Reducing Industrial Sector Emissions in Pennsylvania (RISE PA)

Projects will be evaluated based on a set of criteria and list of program policy factors that can be found on page 14 of the Program Guidance document.  

Medium- and Large-scale projects will be granted a Period of Performance of up to 3 years, beginning on the date that the award agreement is fully executed. This means that the Grantee will have up to three years to operationalize the project and complete the necessary measurement, monitoring, and verification (MMV) protocol. The MMV is required both before and after the project is completed to verify the emissions reductions. All projects must be completed by the anticipated sunset date of the program on April 1, 2029.

The Grantee is responsible for ensuring that RISE PA funds are used in accordance with Federal statutes, regulations, and the terms and conditions of the grant. DEP reserves the right to terminate an awarded grant if the grant recipient fails to comply with the terms and conditions of the award.

Any facility owner or operator who chooses to begin spending money on a project does so at its own risk prior to award notification. Eligible expenses incurred on or after October 1, 2024, may be reimbursed upon award notification.

RISE PA is a reimbursement grant program. MAT/LAT projects can be reimbursed for up to 90% of the Base Grant Award (BGA) as costs are incurred. The remaining 10% will be withheld until measurement, monitoring, and verification (MMV) is completed and the project’s emissions reductions are verified. RISE PA can reimburse for any eligible costs incurred from October 1, 2024, onward. Paid invoices can be submitted in a request for reimbursement as costs are incurred throughout the grant period. The payment process may take four to six (4 – 6) weeks from the approval of the reimbursement request.

Measurement, Monitoring, and Verification (MMV) is the process of comparing the implemented project and/or process against the prior equipment and/or method. There is no prescribed template to follow when designing a project’s MMV plan because of the wide array of potential industrial decarbonization projects. This will be unique to each project, and will vary due to the different types of eligible projects.

The Applicant was required to submit a narrative describing how MMV will be conducted for the proposed project. If an Applicant is selected to receive an award, they will be required to submit a comprehensive MMV Plan that will be reviewed for approval by the RISE PA team. More information about MMV requirements can be found on page 17 and page 19 of the Program Guidance document.

Project costs associated with MMV should not be factored into an Applicant’s Total Project Cost (TPC). Instead, Applicants can apply for reimbursement of up to 1% of Total Project Costs (TPC) or $70,000, whichever is less, to offset MMV costs.

If the final Total Project Cost (TPC) comes in lower than the estimated TPC stated in the application, but higher than the amount of the Base Grant Award (BGA), then the Grantee’s BGA will be reduced such that the Grantee will be reimbursed only for eligible expenses equivalent to the adjusted BGA, representing 30% of the project’s final TPC. The Grantee will not receive the difference between the original BGA and adjusted BGA, nor will they receive any overage above the original BGA.

Ex: The estimated TPC in the application is $10 million, and the BGA is $3 million. If the final TPC is $6 million, the Grantee will be reimbursed for 30% of eligible expenditures for a final BGA of $1.8 million.

If the TPC comes in higher than the initial cost estimate, the reimbursements will still only fund the BGA amount specified in the grant agreement.

Ex: The TPC in the application is $10 million, and the BGA is $3 million. If the actual TPC is $12 million, then the Grantee will be reimbursed for eligible expenditures equivalent to $3 million.

For businesses subject to Corporate Net Income Tax, the general rule is if it’s included in Federal Form 1120 (U.S. Corporation Income Tax Return), Line 28, it’s taxable unless specifically excluded by statute.  

If a business is not subject to Corporate Net Income Tax and remits taxes from the business under Pennsylvania Personal Income Tax, the grant would not be taxable income.