PRIOR PRINTER'S NO. 1419 PRINTER'S NO. 1912
No. 1030 Session of 2004
INTRODUCED BY ERICKSON, CONTI, WAUGH, ORIE, KUKOVICH, SCHWARTZ, PICCOLA, MUSTO, EARLL, PIPPY, BOSCOLA, RAFFERTY, M. WHITE AND STACK, MARCH 15, 2004
SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, AS AMENDED, NOVEMBER 9, 2004
AN ACT 1 Providing for the sale of electric energy generated from 2 renewable and environmentally beneficial sources, for the 3 acquisition of electric energy generated from renewable and 4 environmentally beneficial sources by electric distribution 5 and supply companies and for the powers and duties of the 6 Pennsylvania Public Utility Commission; and imposing <-- 7 penalties. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Short title. <-- 11 This act shall be known and may be cited as the Renewable and 12 Environmentally Beneficial Portfolio Standards Act. 13 Section 2. Definitions. 14 The following words and phrases when used in this act shall 15 have the meanings given to them in this section unless the 16 context clearly indicates otherwise: 17 "Commission." The Pennsylvania Public Utility Commission of 18 the Commonwealth. 19 "Electric distribution company." An incorporated entity that
1 receives electric power from an electric generator and 2 distributes that power to consumers. 3 "Electric generation supplier." An incorporated entity that 4 generates and supplies electric power. 5 "Environmentally beneficial resources." Any of the 6 following: 7 (1) Electricity generated from waste coal facilities 8 which became operational after December 31, 1999. 9 (2) Electricity generated using energy conservation 10 measures, as defined by the Pennsylvania Public Utility 11 Commission, including, but not limited to, state-of-the-art 12 efficiency improvements and carbon offsets. 13 (3) Other environmentally beneficial energy resources as 14 determined by the Pennsylvania Public Utility Commission by 15 regulation. 16 "Renewable and environmentally beneficial energy credit." A 17 tradable instrument that is used to track and verify compliance 18 with the provisions of this act. 19 "Renewable and environmentally beneficial portfolio 20 standards." Standards establishing that a certain amount of 21 renewable energy is included as part of the sources of electric 22 generation by electric utilities within this Commonwealth. 23 "Renewable resources." Any of the following: 24 (1) Solar photovoltaic energy. 25 (2) Solar thermal energy. 26 (3) Wind power. 27 (4) Low-impact hydropower. 28 (5) Geothermal energy. 29 (6) Biologically derived methane gas. 30 (7) Energy from waste and sustainable biomass energy, 20040S1030B1912 - 2 -
1 including, but not limited to, agricultural waste and crops 2 grown for fuel. 3 (8) Other renewable energy resources as determined by 4 the Pennsylvania Public Utility Commission by regulation. 5 The term does not include municipal solid, industrial, residual 6 or any hazardous waste burned for the generation of electric 7 energy. 8 Section 3. Renewable and environmentally beneficial portfolio 9 standard. 10 (a) General rule.--In the fifteenth year after the effective 11 date of this section and each year thereafter, at least 10% of 12 the electric energy sold by an electric distribution company or 13 electric generation supplier to retail customers in this 14 Commonwealth shall be generated from renewable and 15 environmentally beneficial resources. Such electric energy 16 generated from renewable and environmentally beneficial 17 resources shall be generated at facilities within the geographic 18 limits of an independent system operator that operates a 19 transmission system and interstate power pool delivering 20 electric energy to retail customers in this Commonwealth. 21 (b) Phase-in.-- 22 (1) Three years after the effective date of this 23 section, at least 2% of the electric energy sold by an 24 electric distribution company or electric generation supplier 25 to retail customers in this Commonwealth shall be generated 26 from renewable and environmentally beneficial resources. 27 (2) Six years after the effective date of this section, 28 at least 4% of the electric energy sold by an electric 29 distribution company or electric generation supplier to 30 retail customers in this Commonwealth shall be generated from 20040S1030B1912 - 3 -
1 renewable and environmentally beneficial resources. 2 (3) Nine years after the effective date of this section, 3 at least 6% of the electric energy sold by an electric 4 distribution company or electric generation supplier to 5 retail customers in this Commonwealth shall be generated from 6 renewable and environmentally beneficial resources. 7 (4) Twelve years after the effective date of this 8 section, at least 8% of the electric energy sold by an 9 electric distribution company or electric generation supplier 10 to retail customers in this Commonwealth shall be generated 11 from renewable and environmentally beneficial resources. 12 (5) Fifteen years after the effective date of this 13 section, at least 10% of the electric energy sold by an 14 electric distribution company or electric generation supplier 15 to retail customers in this Commonwealth shall be generated 16 from renewable and environmentally beneficial resources. 17 (c) Minimum requirement for renewable energy.--At least 70% 18 of the renewable and beneficial energy portfolio of an electric 19 distribution company or electric generation supplier sold to 20 retail customers in this Commonwealth must be generated from 21 renewable resources. 22 (d) Credits.-- 23 (1) The commission shall establish a renewable and 24 environmentally beneficial energy tradable credits program as 25 needed to implement this act. 26 (2) (i) An electric distribution company or electric 27 generation supplier shall comply with the applicable 28 requirements of this section by purchasing sufficient 29 renewable and environmentally beneficial energy credits 30 and submitting documentation of compliance to the program 20040S1030B1912 - 4 -
1 administrator. 2 (ii) For purposes of this subsection, one renewable 3 energy credit shall represent one megawatt hour of 4 qualified renewable electric energy, whether self- 5 generated, purchased along with the electric commodity or 6 separately through a tradable instrument and otherwise 7 meeting the requirements of commission regulations and 8 the program administrator. 9 (3) The commission shall approve an independent entity 10 to serve as the renewable and environmentally beneficial 11 energy credits program administrator. The administrator shall 12 have those powers and duties assigned by commission 13 regulations. Such powers and duties shall include, but not be 14 limited to, the following: 15 (i) to create and administer a renewable energy 16 tradable credits certification, tracking and reporting 17 program; 18 (ii) to perform audits to verify that each electric 19 distribution company and electric generation supplier is 20 in compliance with subsection (a) or (b); and 21 (iii) to submit reports to the commission at such 22 times and in such manner as the commission shall direct. 23 (e) Penalties.-- 24 (1) At the end of each program year, the program 25 administrator shall make a determination whether each 26 electric distribution company and electric generation 27 supplier is in compliance with subsection (a) or (b). 28 (2) The commission shall conduct a review of each 29 determination made under paragraph (1). If, after notice and 30 hearing, the commission determines that an electric 20040S1030B1912 - 5 -
1 distribution company or electric generation supplier has 2 failed to comply with subsection (a) or (b), the commission 3 shall impose a civil penalty on that company or supplier, 4 which penalty shall be the lesser of the following: 5 (i) $50 times the number of additional renewable and 6 environmentally beneficial energy credits needed in order 7 to comply with subsection (a) or (b); or 8 (ii) 200% of the average market value of renewable 9 and environmentally beneficial energy credits sold for 10 the year times the number of additional energy credits 11 required to comply with subsection (a) or (b) for that 12 year. 13 (f) Transfer to Clean Air Fund.-- 14 (1) Notwithstanding the provisions of 66 Pa.C.S. §§ 511 15 (relating to disposition, appropriation and disbursement of 16 assessments and fees) and 3315 (relating to disposition of 17 fines and penalties), penalties imposed pursuant to this act 18 shall be paid into the Clean Air Fund established by section 19 9.2 of the act of January 8, 1960 (1959 P.L.2119, No.787), 20 known as the Air Pollution Control Act. 21 (2) A separate account is established in the Clean Air 22 Fund to receive the penalties imposed pursuant to this act. 23 (3) The money in the account shall be utilized solely 24 for projects that will increase the amount of electric energy 25 generated from renewable and environmentally beneficial 26 resources for purposes of compliance with subsections (a) and 27 (b). 28 Section 4. Effective date. 29 This act shall take effect in 90 days. 30 SECTION 1. SHORT TITLE. <-- 20040S1030B1912 - 6 -
1 THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE ALTERNATIVE 2 ENERGY PORTFOLIO STANDARDS ACT. 3 SECTION 2. DEFINITIONS. 4 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 5 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 6 CONTEXT CLEARLY INDICATES OTHERWISE: 7 "ALTERNATIVE ENERGY CREDIT." A TRADABLE INSTRUMENT THAT IS 8 USED TO ESTABLISH, VERIFY AND MONITOR COMPLIANCE WITH THIS ACT. 9 A UNIT OF CREDIT SHALL EQUAL ONE MEGAWATT HOUR OF ELECTRICITY 10 FROM AN ALTERNATIVE ENERGY SOURCE. 11 "ALTERNATIVE ENERGY PORTFOLIO STANDARDS." STANDARDS 12 ESTABLISHING THAT A CERTAIN AMOUNT OF ENERGY SOLD FROM 13 ALTERNATIVE ENERGY SOURCES IS INCLUDED AS PART OF THE SOURCES OF 14 ELECTRIC GENERATION BY ELECTRIC UTILITIES WITHIN THIS 15 COMMONWEALTH. 16 "ALTERNATIVE ENERGY SOURCES." THE TERM SHALL INCLUDE THE 17 FOLLOWING SOURCES FOR THE PRODUCTION OF ELECTRICITY: 18 (1) SOLAR PHOTOVOLTAIC ENERGY. 19 (2) SOLAR THERMAL ENERGY. 20 (3) WIND POWER. 21 (4) LOW-IMPACT HYDROPOWER, WHICH SHALL MEAN TECHNOLOGIES 22 THAT PRODUCE LESS THAN 40 MEGAWATTS OF ELECTRIC POWER AND 23 THAT HARNESS THE HYDROELECTRIC POTENTIAL OF MOVING WATER 24 IMPOUNDMENTS, PROVIDED SUCH INCREMENTAL HYDROELECTRIC 25 DEVELOPMENT: 26 (I) DOES NOT ADVERSELY CHANGE EXISTING IMPACTS TO 27 AQUATIC SYSTEMS; 28 (II) MEETS THE CERTIFICATION STANDARDS ESTABLISHED 29 BY THE LOW IMPACT HYDROPOWER INSTITUTE AND AMERICAN 30 RIVERS, INC., OR THEIR SUCCESSORS; 20040S1030B1912 - 7 -
1 (III) PROVIDES AN ADEQUATE WATER FLOW FOR PROTECTION 2 OF AQUATIC LIFE AND FOR SAFE AND EFFECTIVE FISH PASSAGE; 3 (IV) PROTECTS AGAINST EROSION; AND 4 (V) PROTECTS CULTURAL AND HISTORIC RESOURCES. 5 (5) GEOTHERMAL ENERGY, WHICH SHALL MEAN ELECTRICITY 6 PRODUCED BY EXTRACTING HOT WATER OR STEAM FROM GEOTHERMAL 7 RESERVES IN THE EARTH'S CRUST AND SUPPLIED TO STEAM TURBINES 8 THAT DRIVE GENERATORS TO PRODUCE ELECTRICITY. 9 (6) BIOMASS ENERGY, WHICH SHALL MEAN THE GENERATION OF 10 ELECTRICITY UTILIZING THE FOLLOWING: 11 (I) ORGANIC MATERIAL FROM A PLANT THAT IS GROWN 12 EXCLUSIVELY FOR THE PURPOSE OF BEING USED TO PRODUCE 13 ELECTRICITY OR PROTECTED BY THE FEDERAL CONSERVATION 14 RESERVE PROGRAM (CRP) AND PROVIDED FURTHER THAT CROP 15 PRODUCTION ON CRP LANDS DOES NOT PREVENT ACHIEVEMENT OF 16 THE WATER QUALITY PROTECTION, SOIL EROSION PREVENTION OR 17 WILDLIFE ENHANCEMENT PURPOSES FOR WHICH THE LAND WAS 18 PRIMARILY SET ASIDE; OR 19 (II) ANY SOLID NONHAZARDOUS, CELLULOSIC WASTE 20 MATERIAL THAT IS SEGREGATED FROM OTHER WASTE MATERIALS 21 AND WHICH IS DERIVED FROM EITHER WASTE PALLETS, CRATES 22 AND DRAINAGE, AND LANDSCAPE OR RIGHT-OF-WAY TREE 23 TRIMMINGS OR AGRICULTURAL SOURCES, INCLUDING ORCHARD TREE 24 CROPS, VINEYARDS, GRAIN, LEGUMES, SUGAR AND OTHER CROP 25 BY-PRODUCTS OR RESIDUES. 26 (7) BIOLOGICALLY DERIVED METHANE GAS, WHICH SHALL 27 INCLUDE METHANE FROM THE ANAEROBIC DIGESTION OF ORGANIC 28 MATERIALS FROM YARD WASTE, SUCH AS GRASS CLIPPINGS AND 29 LEAVES, FOOD WASTE, ANIMAL WASTE AND SEWAGE SLUDGE. THE TERM 30 ALSO INCLUDES LANDFILL METHANE GAS. 20040S1030B1912 - 8 -
1 (8) FUEL CELLS, WHICH SHALL MEAN ANY ELECTROCHEMICAL 2 DEVICE THAT CONVERTS CHEMICAL ENERGY IN A HYDROGEN-RICH FUEL 3 DIRECTLY INTO ELECTRICITY, HEAT AND WATER WITHOUT COMBUSTION. 4 (9) WASTE COAL, WHICH SHALL INCLUDE THE COMBUSTION OF 5 WASTE COAL IN FACILITIES IN WHICH THE WASTE COAL WAS DISPOSED 6 OR ABANDONED PRIOR TO JULY 31, 1982, OR DISPOSED OF 7 THEREAFTER IN A PERMITTED COAL REFUSE DISPOSAL SITE 8 REGARDLESS OF WHEN DISPOSED OF, AND USED TO GENERATE 9 ELECTRICITY; OR SUCH OTHER WASTE COAL COMBUSTION MEETING 10 ALTERNATE ELIGIBILITY REQUIREMENTS ESTABLISHED BY REGULATION. 11 FACILITIES COMBUSTING WASTE COAL SHALL USE AT A MINIMUM A 12 COMBINED FLUIDIZED BED BOILER AND BE OUTFITTED WITH A 13 LIMESTONE INJECTION SYSTEM AND A FABRIC FILTER PARTICULATE 14 REMOVAL SYSTEM. ALTERNATIVE ENERGY CREDITS SHALL BE 15 CALCULATED BASED UPON THE PROPORTION OF WASTE COAL UTILIZED 16 TO PRODUCE ELECTRICITY AT THE FACILITY. 17 (10) COAL MINE METHANE, WHICH SHALL MEAN METHANE GAS 18 EMITTING FROM ABANDONED OR WORKING COAL MINES. 19 (11) ENERGY EFFICIENCY, WHICH SHALL MEAN THE USE OF 20 TECHNOLOGIES, MANAGEMENT PRACTICES OR OTHER STRATEGIES THAT 21 REDUCE ELECTRICITY CONSUMPTION BY RESIDENTIAL, COMMERCIAL OR 22 INDUSTRIAL CUSTOMERS. THE TERM SHALL INCLUDE SOLAR THERMAL, 23 COMBINED-CYCLE TECHNOLOGY, THE RECOVERY AND REUSE OF ENERGY 24 FROM EXHAUST GASES AND OTHER EFFICIENCY IMPROVEMENTS THAT 25 RESULT IN HIGHER LEVELS OF ELECTRICITY PRODUCTION WITHOUT THE 26 USE OF ADDITIONAL FUEL. 27 (12) LOAD MANAGEMENT, WHICH SHALL MEAN THE USE OF 28 TECHNOLOGIES, MANAGEMENT PRACTICES OR OTHER STRATEGIES TO 29 SHIFT ELECTRIC LOAD FROM PERIODS OF HIGHER DEMAND TO PERIODS 30 OF LOWER DEMAND. THE TERM SHALL INCLUDE PUMP STORAGE 20040S1030B1912 - 9 -
1 TECHNOLOGIES. 2 (13) DEMAND SIDE MANAGEMENT, WHICH SHALL MEAN THE 3 MANAGEMENT OF CUSTOMER DEMAND THROUGH THE IMPLEMENTATION OF 4 ENERGY EFFICIENCY AND LOAD MANAGEMENT DEVICES IN THE PREMISES 5 OF RESIDENTIAL, COMMERCIAL, INDUSTRIAL, INSTITUTIONAL AND 6 GOVERNMENT CUSTOMERS AND THE INSTALLATION OF REMOTE EQUIPMENT 7 THAT DIRECTLY SUPPORTS ON-SITE CONTROL OF CUSTOMER DEMAND. 8 (14) DISTRIBUTED GENERATION SYSTEM, WHICH SHALL MEAN THE 9 SMALL-SCALE POWER GENERATION OF ELECTRICITY USING AN 10 ALTERNATIVE ENERGY SOURCE AT A SITE THAT DOES NOT USE THE 11 FACILITIES OF AN ELECTRIC DISTRIBUTION COMPANY OR A REGIONAL 12 TRANSMISSION ORGANIZATION TO SUPPLY AN END USER. 13 "ALTERNATIVE ENERGY SYSTEM." A FACILITY OR ENERGY SYSTEM 14 THAT USES A FORM OF ALTERNATIVE ENERGY SOURCE TO GENERATE 15 ELECTRICITY AND DELIVERS THE ELECTRICITY IT GENERATES TO THE 16 DISTRIBUTION SYSTEM OF AN ELECTRIC DISTRIBUTION COMPANY OR TO 17 THE TRANSMISSION SYSTEM OPERATED BY A REGIONAL TRANSMISSION 18 ORGANIZATION. 19 "COMMISSION." THE PENNSYLVANIA PUBLIC UTILITY COMMISSION. 20 "COST RECOVERY PERIOD." THE PERIOD DURING WHICH COMPETITIVE 21 TRANSITION CHARGES UNDER 66 PA.C.S § 2808 (RELATING TO 22 COMPETITIVE TRANSITION CHARGE) OR INTANGIBLE TRANSITION CHARGES 23 UNDER 66 PA.C.S. § 2812 (RELATING TO APPROVAL OF TRANSITION 24 BONDS) ARE RECOVERED OR THE PERIOD DURING WHICH AN ELECTRIC 25 DISTRIBUTION COMPANY OPERATES UNDER A PENNSYLVANIA PUBLIC 26 UTILITY COMMISSION-APPROVED GENERATION RATE PLAN THAT HAS BEEN 27 APPROVED PRIOR TO THE EFFECTIVE DATE OF THIS ACT, BUT IN NO CASE 28 SHALL THE COST RECOVERY PERIOD UNDER THIS ACT EXTEND BEYOND 29 DECEMBER 31, 2010. 30 "CUSTOMER-GENERATOR." A NONUTILITY OWNER OR OPERATOR OF A 20040S1030B1912 - 10 -
1 NET METERED DISTRIBUTED GENERATION SYSTEM WITH A NAMEPLATE 2 CAPACITY OF NOT GREATER THAN 50 KILOWATTS IF INSTALLED AT A 3 RESIDENTIAL SERVICE OR NOT LARGER THAN 1,000 KILOWATTS AT OTHER 4 CUSTOMER SERVICE LOCATIONS, EXCEPT FOR CUSTOMERS WHOSE SYSTEMS 5 ARE ABOVE ONE MEGAWATT AND UP TO TWO MEGAWATTS WHO MAKE THEIR 6 SYSTEMS AVAILABLE TO OPERATE IN PARALLEL WITH THE ELECTRIC 7 UTILITY DURING GRID EMERGENCIES AS DEFINED BY THE REGIONAL 8 TRANSMISSION ORGANIZATION, OR WHERE A MICROGRID IS IN PLACE FOR 9 THE PURPOSE OF MAINTAINING CRITICAL INFRASTRUCTURE, SUCH AS 10 HOMELAND SECURITY ASSIGNMENTS, EMERGENCY SERVICES FACILITIES, 11 HOSPITALS, TRAFFIC SIGNALS, WASTEWATER TREATMENT PLANTS OR 12 TELECOMMUNICATIONS FACILITIES, PROVIDED THAT TECHNICAL RULES FOR 13 OPERATING GENERATORS INTERCONNECTED WITH FACILITIES OF AN 14 ELECTRIC DISTRIBUTION COMPANY, ELECTRIC COOPERATIVE OR MUNICIPAL 15 ELECTRIC SYSTEM HAVE BEEN PROMULGATED BY THE INSTITUTE OF 16 ELECTRICAL AND ELECTRONIC ENGINEERS AND THE PENNSYLVANIA PUBLIC 17 UTILITY COMMISSION. 18 "DEPARTMENT." THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OF 19 THE COMMONWEALTH. 20 "ELECTRIC DISTRIBUTION COMPANY." THE TERM SHALL HAVE THE 21 SAME MEANING GIVEN TO IT IN 66 PA.C.S. CH. 28 (RELATING TO 22 RESTRUCTURING OF ELECTRIC UTILITY INDUSTRY). 23 "ELECTRIC GENERATION SUPPLIER." THE TERM SHALL HAVE THE SAME 24 MEANING GIVEN TO IT IN 66 PA.C.S. CH. 28 (RELATING TO 25 RESTRUCTURING OF ELECTRIC UTILITY INDUSTRY). 26 "FORCE MAJEURE." AN EXTENDED TRUE-UP PERIOD TO ALLOW 27 RESPONSE TIME FOR EXTREME DEVIATIONS IN EXPECTED RENEWABLE 28 GENERATION RESULTING FROM EVENTS THAT ARE IMPOSSIBLE TO CONTROL. 29 "MICROGRID." A LOCAL DISTRIBUTION CIRCUIT THAT HAS THE 30 ABILITY TO OPERATE SAFELY WHEN DISCONNECTED FROM THE ELECTRIC 20040S1030B1912 - 11 -
1 DISTRIBUTION COMPANY'S FACILITIES OR FROM THE FACILITIES MANAGED 2 BY A REGIONAL TRANSMISSION ORGANIZATION. 3 "NET METERING." THE MEANS OF MEASURING THE DIFFERENCE 4 BETWEEN THE ELECTRICITY SUPPLIED BY AN ELECTRIC UTILITY AND THE 5 ELECTRICITY GENERATED BY A CUSTOMER-GENERATOR, WHEN THE 6 RENEWABLE ENERGY GENERATING SYSTEM IS INTENDED PRIMARILY TO 7 OFFSET PART OR ALL OF THE CUSTOMER-GENERATOR'S REQUIREMENTS FOR 8 ELECTRICITY. 9 "NET METERING SYSTEM." A SYSTEM THAT USES A SINGLE, 10 BIDIRECTIONAL, NONRATCHETING METER TO MEASURE THE DIFFERENCE 11 BETWEEN THE ELECTRICITY SUPPLIED TO A CUSTOMER-GENERATOR BY AN 12 ELECTRIC UTILITY AND THE ELECTRICITY GENERATED BY A CUSTOMER- 13 GENERATOR INTERCONNECTED AND OPERATED IN PARALLEL WITH AN 14 ELECTRIC UTILITY. 15 "REGIONAL TRANSMISSION ORGANIZATION." AN ENTITY APPROVED BY 16 THE FEDERAL ENERGY REGULATORY COMMISSION (FERC) THAT IS CREATED 17 TO OPERATE AND MANAGE THE ELECTRICAL TRANSMISSION GRIDS OF THE 18 MEMBER ELECTRIC TRANSMISSION UTILITIES AS REQUIRED UNDER FERC 19 ORDER 2000, DOCKET NO. RM99-2-000, FERC CHAPTER 31.089 (1999) OR 20 ANY SUCCESSOR ORGANIZATION APPROVED BY THE FERC. 21 "REPORTING PERIOD." THE 12-MONTH PERIOD FROM JUNE 1 THROUGH 22 MAY 31. A REPORTING YEAR SHALL BE NUMBERED ACCORDING TO THE 23 CALENDAR YEAR IN WHICH IT BEGINS AND ENDS. 24 "RETAIL ELECTRIC CUSTOMER." THE TERM SHALL HAVE THE SAME 25 MEANING GIVEN TO IT IN 66 PA.C.S CH. 28 (RELATING TO 26 RESTRUCTURING OF ELECTRIC UTILITY INDUSTRY). 27 "TIER I ALTERNATIVE ENERGY SOURCE." ENERGY DERIVED FROM: 28 (1) SOLAR PHOTOVOLTAIC ENERGY. 29 (2) WIND POWER. 30 (3) LOW-IMPACT HYDROPOWER. 20040S1030B1912 - 12 -
1 (4) GEOTHERMAL ENERGY. 2 (5) BIOLOGICALLY DERIVED METHANE GAS. 3 (6) COAL MINE METHANE GAS. 4 (7) FUEL CELLS. 5 "TIER II ALTERNATIVE ENERGY SOURCE." ENERGY DERIVED FROM: 6 (1) WASTE COAL. 7 (2) ENERGY EFFICIENCY. 8 (3) LOAD MANAGEMENT TECHNOLOGIES. 9 (4) DISTRIBUTED GENERATION SYSTEMS. 10 (5) DEMAND-SIDE MANAGEMENT. 11 "TRUE-UP PERIOD." THE PERIOD EACH YEAR FROM THE END OF THE 12 REPORTING YEAR UNTIL SEPTEMBER 1. 13 SECTION 3. ALTERNATIVE ENERGY PORTFOLIO STANDARDS. 14 (A) GENERAL RULE.--FROM THE EFFECTIVE DATE OF THIS ACT 15 THROUGH AND INCLUDING THE 15TH YEAR AFTER ENACTMENT OF THIS ACT, 16 AND EACH YEAR THEREAFTER, THE ELECTRIC ENERGY SOLD BY AN 17 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER TO 18 RETAIL ELECTRIC CUSTOMERS IN THIS COMMONWEALTH SHALL BE 19 COMPRISED OF ELECTRICITY GENERATED FROM ALTERNATIVE ENERGY 20 SOURCES, AND IN THE PERCENTAGE AMOUNTS AS DESCRIBED UNDER 21 SUBSECTIONS (B) AND (C). ELECTRIC DISTRIBUTION COMPANIES AND 22 ELECTRIC GENERATION SUPPLIERS SHALL SATISFY BOTH REQUIREMENTS 23 SET FORTH IN SUBSECTIONS (B) AND (C). ANY COST FOR THE PURCHASE 24 OF RESOURCES TO COMPLY WITH THIS SECTION SHALL BE CONSIDERED 25 COST OF GENERATION SUPPLY BY THE COMMISSION, INCLUDING THE COST 26 OF GENERATION SUPPLY TO MEET THE OBLIGATION UNDER 66 PA.C.S § 27 2807 (RELATING TO DUTIES OF ELECTRIC DISTRIBUTION COMPANIES), BY 28 THE COMMISSION. 29 (B) TIER I AND SOLAR PHOTOVOLTAIC SHARES.-- 30 (1) ONE YEAR AFTER THE EFFECTIVE DATE OF THIS ACT, AT 20040S1030B1912 - 13 -
1 LEAST 1.5% OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC 2 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER TO 3 RETAIL ELECTRIC CUSTOMERS IN THIS COMMONWEALTH SHALL BE 4 GENERATED FROM TIER I ALTERNATIVE ENERGY SOURCES. EXCEPT AS 5 PROVIDED IN THIS SECTION, THE MINIMUM PERCENTAGE OF ELECTRIC 6 ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC CUSTOMERS FROM 7 ALTERNATIVE ENERGY SOURCES SHALL INCREASE TO 2% TWO YEARS 8 AFTER THE EFFECTIVE DATE OF THIS ACT. THE MINIMUM PERCENTAGE 9 OF ELECTRIC ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC 10 CUSTOMERS FROM ALTERNATIVE ENERGY SOURCES SHALL INCREASE BY 11 AT LEAST 0.5% EACH YEAR SO THAT AT LEAST 12% OF THE ELECTRIC 12 ENERGY SOLD BY AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 13 GENERATION SUPPLIER TO RETAIL ELECTRIC CUSTOMERS IN THAT 14 CERTIFICATED TERRITORY IN THE 15TH YEAR AFTER THE EFFECTIVE 15 DATE OF THIS SUBSECTION IS SOLD FROM TIER I ALTERNATIVE 16 ENERGY RESOURCES. 17 (2) OF THE ELECTRIC ENERGY REQUIRED TO BE SOLD FROM TIER 18 I SOURCES, THE PERCENTAGE THAT MUST BE SOLD FROM SOLAR 19 PHOTOVOLTAIC TECHNOLOGIES IS: 20 (I) BY YEAR 1 - 0.0013%. 21 (II) BY YEAR 5 - 0.0203%. 22 (III) BY YEAR 10 - 0.2500%. 23 (IV) BY YEAR 15 AND THEREAFTER - 0.5000%. 24 (3) UPON COMMENCEMENT OF THE BEGINNING OF THE 10TH 25 REPORTING YEAR, THE COMMISSION SHALL UNDERTAKE A REVIEW OF 26 THE COMPLIANCE BY ELECTRIC DISTRIBUTION COMPANIES AND 27 ELECTRIC GENERATION SUPPLIERS WITH THE REQUIREMENTS OF THIS 28 ACT. THE REVIEW SHALL ALSO INCLUDE THE STATUS OF ALTERNATIVE 29 ENERGY TECHNOLOGIES WITHIN THIS COMMONWEALTH AND THE CAPACITY 30 TO ADD ADDITIONAL ALTERNATIVE ENERGY RESOURCES. THE 20040S1030B1912 - 14 -
1 COMMISSION SHALL USE THE RESULTS OF THIS REVIEW TO SET 2 ADDITIONAL COMPLIANCE GOALS BEYOND YEAR 15. THE COMMISSION 3 SHALL WORK WITH THE DEPARTMENT IN EVALUATING THE FUTURE 4 ALTERNATIVE ENERGY RESOURCE POTENTIAL. 5 (C) TIER II SHARE.--OF THE ELECTRICAL ENERGY REQUIRED TO BE 6 GENERATED FROM ALTERNATIVE ENERGY SOURCES IDENTIFIED IN TIER II, 7 THE PERCENTAGE THAT MUST BE FROM THESE TECHNOLOGIES IS: 8 (1) YEAR 1 - 2.27%. 9 (2) YEAR 2 - 2.27%. 10 (3) YEAR 3 - 2.27%. 11 (4) YEAR 4 - 2.40%. 12 (5) YEAR 5 - 2.40%. 13 (6) YEAR 6 - 2.50%. 14 (7) YEAR 7 - 2.50%. 15 (8) YEAR 8 - 2.81%. 16 (9) YEAR 9 - 2.81%. 17 (10) YEAR 10 - 2.99%. 18 (11) YEAR 11 AND THEREAFTER - 3.20%. 19 (D) EXEMPTION DURING COST-RECOVERY PERIOD.--COMPLIANCE WITH 20 SUBSECTIONS (A), (B) AND (C) SHALL NOT BE REQUIRED FOR ANY 21 ELECTRIC DISTRIBUTION COMPANY THAT HAS NOT REACHED THE END OF 22 ITS COST-RECOVERY PERIOD OR FOR ELECTRIC GENERATION SUPPLIER 23 SALES IN THE SERVICE TERRITORY OF AN ELECTRIC DISTRIBUTION 24 COMPANY THAT HAS NOT REACHED THE END OF ITS COST-RECOVERY 25 PERIOD. AT THE CONCLUSION OF AN ELECTRIC DISTRIBUTION COMPANY'S 26 COST-RECOVERY PERIOD, THIS EXCEPTION SHALL NO LONGER APPLY, AND 27 COMPLIANCE SHALL BE REQUIRED AT THE PERCENTAGES IN EFFECT AT 28 THAT TIME. ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC 29 GENERATION SUPPLIERS WHOSE SALES ARE EXEMPTED UNDER THIS 30 SUBSECTION AND WHO VOLUNTARILY SELL ELECTRICITY GENERATED FROM 20040S1030B1912 - 15 -
1 TIER I AND TIER II SOURCES DURING THE COST-RECOVERY PERIOD MAY 2 BANK CREDITS CONSISTENT WITH SUBSECTION (E)(7). 3 (E) ALTERNATIVE ENERGY CREDITS.-- 4 (1) THE COMMISSION SHALL ESTABLISH AN ALTERNATIVE ENERGY 5 CREDITS PROGRAM AS NEEDED TO IMPLEMENT THIS ACT. THE 6 PROVISION OF SERVICES PURSUANT TO THIS SECTION SHALL BE 7 EXEMPT FROM THE COMPETITIVE PROCUREMENT PROCEDURES OF 62 8 PA.C.S. (RELATING TO PROCUREMENT). 9 (2) THE COMMISSION SHALL APPROVE AN INDEPENDENT ENTITY 10 TO SERVE AS THE ALTERNATIVE ENERGY CREDITS PROGRAM 11 ADMINISTRATOR. THE ADMINISTRATOR SHALL HAVE THOSE POWERS AND 12 DUTIES ASSIGNED BY COMMISSION REGULATIONS. SUCH POWERS AND 13 DUTIES SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING: 14 (I) TO CREATE AND ADMINISTER AN ALTERNATIVE ENERGY 15 CREDITS CERTIFICATION, TRACKING AND REPORTING PROGRAM. 16 THIS PROGRAM SHOULD INCLUDE, AT A MINIMUM, A PROCESS FOR 17 QUALIFYING ALTERNATIVE ENERGY SYSTEMS AND DETERMINING THE 18 MANNER CREDITS CAN BE CREATED, ACCOUNTED FOR, TRANSFERRED 19 AND RETIRED. 20 (II) TO SUBMIT REPORTS TO THE COMMISSION AT SUCH 21 TIMES AND IN SUCH MANNER AS THE COMMISSION SHALL DIRECT. 22 (3) ALL QUALIFYING ALTERNATIVE ENERGY SYSTEMS MUST 23 INCLUDE A QUALIFYING METER TO RECORD THE CUMULATIVE ELECTRIC 24 PRODUCTION TO VERIFY THE ADVANCED ENERGY CREDIT VALUE. 25 QUALIFYING METERS WILL BE APPROVED BY THE COMMISSION AS 26 DEFINED IN PARAGRAPH (4). 27 (4) (I) AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 28 GENERATION SUPPLIER SHALL COMPLY WITH THE APPLICABLE 29 REQUIREMENTS OF THIS SECTION BY PURCHASING SUFFICIENT 30 ALTERNATIVE ENERGY CREDITS AND SUBMITTING DOCUMENTATION 20040S1030B1912 - 16 -
1 OF COMPLIANCE TO THE PROGRAM ADMINISTRATOR. 2 (II) FOR PURPOSES OF THIS SUBSECTION, ONE 3 ALTERNATIVE ENERGY CREDIT SHALL REPRESENT ONE MEGAWATT 4 HOUR OF QUALIFIED ALTERNATIVE ELECTRIC GENERATION, 5 WHETHER SELF-GENERATED, PURCHASED ALONG WITH THE ELECTRIC 6 COMMODITY OR SEPARATELY THROUGH A TRADABLE INSTRUMENT AND 7 OTHERWISE MEETING THE REQUIREMENTS OF COMMISSION 8 REGULATIONS AND THE PROGRAM ADMINISTRATOR. 9 (5) THE ALTERNATIVE ENERGY CREDITS PROGRAM SHALL INCLUDE 10 PROVISIONS REQUIRING A REPORTING PERIOD AS DEFINED IN SECTION 11 2 FOR ALL COVERED ENTITIES UNDER THIS ACT. THE ALTERNATIVE 12 ENERGY CREDITS PROGRAM SHALL ALSO INCLUDE A TRUE-UP PERIOD AS 13 DEFINED IN SECTION 2. THE TRUE-UP PERIOD SHALL PROVIDE 14 ENTITIES COVERED UNDER THIS ACT THE ABILITY TO OBTAIN THE 15 REQUIRED NUMBER OF ALTERNATIVE ENERGY CREDITS OR TO MAKE UP 16 ANY SHORTFALL OF THE ALTERNATIVE ENERGY CREDITS THEY MAY BE 17 REQUIRED TO OBTAIN TO COMPLY WITH THIS ACT. A FORCE MAJEURE 18 PROVISION SHALL ALSO BE PROVIDED FOR UNDER THE TRUE-UP PERIOD 19 PROVISIONS. 20 (6) AN ELECTRIC DISTRIBUTION COMPANY AND ELECTRIC 21 GENERATION SUPPLIER MAY BANK OR PLACE IN RESERVE ALTERNATIVE 22 ENERGY CREDITS PRODUCED IN ONE REPORTING YEAR FOR COMPLIANCE 23 IN EITHER OR BOTH OF THE TWO SUBSEQUENT REPORTING YEARS, 24 SUBJECT TO THE LIMITATIONS SET FORTH IN THIS SUBSECTION AND 25 PROVIDED THAT THE ELECTRIC DISTRIBUTION COMPANY AND ELECTRIC 26 GENERATION SUPPLIER ARE IN COMPLIANCE FOR ALL PREVIOUS 27 REPORTING YEARS. IN ADDITION, THE ELECTRIC DISTRIBUTION 28 COMPANY AND ELECTRIC GENERATION SUPPLIER SHALL DEMONSTRATE TO 29 THE SATISFACTION OF THE COMMISSION THAT SUCH CREDITS: 30 (I) WERE IN EXCESS OF THE ALTERNATIVE ENERGY CREDITS 20040S1030B1912 - 17 -
1 NEEDED FOR COMPLIANCE IN THE YEAR IN WHICH THEY WERE 2 GENERATED AND THAT SUCH EXCESS CREDITS HAVE NOT 3 PREVIOUSLY BEEN USED FOR COMPLIANCE UNDER THIS ACT; 4 (II) DO NOT EXCEED 30% OF THE CREDITS NEEDED BY THE 5 ELECTRIC DISTRIBUTION COMPANY AND ELECTRIC GENERATION 6 SUPPLIER FOR COMPLIANCE IN THE YEAR THEY WERE GENERATED; 7 (III) WERE PRODUCED BY THE GENERATION OF ELECTRICAL 8 ENERGY BY ALTERNATIVE ENERGY SOURCES AND SOLD TO RETAIL 9 CUSTOMERS DURING THE YEAR IN WHICH THEY WERE GENERATED; 10 AND 11 (IV) HAVE NOT OTHERWISE BEEN NOR WILL BE SOLD, 12 RETIRED, CLAIMED OR REPRESENTED AS PART OF SATISFYING 13 COMPLIANCE WITH ALTERNATIVE OR RENEWABLE ENERGY PORTFOLIO 14 STANDARDS IN OTHER STATES. 15 (7) AN ELECTRIC DISTRIBUTION COMPANY OR AN ELECTRIC 16 GENERATION SUPPLIER WITH SALES THAT ARE EXEMPTED UNDER 17 SUBSECTION (D) MAY BANK CREDITS FOR RETAIL SALES OF 18 ELECTRICITY GENERATED FROM TIER I AND TIER II SOURCES MADE 19 PRIOR TO THE END OF THE COST-RECOVERY PERIOD AND AFTER THE 20 EFFECTIVE DATE OF THIS ACT. BANKABLE CREDITS SHALL BE LIMITED 21 TO CREDITS ASSOCIATED WITH ELECTRICITY SOLD FROM TIER I AND 22 TIER II SOURCES DURING A REPORTING YEAR WHICH EXCEEDS THE 23 VOLUME OF SALES FROM SUCH SOURCES BY AN ELECTRIC DISTRIBUTION 24 COMPANY OR ELECTRIC GENERATION SUPPLIER DURING THE 12-MONTH 25 PERIOD IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS ACT. 26 ALL CREDITS BANKED UNDER THIS SUBSECTION SHALL BE AVAILABLE 27 FOR COMPLIANCE WITH SUBSECTIONS (B) AND (C) FOR NO MORE THAN 28 TWO REPORTING YEARS FOLLOWING THE CONCLUSION OF THE COST- 29 RECOVERY PERIOD. 30 (8) THE COMMISSION OR ITS DESIGNEE SHALL DEVELOP A 20040S1030B1912 - 18 -
1 REGISTRY OF PERTINENT INFORMATION REGARDING ALL AVAILABLE 2 ALTERNATIVE ENERGY CREDITS, CREDIT TRANSACTIONS AMONG 3 ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION 4 SUPPLIERS, THE NUMBER OF ALTERNATIVE ENERGY CREDITS SOLD OR 5 TRANSFERRED AND THE PRICE PAID FOR THE SALE OR TRANSFER OF 6 THE CREDITS. THE REGISTRY SHALL PROVIDE CURRENT INFORMATION 7 TO ELECTRIC DISTRIBUTION COMPANIES, ELECTRIC GENERATION 8 SUPPLIERS AND THE GENERAL PUBLIC ON THE STATUS OF ALTERNATIVE 9 ENERGY CREDITS CREATED, SOLD OR TRANSFERRED WITHIN THIS 10 COMMONWEALTH. 11 (9) THE COMMISSION MAY IMPOSE AN ADMINISTRATIVE FEE ON 12 AN ALTERNATIVE ENERGY CREDIT TRANSACTION. THE AMOUNT OF THIS 13 FEE MAY NOT EXCEED THE ACTUAL DIRECT COST OF PROCESSING THE 14 TRANSACTION BY THE ALTERNATIVE ENERGY CREDITS ADMINISTRATOR. 15 THE COMMISSION IS AUTHORIZED TO UTILIZE UP TO 5% OF THE 16 ALTERNATIVE COMPLIANCE FEES GENERATED UNDER SUBSECTION (D) 17 FOR ADMINISTRATIVE EXPENSES DIRECTLY ASSOCIATED WITH THIS 18 ACT. 19 (10) THE COMMISSION SHALL ESTABLISH REGULATIONS 20 GOVERNING THE VERIFICATION AND TRACKING OF ENERGY EFFICIENCY 21 AND DEMAND-SIDE MANAGEMENT MEASURES PURSUANT TO THIS ACT, 22 WHICH SHALL INCLUDE BENEFITS TO ALL UTILITY CUSTOMER CLASSES. 23 WHEN DEVELOPING REGULATIONS, THE COMMISSION MUST GIVE 24 REASONABLE CONSIDERATION TO EXISTING AND PROPOSED REGULATIONS 25 AND RULES IN EXISTENCE IN THE REGIONAL TRANSMISSION 26 ORGANIZATIONS THAT MANAGE THE TRANSMISSION SYSTEM IN ANY PART 27 OF THIS COMMONWEALTH. ALL VERIFIED REDUCTIONS SHALL ACCRUE 28 CREDITS STARTING WITH THE PASSAGE OF THIS ACT. 29 (11) EACH ALTERNATIVE ENERGY CREDIT CREATED THROUGH A 30 DEMAND-SIDE MANAGEMENT, ENERGY EFFICIENCY OR LOAD MANAGEMENT 20040S1030B1912 - 19 -
1 PROGRAM SHALL FOLLOW A DEPRECIATION SCHEDULE FOR A FIVE-YEAR 2 PERIOD. THE SCHEDULE SHALL PROVIDE THAT: EACH MEGAWATT (MW) 3 OF VERIFIED ELECTRICAL SAVINGS WOULD RECEIVE 100% CREDIT IN 4 THE FIRST YEAR AFTER SAVINGS HAVE BEEN VERIFIED BY THE 5 COMMISSION, .80 OR 80% IN THE SECOND YEAR, .60 OR 60% IN THE 6 THIRD YEAR, .40 OR 40% IN THE FOURTH YEAR, .20 OR 20% IN THE 7 FIFTH YEAR AND 0% IN THE SIXTH YEAR. 8 (12) THE COMMISSION SHALL WITHIN 90 DAYS OF THE 9 EFFECTIVE DATE OF THIS ACT DEVELOP THE STANDARDS FOR TRACKING 10 AND VERIFYING SAVINGS FROM ENERGY EFFICIENCY, LOAD MANAGEMENT 11 AND DEMAND-SIDE MANAGEMENT MEASURES. THE COMMISSION SHALL 12 ALLOW FOR A 60-DAY PUBLIC COMMENT PERIOD AND SHALL ISSUE 13 FINAL STANDARDS WITHIN 30 DAYS OF THE CLOSE OF THE PUBLIC 14 COMMENT PERIOD. 15 (F) ALTERNATIVE COMPLIANCE PAYMENT.-- 16 (1) AT THE END OF EACH PROGRAM YEAR, THE PROGRAM 17 ADMINISTRATOR SHALL PROVIDE A REPORT TO THE COMMISSION AND TO 18 EACH COVERED ELECTRIC DISTRIBUTION COMPANY SHOWING THEIR 19 STATUS LEVEL OF ALTERNATIVE ENERGY ACQUISITION. 20 (2) THE COMMISSION SHALL CONDUCT A REVIEW OF EACH 21 DETERMINATION MADE UNDER SUBSECTIONS (B) AND (C). IF, AFTER 22 NOTICE AND HEARING, THE COMMISSION DETERMINES THAT AN 23 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER 24 HAS FAILED TO COMPLY WITH SUBSECTIONS (B) AND (C), THE 25 COMMISSION SHALL IMPOSE AN ALTERNATIVE COMPLIANCE PAYMENT ON 26 THAT COMPANY OR SUPPLIER. 27 (3) THE ALTERNATIVE COMPLIANCE PAYMENT, WITH THE 28 EXCEPTION OF THE SOLAR PHOTOVOLTAIC SHARE COMPLIANCE 29 REQUIREMENT SET FORTH IN SUBSECTION (B)(2), SHALL BE $60 30 TIMES THE NUMBER OF ADDITIONAL ALTERNATIVE ENERGY CREDITS 20040S1030B1912 - 20 -
1 NEEDED IN ORDER TO COMPLY WITH SUBSECTION (B) OR (C). 2 (4) THE ALTERNATIVE COMPLIANCE PAYMENT FOR THE SOLAR 3 PHOTOVOLTAIC SHARE SHALL BE $100 TIMES THE NUMBER OF 4 ADDITIONAL ALTERNATIVE ENERGY CREDITS NEEDED IN ORDER TO 5 COMPLY WITH SUBSECTION (B)(2). 6 (5) THE COMMISSION SHALL ESTABLISH A PROCESS TO PROVIDE 7 FOR, AT LEAST ANNUALLY, A REVIEW OF THE ALTERNATIVE ENERGY 8 MARKET WITHIN THIS COMMONWEALTH AND THE SERVICE TERRITORIES 9 OF THE REGIONAL TRANSMISSION ORGANIZATIONS THAT MANAGE THE 10 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH. THE 11 COMMISSION WILL USE THE RESULTS OF THIS STUDY TO IDENTIFY ANY 12 NEEDED CHANGES TO THE COST ASSOCIATED WITH THE ALTERNATIVE 13 COMPLIANCE PAYMENT PROGRAM. THE COMMISSION MAY RAISE THE COST 14 OF THE ALTERNATIVE COMPLIANCE PAYMENTS TO MAINTAIN THE 15 INTEGRITY OF THE PAYMENTS PROGRAM AND TO ENSURE THAT IT IS 16 NOT USED TO MEET COMPLIANCE WITH THIS ACT IN LIEU OF 17 ACQUIRING ENERGY FROM ACTUAL ALTERNATIVE ENERGY SOURCES AS 18 DEFINED IN THIS ACT. IF THE COMMISSION FINDS THAT THE COSTS 19 ASSOCIATED WITH ALTERNATIVE COMPLIANCE PAYMENT PROGRAM MUST 20 BE LOWERED, THE COMMISSION SHALL PRESENT THESE FINDINGS TO 21 THE GENERAL ASSEMBLY FOR LEGISLATIVE ENACTMENT. 22 (G) TRANSFER TO SUSTAINABLE DEVELOPMENT FUNDS.-- 23 (1) NOTWITHSTANDING THE PROVISIONS OF 66 PA.C.S. §§ 511 24 (RELATING TO DISPOSITION, APPROPRIATION AND DISBURSEMENT OF 25 ASSESSMENTS AND FEES) AND 3315 (RELATING TO DISPOSITION OF 26 FINES AND PENALTIES), ALTERNATIVE COMPLIANCE PAYMENTS IMPOSED 27 PURSUANT TO THIS ACT SHALL BE PAID INTO THE SUSTAINABLE 28 DEVELOPMENT FUNDS, CREATED UNDER THE COMMISSIONS 29 RESTRUCTURING ORDERS UNDER 66 PA.C.S. CH. 28 (RELATING TO 30 RESTRUCTURING OF ELECTRIC UTILITY INDUSTRY). ALTERNATIVE 20040S1030B1912 - 21 -
1 COMPLIANCE PAYMENTS WILL BE PAID INTO THE APPROPRIATE FUND 2 BASED UPON WHICH ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 3 GENERATION SUPPLIER INCURRED THE ALTERNATIVE COMPLIANCE 4 PAYMENT. 5 (2) THE ALTERNATIVE COMPLIANCE PAYMENTS SHALL BE 6 UTILIZED SOLELY FOR PROJECTS THAT WILL INCREASE THE AMOUNT OF 7 ELECTRIC ENERGY GENERATED FROM ALTERNATIVE ENERGY RESOURCES 8 FOR PURPOSES OF COMPLIANCE WITH SUBSECTIONS (B) AND (C). 9 SECTION 4. PORTFOLIO REQUIREMENTS IN OTHER STATES. 10 IF AN ELECTRIC DISTRIBUTION SUPPLIER OR ELECTRIC GENERATION 11 COMPANY PROVIDER SELLS ELECTRICITY IN ANY OTHER STATE AND IS 12 SUBJECT TO RENEWABLE ENERGY PORTFOLIO REQUIREMENTS IN THAT 13 STATE, THEY SHALL LIST ANY SUCH REQUIREMENT AND SHALL INDICATE 14 HOW IT SATISFIED THOSE RENEWABLE ENERGY PORTFOLIO REQUIREMENTS. 15 TO PREVENT DOUBLE-COUNTING, THE ELECTRIC DISTRIBUTION SUPPLIER 16 OR ELECTRIC GENERATION COMPANY SHALL NOT SATISFY PENNSYLVANIA'S 17 ALTERNATIVE ENERGY PORTFOLIO REQUIREMENTS USING ALTERNATIVE 18 ENERGY USED TO SATISFY ANOTHER STATE'S PORTFOLIO REQUIREMENTS. 19 ENERGY DERIVED ONLY FROM ALTERNATIVE ENERGY SOURCES INSIDE THE 20 GEOGRAPHICAL BOUNDARIES OF THIS COMMONWEALTH OR WITHIN THE 21 SERVICE TERRITORY OF ANY REGIONAL TRANSMISSION ORGANIZATION THAT 22 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH 23 SHALL BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS UNDER THIS 24 ACT. ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION 25 SUPPLIERS SHALL DOCUMENT THAT THIS ENERGY WAS NOT USED TO 26 SATISFY ANOTHER STATE'S RENEWABLE ENERGY PORTFOLIO STANDARDS. 27 SECTION 5. INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR 28 FACILITIES. 29 THE COMMISSION SHALL DEVELOP TECHNICAL AND NET METERING 30 INTERCONNECTION RULES FOR CUSTOMER-GENERATORS INTENDING TO 20040S1030B1912 - 22 -
1 OPERATE RENEWABLE ONSITE GENERATORS IN PARALLEL WITH THE 2 ELECTRIC UTILITY GRID, CONSISTENT WITH RULES DEFINED IN OTHER 3 STATES WITHIN THE SERVICE REGION OF THE REGIONAL TRANSMISSION 4 ORGANIZATION. THE COMMISSION SHALL CONVENE A STAKEHOLDER PROCESS 5 TO DEVELOP STATEWIDE TECHNICAL AND NET METERING RULES FOR 6 CUSTOMER-GENERATORS. THE COMMISSION SHALL DEVELOP THESE RULES 7 WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS ACT. 8 SECTION 6. HEALTH AND SAFETY STANDARDS. 9 THE DEPARTMENT SHALL COOPERATE WITH THE DEPARTMENT OF LABOR 10 AND INDUSTRY AS NECESSARY IN DEVELOPING HEALTH AND SAFETY 11 STANDARDS, AS NEEDED, REGARDING FACILITIES GENERATING ENERGY 12 FROM ALTERNATIVE ENERGY SOURCES. THE DEPARTMENT SHALL ESTABLISH 13 APPROPRIATE AND REASONABLE HEALTH AND SAFETY STANDARDS TO ENSURE 14 UNIFORM AND PROPER COMPLIANCE WITH THIS ACT BY OWNERS AND 15 OPERATORS OF FACILITIES GENERATING ENERGY FROM ALTERNATIVE 16 ENERGY SOURCES AS DEFINED IN THIS ACT. 17 SECTION 7. INTERAGENCY RESPONSIBILITIES. 18 (A) COMMISSION RESPONSIBILITIES.--THE COMMISSION WILL CARRY 19 OUT THE RESPONSIBILITIES DELINEATED WITHIN THIS ACT. THE 20 COMMISSION ALSO SHALL, IN COOPERATION WITH THE DEPARTMENT, 21 CONDUCT AN ONGOING ALTERNATIVE ENERGY RESOURCES PLANNING 22 ASSESSMENT FOR THIS COMMONWEALTH. THIS ASSESSMENT WILL, AT A 23 MINIMUM, IDENTIFY CURRENT AND OPERATING ALTERNATIVE ENERGY 24 FACILITIES, THE POTENTIAL TO ADD FUTURE ALTERNATIVE ENERGY 25 GENERATING CAPACITY, AND THE CONDITIONS OF THE ALTERNATIVE 26 ENERGY MARKETPLACE. THE ASSESSMENT WILL IDENTIFY NEEDED METHODS 27 TO MAINTAIN OR INCREASE THE RELATIVE COMPETITIVENESS OF THE 28 ALTERNATIVE ENERGY MARKET WITHIN THIS COMMONWEALTH. 29 (B) DEPARTMENT RESPONSIBILITIES.--THE DEPARTMENT SHALL 30 ENSURE THAT ALL QUALIFIED ALTERNATIVE ENERGY SOURCES MEET ALL 20040S1030B1912 - 23 -
1 APPLICABLE ENVIRONMENTAL STANDARDS. 2 (C) COOPERATION BETWEEN COMMISSION AND DEPARTMENT.--THE 3 COMMISSION AND THE DEPARTMENT SHALL WORK COOPERATIVELY TO 4 MONITOR THE PERFORMANCE OF ALL ASPECTS OF THIS ACT AND WILL 5 PROVIDE AN ANNUAL REPORT TO THE CHAIRMAN AND MINORITY CHAIRMAN 6 OF THE ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE 7 SENATE AND THE CHAIRMAN AND MINORITY CHAIRMAN OF THE 8 ENVIRONMENTAL RESOURCES AND ENERGY COMMITTEE OF THE HOUSE OF 9 REPRESENTATIVES. THE REPORT SHALL INCLUDE AT A MINIMUM: 10 (1) THE STATUS OF THE COMPLIANCE WITH THE PROVISIONS OF 11 THIS ACT BY ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC 12 GENERATIONS SUPPLIERS. 13 (2) CURRENT COSTS OF ALTERNATIVE ENERGY ON A PER 14 KILOWATT HOUR BASIS FOR ALL ALTERNATIVE ENERGY TECHNOLOGY 15 TYPES. 16 (3) COSTS ASSOCIATED WITH THE ALTERNATIVE ENERGY CREDITS 17 PROGRAM UNDER THIS ACT, INCLUDING THE NUMBER OF ALTERNATIVE 18 COMPLIANCE PAYMENTS. 19 (4) THE STATUS OF THE ALTERNATIVE ENERGY MARKETPLACE 20 WITHIN THIS COMMONWEALTH. 21 (5) RECOMMENDATIONS FOR PROGRAM IMPROVEMENTS. 22 SECTION 8. RURAL ELECTRIC COOPERATIVES. 23 EACH RURAL ELECTRIC COOPERATIVE OPERATING WITHIN THIS 24 COMMONWEALTH SHALL OFFER TO ITS RETAIL CUSTOMERS A VOLUNTARY 25 PROGRAM OF ENERGY EFFICIENCY AND DEMAND-SIDE MANAGEMENT 26 PROGRAMS, AS A MEANS TO SATISFY COMPLIANCE WITH THE REQUIREMENTS 27 OF THIS ACT. 28 SECTION 9. EFFECTIVE DATE. 29 THIS ACT SHALL TAKE EFFECT IN 90 DAYS. B13L66MEP/20040S1030B1912 - 24 -