Pennsylvania Launches RISE PA Program to Cut Industrial Emissions

News Summary

Pennsylvania has launched the RISE PA program, allocating $396 million to reduce greenhouse gas emissions from the industrial sector. The initiative aims to create up to 6,000 jobs while cutting emissions from manufacturing, mining, and energy production. Funding includes grants for projects achieving at least a 20% reduction in emissions, with plans for awards to be announced in Fall 2025. This program aligns with the state’s environmental goals and promotes collaboration among industrial leaders and communities.

Pennsylvania has officially launched the Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) program, allocating a total of $396 million to facilitate significant reductions in greenhouse gas (GHG) emissions and co-pollutants from the state’s industrial sector. The initiative is designed to enhance job creation, promote decarbonization, and improve the overall competitiveness of Pennsylvania’s manufacturing industry.

Industrial activities in Pennsylvania contribute over 30 percent of the state’s total emissions, highlighting the urgent need for targeted action to curb pollution. RISE PA aims to eliminate millions of tons of GHG and co-pollutant emissions while simultaneously creating up to 6,000 high-quality jobs in the industrial sector.

The program provides reimbursement grants primarily to support industrial decarbonization projects across various sectors, including manufacturing, mining, and energy production. Applications will be accepted until August 29, 2025, with an expected $320 million available for both Medium-scale and Large-scale Award Tracks. A separate Small-scale Award Track, anticipated to offer an additional $40 million, will address smaller projects.

Grant Structure and Eligibility

RISE PA comprises two primary award tracks: Medium-scale and Large-scale. Each track offers reimbursement grants covering up to 30 percent of the total project costs, with Medium-scale grants capped at $20 million and Large-scale awards reaching a maximum of $110 million.

To become eligible for these grants, projects are required to achieve at least a 20 percent reduction in total Scope 1 and Scope 2 GHG emissions. Additionally, there are three bonus allocations available, each providing up to 10 percent extra funding based on specific criteria:

• Community Benefits Bonus: For projects located in low-income and disadvantaged communities.
• Fair Labor Bonus: For projects that meet certain labor standards.
• GHG Emissions Reduction Bonus: For projects that exceed the 20 percent emissions reduction requirement.

Funding and Costs

Eligible costs for funded projects include labor, capital expenses, materials, equipment, installation, retrofitting, and other related contractual work. Costs incurred after October 1, 2024, may also count towards the applicant’s cost-sharing requirement. Projects under RISE PA are not eligible if they are already benefiting from tax credit allocations under Section 48C(e) of the Internal Revenue Code or if they only meet existing compliance obligations.

Program Background and Objectives

This initiative emerged under provisions of the Inflation Reduction Act (IRA) Section 60114 and is facilitated by an agreement with the U.S. Environmental Protection Agency (EPA). It aims not only to decrease emissions but also to drive economic growth within Pennsylvania by fortifying the state’s manufacturing landscape.

In a strategic effort to maximize impact, RISE PA promotes collaboration among Pennsylvania’s industrial leaders, unions, and community members. The anticipated results are projected to yield over 8 million metric tons in GHG emissions reductions by the year 2050, aligning with broader environmental goals.

The first awards from the RISE PA program are set to be announced in Fall 2025, marking a significant milestone as Pennsylvania takes proactive measures toward sustainable industrial practices and environmental stewardship.

Deeper Dive: News & Info About This Topic

• Holland & Knight: Pennsylvania DEP Accepting Applications for $320M RISE PA Program
• Evergreen Action: Pennsylvania Opens Applications for RISE PA Grants
• Central Penn Business Journal: Second Largest Federal Grant in PA History Secured by Shapiro Administration
• Wikipedia: Greenhouse Gas Emissions
• Google Search: Pennsylvania RISE PA Program