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Pennsylvania ratepayers fund coal-waste plants with hundreds of millions as wind and solar lag

Opponents argue that keeping waste coal in the program has slowed Pennsylvania's shift to wind and solar.

A coal-powered power plant.

Photo Credit: iStock

In Pennsylvania, electric customers are helping fund coal-waste power plants through their utility bills, even as wind and solar still make up only a small share of the grid.

At the center of the dispute are competing goals — cleaning up old mine sites, protecting public health, and advancing climate progress — while communities are left dealing with polluted land, dirtier air, and higher costs, Inside Climate News reported (via Spotlight PA).

Here's what to know

Under Pennsylvania's Alternative Energy Portfolio Standards, or AEPS, utilities must buy electricity from designated sources; waste coal has qualified since the law took effect in 2004. 

Subsidies connected to waste coal were estimated at about $180 million in 2025, and state tax breaks add roughly $50 million per year.


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According to Inside Climate News, Pennsylvania burns around 7 million tons of waste coal each year, producing about 3% of the state's energy, while renewables generate roughly 4%. 

A September 2025 study by University of Nevada researchers found that waste-coal plants emit 7% to 118% more greenhouse gases per kilowatt-hour than conventional coal plants.

Proponents say those plants also help reduce toxic mine-refuse piles that can force metals such as iron and aluminum into waterways. 

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More background

A central question is whether the cleanup price should remain hitched to a policy meant to diversify energy sources, even though it still funds a fuel that produces heavy pollution.

Opponents argue that keeping waste coal in the program has slowed Pennsylvania's shift to wind and solar, leaving the state ranked 42nd for renewable energy generation.

According to Robert Routh, the Pennsylvania policy director for the Natural Resources Defense Council, Tier II compliance costs increased about 13-fold between 2020 and 2025 after lawmakers required the fuel to come from within Pennsylvania.

In response, supporters insist that the system preserves about 2,200 jobs while also confronting a vast legacy waste problem. 

Estimates put Pennsylvania's waste coal piles at more than 1 billion tons, and Democratic State Rep. Paul Takac has warned that full remediation could cost taxpayers between $9 billion and $16 billion.

What's being done?

Democratic State Rep. Danielle Friel Otten's House Bill 501 would raise Pennsylvania's wind and solar requirements from under 8% to 35% by 2035 while cutting waste coal's share from 10% to 5%. 

The measure passed a House committee in June 2025 but has since stalled.

Other advocates want waste coal removed from AEPS altogether and addressed through a separate cleanup program, which they say could provide more oversight and allow alternatives such as capping piles, landfilling some material, or recovering critical minerals.

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What remains unresolved is whether Pennsylvania can clean up coal-country pollution without slowing the shift to a cleaner power grid. 

"What if we throw the model out and come up with something new, something that is nonpartisan, not political? It makes sure we clean up the environment and still have good jobs," said Katie Blume, political and legislative director of Conservation Voters of Pennsylvania.

Where can I learn more?

Pennsylvania's waste-coal debate is part of a bigger fight over how long utilities keep aging fossil-fuel plants on the grid — and how much of the expense customers are forced to cover. 

It also highlights the opportunities and tradeoffs at former coal sites, where cleanup plans, pollution concerns, and solar development can collide.

• Across the U.S., keeping old coal plants alive is costing ratepayers hundreds of millions.

• In West Virginia, 50-year-old coal plants are driving higher costs for utility customers.

• In Missouri, cities that challenged Rush Island pollution watched their power bills soar 191%.

• In West Virginia, developers are transforming a former coal ash landfill into a massive solar farm.

Those stories highlight the choice Pennsylvania faces as it weighs whether to keep subsidizing legacy coal through electric bills. 

They also underscore the cost of dragging out that decision, and what can happen when cleanup efforts align with clean energy development.

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