By: Bella Serefina Brown-Nystrom
“Pennsylvania is on the rise – and we’re not gonna stop.” –Josh Shapiro presenting his 2025-26 budget proposal to the General Assembly and the people of Pennsylvania.
Included in Governor Shapiro’s budget is a proposed energy plan, the “Lightning Plan”, a plan that would save Pennsylvania energy customers $664 million by 2040, while generating $11.4 billion in investment in clean, reliable energy sources (Commonwealth of Pennsylvania, 2025). This Lightning Plan will lower costs for consumers, create energy related jobs, and protect Pennsylvania’s stability by building and positioning the Commonwealth to be a national energy leader for decades to come.
Since Pennsylvania ranks 48th in the nation for growth in total solar, wind, and geothermal generation over the past decade, the 2025-26 budget proposal is more vital than ever for the future of Pennsylvania’s renewable energy (PennEnvironment Research & Policy Center, 2024). If Shapiro’s 2025-26 Budget Proposal is implemented successfully, it will allow Pennsylvania to be the first state in the country to have its citizenry receive 50 percent of their electricity completely from solar power energy (Commonwealth of Pennsylvania, 2024).
The Lightening Plan focuses on helping energy projects to be approved, developed and built. Shapiro’s plan starts with a RESET –Pennsylvania’s Reliable Energy Sitting and Electric Transition Board (RESET Board)
- RESET, the Pennsylvania Reliable Energy Siting and Electric Transition Board (RESET Board) is Governor Shapiro’s proposed state agency will focus on speeding up sitting and permitting energy projects, cutting red tape, and ensuring energy projects are built here in Pennsylvania. Currently, Pennsylvania is one of the only 12 states without an Executive branch that can make decisions about sitting on important energy projects. The establishment of the RESET Board seeks to streamline the process of key energy projects and reduce bureaucratic obstacles (reducing bureaucracy is also an overall key initiative in the Shapiro administration).
- PA EDGE, The Pennsylvania Economic Development for a Growing Economy (PA EDGE) Program is a collection of tax credit programs first passed into law in 2022, a program that has not been used by a single business leaving billions of dollars dedicated to new economic development. This 2025-26 budget proposes multiple tax credit modifications to ensure businesses access this program. PA EDGE was designed to gain new investments in critical manufacturing businesses including semiconductors, biomedical, milk processing, and petrochemicals and fertilizers produced from natural gas. This new 2025-26 budget proposal will allow businesses to take advantage of:
- Converting the Local Resource Manufacturing Tax Credit Program to a Reliable Energy Investment Tax Credit: focusing especially on bringing new, reliable energy sources onto the state’s grid, this will utilize up to $100 million per year in tax credits per manufacturing facility for three years.
- RCHH: Regional Clean Hydrogen Tax Credit Program Allows up to seven regionally dispersed qualified taxpayers to claim up to $7 million per year and lowers thresholds to qualify. Those qualified taxpayers purchasing clean hydrogen and natural gas for use in manufacturing at a facility in the Commonwealth will be entailed to this Regional Clean Hydrogen Hubs Tax Credit. RCHH Program helps accelerate the use of clean hydrogen to help reach state and federal emissions reduction goals by offering a tax incentive to manufacture a part of said program.
- SAF: Sustainable Aviation Fuel –Allows Taxpayers who make a $250 million capital investment and create 400 jobs at a facility to utilize up to $15 million per year to produce sustainable aviation fuel.
- PACER: The Pennsylvania Climate Emissions Reduction Act establishes a cap-and-invest program that allows Pennsylvania to determine its own cap on carbon, to invest directly in lowering Pennsylvanian’s electricity bills. PACER would allow 70 percent of the revenue generated under this reduction act to be directed back to Pennsylvania residents as a rebate on their electric bill.
- PRESS: The Pennsylvania Reliable Energy Sustainability Standard, Pennsylvania’s energy standards have become outdated over the last two decades, impacting Pennsylvania’s ability to catch up competitively with other states that have more modern standards to attract new energy investment. PRESS would build a more reliable, diverse, and affordable energy sector. PRESS will require that Pennsylvania receives 50% of its electricity from a diverse range of energy resources by 2035. Thirty-five percent of energy sources will come from clean energy sources like solar, wind, small modular reactors, and fusion. Ten percent of energy sources will come from sustainable sources like hydropower and battery storage, and an additional 5% from ultra-low emissions forms of natural gas and traditional fuels (Commonwealth of Pennsylvania, 2024). This updated version of the proposal will incentivize companies to be innovative and build new forms of energy, from nuclear energy, to renewable, affordable sources like battery storage, updating our energy standards in Pennsylvania.
The Governor’s Lightening Plan will introduce and emphasize the concept of community energy, benefiting communities across Pennsylvania. From agriculture producers, to low-income communities, this plan will strengthen the ability for all communities to jointly share energy resources to lower their costs. Farmers can invest in methane digesters, get the energy to power farms straight from the digester, cutting out the electricity company, providing the ability to lower their energy prices. The Governor’s proposal will update these energy efficiency standards for the first time in nearly two decades.
The 2025-26 budget proposal, including The Lightning Plan, will focus on energy production in Pennsylvania for Pennsylvanians, ensuring the state remains a national energy leader. This plan will provide low-cost, reliable energy, and create thousands of job opportunities across Pennsylvania.
Works Cited:
Commonwealth of Pennsylvania. (2024). Governor Josh Shapiro’s energy plan builds on Pennsylvania’s legacy. PA.gov. https://www.pa.gov/governor/newsroom/2024-press-releases/governor-josh-shapiro-s-energy-plan-builds-on-pennsylvania-s-leg.html
Commonwealth of Pennsylvania. (2024). Governor Shapiro unveils new statewide energy initiative: Making Pennsylvania a leader in clean energy. PA.gov. https://www.pa.gov/governor/newsroom/2024-press-releases/governor-shapiro-unveils-new-statewide-energy-initiative–making.html
Commonwealth of Pennsylvania. (2025, February 4). Governor Shapiro unveils 2025-26 budget proposal. PA.gov. https://www.pa.gov/governor/newsroom/2025-press-releases/governor-shapiro-unveils-2025-26-budget-proposal.html
PennEnvironment Research & Policy Center. (2024, October 24). PA ranks abysmal 48th in U.S. for renewable energy growth. Environment America. https://environmentamerica.org/pennsylvania/center/media-center/release-pa-ranks-abysmal-48th-in-u-s-for-renewable-energy-growth/
