PA Environment Digest Blog: Media Advisory: Jan. 30 Gov. Shapiro To Announce ‘Commonsense Plan To Secure Pennsylvania’s Energy Future’

On January 30 at 11:00 a.m., Gov. Shapiro is scheduled to announce a “Commonsense Plan To Secure Pennsylvania’s Energy Future” with labor, industry leaders and environmental advocates in Pittsburgh.

Speakers are expected to be--

Governor Josh Shapiro

David Dardis, Executive Vice President, Constellation Energy

Gregory Bernarding, Business Manager, Pittsburgh Regional Building and Construction Trades Council

Stefani Pashman, CEO, Allegheny Conference on Community Development

Jackson Morris, Director of State Power Sector Policy, Climate & Energy, Natural Resources Defense Council

Lieutenant Governor Austin Davis

Representative Chris Deluzio

State Representative Rob Matzie

Click Here for the full advisory. Click Here to watch live.

Background - the 2024 Plan

In March 2024, Gov. Shapiro unveiled a cap-and-invest PA Climate Emissions Reduction Initiative in legislation to reduce carbon pollution from power plants to protect and create nearly 15,000 energy jobs, lower utility bills for Pennsylvania households, and take real action to address carbon pollution.

A second legislative initiative, as well, to build out a more diverse, reliable, and affordable energy sector by updating the state's Alternative Energy Portfolio Standards to require 35% of Pennsylvania’s electricity by 2035 from the clean energy sources of today and the future like solar, wind, small modular reactors, and fusion, 10% from sustainable sources like large hydropower and battery storage, and 5% from ultra-low emission forms of natural gas and other traditional fuels.

The Governor said last year these initiatives would save Pennsylvania ratepayers $252 million in the first five years, while generating $5.1 billion in investment in clean, reliable energy sources.

“Doing nothing is not an option,” said Gov. Shapiro.

Last year Senate Republicans uniformly rejected Gov. Shapiro’s offer to work on legislation to make the electric grid more reliable, diversify Pennsylvania’s energy generation, lower energy costs for ratepayers and reduce greenhouse gas emissions. Read more here.

In response, Gov. Shapiro said--

“I heard a few people chirping in the legislature yesterday, basically saying they want to do nothing.

“Well, let me tell you something-- "Doing nothing," as Rob Bair [President of the PA State Building and Construction Trades] said, "is not acceptable."

“Doing nothing is not an option. And there are real consequences to doing nothing because, of course, doing nothing is a choice.

“So, if they choose to do nothing, consumers are going to pay more on their electric bills.

“If they choose to do nothing, we will not create these jobs.

“By the way, as they've chosen to do nothing in recent years, look what's happened. [Power] plants have closed on their watch because they chose to do nothing.

“Now is a time for real action.

“If we want to reduce pollution, doing nothing is not an option.

“Because they've done nothing, we have seen pollution unfairly target communities, as Katie [Blume, Conservation Voters of PA] said, oftentimes those of black and brown constituencies who have had a history, a legacy of that pollution.

“They have chosen to do nothing and these negative consequences have come.

“I've put forth a plan where we can do something, create jobs, be more competitive, protect our planet, and help us move forward and no longer fall behind other states.

“It is time to do better. It is time to take action.

“It is time to do what is common sense to create jobs.

“Labor leaders, environmental leaders, industry leaders, consumer advocates, and many members of the General Assembly are now calling on us to do something.

“Now is the moment to act. Now is the moment to get something done.

“I know that there'll be some folks who think this plan is too big and too bold, who are used to doing nothing.

“You know what? Now's the time for big and bold.

“Now's the time to lead again here in the Commonwealth of Pennsylvania.” Read more here.

Cap-And-Invest Program - PACER

The Governor’s 2024 plan created an emissions reduction program that leverages Pennsylvania’s advantages as a major energy producer to reduce climate emissions while also--

-- Directly lowering prices for Pennsylvanians through an electric bill rebate;

-- Solidifies an all-of-the-above vision for Pennsylvania’s energy future through bold new reliability targets that will produce a more diverse, resilient electricity grid by 2035;

-- Attract more federal dollars;

-- Support Pennsylvania’s low-carbon natural gas and nuclear facilities for the first time; and

-- Builds on the Governor’s economic development strategy to make transformational investments in clean energy production.

The benefits of PACER will be passed on directly to Pennsylvania consumers.

Under PACER, 70% of the revenue will be directed back to Pennsylvania residents as a rebate on their electric bill – more than any other cap-and-invest program in the nation – resulting in long-term, price relief on energy costs.

PACER allows Pennsylvania to chart its own energy future, independent from the influence both from foreign oil and other states’ energy policies. PACER leverages Pennsylvania’s strengths to lower costs, create jobs, and protect our environment.

"If the legislature passes my plan known as PACER, I will sign it and immediately remove the Commonwealth of Pennsylvania from RGGI [Regional Greenhouse Gas Initiative],” said Gov. Shapiro. “Instead [of RGGI], we will have in its place a Pennsylvania made and Pennsylvania run system.”

These proposals were based on the Governor’s RGGI Working Group, which brought together labor leaders, environmental advocates, and industry to evaluate the merits of the Regional Greenhouse Gas Initiative (RGGI).

The PACER plan was introduced as House Bill 2277 (Otten-D-Chester) and Senate Bill 1190 (Santarsiero-D-Bucks) but neither bill saw legislation action.

Updating Renewable Energy Standards - PRESS

Twenty years ago, Pennsylvania led the nation by establishing the Alternative Energy Portfolio Standards (AEPS), which successfully promoted new and innovative forms of energy in the Commonwealth.

Over the last two decades, Pennsylvania’s energy standards have become outdated, and we are losing out to other states with more modern standards that attract new energy investment. Pennsylvania is 45th in the nation in terms of investing in clean energy sources like wind, solar, and hydropower.

That’s why Gov. Shapiro’s plan introduces the Pennsylvania Reliable Energy Sustainability Standard (PRESS), which will attract federal investments in the Commonwealth and keep utility costs low in the long-term by building out the reliable, affordable fleet of power sources we will need for the decades to come.

PRESS continues all of the successful elements of AEPS but is also more inclusive to ensure reliability – adding nuclear power, next generation technologies like fusion, and clean forms of natural gas for the first time.

This revitalized energy standard will attract hundreds of millions of dollars in new economic investments in our state and create 14,500 jobs, all while improving the reliability of our electricity grid and positioning Pennsylvania as a leader in the energy arena for the next twenty years.

[On March 7, the Independent Fiscal Office issued its latest Pennsylvania Electricity update that reports the electricity grid is dependent on one fuel for 59% of the state’s electricity generation-- natural gas-- followed by nuclear power-- 31.9%, coal-- 5.4% and 3.7% from other sources. Read more here.]

PRESS is designed to incentivize a more reliable power generation fleet to combat the threats of extreme weather, cyberattacks, and other challenges that could impact individual sources of electricity. [Read more here.]

PRESS requires Pennsylvania to get 50% of its electricity from a diverse range of energy resources by 2035, including 35% from the clean energy sources of today and the future like solar, wind, small modular reactors, and fusion, 10% from sustainable sources like large hydropower and battery storage, and 5% from ultra-low emission forms of natural gas and other traditional fuels.

By raising these targets for a diverse range of energy sources, PRESS will jumpstart a new era of reliable and affordable energy development in Pennsylvania.

The PRESS plan was introduced in House Bill 2275 (Abney-D-Allegheny) and Senate Bill 1191 (Comitta-D-Chester), but neither bill saw any legislative action.

Protections For Consumers

Finally, Governor Shapiro’s 2024 plan included commonsense protections for consumers against unfair practices like excessive reconnection fees and greater access to medical waivers, along with other measures that protect Pennsylvanians and help them pay their utility bills.

“Pennsylvania is falling behind in the race to create clean and reliable energy – and we must take action to be more competitive, ensure our consumers pay less for their electricity bills, and create more jobs and opportunities for our businesses to grow and our workers to get ahead,” said Gov. Shapiro.

“From the very beginning, I have made clear that any energy policy supported by my Administration must meet the three-part test of protecting and creating energy jobs, taking real action to address climate change pollution, and ensuring reliable, affordable power for consumers in the long term.

"My energy plan is built to do all three, making sure the first dollar goes to Pennsylvania ratepayers and ensuring Pennsylvania will continue to be a leader on energy for decades to come.”

PACER and PRESS are designed to work together to deliver on Governor Shapiro’s goals of protecting and creating energy jobs, lowering energy costs for Pennsylvanians, and ensuring Pennsylvania’s energy independence for the long term.

Together they will spur a new generation of energy development and save consumers money each month on their electricity bills, all while reducing emissions and building the most reliable fleet of energy resources in the nation.

Gov. Shapiro’s plan also recognizes the critical importance of carbon capture, utilization, and storage (CCUS) in meeting our emissions reductions goals, and he is urging the General Assembly to pass enabling legislation to create a legal and regulatory framework for CCUS in Pennsylvania.

This will help our state reduce emissions from the largest industrial sources and create good-paying, clean energy jobs in the process.

Click Here for the complete announcement.

Resource Links:

-- PUC Invites Stakeholder Comments On The Issue Of The Adequacy Of Electricity Supplies In Pennsylvania [Background On Electricity Supply Issue] [PaEN]

-- 30 Stakeholder Comments Received By PUC On Adequacy Of Electricity Supplies In Pennsylvania; Increasing Natural Gas Power Plant Reliability To 90-95% Would Mean No Imminent Capacity Problem [PaEN]

-- PA Senate Republican Leader: ‘Every Consumer Of Electricity In This Commonwealth Is Going To Pay More;’ ‘What You’re Going To Face Is Going To Be Really Unpleasant’ [PaEN]

Resource Links - Governor’s 2024 Plan:

-- Gov. Shapiro Unveils Cap-And-Invest PA Climate Emissions Reduction Initiative To Reduce Carbon Pollution From Power Plants; Update Alternative Energy Portfolio Standards To Diversify Electric Generation, Improve Reliability [PaEN]

-- Senate Republicans Reject Gov. Shapiro’s Offer To Work On Legislation To Make The Electric Grid More Reliable, Diversify Our Energy Sources, Lower Energy Costs For Ratepayers, Reduce Greenhouse Gas Emissions [PaEN]

-- Gov. Shapiro On Republican Reaction To His Energy Plan: They’ve Done Nothing And Power ‘Plants Have Closed On Their Watch;’ They’re ‘Used To Doing Nothing;’ ‘Doing Nothing Is Not Acceptable’ [PaEN]

-- House Committee Told Governor’s Energy Plan Diversifies Energy Generation, Avoids One-Fuel Dependence, Improves Grid Reliability, Lowers Consumer Costs, Generates Jobs; Or Upends Competitive Markets And Is A ‘Death Wish’ For Our Economy [PaEN]

Resource Links - Republican Energy Proposals: