Gov. Josh Shapiro on Thursday unveiled the Lightning Plan — a comprehensive, all-of-the-above energy strategy to secure the state’s energy future.
“Pennsylvania has long been a national energy leader… but right now, we’re letting other states outcompete us and we’re losing out on jobs, new investment, and innovation — that has to change,” Shapiro said during a press conference at Pittsburgh International Airport. “My energy plan will power Pennsylvania forward by incentivizing the building of next-generation energy projects in the commonwealth.”
Announcing the plan at Pittsburgh International Airport was noteworthy. It’s the site of a groundbreaking $1.5 billion proposed partnership between KeyState Energy and CNX Resources that’s aimed at accelerating hydrogen and sustainable aviation fuel (SAF) production.
The project could position the region as a hub for next-generation energy solutions while supporting 3,000 construction jobs, and Shapiro calls it a prime example of the type of innovation the Lightning Plan will drive across the state.
The governor said Pennsylvania needs an energy plan to power the commonwealth forward as energy consumption rises; more extreme weather events increase; the limits of the energy grid continue to be constantly tested; and utility costs increase as a result of global instability and foreign wars. Doing nothing is not an option, he said.
According to his office, the energy plan would provide funding for new projects through an updated Pennsylvania Economic Development for a Growing Economy (EDGE) manufacturing tax credit, and streamline energy project approvals by creating a state energy siting board to cut red tape.
Additionally, the Lightning Plan would increase rebates for energy-efficient appliances to help reduce household energy costs, and encourage communities to lower utility bills through shared energy resources.
“I look forward to working with the General Assembly to get this common-sense plan to my desk so that we can lower costs for consumers, create more jobs, and position the commonwealth to continue to be a national energy leader for decades to come,” said Shapiro, who during his upcoming budget address plans to again call on the General Assembly to pass legislation that propels Pennsylvania forward as an energy leader.
Lt. Gov. Austin Davis said he and the governor want to build on their energy legacy and use it to power a better future for Pennsylvania.
“Our administration is working with our friends in labor, as well as the business community, environmental advocates, and consumer advocates,” Davis said. “We want to bring together elected leaders at the federal, state and local level, and we hope folks can take off their red and blue jerseys and put on their Pennsylvania jerseys. Because our commonwealth’s future is at stake.”
Specifically, the Lightning Plan would help energy projects get approved and built faster through several strategic initiatives:
- The Pennsylvania Reliable Energy Siting and Electric Transition (RESET) Board, which would be established to speed up permitting and reduce red tape. Currently, the state is one of 12 states without a state entity to handle siting decisions for key energy projects.
- The Pennsylvania Economic Development for a Growing Economy (PA EDGE) Tax Credit Program, established in 2022, hasn’t been used, leaving billions in potential economic development untapped. The governor’s proposed 2025-2026 budget will include key tax credit modifications to revamp the program.
- The Pennsylvania Climate Emissions Reduction Act (PACER) would establish a cap-and-invest program to set Pennsylvania’s carbon limit and invest in reducing electricity costs. Under PACER, 70 percent of the revenue generated would be returned to Pennsylvanians as rebates on their electric bills.
- The Pennsylvania Reliable Energy Sustainability Standard (PRESS) would modernize the state’s energy standards and incentivize innovation in nuclear and renewable energy, including battery storage.
- Shapiro’s proposed 2025-2026 budget introduces Community Energy, a proposal to help rural communities, farmers, and low-income Pennsylvanians jointly share energy resources to lower costs. For example, farmers could use methane digesters to produce energy for their farms, reducing reliance on utility companies and lowering their energy prices.
- Reforming Act 129, the law that provides rebates and incentives to buy new energy efficient appliances and other ways to reduce electricity needs over time — which in turn, leads to lower electricity prices. The governor’s proposal would update these energy efficiency standards for the first time in nearly two decades.
Shapiro’s plan also would build on the energy plan he unveiled in March 2024 to protect and create nearly 15,000 energy jobs, lower utility bills for households, and take action to address carbon pollution.
“We have to meet this moment — and this plan builds on the work my administration did last year to bring together leaders from the energy industry, organized labor and environmental groups, and consumer advocates to develop a plan for the future,” he said.
Numerous labor and industry leaders, environmental advocates, and consumer groups, as well as state lawmakers, look forward to working with the governor to promote forward-looking energy policies.
American Petroleum Institute Pennsylvania Executive Director Stephanie Catarino Wissman said the organization is reviewing the proposed Lightning Plan and looks forward “to working together to advance smart policies that can help usher in a new era of energy leadership and economic growth for Pennsylvania while helping to reduce inflation.”
Marcellus Shale Coalition (MSC) president Jim Welty is on the same page, saying the organization welcomes further discussion on how natural gas can continue to be a leader in securing Pennsylvania’s energy security.
Welty said MSC also wants to work collaboratively with its partners, including those in the building trades, as well as policymakers “who are serious about advancing pro-Pennsylvania energy policies moving forward.”
“Natural gas must be the fundamental underpinning of any reasonable Pennsylvania energy policy,” said Welty. “Energy policies that promote barriers to continued development, add further unpredictability, inefficiencies, and costs that ultimately burden the consumer, are a disservice to the Commonwealth and threaten the long-term reliability of the electric grid.”
Gregory Bernarding, business manager at the Pittsburgh Regional Building and Construction Trades Council, said it’s long past time that Pennsylvania unites behind an energy strategy that incentivizes growth, creates good paying union jobs, and keeps costs low.
“While many have talked, Gov. Shapiro has acted, and by putting his concrete ideas on the table he shows that he is committed to getting something done on energy,” Bernarding said. “Organized labor is excited by the prospect of a plan that creates thousands of good paying union jobs, and we look forward to working with the governor and partners in the legislature on a plan that solidifies Pennsylvania as the rightful energy powerhouse of the United States.”
Stefani Pashman, CEO of the Allegheny Conference, said the southwest region’s economic prosperity depends on energy affordability and grid reliability, and the organization appreciates Shapiro’s leadership in this space.
“At this critical moment, a strong state policy framework is essential — not just to create the right conditions for growth, but to signal that Pennsylvania is open for investment,” she said.
David Dardis, executive vice president at Constellation Energy, said Shapiro’s plan will strengthen the state’s energy position for the next decade and beyond. “This plan strikes the right balance, supporting energy security while preserving the competitive markets that have served Pennsylvania so well,” said Dardis.
The Lightning Plan is a blueprint for Pennsylvania’s energy future, said State Rep. Robert Matzie (D-16), adding that more energy means more jobs, lower costs, and a stronger economy.
“Clean energy doesn’t take away — it adds and Pennsylvania’s workforce is second to none,” Matzie said. “I stand ready to work with Gov. Shapiro and all stakeholders to get it done this year.”
U.S. Rep. Chris Deluzio (D-PA), who represents District 17, also applauded Shapiro’s leadership with the new Lightning Project. “I stand ready to do whatever I can in Congress to support this statewide effort to lower energy costs, protect our air and water, and grow our economy,” he said.
Jackson Morris, director of state power sector policy for climate and energy at the Natural Resources Defense Council, said the plan reflects collaboration, as well as the governor’s leadership in uniting diverse perspectives to move the state forward.