ARTICLE
21 May 2025

Pennsylvania DEP Accepting Applications For $320M RISE PA Program

HK
Holland & Knight

Contributor

Holland & Knight is a global law firm with nearly 2,000 lawyers in offices throughout the world. Our attorneys provide representation in litigation, business, real estate, healthcare and governmental law. Interdisciplinary practice groups and industry-based teams provide clients with access to attorneys throughout the firm, regardless of location.
The Pennsylvania Department of Environmental Protection (PA DEP) is accepting applications for its Medium- and Large-scale Award Tracks under the Reducing Industrial Sector Emissions...
United States Pennsylvania Energy and Natural Resources

Highlights

  • The Pennsylvania Department of Environmental Protection (PA DEP) is accepting applications for its Medium- and Large-scale Award Tracks under the Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) Program, with an application deadline of Aug. 29, 2025.
  • RISE PA aims to reduce greenhouse gas (GHG) emissions and co-pollutants from the Commonwealth's industrial sector while incentivizing economic growth.
  • Eligible projects must achieve at least 20 percent annual facility-wide GHG reductions and can receive a base grant up to 30 percent of total project costs, with a maximum base grant of $20 million for medium-scale and $110 million for large-scale projects. Additional bonuses for projects that meet specific criteria on emissions reduction, labor standards and community benefits can provide up to an additional 30 percent of total project costs.
  • PA DEP anticipates up to two funding opportunities per year, open for six months each for the Medium- and Large-scale Tracks until all funding is obligated. All projects must be completed prior to the anticipated sunset of RISE PA on April 1, 2029.

With a total funding of $396 million, the Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) Program's goal is to significantly reduce greenhouse gas (GHG) emissions and co-pollutants from Pennsylvania's industrial sector. It offers reimbursement grants for industrial decarbonization projects in a wide range of industries, particularly those in manufacturing, mining and energy production. By targeting the industrial sector, which accounts for more than 30 percent of the state's emissions, RISE PA aims to eliminate millions of tons of GHG and co-pollutant emissions while creating high-quality jobs and enhancing Pennsylvania's competitiveness in manufacturing.

The Medium- and Large-Scale Awards and Project Types

The Medium- and Large-scale Award Tracks offer up to 30 percent of total costs for projects that achieve at least a 20 percent reduction in total Scope 1 and Scope 2 GHG emissions. Medium-scale base grant awards are capped at $20 million, and large-scale awards can be up to a maximum of $110 million.

Three bonus award allocations – each worth up to an additional 10 percent of total project costs – are possible if certain criteria are met, resulting in a reimbursement of up to 60 percent of total project costs: 1) a Community Benefits Bonus is offered for projects located in low-income and disadvantaged communities and have an approved community benefits plan, 2) a Fair Labor Bonus is offered for meeting additional labor requirements, and 3) a GHG Emissions Reduction Bonus is available for projects that reduce GHG emissions beyond 20 percent.

Eligible GHG Reduction Measures

Eligible projects must focus on one or more of the following GHG reduction measures:

  1. Industrial Electrification. Electrification technologies such as low- or zero-carbon process heat systems, electric heat pumps, and other heating systems based on electricity
  2. Energy Efficiency. Energy efficiency technologies, including those that reduce direct fuel or electricity use, such as thermal storage, waste heat recovery, industrial heat pumps, combined heat and power (CHP) systems, utilize insulation, sensors or controls, deploy smart energy management systems, or other advanced energy efficiency technologies
  3. Process Emissions. Industrial process emission technologies and waste reduction technologies such as those that reduce waste in industrial applications, including advanced recycling approaches
  4. Fugitive Emissions. Fugitive emissions reduction technologies such as regenerative thermal oxidizers and ventilation air systems
  5. Fuel Switching. Fuel switching technologies that enable the transition to low-carbon fuels such as fluidized bed biomass furnaces, solar-thermal heating systems, clean hydrogen and direct reduced iron shaft furnaces designed or retrofitted for hydrogen-based reduction
  6. Renewable Energy. On-site renewable energy technologies such as solar photovoltaic systems, wind turbines, micro-hydropower or geothermal
  7. Carbon Capture Utilization and Storage (CCUS). CCUS technologies such as flue gas carbon capture systems or calcium looping carbon dioxide capture systems

Additional Eligibility Notes

Apprenticeship and prevailing wage requirements apply, as do the Build America, Buy America (BABA) Act, Davis Bacon Act (DBA) and National Environmental Policy Act (NEPA). The program allows for alternative approaches to meet the apprenticeship requirements where apprentices or registered apprentice training programs are unavailable.

Ineligible projects include those receiving a tax credit allocation under Section 48C(e) of the Internal Revenue Code, those required for compliance with local, state or federal law unless the proposed project exceeds those requirements or is realized at least a year earlier, and abandoned or orphan well-plugging projects.

Eligible costs include labor and capital costs – materials, equipment, delivery, software, construction, installation, retrofitting, tools and contractual work. Additional costs incurred after Oct. 1, 2024 – including planning, development, project design, and feasibility and engineering – may count toward the applicant's cost share.

RISE PA Program Status

The program is accepting applications for the Medium- and Large-scale Award Tracks now through Aug. 29, 2025, with an anticipated $320 million available. An expected Small-scale Award Track is anticipated to offer $40 million.

The program is funded by the Inflation Reduction Act (IRA) Section 60114 and made available through a fullyexecuted agreement with the U.S. Environmental Protection Agency (EPA) in October 2024. Though funds to the state were initially halted, Pennsylvania Gov. Josh Shapiro announced on Feb. 24, 2025, that these funds remain available. Accordingly, RISE PA has access, can draw down funds to support awarded projects and has been instructed to implement the program. RISE PA advises that it continues to operate pursuant to the agreement with EPA and its work plan and encourages applicants to submit proposals.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More