The Pennsylvania Department of Environmental Protection (DEP) has announced the opening of the brand new Reducing Industrial Sector Emissions in Pennsylvania (RISE PA) program to spur energy job creation and reduce toxic air pollution throughout the Commonwealth of Pennsylvania. This program is funded through the U.S. Environmental Protection Agency’s (EPA’s) Climate Pollution Reduction Grants under the Inflation Reduction Act of 2022. The program provides financial assistance via grants for innovative projects that will simultaneously create high-quality jobs and substantially improve the air quality in minoritized and low-wealth areas. Medium and large-scale industrial manufacturing facilities may submit applications to the DEP prior to the August 29, 2025, deadline.
What Is the Benefit?
Qualifying facilities are eligible for grants in the amount of $300,000–$110,000,000, with grant maximums being determined by the total project costs. Michael Falleroni, Principal at Ryan, finds that “this is a great opportunity for companies to reduce industrial sector emissions through electrification, operational efficiency, and process emissions reductions. Examples of projects include switching to low-carbon fuels, installing on-site renewable energy, utilizing carbon capture and storage, and reducing fugitive emissions from natural gas and oil systems and coal mining.” Additional bonus award amounts are available based on project location, fair labor practices, and substantial reduction in greenhouse gas (GHG) emissions. Awards cannot exceed 30% of the total project costs.
Who Is Eligible?
RISE PA Program Guidelines defines an “owner of an industrial facility” as follows:
- Owner/operator of one or more industrial facilities or equipment used for producing, processing, or assembling goods
- An “industrial facility” encompasses the following NAICS codes:
- NAICS code 11: Agriculture, forestry, fishing, and hunting
- NAICS code 21: Mining, including oil and gas extraction
- NAICS code 23: Construction
- NAICS codes 31–33: Manufacturing
- Owner/operator of one or more facilities that produces industrial process emissions
- Owner/operator of one or more active underground or surface coal mines, abandoned underground mines, or coal processing operation
- Owner/operator of one or more natural gas or oil systems
- An “industrial facility” encompasses the following NAICS codes:
Other entities, including “as-a-service” providers, landlords of industrial facilities, and others, may apply for funding, provided the project is conducted at an eligible industrial facility.
What Projects Are Eligible?
An eligible project must meet the requirements as follows:
- Reduction of GHG emissions through the installation of one or more of the following technologies:
- Electrification
- Energy efficiency
- Industrial process emission
- Fugitive emissions reduction
- Fuels switching
- On-site renewable energy
- Carbon capture, utilization, and storage
- Reduction of GHG emissions by at least 20% once operational
- Ensure at least 15% of total project labor hours are performed by qualified apprentices
- Meet the most recent prevailing wage requirements determined by the U.S. Department of Labor
- Awarded projects must comply with federal requirements, such as Build America, Buy America
- Applicants must be in compliance with the commonwealth’s contractor integrity and responsibility requirements
Additionally, total project costs must be at least $1,000,000. Applicants must satisfy the minimum cost share of 70%.
Why Ryan?
Ryan excels in helping companies navigate complex tax incentive programs, specializing in negotiated packages. With extensive experience in Pennsylvania securing cost savings for our clients, the Ryan Credits and Incentives team can maximize your program benefits while simplifying the application process. We specialize in tax incentive consulting, ensuring businesses maximize their investment value while staying compliant with program requirements. Our team is ready to guide you through the entire process—from initial application to securing benefits.
Whom Do I Call for Help When Applying?
For more information, please reach out to the Ryan team and its experts.
TECHNICAL INFORMATION CONTACTS:
Michael Falleroni
Principal
Ryan
412.889.6434
michael.falleroni@ryan.com
Chris Kovalcik
Director
Ryan
615.514.6384
christopher.kovalcik@ryan.com
David Boardman
Consultant
Ryan
570.637.3295
david.boardman@ryan.com
The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.
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- Michael Falleroni