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Governor Josh Shapiro believes we must reject the false choice between growing our economy and protecting the planet – we can do both.

Since its founding, Pennsylvania has been a leading energy innovator – from the coal mines built in Northeastern Pennsylvania to the nation’s first oil well drilled in Titusville and the first civilian nuclear reactor. Today, Pennsylvania continues to lead the nation as the only state to secure two regional clean hydrogen hubs.

However, Pennsylvania is falling behind other states in the race to diversify its energy sources and create clean, reliable, and affordable energy. The Governor’s energy plan will help to cement Pennsylvania’s place as one of the world’s top energy producers and insulate consumers from rising utility costs as a result of global instability and foreign wars.

The Governor’s plan leverages Pennsylvania’s unique advantages as a major energy producer to reduce climate emissions while also
preventing increases in energy prices as a result of these measures through a rebate on Pennsylvanians’ electricity bills.

The plan solidifies an all-of-the-above vision for Pennsylvania’s energy future through bold new reliability targets that will produce a more diverse, resilient electricity grid by 2035, attract more federal dollars, and support low-carbon natural gas and nuclear facilities in Pennsylvania.

Finally, it builds on the Governor’s economic development strategy to make transformational investments in clean energy production.

  • Hydrogen Hubs

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  • Capping Wells Across Pennsylvania

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  • Delivering Clean Energy with Pennsylvania Climate Emissions Reduction Act (PACER)

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  • Pennsylvania Reliable Energy Sustainability Standard (PRESS)

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Hydrogen Hubs


Photograph: In Philadelphia, Governor Shapiro highlighted the job creation & economic development benefits of the $750 million federal investment the Shapiro Administration helped secure for the Mid-Atlantic Clean Hydrogen Hub (MACH2) in Philadelphia.

Governor Josh Shapiro and the Shapiro Administration have helped Pennsylvania become the only state in the nation to secure two regional clean hydrogen hub projects, funded through the U.S. Department of Energy’s (DOE) Regional Clean Hydrogen Hubs program.

A clean hydrogen hub is a regional network of hydrogen producers and energy infrastructure that the federal government plans to utilize in order to speed up the process of being able to create and use hydrogen as a clean energy carrier. Hydrogen can deliver or store tremendous amounts of energy.

The two hubs will create more than 41,000 total good-paying jobs between them and ensure Pennsylvania continues to be an energy leader for decades to come.

The federal government will invest $750 million to build the renewable Mid-Atlantic Clean Hydrogen Hub (MACH2) in Philadelphia and the surrounding region, which will create over 20,000 jobs – with a particular focus on union jobs.

The Biden Administration also selected the Appalachian Regional Clean Hydrogen Hub (ARCH2) based in West Virginia, which will create 21,000 jobs for the Appalachian region, including in Southwestern Pennsylvania.

Governor Shapiro has been a strong supporter of this investment in our Commonwealth. In his budget address, the Governor noted that the future clean hydrogen economy should run through Pennsylvania – and today’s announcement is a critical step towards making that a reality.

Capping Wells Across Pennsylvania

Governor Shapiro has directed DEP to draw down as much federal funding as possible to cap and plug orphaned and abandoned wells to improve public health, reduce planet-warming methane emissions, and create good-paying jobs. The Governor’s 2024-25 budget also proposes $11 million to continue to support this historic progress of identifying and plugging as many orphaned and abandoned wells as possible.

Through the federal Infrastructure Investment and Jobs Act (IIJA), DEP has completed an unprecedented number of well plugging projects with a goal to plug the most wells and eliminate the worst environmental and public health and safety hazards.

In just the first 14 months in office, the Shapiro Administration has plugged over 200 orphaned and abandoned wells, more than the total number of wells plugged in the last 9 years combined. The Shapiro Administration’s work is having a significant impact, improving public health, reducing potent methane emissions, and creating Pennsylvania jobs.

Wells Currently Capped:

200

Wells Capped

Delivering Clean Energy with Pennsylvania Climate Emissions Reduction Act (PACER)

PACER is a PA-specific cap-and-invest program, that allows Pennsylvania to determine its own cap on carbon and invest directly in lowering consumers’ electricity bills. If passed, PACER will reduce climate emission and give the Commonwealth control over its own energy future.

The benefits of PACER will be passed on directly to Pennsylvania consumers. Under PACER, Pennsylvanians will receive an electric bill rebate, so no one pays more on their electricity bill – and some will pay even less.

In addition to reducing emissions and saving Pennsylvanians money on their bills, PACER will support projects that reduce air pollution in Pennsylvania; further lower costs on energy bills for low-income Pennsylvanians through a year round LIHEAP program; and invest in new job-creating clean energy projects – such as carbon capture and storage, geothermal deployment, and clean hydrogen – in energy communities that have hosted coal, oil, or gas infrastructure.

PACER will allow Pennsylvania to chart its own energy future, independent from the influence both from foreign oil and other states’ energy policies. PACER leverages Pennsylvania’s strengths to lower costs, create jobs, and protect our environment.

Pennsylvania Reliable Energy Sustainability Standard (PRESS)

Twenty years ago, Pennsylvania led the nation by establishing the Alternative Energy Portfolio Standards (AEPS), which successfully promoted new and innovative forms of energy in the Commonwealth. Over the last two decades, Pennsylvania’s energy standards have become outdated, and we are losing out to other states with more modern standards that attract new energy investment. Pennsylvania is 45th in the nation in terms of investing in clean energy sources like wind, solar, and hydropower.

That’s why Governor Shapiro’s plan introduces the Pennsylvania Reliable Energy Sustainability Standard (PRESS), which will attract federal investments in the Commonwealth and keep utility costs low in the long-term by building out the reliable, affordable fleet of power sources we will need for the decades to come.

PRESS continues all of the successful elements of AEPS but is also more inclusive to ensure reliability – adding nuclear power, next generation technologies like fusion, and clean forms of natural gas for the first time. This revitalized energy standard will attract hundreds of millions of dollars in new economic investments in our state and create 14,500 jobs, all while improving the reliability of our electricity grid and positioning Pennsylvania as a leader in the energy arena for the next twenty years.

PRESS is designed to incentivize a more reliable power generation fleet to combat the threats of extreme weather, cyberattacks, and other challenges that could impact individual sources of electricity. PRESS requires Pennsylvania to get 50% of its electricity from a diverse range of energy resources by 2035, including 35% from the clean energy sources of today and the future like solar, wind, small modular reactors, and fusion, 10% from sustainable sources like large hydropower and battery storage, and 5% from ultra-low emission forms of natural gas and other alternative fuels. By raising these targets for a diverse range of energy sources, PRESS will jumpstart a new era of reliable and affordable energy development in Pennsylvania.

PACER and PRESS are designed to work together to deliver on Governor Shapiro’s goals of protecting and creating energy jobs, lowering energy costs for Pennsylvanians, and ensuring Pennsylvania’s energy independence for the long term. Together they will spur a new generation of energy development and save consumers money each month on their electricity bills, all while reducing emissions and building the most reliable fleet of energy resources in the nation.