projects will need to satisfy the following proposed criteria--

-- Benefit (and not negatively impact) low-income and disadvantaged communities

-- Achieve GHG emission reductions that are long-lasting and certain

-- Incorporate high labor standards, emphasize job quality, and support equitable workforce development

Pennsylvania has a long legacy as a national energy leader – for over one hundred years, the Commonwealth has been one of the nation’s top energy producers, embracing innovation to create jobs, lower costs, and drive progress.

RISE PA and the $400 million secured by the Administration today builds on the energy plan that Governor Shapiro laid out earlier this year.

“By helping the industry decarbonize, reducing their emissions and reducing pollution and becoming more energy efficient, we are going to invest in businesses that are here, create good jobs and improve air quality. It’s a win, win, win across the board,” said Allegheny County Executive Sara Innamorato. “This investment, it's going to make sure that we are investing in the businesses and the people that are here so we can improve air quality. We can keep businesses here. We can create family sustaining jobs and invest in communities that had been left behind for too long to ensure that everyone can thrive.”

Gov. Shapiro’s energy plan will protect and create more than 14,500 energy jobs, lower utility bills for Pennsylvania households, and take real action to address climate change pollution.

If passed by the legislature, the Governor’s initiatives would save Pennsylvania ratepayers $252 million in the first five years, while generating $5.1 billion in investment in clean, reliable energy sources.

The Governor looks forward to continuing to work with the General Assembly to secure Pennsylvania’s energy future while ensuring the health and safety of our communities.

While we invest in energy and work to ensure affordable and reliable power for the long term, we also need to reduce pollution, address climate change, and protect Pennsylvanians’ public health and safety.

Click Here for more on Pennsylvania’s RISE PA Plan.

[Note: Section 1724-H of the Fiscal Code bill prohibits DEP from using federal money from the Inflation Reduction Act for the Solar for All program unless it is authorized by state law after the effective date of the act. It does not include the RISE PA Program.  [Fiscal Code bill, page 76]]

Visit DEP’s Federal Inflation Reduction Act webpage for more background.

Click Here for EPA’s complete announcement.

Click Here for video and photos from the announcement

Reaction

John Walliser, Senior Vice President, Legal & Government Affairs for the Pennsylvania Environmental Council, issued the following statement on the announcement--

“Today’s announcement is a landmark moment for our state. The industrial sector accounts for the largest share of greenhouse gas emissions in our Commonwealth; but that in turn represents the greatest opportunity in the clean energy transition.

“PEC appreciates the tremendous work of the Shapiro Administration and Department of Environmental Protection in developing the RISE PA Program and pursuing this ground-breaking investment – nearly $400 million – in Pennsylvania’s environment and economy.

“We also thank the Biden-Harris Administration and Environmental Protection Agency for its stewardship of the Climate Pollution Reduction Grant Program.

“Strong communities, a healthy environment, and a robust and innovative economy can work hand in hand in the clean energy transition; the Rise PA Program will be a cornerstone in making that happen.”

Click Here for the complete PEC statement.

NewsClips:

-- Post-Gazette - Anya Litvak: Pennsylvania Gets Nearly $400 Million For Industrial Decarbonization

-- The Allegheny Front - Reid Frazier: PA Gets $400 Million From EPA To Lower Carbon Emissions From Industries 

-- Pittsburgh Business Times: Pennsylvania To Receive $396 Million For Industrial Decarbonization

Related Articles:

-- Shapiro Administration Secures $396.1 Million In Federal Funding To Cut Carbon Pollution From Industries, Create Jobs  [PaEN]

-- Gov. Shapiro Signs Bipartisan Solar For Schools And Geologic Sequestration Of Carbon Bills Into Law  [PaEN]

-- Green Building Alliance Thanks Sen. Fetterman For Seeking Critical Grant Support For Program To Expand Small Business Resilience In Erie, New Kensington, Westmoreland County  [PaEN]

-- Penn State Study Finds Solar Farms With Stormwater Controls Mitigate Runoff, Erosion  [PaEN]

[Posted: July 22, 2024]

7/29/2024