Both infrastructure and energy are buzzworthy topics in the Commonwealth. Last year, Governor Josh Shapiro launched a $400M PA SITES (Pennsylvania Strategic Investments to Enhance Sites) Grant Program, inviting infrastructure, utility, and other improvements to the Commonwealth. More recently, the governor’s “Lightning Plan” seeks to attract private-sector investments with tax incentives and permitting improvements. If you are a developer or investor looking to be part of these efforts, here are some obstacles your energy or infrastructure project may face and how to navigate them successfully. 
Challenge #1: Zoning & Land Use
Pennsylvania has over 2,500 municipalities, and in the Valley, we have 62. This means each of these governing bodies has its own zoning and land development ordinances, as well as a unique appetite for land use. Gaining approval for your project will require the ability to:
- Evaluate the current state of land use regulations as it relates to a particular project
- Prepare zoning relief applications and/or zoning amendments
- Appear before local planning and zoning boards
- Review and negotiate documents associated with project approvals
Coordination with, and understanding the concerns of, the local municipal officials is a vital aspect of obtaining approval.
Additionally, you may face opposition at public zoning hearings. Often, objections allege public safety or environmental concerns, so you need to be prepared to address concerns. Should your zoning permit require a hearing, you may benefit from representation by a zoning attorney.
Together with a team of legal, environmental and engineering professionals, you can achieve zoning and related municipal approvals.
Challenge #2: Permitting & Interconnections
In addition to local zoning permits, energy and infrastructure projects require approval from state and possibly federal authorities before construction can begin.
Under Governor Shapiro’s “Lightning Plan,” the proposed Pennsylvania Reliable Energy Siting and Electric Transition (RESET) Board should expedite energy projects at the state level. However, obtaining state permits (such as NPDES permits and highway occupancy permits) still requires approval from state agencies.
If your project involves large-scale generation or the transmission (as opposed to distribution) of electricity or gas, the Federal Energy Regulatory Commission (FERC), an independent federal agency, may have jurisdiction over some aspects of the project.
Another hurdle to jump over for certain projects is the interconnection process and, ultimately, an interconnection agreement. An interconnection agreement is a contract between the generation owner and the local utility for projects that connect to either the electric transmission or distribution system, and it addresses operational terms and cost responsibilities. The interconnection process involves an analysis of the project on the existing electric system. Large projects impacting the transmission system require approval from the regional grid operator (in Pennsylvania, PJM Interconnection) and involve feasibility, system impact, and facility design studies, often taking several years for approval.
Challenge #3: Financing & Tax Opportunities
Does your project qualify for a grant or tax incentives?
The PA SITES funding is offering planning grants for feasibility studies, up to $250,000 per project, and construction grants and loans to serve as gap financing and help reduce development risk associated with project timelines and unknown costs. Applications will be evaluated based on need, marketability, community need, job creation and more and must be submitted through the PA Grants website.
As part of the “Lightning Plan,” your project may qualify for an EDGE Tax Credit, which includes a myriad of incentives and credits for reliable energy, clean hydrogen and more.
If you’re seeking financing for your project, be prepared to perform due diligence, review complex financing arrangements and legal documents, and ensure compliance with relevant regulations. Partnering with an experienced attorney may allow you to mitigate potential legal issues and facilitate a more successful funding process.
Support For Your Energy & Infrastructure Development Projects
When Teddy Roosevelt said, “Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty,” he certainly never embarked on an energy or infrastructure project approval in Pennsylvania!
With a lot of patience and the right team of professionals, your project can move forward in helping the Commonwealth remain a top energy producer in the U.S. and ensuring its infrastructure is future-ready.
Reprinted with permission from the Spring 2025 Edition of Network Magazine © 2025. All rights reserved. Further duplication without permission is prohibited.
