Pennsylvania lawmakers approved a series of energy policy measures as part of the 2026-27 state budget that Pennsylvania Sen. Gene Yaw (R-23) said will bolster the state’s energy industry, improve electric grid planning, and modernize regulations governing natural gas and solar development.
Following a rare weekend voting session in the General Assembly on Sunday, Gov. Josh Shapiro signed the $50.8 billion spending package into law later that same evening.
Yaw, who chairs the State Senate Environmental Resources and Energy Committee, said Monday the budget package is designed to strengthen Pennsylvania’s role as an energy producer while promoting economic growth and maintaining a reliable supply of electricity.
“Affordable, reliable energy is the foundation of Pennsylvania’s economy,” Yaw said. “Every manufacturer, small business, hospital, school, and household depends on it, and our ability to attract new investment hinges on having abundant, dependable power.
“By including these measures in this year’s budget, we’re improving planning for future energy needs, supporting responsible natural gas development, and protecting taxpayers and property owners for years to come,” he added.
The budget agreement includes legislation sponsored by Yaw that establishes financial accountability and decommissioning requirements for solar energy projects.
According to the senator, the measure — which has the support of the Pennsylvania Farm Bureau and several solar industry associations — creates statewide standards to ensure property owners are not left responsible for removing solar facilities after they reach the end of their operating life.
The package also incorporates provisions in the state Fiscal Code requiring PJM Interconnection, the regional electric grid operator, to provide electricity demand forecasting information to Pennsylvania utilities.
Yaw said the added transparency will give state agencies a better understanding of future electricity demand as power needs continue to grow.
Another provision updates Pennsylvania’s Oil and Gas Conservation Law to reflect current drilling practices and streamline permit reviews for Utica shale wells.
Yaw said the changes are intended to reduce permitting delays, improve well placement, and minimize unnecessary surface disturbances.
Lawmakers also approved Yaw’s proposal to define what qualifies as a reasonable effort to reach the attainable bottom of a well. He said the clarification addresses inconsistent interpretations that have contributed to delays and will help the state make better use of nearly $400 million in federal funding designated for plugging legacy oil and gas wells.
Additionally, Yaw said the combined measures represent a significant update to Pennsylvania’s energy policies by addressing long-standing regulatory issues, increasing accountability across the energy sector, and positioning the state to meet future energy demands.