$267 Million Energy Investment Targets Costs, Jobs, Emissions

Gov. Josh Shapiro
Credit: Commonwealth Media Services

JOHNSTOWN, PA — More than $267 million in state-supported funding will go to 31 manufacturing projects across Pennsylvania, aiming to lower energy costs for businesses, reduce pollution, and expand industrial jobs, Gov. Josh Shapiro announced Tuesday.

What This Means for You

  • Some businesses may see lower operating costs, which can affect prices and local jobs
  • Energy efficiency upgrades could reduce pollution in surrounding communities
  • New projects may bring construction and manufacturing jobs to multiple counties

The funding is part of the Reducing Industrial Sector Emissions in Pennsylvania, or RISE PA, program — a statewide initiative that provides grants to companies to upgrade equipment, improve energy efficiency, and reduce greenhouse gas emissions, which are heat-trapping gases linked to climate change.

Officials said the selected projects are expected to save businesses more than $3.1 million annually in energy costs and cut more than 1.3 million metric tons of carbon dioxide emissions in their first year — roughly equivalent to removing more than 320,000 cars from the road.

“As energy costs continue to rise … my Administration is helping Pennsylvania businesses lower their energy bills, create jobs, and reduce harmful air pollution,” Shapiro said.

How the Funding Works

The $267 million is being distributed through two tiers of grants — medium- and large-scale awards — under the RISE PA program, which is funded through federal Climate Pollution Reduction Grants.

The broader program totals $396 million, making it one of the largest federal investments in Pennsylvania’s industrial sector.

Projects funded through the program focus on reducing emissions from industrial processes, including fuel combustion, equipment leaks, and chemical reactions. Eligible upgrades include electrification, energy efficiency improvements, renewable energy installations, and carbon capture technologies.

Local Impact and Jobs

State officials and labor leaders said the investment is expected to support thousands of construction and manufacturing jobs statewide.

At Gautier Steel Holdings in Cambria County, one of the grant recipients, funding will be used to modernize a furnace to improve energy efficiency and reduce emissions. The facility employs about 100 workers.

“This project will … significantly reduce the carbon emissions generated by our facility,” said Dale Gray, president and CEO of Gautier Steel Holdings.

Labor leaders said the funding supports both job creation and long-term industrial competitiveness.

Statewide Projects Include Chester County

The funding spans multiple industries and regions, including projects in Chester County.

Two local projects include:

  • Kaolin RE Holdings Corporation, which will install a 3.8 megawatt solar system at South Mill Champs Mushroom Farm
  • Walmoore Holsteins Inc., which will install an anaerobic digester — a system that converts waste into energy — along with a combined heat and power system

Both projects aim to reduce energy costs and emissions while generating on-site power.

Environmental and Economic Context

The industrial sector accounts for more than 30 percent of Pennsylvania’s total greenhouse gas emissions, making it the largest source statewide.

DEP Secretary Jessica Shirley said the program is designed to help businesses cut costs while reducing environmental impact.

“These projects will result in substantial greenhouse gas emissions reductions while positioning Pennsylvania as a national climate leader,” Shirley said.

The administration also pointed to broader efforts to reduce energy costs, including faster permitting for energy projects and policies aimed at increasing power supply.

What Comes Next

State officials said $52 million remains available for future funding rounds, with the next application window opening May 15.

Additional grant rounds are expected to continue through 2028 as part of the long-term RISE PA initiative.

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