Gov. Josh Shapiro on Tuesday released key components of the Lightning Plan, a comprehensive, all-of-the-above energy plan for the state that will soon be introduced in the General Assembly.
“Pennsylvania has long been a national energy leader, from Ben Franklin to today, 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,” said Shapiro during his visit March 11 to Voith Hydro North America where he unveiled parts of the plan.
The Voith plant in York, Pa., is one of the world’s largest hydro turbine manufacturers, and the company will play a role in the state’s energy plan by producing more hydropower turbines, Shapiro said.
“Demand for electricity in the U.S. is growing, and hydro power stands out as one of the most reliable and sustainable renewable energy sources available, not only for generating electricity, but also for storing energy – an often overlooked but essential resource to maintain a stable energy grid,” said Stanley Kocon, president and CEO of Voith Hydro North America. “We wholeheartedly support the governor’s plan to lower electricity costs and to build and upgrade more power plants to ensure clean, reliable and affordable energy for Pennsylvania’s future.”
Democratic legislators in both houses of the General Assembly have published cosponsorship memos aligning with the plan, which they say is supported by labor and industry leaders, environmental advocates, and consumer groups.
“We’re long overdue to unite behind a strategy that encourages energy production, lowers costs for energy consumers, creates good paying union jobs that offer family sustaining wages, and at the same time is mindful of the planet that we will leave behind for our kids and our grandkids,” Jim Enders, president of the Central Pennsylvania Building and Construction Trades Council, said. “Organized labor is encouraged by the governor’s leadership on an energy plan that creates thousands of good paying union jobs and puts Pennsylvania energy at the forefront.”
Shapiro pointed out during Tuesday’s event that the energy plan will incentivize the building of next-generation energy projects in the state.
“We have to meet this moment and this plan — supported by leaders from the energy industry, organized labor and environmental groups, and consumer advocates — will lower costs for consumers, create more jobs, speed up permitting, and position the commonwealth to continue to be a national energy leader for decades to come,” he added, noting that Pennsylvania needs this plan as energy consumption continues rising; the nation faces more extreme weather events; the limits of the energy grid are constantly being tested; and utility costs increase. Doing nothing is not an option, said the governor.
Kevin Schreiber, president and CEO of the York County Economic Alliance, said the plan will attract new investments and stimulate job creation by prioritizing sustainable energy production and modernizing tax and other incentives, ensuring sustained benefits for the state’s advanced manufacturing sector.
“It’s not just enough for us as a commonwealth to reduce our reliance on fossil fuel infrastructure. It’s important for us to boost the amount of renewable energy here in the state,” added Patrick McDonnell, president and CEO of PennFuture. “The Lightning Plan is a real, concrete way for us to reduce energy costs for consumers and to make sure we’re putting the people of Pennsylvania to work.”
Lightning Plan components
Specifically, Shapiro’s plan includes six strategic initiatives, which are:
- The EDGE Tax Credit — The Pennsylvania Economic Development for a Growing Economy (EDGE) Tax Credit Program, established in 2022, hasn’t been used, leaving billions in potential economic development untapped. Shapiro’s proposed 2025-2026 budget will include tax credit modifications to revamp the program, and provide up to $15 million per year to produce sustainable aviation fuel. The cosponsorship memo is led by State Sens. Jay Costa (D-43) and Nick Pisciottano (D-45), along with Pennsylvania Rep. John Inglis (D-38).
“We are excited to introduce a plan that strikes a vital balance between meeting the growing energy demands of our state, while also making sure we are protecting our environment for future generations,” said Pisciottano. “By focusing on both innovation and practical solutions, we are setting the stage for Pennsylvania to thrive in the energy sector and compete in the global economy.”
- The Reliable Energy Siting and Electric Transition (RESET) Board would for the first time give Pennsylvania a cohesive central authority to consider and approve applications for large reliable energy generating facilities that include those providing more than 25 megawatts (MW) of power. Projects that receive RESET Board approval would be able to quickly begin construction and speed up development timelines while providing investors with more certainty. The cosponsorship memo is led by State Sen. John Kane (D-9) and State Rep. Mandy Steele (D-33).
“If we are serious … about supercharging energy development in the state to bring costs down for Pennsylvanians and set us up as a dominant energy leader, we must streamline the process,” said Steele. “Creating a Reliable Energy Siting and Electric Transition Board will speed up the entire process, from permitting to reducing red tape, and supporting new energy projects in a big way.”
- Establishing the Pennsylvania Climate Emission Reduction (PACER) Program to create an emissions reduction program in which decisions would be made exclusively by the state. PACER would establish a state-specific price on carbon emissions, requiring large emitters and out-of-staters to pay their fair share, and would put the savings right back into the pockets of Pennsylvania consumers. The memo is sponsored by State Sen. Carolyn Comitta (D-19) and Rep. Aerion Abney (D-19).
“PACER and the governor’s Lightning Plan are the way forward to cleaner air, better economic opportunities, and consumer savings on electricity bills,” said Comitta.
- The Pennsylvania Reliable Energy Sustainability Standard (PRESS) would modernize Pennsylvania’s outdated Alternative Energy Portfolio Standards to incentivize innovation in nuclear and renewable energy, including battery storage, to remain competitive with other states. The memo is sponsored by State Sen. Steve Santarsiero (D-10) and Rep. Danielle Otten (D-155).
“I have long said that it’s a false premise to say we must choose between creating jobs or saving our planet,” Santarsiero said. “PRESS will turbocharge energy buildout in Pennsylvania and create a more diverse mix of energy resources focusing on clean, reliable, and affordable energy.”
- Lowering Energy Costs for Rural Communities would democratize energy ownership by allowing farmers to jointly share a nutrient methane digester that they could not afford individually, and help apartment owners share a rooftop solar installation that they otherwise could not access. The memo is sponsored by State Sen. Judy Schwank (D-11) and Rep. Peter Schweyer (D-134).
“Community Energy will support new energy projects and agricultural innovation by allowing farmers, for example, to come together to invest in methane digesters to power their operations instead of relying on electric companies,” said Schwank. “This is just one exciting component of the Lightning Plan.”
- Rebates to Reduce Household Energy Costs would update current law to provide more money for consumers when they shop for new appliances, increasing the flexibility of the state’s utilities to encourage larger efficiency investments by industrial customers, and to catalyze investments that increase energy efficiency while also preventing power outages during extreme weather events. The memo is sponsored by State Sen. Lisa Boscola (D-18) and Rep. Kyle Donahue (D-113).
“Pennsylvania’s energy future requires a balanced approach, one that prioritizes both supply and demand,” Boscola said. “As demand continues to outpace supply, we need to reimagine the tools used to create efficiencies in our homes and businesses. By driving down demand, the program helps ensure we have the power we need to keep Pennsylvania running.”
Plan opponents
The Pennsylvania Manufacturers’ Association (PMA) isn’t a fan of Shapiro’s Lightning Plan.
On Tuesday, the group posted on X that the plan “would end market pricing for electricity, undermine reliable power generation, destabilize the grid, and jack up costs for consumers.”
Additionally, the plan would end electric competition and mandate the use of technologies that do not exist, according to PMA.
At the same time, Republicans in the General Assembly don’t support anything resembling the Regional Greenhouse Gas Initiative (RGGI), the first mandatory market-based program to reduce greenhouse gas emissions by the United States.
Democrats supporting Shapiro’s plan — and who want the state to be an RGGI member — seem to be running around that opposition with the introduction of the plan component to establish the PACER Program, which is essentially a state-operated RGGI.