Governor Shapiro Announces New Plan to Reduce Carbon from Electricity Plants

Governor Shapiro announced on March 13, 2024, his proposal for a bold new energy plan that has two components: PACER and PRESS. 

PACER (Pennsylvania Climate Emissions Reduction Act) introduces a new, Pennsylvania-only cap and invest program that requires power plants to pay for the carbon they emit and uses that money to benefit every day Pennsylvanians. 70% of the revenue would be given back to Pennsylvania ratepayers on their electric bills. The rest of the money will be used to further reduce energy bills for low-income households, to reduce air pollution, and in clean energy projects. There will be a focus on bringing new job opportunities in clean energy to energy communities that have produced energy from fossil fuels now and in the past.

Governor Shapiro has pledged to pull Pennsylvania out of the Regional Greenhouse Gas Initiative (RGGI) once the state legislature passes PACER. Although Pennsylvania technically is in RGGI, it has been unable to participate in RGGI because it is currently tied up in the courts.

PRESS (Pennsylvania Reliable Energy Sustainability Standard) modernizes the existing Alternative Energy Portfolio Standards (AEPS) to now require Pennsylvania to get 50% of its energy from alternative energy sources by 2035. It requires 35% of its electricity to be from clean energy sources, 10% from sustainable sources like large hydropower and battery storage, and 5% from ultra-low emission fuels.

PRESS will bring Pennsylvania more in line with its neighbors. At one time, Pennsylvania was on the cutting edge of requiring its utilities to support renewables through AEPS, but that program leveled out in 2021, requiring only 8% from alternative energy sources. PRESS will push Pennsylvania forward by requiring 50% by 2035.

This energy policy meets Shapiro’s 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.”

The State legislature still needs to approve this plan and may make some changes. Each program is being introduced separately to the state legislature. Shapiro’s plan is estimated to save Pennsylvanians $252 million in the first five years and to create more than 14,500 jobs. Pennsylvania has been falling behind its neighboring states in taking action against climate change. PACER and PRESS represent a path forward to bring Pennsylvania into a sustainable future.