(WHTM)-- Pennsylvania Governor Josh Shapiro was in Scranton on Wednesday to announce a new energy proposal called the Pennsylvania Climate Emissions Reduction Initiative, or "PACER".

Under the plan, the Department of Environmental Protection would set a cap for the amount of carbon that Pennsylvania's power plants can produce and release into the air.

To produce any carbon, the power plants would need to purchase credits from the Commonwealth to offset the pollution they emit.

Governor Shapiro says this plan will save homeowners money on utility bills, create thousands of jobs, and help Pennsylvania maintain its energy independence.

"It's time to do better," Shapiro said. "It's time to do better in a multitude of ways, especially when it comes to energy. And it is long past time to take action in this space. It's time to take these commonsense steps to cut costs, protect our planet, and create jobs."

If passed, the Governor's office says these initiatives would save Pennsylvanians $252 million in the first five years while generating $5.1 billion in investment in clean, reliable energy sources.

The Governor says his plan would also create nearly 15,000 energy jobs.

The proposal has faced opposition from Republican Pennsylvania lawmakers. Senate President Pro Tempore Kim Ward (R-Westmoreland) compared Shapiro's proposal to ones that cause blackouts and high energy prices in states such as California and Washington.

“Our Commonwealth needs to be focused on unleashing our energy potential, not taxing it," Ward said in a statement. "Doing so would create thousands of good jobs and keep our power grid secure. Shapiro’s carbon tax proposal appears to be more aligned with states like California and Washington, who suffer from rolling blackouts and higher energy prices."

State Senator Scott Martin (R-Lancaster) said the Governor's plan is similar to one ruled unconstitutional by the Commonwealth Court.

“For over a year, Senate Republicans have urged Governor Shapiro to set aside the disastrous Regional Greenhouse Gas Initiative (RGGI) and pursue an energy strategy that puts Pennsylvania families and job-creators first and ensures we have a safe, reliable electricity grid," said Martin. "It is difficult to move forward on Pennsylvania energy decisions when the governor is continuing to fight us in court to enact a policy that takes away jobs and pushes energy prices even higher."