Pennsylvania’s natural resources and workforce made it a leader in the US Industrial Revolution. Coal, steel and materials mined and produced in the commonwealth helped to build the country, centering industry as a key economic driver for Pennsylvania.
And through a new program supported by federal funding and administered by the PA Department of Environmental Protection (DEP), Pennsylvania is set to emerge as a leader again in a new revolution of sorts — an industrial decarbonization revolution— with nearly $400 million in funds available to lower climate emissions while creating good-paying jobs and supporting the state’s economy.
Pennsylvania Governor Josh Shapiro’s administration and the PA DEP recently released guidance for medium- and large-scale awards under the state’s RISE PA grant program, with applications for funding set to open in January.
RISE PA, short for “Reducing Industrial Sector Emissions in Pennsylvania,” is a $396 million statewide industrial decarbonization grant program that has enormous potential to slash emissions from industrial facilities and to create thousands of good-paying jobs in the state.
To put it into perspective, at nearly $400 million, RISE PA funding – awarded through the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grants (CPRG) under the Inflation Reduction Act of 2022 – is the second largest federal grant in Pennsylvania history, and accounts for 10% of the total federal funds available through the CPRG program, making Pennsylvania one of the largest grant winners in the country.
Why PA?
Pennsylvania’s industrial sector has been a key economic driver for the state and the nation for more than a century, producing critical goods, including steel, cement and glass, that helped grow and build the US economy. Today, manufacturing contributes more than $113 billion in state domestic product and provides nearly 11% of the commonwealth’s jobs.
But historically, heavy industry has also been the largest emitter of greenhouse gasses (GHG) in the commonwealth’s economy. Decarbonizing this sector presents an opportunity to cut statewide GHG emissions by up to a third by deploying new methods and technology. These investments would not only allow industry to grow and, in some cases, revitalize economically distressed parts of the state but simultaneously improve environmental quality for residents.
RISE PA can serve as a catalyst for this kind of “win-win” investment in sectors that have been historically deemed “difficult to decarbonize,” unlocking opportunities to improve the commonwealth’s economic and environmental sustainability.
With RISE PA, Pennsylvania is primed to cut up to 5.3 million metric tons of carbon pollution by 2030 while creating thousands of new jobs. As a flagship, first-in-the-country endeavor, not only does Pennsylvania’s industry have the potential to make significant progress in reducing associated emissions, the state’s success can be used as a national model. Additionally, plenty of evidence exists that Pennsylvania could further benefit from what economists call “the first mover advantage.” By locating new clean industrial infrastructure here in Pennsylvania, the state has the chance to become an attractive location and win new investments from companies around the world also looking to decarbonize their supply chains.
Winning the win
With the funding secured, the next phase of RISE PA is critical as the PA DEP will open applications for individual awards in January.
For the large-scale category, PA DEP has earmarked $220 million to fund decarbonization projects that would result in at least a 20% annual facility-wide reduction in GHG emissions per project. Base grant awards in this category would cover 30% of the project cost; however, under RISE PA, a project could receive up to 60% of its cost with additional 10% bonuses offered in three categories:
- Community Benefit Plan (CBP) bonus: additional 10% of total project cost available for projects that submit an approved CBP
- Fair Labor bonus: additional 10% of total project cost available for meeting additional labor requirements beyond the prevailing wage and apprenticeship requirements required of all projects
- GHG Emissions Reduction bonus: for medium- and large-scale award projects that reduce total facility-wide emissions above 20%, up to an additional 10% for projects is available.
These bonus awards stretch the reach of RISE PA beyond reducing just a single facility’s emissions, and will bring additional economic benefits to the commonwealth’s industrial workforce and local communities.
RISE PA is a win for industry, offsetting and de-risking needed investment in decarbonization; a win for the environment through its power to slash state-wide emissions; a win for workers in creating family-sustaining union jobs that pay, at a minimum, the local prevailing wage and that will prioritize local hires and apprenticeships; and a win for fenceline communities, reducing harmful air pollutants and incentivizing the conditions for community representation.
Now is the time to focus on turning the promise and potential of RISE PA into actionable projects that will reinvigorate Pennsylvania’s industrial sector, ensuring it remains economically and environmentally sustainable in the future.