$360 Million in Grant Funding Available for Industrial Decarbonization Projects in Pennsylvania

December 5, 2024
Jessica D. Hunt, Esq. and Reilly Wright, Esq.
MGKF Special Alert

The Pennsylvania Department of Environmental Protection (PADEP) has issued guidance regarding its implementation of a new grant program, entitled the Reducing Industrial Sector Emissions in Pennsylvania Program (RISE PA), that will award up to $360 million for industrial decarbonization projects aimed at decreasing greenhouse gas (GHG) and co-pollutant emissions from the industrial sector in Pennsylvania. 

Funding will be available for small-scale (i.e., projects with total costs between $50,000 and $1,000,000), medium-scale (i.e., projects with total costs between $1,000,001 and $66,666,666), and large-scale projects (i.e., projects with total costs greater than $66,666,666) that will reduce industrial GHG and co-pollutant emissions in Pennsylvania. The amount of a grantee’s cost share will depend on the scale of the project.

Although there are no minimum emission reduction requirements for small-scale projects, funding is limited to industrial manufacturing facilities with 500 or fewer employees at a particular plant site. 

To be eligible for funding for medium- and large-scale projects, the project must result in at least 20% annual facility-wide reduction in GHG emissions through the implementation of one or more of the following: electrification technologies, energy efficiency technologies, industrial process emission and waste reduction technologies, fugitive emissions technologies, fuel switching technologies, onsite renewable energy technologies, or other acceptable technologies. Projects are ineligible for funding if they (1) are otherwise required for compliance with local, state, or federal law, (2) receive an allocation under the Internal Revenue Service’s Advanced Energy Project Credit Allocation Program, or (3) are related to abandoned or orphaned well-plugging activities.

Small-scale project awards will be implemented by the Pennsylvania Technical Assistance Program (PennTAP). Medium- and large-scale project awards will be implemented by PADEP. PADEP anticipates providing multiple funding opportunities annually, the first of which will begin in early 2025. All projects must be completed prior to April 1, 2029. 

Additional guidance regarding the RISE PA Program is available on PADEP’s website.  If you have any questions regarding the RISE PA Program, please contact Jessica Hunt at 484-430-2338 or Reilly Wright at 484-430-4996.