It took almost all year, but last month Gov. Shapiro and the General Assembly finally agreed on a state budget. After 135 days of deadlock, it’s understandable that the predominant response to the deal and consequent resumption of funding critical government services has been one of relief. It’s to be expected that leaders are anxious to put the ordeal behind them. But as 2025 comes to a close, it is indisputable that Pennsylvania needs to both confront serious climate issues and reckon with the scale of the challenges we face with respect to energy affordability and reliability.
We at the Pennsylvania Environmental Council (PEC) supported Pennsylvania’s entry into the Regional Greenhouse Gas Initiative (RGGI) program because we believed that it would help to lessen some of the Commonwealth’s energy challenges. These challenges include new, power-hungry data centers and a backlog of new electric generating projects waiting to connect to the regional grid, which remain primary drivers of rising electric bills. We face long-term fuel and operational costs, and foreign markets holding our exports to increasingly higher standards of sustainability. RGGI could have been a powerful tool to provide the means to help meet these challenges, and others we’ve only barely begun to consider. It also could have helped with the worsening funding crisis for public transit systems statewide, another priority left unaddressed in budget negotiations.
Failing to meet looming energy challenges puts Pennsylvania at risk of continually rising electricity costs and loss of jobs and economic opportunities to other states — particularly those tied to emerging technologies. As only one example, PJM’s own market monitor has indicated that existing ratepayers have already paid $16.6 billion in increased electricity prices for the 2026-27 capacity auction due to existing and forecast data center demand alone.
So, what now?
Realistically, the benefits of RGGI’s cap-and-invest structure won’t be realized with any one policy. But multiple legislative and regulatory proposals are on the table in Harrisburg that can help move the needle on energy affordability, reliability, and availability. It’s more important than ever that these measures advance with due urgency.
At the top of the list is PRESS, a long-overdue expansion of Pennsylvania’s antiquated Alternative Energy Portfolio Standards, which PEC has advocated for nearly two decades. PRESS will further diversify the mix of energy sources our power generation system relies on while also reducing carbon pollution. Other elements of the Governor’s Lightning package, including updating our state’s energy efficiency program, securing community energy, and improving the siting process for new generation build, are also essential. Add to this two good ideas that passed key House committee votes last month: one helping clear a path for deployment of next-generation nuclear power, and another providing tax credits to help manufacturers save money and cut emissions through energy-efficiency upgrades. Other proposals hold promise for creating storage capacity, modernizing transmission systems, exploring new energy technologies like advanced geothermal, and building the state’s energy workforce.
All of these goals are within reach in 2026. But given rising demands, costs, and emissions inherent in how we currently operate, business as usual won’t meet Pennsylvania’s energy challenges and maintain our place as an innovative energy powerhouse. Government must lead by providing the right policies and incentives to ensure that Pennsylvania thrives. A sound energy policy can check all of the boxes. Let’s build the technologies of the future here, get more electrons on the grid, reduce emissions, grow our workforce, and put investment into making our systems and products better. 2026 must be the year we do what it takes to secure a prosperous clean energy future.
Tom Gilbert is President of the Pennsylvania Environmental Council.