On energy and environmental issues, Gov. Shapiro proposed--
-- Governor's Responsible Infrastructure Development Standards: New performance standards for data center projects to "unlock benefits from the Commonwealth, including speed and certainty in permitting and available tax credits to support their construction;
-- Renewed his call for action of the Lightning Energy Plan to promote the development of new, affordable electric generation like renewables to diversify generation, speed siting of needed facilities, and repurposing existing tax credits to address current energy needs ;
-- Working with the PUC to set new benchmarks for electric and gas utility profits to ensure they don't "get one dollar more than what they need to meet their customers' needs."
-- Working directly with utilities to eliminate "junk fees," adopt new reforms to ban deceptive energy contracts, reform Act 14 utility termination and collection policies, and disclose details of rate case settlements.
-- Continue to work with PJM to extend the collar on electricity generation capacity auction prices.
-- Raise $1 billion in additional funding for the Capital Facilities Fund to increase access to affordable housing, energy and infrastructure [few other details].
Data Center Proposal
Gov. Shapiro said in his budget remarks: "I know Pennsylvanians have real concerns about these data centers and the impact they could have on our communities, our utility bills, and our environment. And so do I.
"So today I’m announcing GRID — the Governor’s Responsible Infrastructure Development standards —
"Developed by my Administration, in consultation with the community, to hold data center developers accountable to strict standards if they want our full support."
The Governor's Responsible Infrastructure Development Standards include--
-- Protecting Energy and Water Resources: Developers must bring their own power generation online or fully fund new generation to meet their needs — without driving up costs for homeowners or businesses. Projects must also meet the highest standards for environmental protection, including strict water conservation requirements.
-- Transparency and Community Engagement: Developers must commit to open, transparent engagement with local residents and leaders. Communities deserve to know who is coming, what is being built, and how projects could impact their town — before development moves forward.
-- Delivering Local Jobs and Community Benefits: Projects must hire and train local workers and enter into meaningful community benefit agreements that invest in local priorities, from schools and infrastructure to long-term economic development.
-- Responsible Growth with Accountability: Only projects that meet these standards will receive the Commonwealth’s full support, including speed and certainty in permitting and access to available incentives — ensuring responsible development that reflects Pennsylvania’s values.
"If companies adhere to these principles, they will unlock benefits from the Commonwealth, including speed and certainty in permitting and available tax credits."
Lightning Energy Plan
"I’ve put forward my Lightning Plan — a comprehensive plan to build more energy generation here in the Commonwealth, reform our permitting and siting laws, and diversify our energy sector to generate more renewables.
"My plan will save consumers an estimated $664 million and create 15,000 energy-sector jobs.
"And it’s supported by labor leaders, environmentalists, consumer advocates, and even energy producers.
"Look, this is my plan. If you don’t like it — stop making excuses, put your proposal on the table, and let’s get to work.
"Because Pennsylvanians can’t afford another delay from Harrisburg."
The Lightning Plan includes these elements--
-- EDGE Tax Credit: House Bill 500 [passed House May 14, 2025, no action in Senate] and Senate Bill 500- Sponsored by Representative John Inglis with co-prime sponsors Representatives Rob Matzie and Tom Mehaffie; and Senator Nick Pisciottano with co-prime sponsor Senate Minority Leader Jay Costa
-- RESET Board: House Bill 502 [remains in House Energy Committee] and Senate Bill 502 - Sponsored by Representative Mandy Steele and Senator John Kane
-- Pennsylvania Climate Emissions Reduction Act: House Bill 503 [remains in House Energy Committee] and Senate Bill 503 - Sponsored by Representative Aerion Abney and Senator Carolyn Comitta
-- Pennsylvania Reliable Energy Sustainability Standard: House Bill 501 [reported out of House Environmental & Natural Resource Protection Committee on June 2, 2025 and is on the House Calendar for action] and Senate Bill 501 - Sponsored by Representative Danielle Friel Otten and Senator Steve Santarsiero
-- Lowering Energy Costs for Rural Communities: House Bill 504 [passed the House on May 7, 2025, no action in Senate] and Senate Bill 504 - Sponsored by Representative Peter Schweyer and Senator Judy Schwank
-- Rebates to Reduce Household Energy Costs: House Bill 505 [passed the House December 17, 2025, no action in the Senate] and Senate Bill 505 - Sponsored by Representative Kyle Donahue and Senator Lisa Boscola.
There has been no action on the Senate Bills.
New PUC Benchmarks For Utility Profits
Gov. Shapiro called for the development of new benchmarks for electric and gas utility profits to make energy more affordable.
“I am calling on the PUC [Public Utility Commission] to scrutinize utility spending.
“I want the PUC to examine every single line of every single bill to ensure each customer dollar is being well spent.
“We’re joined today by Chairman Steve DeFrank and members of the PUC, who’ve agreed to begin this work immediately.
“Second, I’ve created a new watchdog within my Administration, a Special Counsel for Energy Affordability tasked with closely examining utility rate requests and taking legal action to stop utility companies from jacking up their rates and costing you more.
“And third, we need to have a hard conversation about the amount of profit utilities and their investors can make on the backs of hardworking Pennsylvanians.
“S&P Global Ratings currently ranks Pennsylvania as one of the top four states in the country for utilities to make a profit.
“At a time when consumers are struggling with high costs, our utilities need to be more sensitive to the reality of their customers.
“I’m working with the PUC to prevent excessive utility profits this year, but the General Assembly needs to take action to lower costs for consumers going forward, by giving the PUC a set of benchmarks to follow when determining how much utilities can make.
“We grant these utilities a monopoly-- and in exchange, they have a legal responsibility to keep their costs just and reasonable.
“They shouldn’t get one dollar more than what they need to meet their customers’ needs.
“Together, these steps will save Pennsylvanians over $500 million on their energy bills every year.
“And if you act with legislation, the savings will be even greater.”
Reform Utility Operating Practices
Gov. Shapiro proposed changes to make the rates charged for delivering energy more affordable--
“Our utility companies in Pennsylvania make billions of dollars every year-- while at the same time they’ve increased the cost for consumers with too little public accountability or transparency.
“That has to change.
“So last month, I called the four largest electric utility companies in Pennsylvania into my office and pushed them to do their part to help control rising costs for Pennsylvanians.
“I made clear that if they were unwilling to act, the Public Utility Commission would step in and force them.
“Following that conversation, PECO, Duquesne Light, First Energy, and PPL, all of whom join us here today, have agreed to take four important initial steps to rein in costs, starting today.
“First, they will end so-called “black box settlements” and agree to set prices transparently, so Pennsylvanians will know exactly how much money they are earning, and how utility dollars are being spent.
“Second, they will work with my Administration and the General Assembly to enact commonsense reforms that will ban deceptive contracts by retail providers which could save Pennsylvanians hundreds of millions of dollars.
“Third, they will eliminate junk fees they charge low income Pennsylvanians to have their service reconnected — something that can be done with the press of a button at the utility’s control center — which will save Pennsylvanians millions of dollars on bills each year.
“And fourth, they will work with both chambers to extend and expand Chapter 14 protections for low-income and vulnerable Pennsylvanians.
“These steps will save consumers money immediately, and while I appreciate our utility leaders for working together to cut costs for consumers, this is just a start.”
Push For Continuing PJM Price Collar
Gov. Shapiro also addressed the exploding costs associated with the PJM Interconnection electric generation auctions.
“One of our challenges is that our regional grid operator, PJM, has moved too slow to generate more power.
“Two years ago, I sued PJM when I found out they planned to jack up rates to the highest they’d ever been.
“As a result of our lawsuit, we capped the price PJM can charge and saved consumers in the 13 PJM states over $18 billion so far.
“Last month, I led a bipartisan group of governors to the White House, where we signed a statement of principles calling on PJM to speed up the connection of new energy sources and extend that price cap for another two years — which will save 67 million Americans an additional $27 billion.
Budget Odds And Ends
The proposed 2026-27 also contains these changes--
DEP
-- $16 million to plug hole in funding for the Oil & Gas Enforcement Program caused by the lack of shale gas permit application revenue
-- $20 million one-time transfer from the General Fund to the Hazardous Sites Cleanup Fund, but it will still result in a small decrease in overall disbursements from the Fund
-- Zero new staff positions, total now 2,644, increase of 225 since Jan. 2023
DCNR
-- $41 million less transferred from Oil & Gas Lease Fund to support General Operations line items and an equal increase in General Fund monies
-- 4 new positions for State Parks, total now 1,416, increase of 134 since Jan. 2023
Resource Links:
-- Governor’s Announcement of the 2026-27 State Budget Proposal
-- Governor’s Remarks As Prepared For Delivery
-- 2026-27 Executive Budget Book (a.k.a. “The Big Book)
-- Governor’s Proposed Budget Spreadsheet
-- Governor’s Budget Office - 2026-27 Proposed Budget webpage.
[Posted: February 3, 2026] PA Environment Digest
