Pennsylvania's waste coal burners collected roughly $180 million through the state's Alternative Energy Portfolio Standards in 2025, about half of the payments made under the standard's Tier II category, according to NRDC figures cited by Inside Climate News.
The unit cost of Tier II fuels, which also cover landfill gas and hydropower, rose roughly 13-fold between 2020 and 2025, per the same NRDC accounting. AEPS itself dates to 2004 and obliges utilities operating in the state to buy a set share of their power from specified sources.
The bill has climbed since lawmakers voted in 2020 to require that coal waste burned under the program originate inside Pennsylvania's borders, Inside Climate News reported.
Separate state tax breaks, first put in place in 2016, add about $50 million a year for the industry.
The volumes are modest against the state's total supply. Pennsylvania burns 7 million tons of waste coal annually, the state's Independent Fiscal Office found. That output covers about 3% of the state's energy, against about 4% from renewables, according to the same office.
On emissions, a September 2025 study by University of Nevada researchers found that burning waste coal produces 7% to 118% more greenhouse gas emissions per kilowatt hour than traditional coal plants.
Pennsylvania ranks 42nd in the country for renewable energy generation and now produces more energy from waste coal than from solar arrays, Inside Climate News reported.