New Lightning Plan Aims to Boost Pennsylvania’s Energy Security and Growth

Governor of Pennsylvania, Josh Shapiro announced the Lightning Plan, a comprehensive, all-of-the-above energy plan to secure Pennsylvania’s energy future.

The energy plan, supported by labor and industry leaders, environmental advocates, and consumer groups, will create jobs, lower costs for consumers, protect Pennsylvania from global instability by building next generation power. The KeyState Energy and CNX Resources project, aimed at accelerating hydrogen and sustainable aviation fuel (SAF) production, will help place the region as a hub for next-generation energy solutions and support 3,000 construction jobs.

The energy plan will provide funding for new projects through an updated Pennsylvania Economic Development for a Growing Economy (EDGE) manufacturing tax credit, streamline energy project approvals by creating a state energy siting board to cut red tape, and encourage communities to lower utility bills through shared energy resources. The plan will also increase rebates for energy-efficient appliances to help reduce household energy costs.

Governor Shapiro’s announcement is built on the energy plan unveiled by the Governor in March 2024, which will protect and create nearly 15,000 energy jobs, lowering utility bills for households, and taking real action to address carbon pollution. These initiatives are projected to save Pennsylvania energy customers $664 million by 2040 and generate $11.4 billion in clean, reliable energy investments.

Independent studies confirmed that Governor Shapiro’s plan will save Pennsylvanians money on their electricity bills, create energy jobs, and lead to new investments in power plants and energy infrastructure. In 2025, the Governor will again call on the General Assembly to pass legislation driving Pennsylvania forward as an energy leader.

Governor Shapiro’s plan will supercharge energy development in the Commonwealth and help energy projects get built and approved faster through several strategic initiatives:

• RESET Board: Pennsylvania needs to streamline the process for building energy projects. Currently, Pennsylvania is one of only 12 states without a state entity to handle siting decisions for key energy projects. The Governor is proposing the Pennsylvania Reliable Energy Siting and Electric Transition (RESET) Board to speed up permitting, reduce red tape, and support the next generation of energy projects in the state.
• EDGE Tax Credit: The Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credit Program, established in 2022, has not been used, leaving billions in potential economic development untapped. The Governor’s proposed 2025-26 budget will include key tax credit modifications to revamp the program, including:
  • Reliable Energy Investment Credit: Up to $100 million per facility for three years, focused on adding reliable energy sources to the grid.
  • Regional Clean Hydrogen Tax Credit: Up to $49 million annually for regional hydrogen projects, with lower thresholds to qualify.
  • Sustainable Aviation Fuel: Up to $15 million per year for a taxpayer who makes a $250 million capital investment and creates 400 jobs at a facility to produce sustainable aviation fuel (SAF), like the CNX and KeyState Energy collaboration at Pittsburgh International Airport.
• PACER (Pennsylvania Climate Emissions Reduction Act): PACER will establish a cap-and-invest program to set Pennsylvania’s carbon limit and invest in reducing electricity costs. Under PACER, 70% of the revenue generated will be returned to Pennsylvanians as rebates on their electric bills.
• PRESS (Pennsylvania Reliable Energy Sustainability Standard): PRESS will modernize Pennsylvania’s outdated energy standards, incentivizing innovation in nuclear and renewable energy, including battery storage, to remain competitive with other states.
• Lowering Energy Costs for Rural Communities: The Governor’s proposed 2025-26 budget introduced Community Energy, a proposal helping rural communities, farmers, and low-income Pennsylvanians jointly share energy resources to lower costs.
• Rebates to Reduce Household Energy Costs: In addition to these initiatives and reimagining the PA EDGE tax credit programs, Pennsylvania is expected to reform Act 129, the law providing rebates and incentives to buy new energy efficient appliances and other ways to reduce electricity needs over time, which leads to lower electricity prices. The Governor’s proposal will update these energy efficiency standards for the first time in nearly two decades.

Governor Shapiro also announced decisive action to lower energy costs and protect Pennsylvania consumers. The Governor reached an agreement with PJM Interconnection on a plan to resolve a recent lawsuit and to save consumers over $21 billion over the next two years.

In December, the Governor filed a complaint with the Federal Energy Regulatory Commission (FERC) against PJM Interconnection, criticizing drawbacks in PJM’s capacity auction design that threatened to impose new price increases. The Governor’s agreement with PJM aims to avoid price increases on consumers across all 13 states served by PJM, including Pennsylvania.