Governor Shapiro Reintroduces the "Lightning Plan"

Governor Josh Shapiro recently reintroduced a new energy proposal, named the "Lightning Plan.” The plan is a six-part package of legislation that attempts to “collectively cut carbon pollution, grow energy jobs, diversify Pennsylvania’s energy portfolio, and reduce costs on residents’ utility bills.”

​The six pieces include:

1. Reintroduction of the Pennsylvania Reliable Energy Sustainability Standards Act (“PRESS”) which updated the Alternative Energy Portfolio Standards to incentivize innovation in nuclear and renewable energy, including battery storage.
2. Reintroduction of the Pennsylvania Climate Emissions Reduction Act (“PACER”), which 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.
3. Establishing a new Reliable Energy Siting and Electric Transition (“RESET”) Board to bring Pennsylvania in line with the majority of other states that have some statewide entity with the authority to handle siting decisions for key energy projects.
4. Reforming Pennsylvania’s flagship energy efficiency law, Act 129, which was enacted back in 2008 and can be updated to maximize consumer savings in a changing energy landscape.
5. Reintroduction of reforms to the Economic Development for a Growing Economy (“EDGE”) tax credits, which includes:
   
   1. Reliable Energy Investment Credit Up to $100 million per facility for three years, focused on adding reliable energy sources to the grid.
      
   2. Regional Clean Hydrogen Tax Credit: Up to $49 million annually for regional hydrogen projects, with lower thresholds to qualify.
      
   3. Sustainable Aviation Fuel: Up to $15 million per year for a taxpayer who makes a $250 million capital investment and creates four hundred jobs at a facility to produce sustainable aviation fuel (SAF), like the CNX and Key State Energy collaboration at Pittsburgh International Airport.
6. Establishing a new “Community Energy” program that is modeled after an existing proposal to authorize Community Solar (a policy that has been debated in the General Assembly for many sessions now) while also providing for resources such as geothermal and anaerobic digesters.