PA economy set to RISE with massive federal grant to cut industrial carbon pollution

By John Walliser

Heavy industry is Pennsylvania’s largest source of carbon pollution, emitting over 73 million metric tons of CO2 equivalent each year — about a third of the state’s carbon footprint. It’s also one of the few sectors of our economy to see emissions rise in this century as reduction goals proliferate across the country.

At the same time, with an annual GDP impact of more than $133 billion, industry’s economic importance and ubiquity in everyday life are hard to overstate. More than one in ten Pennsylvanians works in manufacturing, and despite shedding jobs for decades, it’s still one of the leading providers of well-compensated union employment in the Commonwealth.

Reversing those two trends in the industrial sector — declining employment and rising emissions — would be one of the greatest comeback stories in Pennsylvania history. And for the first time, thanks to a historic federal investment, it’s within our grasp.

“This is one of the largest federal grants Pennsylvania has ever received,” Governor Josh Shapiro said Monday in Pittsburgh, where he was joined by EPA Administrator Michael Regan in announcing almost $400 million in grants and incentives for manufacturers ready to decarbonize.

Carbon Pollution Reduction Grants (CPRG) funded under the 2022 Inflation Reduction Act will be administered through Pennsylvania’s RISE PA program, developed by the Department of Environmental Protection (DEP) as part of an interdepartmental effort within the Shapiro Administration to maximize federal funding opportunities.

Competitive grants will be offered for projects like energy efficiency upgrades and electrification of fossil fuel-powered facilities — improvements that deliver both cost savings and emission reductions over time, but which manufacturers have been hesitant to pursue due to significant up-front costs. DEP estimates such projects will cut emissions to the tune of 5.2 million tons, a 10 percent reduction, by 2050.

Construction on that scale will create thousands of jobs. And with robust environmental justice protections and labor requirements accounted for in the RISE PA plan, its impact on Pennsylvania communities (especially those historically left behind) will be not only positive but also durable and equitable.

Along with carbon pricing and stronger portfolio standards, RISE PA is a cornerstone of Governor Shapiro’s plan for an economically competitive Pennsylvania that protects workers and energy consumers while acting with all due urgency to combat climate change. At both PEC and Energy Future PA, we recognize that realizing this vision will entail a wide-ranging and technologically inclusive approach. Getting it right will require an extra measure of care and caution in pursuing some pathways, such as carbon capture and sequestration (CCS) and clean hydrogen, but the moment demands an all-in commitment. With unprecedented resources now at our disposal for industrial decarbonization, Pennsylvania has never been better positioned to meet the moment and come out stronger.

John Walliser is Senior Vice President for Legal and Government Affairs at Pennsylvania Environmental Council (PEC).