CORRECTIVE REPRINT
SENATE AMENDED
PRIOR PRINTER'S NOS. 1668, 1995, 2057, PRINTER'S NO. 2343
2291, 2297, 2340
No. 1203 Session of 2007
INTRODUCED BY HORNAMAN, GEORGE, DePASQUALE, GERBER, McCALL,
CALTAGIRONE, CONKLIN, DeWEESE, EACHUS, GIBBONS, HARHAI,
HARKINS, JAMES, JOSEPHS, KORTZ, MAHONEY, MANDERINO, McGEEHAN,
MUNDY, M. O'BRIEN, PRESTON, SAINATO, SHIMKUS, STABACK, SURRA,
TANGRETTI, THOMAS, VITALI, YUDICHAK, CURRY, FREEMAN,
K. SMITH, GOODMAN, BENNINGTON, M. SMITH, PETRONE, LENTZ,
GRUCELA, FABRIZIO, WALKO AND GEIST, MAY 24, 2007
SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, IN SENATE,
RE-REPORTED AS AMENDED, JULY 14, 2007
AN ACT
1 Amending the act of November 30, 2004 (P.L.1672, No.213),
2 entitled, "An act providing for the sale of electric energy
3 generated from renewable and environmentally beneficial
4 sources, for the acquisition of electric energy generated
5 from renewable and environmentally beneficial sources by
6 electric distribution and supply companies and for the powers
7 and duties of the Pennsylvania Public Utility Commission,"
8 further providing for definitions, for alternative energy <--
9 portfolio standards, for portfolio requirements in other
10 states and for interconnection standards for customer-
11 generator facilities. FURTHER PROVIDING FOR THE DEFINITIONS <--
12 OF "ALTERNATIVE ENERGY SOURCES," CREDIT," "CUSTOMER- <--
13 GENERATOR," "FORCE MAJEURE," AND "NET METERING," AND "TIER I <--
14 ALTERNATIVE ENERGY SOURCE," FOR ALTERNATIVE ENERGY PORTFOLIO
15 STANDARDS, FOR PORTFOLIO REQUIREMENTS IN OTHER STATES AND FOR
16 INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR FACILITIES.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. The definitions of "alternative energy credit," <--
20 "customer-generator," "force majeure" and "Tier I alternative
1 energy source" in section 2 of the act of November 30, 2004
2 (P.L.1672, No.213), known as the Alternative Energy Portfolio
3 Standards Act, are amended to read:
4 Section 2. Definitions.
5 The following words and phrases when used in this act shall
6 have the meanings given to them in this section unless the
7 context clearly indicates otherwise:
8 "Alternative energy credit." A tradable instrument that is
9 used to establish, verify and monitor compliance with this act.
10 A unit of credit shall equal one megawatt hour of electricity
11 from an alternative energy source. The alternative energy credit
12 shall remain the property of the alternative energy system until
13 the alternative energy credit is voluntarily transferred by the
14 alternative energy system.
15 * * *
16 "Customer-generator." A nonutility owner or operator of a
17 net metered distributed generation system with a nameplate
18 capacity of not greater than 50 kilowatts if installed at a
19 residential service or not larger than [1,000] 3,000 kilowatts
20 at other customer service locations, except for customers whose
21 systems are above [one megawatt] three megawatts and up to [two]
22 five megawatts who make their systems available to operate in
23 parallel with the electric utility during grid emergencies as
24 defined by the regional transmission organization or where a
25 microgrid is in place for the primary or secondary purpose of
26 maintaining critical infrastructure, such as homeland security
27 assignments, emergency services facilities, hospitals, traffic
28 signals, wastewater treatment plants or telecommunications
29 facilities, provided that technical rules for operating
30 generators interconnected with facilities of an electric
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1 distribution company, electric cooperative or municipal electric
2 system have been promulgated by the Institute of Electrical and
3 Electronic Engineers and the Pennsylvania Public Utility
4 Commission.
5 * * *
6 "Force majeure." Upon its own initiative or upon a request
7 of an electric distribution company or an electric generator
8 supplier, the Pennsylvania Public Utility Commission, within 60
9 days, shall determine if alternative energy resources are
10 reasonably available in the marketplace in sufficient quantities
11 for the electric distribution companies and electric generation
12 suppliers to meet their obligations for that reporting period
13 under this act. In making this determination the commission
14 shall consider whether electric distribution companies or
15 electric generation suppliers have made a good faith effort to
16 acquire sufficient alternative energy to comply with their
17 obligations. Such good faith efforts shall include, but are not
18 limited to, banking alternative energy credits during their
19 transition periods, seeking alternative energy credits through
20 competitive solicitations and seeking to procure alternative
21 energy credits or alternative energy through long-term
22 contracts. In further making its determination the commission
23 shall assess the availability of alternative energy credits in
24 the Generation Attributes Tracking System (GATS) or its
25 successor, and the availability of alternative energy credits
26 generally in Pennsylvania and other jurisdictions in the PJM
27 Interconnection, L.L.C. regional transmission organization (PJM)
28 or its successor. The commission may also require solicitations
29 for alternative energy credits as part of default service before
30 requests of force majeure can be made. If the commission further
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1 determines that alternative energy resources are not reasonably
2 available in sufficient quantities in the marketplace for the
3 electric distribution companies and electric generation
4 suppliers to meet their obligations under this act, then the
5 commission shall modify the underlying obligation of the
6 electric distribution company or electric generation supplier or
7 recommend to the General Assembly that the underlying obligation
8 be eliminated. Commission modification of the electric
9 distribution company or electric generation supplier obligations
10 under this act shall be for that compliance period only.
11 Commission modification shall not automatically reduce the
12 obligation for subsequent compliance years. If the commission
13 modifies the electric distribution company or electric
14 generation supplier obligations under this act, the commission
15 may require the electric distribution company or electric
16 generation supplier to acquire additional alternative energy
17 credits in subsequent years equivalent to the obligation reduced
18 due to a force majeure declaration if the commission determines
19 that sufficient alternative energy credits exist in the
20 marketplace.
21 * * *
22 "Tier I alternative energy source." Energy derived from:
23 (1) Solar photovoltaic and solar thermal energy.
24 (2) Wind power.
25 (3) Low-impact hydropower.
26 (4) Geothermal energy.
27 (5) Biologically derived methane gas.
28 (6) Fuel cells.
29 (7) Biomass energy.
30 (8) Coal mine methane.
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1 * * *
2 Section 2. Sections 3(b), (e) and (f), 4 and 5 of the act
3 are amended to read:
4 Section 3. Alternative energy portfolio standards.
5 * * *
6 (b) Tier I and solar photovoltaic shares.--
7 (1) Two years after the effective date of this act, at
8 least 1.5% of the electric energy sold by an electric
9 distribution company or electric generation supplier to
10 retail electric customers in this Commonwealth shall be
11 generated from Tier I alternative energy sources. Except as
12 provided in this section, the minimum percentage of electric
13 energy required to be sold to retail electric customers from
14 alternative energy sources shall increase to 2% three years
15 after the effective date of this act. The minimum percentage
16 of electric energy required to be sold to retail electric
17 customers from alternative energy sources shall increase by
18 at least 0.5% each year so that at least 8% of the electric
19 energy sold by an electric distribution company or electric
20 generation supplier to retail electric customers in that
21 certificated territory in the 15th year after the effective
22 date of this subsection is sold from Tier I alternative
23 energy resources.
24 (2) [Of the electric energy required to be sold from
25 Tier I sources, the total percentage that must be sold from
26 solar photovoltaic technologies is for:] The total percentage
27 of the electric energy sold by an electric distribution
28 company or an electric generation supplier to retail electric
29 customers in this Commonwealth that must be sold from solar
30 photovoltaic technologies is:
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1 [(i) Years 1 through 4 - 0.0013%.
2 (ii) Years 5 through 9 - 0.0203%.
3 (iii) Years 10 through 14 - 0.2500%.
4 (iv) Years 15 and thereafter - 0.5000%.]
5 (i) 0.0013% for June 1, 2006, through May 31, 2007.
6 (ii) 0.0030% for June 1, 2007, through May 31, 2008.
7 (iii) 0.0063% for June 1, 2008, through May 31,
8 2009.
9 (iv) 0.0120% for June 1, 2009, through May 31, 2010.
10 (v) 0.0203% for June 1, 2010, through May 31, 2011.
11 (vi) 0.0325% for June 1, 2011, through May 31, 2012.
12 (vii) 0.0510% for June 1, 2012, through May 31,
13 2013.
14 (viii) 0.0840% for June 1, 2013, through May 31,
15 2014.
16 (ix) 0.1440% for June 1, 2014, through May 31, 2015.
17 (x) 0.2500% for June 1, 2015, through May 31, 2016.
18 (xi) 0.2933% for June 1, 2016, through May 31, 2017.
19 (xii) 0.3400% for June 1, 2017, through May 31,
20 2018.
21 (xiii) 0.3900% for June 1, 2018, through May 31,
22 2019.
23 (xiv) 0.4433% for June 1, 2019, and thereafter.
24 (xiv) 0.4433% for June 1, 2019, through May 31,
25 2020.
26 (xv) 0.5000% for June 1, 2020, and thereafter.
27 The percentages in this paragraph shall apply to all
28 retail electricity sales in this Commonwealth.
29 (3) Upon commencement of the beginning of the 6th
30 reporting year, the commission shall undertake a review of
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1 the compliance by electric distribution companies and
2 electric generation suppliers with the requirements of this
3 act. The review shall also include the status of alternative
4 energy technologies within this Commonwealth and the capacity
5 to add additional alternative energy resources. The
6 commission shall use the results of this review to recommend
7 to the General Assembly additional compliance goals beyond
8 year 15. The commission shall work with the department in
9 evaluating the future alternative energy resource potential.
10 * * *
11 (e) Alternative energy credits.--
12 (1) The commission shall establish an alternative energy
13 credits program as needed to implement this act. The
14 provision of services pursuant to this section shall be
15 exempt from the competitive procurement procedures of 62
16 Pa.C.S. (relating to procurement).
17 (2) The commission shall approve an independent entity
18 to serve as the alternative energy credits program
19 administrator. The administrator shall have those powers and
20 duties assigned by commission regulations. Such powers and
21 duties shall include, but not be limited to, the following:
22 (i) To create and administer an alternative energy
23 credits certification, tracking and reporting program.
24 This program should include, at a minimum, a process for
25 qualifying alternative energy systems and determining the
26 manner credits can be created, accounted for, transferred
27 and retired.
28 (ii) To submit reports to the commission at such
29 times and in such manner as the commission shall direct.
30 (3) All qualifying alternative energy systems must
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1 include a qualifying meter to record the cumulative electric
2 production to verify the advanced energy credit value.
3 Qualifying meters will be approved by the commission as
4 defined in paragraph (4).
5 (4) (i) An electric distribution company or electric
6 generation supplier shall comply with the applicable
7 requirements of this section by purchasing sufficient
8 alternative energy credits and submitting documentation
9 of compliance to the program administrator.
10 (ii) For purposes of this subsection, one
11 alternative energy credit shall represent one megawatt
12 hour of qualified alternative electric generation,
13 whether self-generated, purchased along with the electric
14 commodity or separately through a tradable instrument and
15 otherwise meeting the requirements of commission
16 regulations and the program administrator.
17 (5) The alternative energy credits program shall include
18 provisions requiring a reporting period as defined in section
19 2 for all covered entities under this act. The alternative
20 energy credits program shall also include a true-up period as
21 defined in section 2. The true-up period shall provide
22 entities covered under this act the ability to obtain the
23 required number of alternative energy credits or to make up
24 any shortfall of the alternative energy credits they may be
25 required to obtain to comply with this act. A force majeure
26 provision shall also be provided for under the true-up period
27 provisions.
28 (6) An electric distribution company and electric
29 generation supplier may bank or place in reserve alternative
30 energy credits produced in one reporting year for compliance
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1 in either or both of the two subsequent reporting years,
2 subject to the limitations set forth in this subsection and
3 provided that the electric distribution company and electric
4 generation supplier are in compliance for all previous
5 reporting years. In addition, the electric distribution
6 company and electric generation supplier shall demonstrate to
7 the satisfaction of the commission that such credits:
8 (i) were in excess of the alternative energy credits
9 needed for compliance in the year in which they were
10 generated and that such excess credits have not
11 previously been used for compliance under this act;
12 (ii) were produced by the generation of electrical
13 energy by alternative energy sources and sold to retail
14 customers during the year in which they were generated;
15 and
16 (iii) have not otherwise been nor will be sold,
17 retired, claimed or represented as part of satisfying
18 compliance with alternative or renewable energy portfolio
19 standards in other states.
20 (7) An electric distribution company or an electric
21 generation supplier with sales that are exempted under
22 subsection (d) may bank credits for retail sales of
23 electricity generated from Tier I and Tier II sources made
24 prior to the end of the cost-recovery period and after the
25 effective date of this act. Bankable credits shall be limited
26 to credits associated with electricity sold from Tier I and
27 Tier II sources during a reporting year which exceeds the
28 volume of sales from such sources by an electric distribution
29 company or electric generation supplier during the 12-month
30 period immediately preceding the effective date of this act.
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1 All credits banked under this subsection shall be available
2 for compliance with subsections (b) and (c) for no more than
3 two reporting years following the conclusion of the cost-
4 recovery period.
5 (8) The commission or its designee shall develop a
6 registry of pertinent information regarding all available
7 alternative energy credits, credit transactions among
8 electric distribution companies and electric generation
9 suppliers, the number of alternative energy credits sold or
10 transferred and the price paid for the sale or transfer of
11 the credits. The registry shall provide current information
12 to electric distribution companies, electric generation
13 suppliers and the general public on the status of alternative
14 energy credits created, sold or transferred within this
15 Commonwealth.
16 (9) The commission may impose an administrative fee on
17 an alternative energy credit transaction. The amount of this
18 fee may not exceed the actual direct cost of processing the
19 transaction by the alternative energy credits administrator.
20 The commission is authorized to utilize up to 5% of the
21 alternative compliance fees generated under subsection (f)
22 for administrative expenses directly associated with this
23 act.
24 (10) The commission shall establish regulations
25 governing the verification and tracking of energy efficiency
26 and demand-side management measures pursuant to this act,
27 which shall include benefits to all utility customer classes.
28 When developing regulations, the commission must give
29 reasonable consideration to existing and proposed regulations
30 and rules in existence in the regional transmission
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1 organizations that manage the transmission system in any part
2 of this Commonwealth. All verified reductions shall accrue
3 credits starting with the passage of this act.
4 (11) The commission shall within 120 days of the
5 effective date of this act develop a depreciation schedule
6 for alternative energy credits created through demand-side
7 management, energy efficiency and load management
8 technologies and shall develop standards for tracking and
9 verifying savings from energy efficiency, load management and
10 demand-side management measures. The commission shall allow
11 for a 60-day public comment period and shall issue final
12 standards within 30 days of the close of the public comment
13 period.
14 (12) (i) Unless a contractual provision explicitly
15 assigns alternative energy credits in a different manner,
16 the owner of the alternative energy system or a customer-
17 generator owns any and all alternative energy credits
18 associated with or created by the production of electric
19 energy by such facility or customer, and the owner or
20 customer shall be entitled to sell, transfer or take any
21 other action to which a legal owner of property is
22 entitled to take with respect to the credits.
23 (ii) This paragraph shall apply to all alternative
24 energy credits which were created pursuant to this act
25 prior to the effective date of this paragraph and which
26 will be created after the effective date of this
27 paragraph, regardless of when any underlying contract for
28 the purchase of electric energy or other products from
29 the generator that qualifies as an alternative energy
30 system was executed.
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1 (f) Alternative compliance payment.--
2 (1) At the end of each program year, the program
3 administrator shall provide a report to the commission and to
4 each covered electric distribution company showing their
5 status level of alternative energy acquisition.
6 (2) The commission shall conduct a review of each
7 determination made under subsections (b) and (c). If, after
8 notice and hearing, the commission determines that an
9 electric distribution company or electric generation supplier
10 has failed to comply with subsections (b) and (c), the
11 commission shall impose an alternative compliance payment on
12 that company or supplier.
13 (3) The alternative compliance payment, with the
14 exception of the solar photovoltaic share compliance
15 requirement set forth in subsection (b)(2), shall be $45
16 times the number of additional alternative energy credits
17 needed in order to comply with subsection (b) or (c).
18 (4) The alternative compliance payment for the solar
19 photovoltaic share shall be 200% of the average market value
20 of solar renewable energy credits sold during the reporting
21 period within the service region of the regional transmission
22 organization, including, where applicable, the levelized up-
23 front rebates received by sellers of solar renewable energy
24 credits in other jurisdictions in the PJM Interconnection,
25 L.L.C. transmission organization (PJM) or its successor.
26 (5) The commission shall establish a process to provide
27 for, at least annually, a review of the alternative energy
28 market within this Commonwealth and the service territories
29 of the regional transmission organizations that manage the
30 transmission system in any part of this Commonwealth. The
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1 commission will use the results of this study to identify any
2 needed changes to the cost associated with the alternative
3 compliance payment program. If the commission finds that the
4 costs associated with the alternative compliance payment
5 program must be changed, the commission shall present these
6 findings to the General Assembly for legislative enactment.
7 * * *
8 Section 4. Portfolio requirements in other states.
9 If an electric distribution supplier or electric generation
10 company provider sells electricity in any other state and is
11 subject to renewable energy portfolio requirements in that
12 state, they shall list any such requirement and shall indicate
13 how it satisfied those renewable energy portfolio requirements.
14 To prevent double-counting, the electric distribution supplier
15 or electric generation company shall not satisfy Pennsylvania's
16 alternative energy portfolio requirements using alternative
17 energy used to satisfy another state's portfolio requirements[.
18 Energy derived only from alternative energy sources inside the
19 geographical boundaries of this Commonwealth or within the
20 service territory of any regional transmission organization that
21 manages the transmission system in any part of this Commonwealth
22 shall be eligible to meet the compliance requirements under this
23 act.] or alternative energy credits already purchased by
24 individuals, businesses, or government bodies that do not have a
25 compliance obligation under this act unless the individual,
26 business or government body sells those credits to the electric
27 distribution company or electric generation supplier. Energy
28 derived from alternative energy sources inside the geographical
29 boundaries of this Commonwealth shall be eligible to meet the
30 compliance requirements under this act. Energy derived from
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1 alternative energy sources located outside the geographical
2 boundaries of this Commonwealth but within the service territory
3 of a regional transmission organization that manages the
4 transmission system in any part of this Commonwealth shall only
5 be eligible to meet the compliance requirements of electric
6 distribution companies or electric generation suppliers located
7 within the service territory of the same regional transmission
8 organization. For purposes of compliance with this act,
9 alternative energy sources located in the PJM Interconnection,
10 L.L.C. regional transmission organization (PJM) or its successor
11 service territory shall be eligible to fulfill compliance
12 obligations of all Pennsylvania electric distribution companies
13 and electric generation suppliers. Energy derived from
14 alternative energy sources located outside the service territory
15 of a regional transmission organization that manages the
16 transmission system in any part of this Commonwealth shall not
17 be eligible to meet the compliance requirements of this act.
18 Electric distribution companies and electric generation
19 suppliers shall document that this energy was not used to
20 satisfy another state's renewable energy portfolio standards.
21 Section 5. Interconnection standards for customer-generator
22 facilities.
23 Excess generation from net-metered customer-generators shall
24 receive full retail value for all energy produced on an annual
25 basis. The commission shall develop technical and net metering
26 interconnection rules for customer-generators intending to
27 operate renewable onsite generators in parallel with the
28 electric utility grid, consistent with rules defined in other
29 states within the service region of the regional transmission
30 organization that manages the transmission system in any part of
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1 this Commonwealth. The commission shall convene a stakeholder
2 process to develop Statewide technical and net metering rules
3 for customer-generators. The commission shall develop these
4 rules within nine months of the effective date of this act.
5 Section 3. The addition of section 3(e)(12) of the act shall
6 apply to all alternative energy credits created under the act
7 before, on or after the effective date of this section,
8 regardless of when any underlying contract for the purchase of
9 electric energy or other products from the generator that
10 qualifies as an alternative energy system was executed.
11 Section 4. This act shall take effect immediately.
12 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY SOURCES," <--
13 "CUSTOMER-GENERATOR," "FORCE MAJEURE" AND "NET METERING" IN
14 SECTION 2 OF THE ACT OF NOVEMBER 30, 2004 (P.L.1672, NO.213),
15 KNOWN AS THE ALTERNATIVE ENERGY PORTFOLIO STANDARDS ACT, ARE
16 AMENDED TO READ:
17 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY CREDIT," <--
18 "CUSTOMER-GENERATOR," "FORCE MAJEURE," "NET METERING" AND "TIER
19 I ALTERNATIVE ENERGY SOURCE" IN SECTION 2 OF THE ACT OF NOVEMBER
20 30, 2004 (P.L.1672, NO.213), KNOWN AS THE ALTERNATIVE ENERGY
21 PORTFOLIO STANDARDS ACT, ARE AMENDED TO READ:
22 SECTION 2. DEFINITIONS.
23 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
24 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
25 CONTEXT CLEARLY INDICATES OTHERWISE:
26 "ALTERNATIVE ENERGY CREDIT." A TRADABLE INSTRUMENT THAT IS <--
27 USED TO ESTABLISH, VERIFY AND MONITOR COMPLIANCE WITH THIS ACT.
28 A UNIT OF CREDIT SHALL EQUAL ONE MEGAWATT HOUR OF ELECTRICITY
29 FROM AN ALTERNATIVE ENERGY SOURCE. THE ALTERNATIVE ENERGY CREDIT
30 SHALL REMAIN THE PROPERTY OF THE ALTERNATIVE ENERGY SYSTEM UNTIL
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1 THE ALTERNATIVE ENERGY CREDIT IS VOLUNTARILY TRANSFERRED BY THE
2 ALTERNATIVE ENERGY SYSTEM.
3 * * *
4 "ALTERNATIVE ENERGY SOURCES." THE TERM SHALL INCLUDE THE <--
5 FOLLOWING EXISTING AND NEW SOURCES FOR THE PRODUCTION OF
6 ELECTRICITY:
7 (1) SOLAR PHOTOVOLTAIC OR OTHER SOLAR ELECTRIC ENERGY.
8 (2) SOLAR THERMAL ENERGY.
9 (3) WIND POWER.
10 (4) LARGE-SCALE HYDROPOWER, WHICH SHALL MEAN THE
11 PRODUCTION OF ELECTRIC POWER BY HARNESSING THE HYDROELECTRIC
12 POTENTIAL OF MOVING WATER IMPOUNDMENTS, INCLUDING PUMPED
13 STORAGE THAT DOES NOT MEET THE REQUIREMENTS OF LOW-IMPACT
14 HYDROPOWER UNDER PARAGRAPH (5).
15 (5) LOW-IMPACT HYDROPOWER CONSISTING OF ANY TECHNOLOGY
16 THAT PRODUCES ELECTRIC POWER AND THAT HARNESSES THE
17 HYDROELECTRIC POTENTIAL OF MOVING WATER IMPOUNDMENTS,
18 PROVIDED THE HYDROPOWER SOURCE HAS A NAMEPLATE CAPACITY OF 21
19 MEGAWATTS OR LESS AND A LICENSE ISSUED BY THE FEDERAL ENERGY
20 REGULATORY COMMISSION FOR THE HYDROPOWER SOURCE WAS HELD IN
21 WHOLE OR IN PART BY A MUNICIPALITY OR ELECTRIC COOPERATIVE ON
22 JULY 1, 2007, OR SUCH INCREMENTAL HYDROELECTRIC DEVELOPMENT:
23 (I) DOES NOT ADVERSELY CHANGE EXISTING IMPACTS TO
24 AQUATIC SYSTEMS;
25 (II) MEETS THE CERTIFICATION STANDARDS ESTABLISHED
26 BY THE LOW IMPACT HYDROPOWER INSTITUTE AND AMERICAN
27 RIVERS, INC., OR THEIR SUCCESSORS;
28 (III) PROVIDES AN ADEQUATE WATER FLOW FOR PROTECTION
29 OF AQUATIC LIFE AND FOR SAFE AND EFFECTIVE FISH PASSAGE;
30 (IV) PROTECTS AGAINST EROSION; AND
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1 (V) PROTECTS CULTURAL AND HISTORIC RESOURCES.
2 (6) GEOTHERMAL ENERGY, WHICH SHALL MEAN ELECTRICITY
3 PRODUCED BY EXTRACTING HOT WATER OR STEAM FROM GEOTHERMAL
4 RESERVES IN THE EARTH'S CRUST AND SUPPLIED TO STEAM TURBINES
5 THAT DRIVE GENERATORS TO PRODUCE ELECTRICITY.
6 (7) BIOMASS ENERGY, WHICH SHALL MEAN THE GENERATION OF
7 ELECTRICITY UTILIZING THE FOLLOWING:
8 (I) ORGANIC MATERIAL FROM A PLANT THAT IS GROWN FOR
9 THE PURPOSE OF BEING USED TO PRODUCE ELECTRICITY OR IS
10 PROTECTED BY THE FEDERAL CONSERVATION RESERVE PROGRAM
11 (CRP) AND PROVIDED FURTHER THAT CROP PRODUCTION ON CRP
12 LANDS DOES NOT PREVENT ACHIEVEMENT OF THE WATER QUALITY
13 PROTECTION, SOIL EROSION PREVENTION OR WILDLIFE
14 ENHANCEMENT PURPOSES FOR WHICH THE LAND WAS PRIMARILY SET
15 ASIDE; OR
16 (II) ANY SOLID NONHAZARDOUS, CELLULOSIC WASTE
17 MATERIAL THAT IS SEGREGATED FROM OTHER WASTE MATERIALS,
18 SUCH AS WASTE PALLETS, CRATES AND LANDSCAPE OR RIGHT-OF-
19 WAY TREE TRIMMINGS OR AGRICULTURAL SOURCES, INCLUDING
20 ORCHARD TREE CROPS, VINEYARDS, GRAIN, LEGUMES, SUGAR AND
21 OTHER CROP BY-PRODUCTS OR RESIDUES.
22 (8) BIOLOGICALLY DERIVED METHANE GAS, WHICH SHALL
23 INCLUDE METHANE FROM THE ANAEROBIC DIGESTION OF ORGANIC
24 MATERIALS FROM YARD WASTE, SUCH AS GRASS CLIPPINGS AND
25 LEAVES, FOOD WASTE, ANIMAL WASTE AND SEWAGE SLUDGE. THE TERM
26 ALSO INCLUDES LANDFILL METHANE GAS.
27 (9) FUEL CELLS, WHICH SHALL MEAN ANY ELECTROCHEMICAL
28 DEVICE THAT CONVERTS CHEMICAL ENERGY IN A HYDROGEN-RICH FUEL
29 DIRECTLY INTO ELECTRICITY, HEAT AND WATER WITHOUT COMBUSTION.
30 (10) WASTE COAL, WHICH SHALL INCLUDE THE COMBUSTION OF
20070H1203B2343 - 17 -
1 WASTE COAL IN FACILITIES IN WHICH THE WASTE COAL WAS DISPOSED
2 OR ABANDONED PRIOR TO JULY 31, 1982, OR DISPOSED OF
3 THEREAFTER IN A PERMITTED COAL REFUSE DISPOSAL SITE
4 REGARDLESS OF WHEN DISPOSED OF, AND USED TO GENERATE
5 ELECTRICITY, OR SUCH OTHER WASTE COAL COMBUSTION MEETING
6 ALTERNATE ELIGIBILITY REQUIREMENTS ESTABLISHED BY REGULATION.
7 FACILITIES COMBUSTING WASTE COAL SHALL USE AT A MINIMUM A
8 COMBINED FLUIDIZED BED BOILER AND BE OUTFITTED WITH A
9 LIMESTONE INJECTION SYSTEM AND A FABRIC FILTER PARTICULATE
10 REMOVAL SYSTEM. ALTERNATIVE ENERGY CREDITS SHALL BE
11 CALCULATED BASED UPON THE PROPORTION OF WASTE COAL UTILIZED
12 TO PRODUCE ELECTRICITY AT THE FACILITY.
13 (11) COAL MINE METHANE, WHICH SHALL MEAN METHANE GAS
14 EMITTING FROM ABANDONED OR WORKING COAL MINES.
15 (12) DEMAND-SIDE MANAGEMENT CONSISTING OF THE MANAGEMENT
16 OF CUSTOMER CONSUMPTION OF ELECTRICITY OR THE DEMAND FOR
17 ELECTRICITY THROUGH THE IMPLEMENTATION OF:
18 (I) ENERGY EFFICIENCY TECHNOLOGIES, MANAGEMENT
19 PRACTICES OR OTHER STRATEGIES IN RESIDENTIAL, COMMERCIAL,
20 INSTITUTIONAL OR GOVERNMENT CUSTOMERS THAT REDUCE
21 ELECTRICITY CONSUMPTION BY THOSE CUSTOMERS;
22 (II) LOAD MANAGEMENT OR DEMAND RESPONSE
23 TECHNOLOGIES, MANAGEMENT PRACTICES OR OTHER STRATEGIES IN
24 RESIDENTIAL, COMMERCIAL, INDUSTRIAL, INSTITUTIONAL AND
25 GOVERNMENT CUSTOMERS THAT SHIFT ELECTRIC LOAD FROM
26 PERIODS OF HIGHER DEMAND TO PERIODS OF LOWER DEMAND; OR
27 (III) INDUSTRIAL BY-PRODUCT TECHNOLOGIES CONSISTING
28 OF THE USE OF A BY-PRODUCT FROM AN INDUSTRIAL PROCESS,
29 INCLUDING THE REUSE OF ENERGY FROM EXHAUST GASES OR OTHER
30 MANUFACTURING BY-PRODUCTS THAT ARE USED IN THE DIRECT
20070H1203B2343 - 18 -
1 PRODUCTION OF ELECTRICITY AT THE FACILITY OF A CUSTOMER.
2 (13) DISTRIBUTED GENERATION SYSTEM, WHICH SHALL MEAN THE
3 SMALL-SCALE POWER GENERATION OF ELECTRICITY AND USEFUL
4 THERMAL ENERGY.
5 * * *
6 "CUSTOMER-GENERATOR." A NONUTILITY OWNER OR OPERATOR OF A
7 NET METERED DISTRIBUTED GENERATION SYSTEM WITH A NAMEPLATE
8 CAPACITY OF NOT GREATER THAN 50 KILOWATTS IF INSTALLED AT A
9 RESIDENTIAL SERVICE OR NOT LARGER THAN [1,000] 3,000 KILOWATTS
10 AT OTHER CUSTOMER SERVICE LOCATIONS, EXCEPT FOR CUSTOMERS WHOSE
11 SYSTEMS ARE ABOVE [ONE MEGAWATT] THREE MEGAWATTS AND UP TO [TWO]
12 FIVE MEGAWATTS WHO MAKE THEIR SYSTEMS AVAILABLE TO OPERATE IN
13 PARALLEL WITH THE ELECTRIC UTILITY DURING GRID EMERGENCIES AS
14 DEFINED BY THE REGIONAL TRANSMISSION ORGANIZATION OR [WHERE A <--
15 MICROGRID IS IN PLACE] WHO MAKE THEIR SYSTEMS AVAILABLE FOR THE <--
16 PRIMARY OR SECONDARY PURPOSE OF MAINTAINING CRITICAL
17 INFRASTRUCTURE, SUCH AS HOMELAND SECURITY ASSIGNMENTS, EMERGENCY
18 SERVICES FACILITIES, HOSPITALS, TRAFFIC SIGNALS, WASTEWATER
19 TREATMENT PLANTS OR TELECOMMUNICATIONS FACILITIES, PROVIDED THAT
20 TECHNICAL RULES FOR OPERATING GENERATORS INTERCONNECTED WITH
21 FACILITIES OF AN ELECTRIC DISTRIBUTION COMPANY, ELECTRIC
22 COOPERATIVE OR MUNICIPAL ELECTRIC SYSTEM HAVE BEEN PROMULGATED
23 BY THE INSTITUTE OF ELECTRICAL AND ELECTRONIC ENGINEERS AND THE
24 PENNSYLVANIA PUBLIC UTILITY COMMISSION. A NET METERED <--
25 DISTRIBUTED GENERATION SYSTEM CAPABLE OF PROVIDING MORE THAN ONE
26 MEGAWATT THROUGH ITS INTERCONNECTION SHALL COMPLY WITH ALL
27 TECHNICAL RULES NECESSARY TO ENSURE THAT SIGNIFICANT
28 FLUCTUATIONS IN THE ELECTRICAL SUPPLY TO THE ELECTRIC
29 DISTRIBUTION COMPANY, ELECTRIC COOPERATIVE OR MUNICIPAL ELECTRIC
30 SYSTEM WILL NOT INTERFERE WITH ITS OPERATIONS.
20070H1203B2343 - 19 -
1 * * *
2 "FORCE MAJEURE." UPON ITS OWN INITIATIVE OR UPON A REQUEST
3 OF AN ELECTRIC DISTRIBUTION COMPANY OR AN ELECTRIC GENERATOR
4 SUPPLIER, THE PENNSYLVANIA PUBLIC UTILITY COMMISSION, WITHIN 60
5 DAYS, SHALL DETERMINE IF ALTERNATIVE ENERGY RESOURCES ARE
6 REASONABLY AVAILABLE IN THE MARKETPLACE IN SUFFICIENT QUANTITIES
7 FOR THE ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION
8 SUPPLIERS TO MEET THEIR OBLIGATIONS FOR THAT REPORTING PERIOD
9 UNDER THIS ACT. IN MAKING THIS DETERMINATION THE COMMISSION
10 SHALL CONSIDER WHETHER ELECTRIC DISTRIBUTION COMPANIES OR
11 ELECTRIC GENERATION SUPPLIERS HAVE MADE A GOOD FAITH EFFORT TO
12 ACQUIRE SUFFICIENT ALTERNATIVE ENERGY TO COMPLY WITH THEIR
13 OBLIGATIONS. SUCH GOOD FAITH EFFORTS SHALL INCLUDE, BUT ARE NOT
14 LIMITED TO, BANKING ALTERNATIVE ENERGY CREDITS DURING THEIR
15 TRANSITION PERIODS, SEEKING ALTERNATIVE ENERGY CREDITS THROUGH
16 COMPETITIVE SOLICITATIONS AND SEEKING TO PROCURE ALTERNATIVE
17 ENERGY CREDITS OR ALTERNATIVE ENERGY THROUGH LONG-TERM
18 CONTRACTS. IN FURTHER MAKING ITS DETERMINATION THE COMMISSION
19 SHALL ASSESS THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS IN
20 THE GENERATION ATTRIBUTES TRACKING SYSTEM (GATS) OR ITS
21 SUCCESSOR, AND THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS
22 GENERALLY IN PENNSYLVANIA AND OTHER JURISDICTIONS IN THE PJM
23 INTERCONNECTION, L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM)
24 OR ITS SUCCESSOR. THE COMMISSION MAY ALSO REQUIRE SOLICITATIONS
25 FOR ALTERNATIVE ENERGY CREDITS AS PART OF DEFAULT SERVICE BEFORE
26 REQUESTS OF FORCE MAJEURE CAN BE MADE. IF THE COMMISSION FURTHER
27 DETERMINES THAT ALTERNATIVE ENERGY RESOURCES ARE NOT REASONABLY
28 AVAILABLE IN SUFFICIENT QUANTITIES IN THE MARKETPLACE FOR THE
29 ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION
30 SUPPLIERS TO MEET THEIR OBLIGATIONS UNDER THIS ACT, THEN THE
20070H1203B2343 - 20 -
1 COMMISSION SHALL MODIFY THE UNDERLYING OBLIGATION OF THE
2 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OR
3 RECOMMEND TO THE GENERAL ASSEMBLY THAT THE UNDERLYING OBLIGATION
4 BE ELIMINATED. COMMISSION MODIFICATION OF THE ELECTRIC <--
5 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OBLIGATIONS
6 UNDER THIS ACT SHALL BE FOR THAT COMPLIANCE PERIOD ONLY.
7 COMMISSION MODIFICATION SHALL NOT AUTOMATICALLY REDUCE THE
8 OBLIGATION FOR SUBSEQUENT COMPLIANCE YEARS. IF THE COMMISSION
9 MODIFIES THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC
10 GENERATION SUPPLIER OBLIGATIONS UNDER THIS ACT, THE COMMISSION
11 MAY REQUIRE THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC
12 GENERATION SUPPLIER TO ACQUIRE ADDITIONAL ALTERNATIVE ENERGY
13 CREDITS IN SUBSEQUENT YEARS EQUIVALENT TO THE OBLIGATION REDUCED
14 DUE TO A FORCE MAJEURE DECLARATION IF THE COMMISSION DETERMINES
15 THAT SUFFICIENT ALTERNATIVE ENERGY CREDITS EXIST IN THE
16 MARKETPLACE.
17 * * *
18 "NET METERING." THE MEANS OF MEASURING THE DIFFERENCE
19 BETWEEN THE ELECTRICITY SUPPLIED BY AN ELECTRIC UTILITY AND THE
20 ELECTRICITY GENERATED BY A CUSTOMER-GENERATOR [WHEN THE
21 RENEWABLE ENERGY GENERATING SYSTEM IS INTENDED PRIMARILY], WHEN
22 ANY PORTION OF THE ELECTRICITY GENERATED BY THE ALTERNATIVE
23 ENERGY GENERATING SYSTEM IS USED TO OFFSET PART OR ALL OF THE
24 CUSTOMER-GENERATOR'S REQUIREMENTS FOR ELECTRICITY. VIRTUAL METER
25 AGGREGATION ON PROPERTIES OWNED OR LEASED AND OPERATED BY A
26 CUSTOMER-GENERATOR AND LOCATED WITHIN TWO MILES OF THE
27 BOUNDARIES OF THE CUSTOMER-GENERATOR'S PROPERTY AND WITHIN A
28 SINGLE ELECTRIC DISTRIBUTION COMPANY'S SERVICE TERRITORY SHALL
29 BE ELIGIBLE FOR NET METERING. AT THE END OF EACH MONTHLY BILLING <--
30 PERIOD, THE ELECTRIC DISTRIBUTION COMPANY SHALL COMPENSATE THE
20070H1203B2343 - 21 -
1 CUSTOMER-GENERATOR FOR KILOWATT-HOURS GENERATED BY THE CUSTOMER-
2 GENERATOR OVER THE AMOUNT OF KILOWATT HOURS DELIVERED BY THE
3 ELECTRIC DISTRIBUTION COMPANY DURING THE BILLING PERIOD AT THE
4 ELECTRIC DISTRIBUTION COMPANY'S AVOIDED COST OF WHOLESALE POWER.
5 NO CONTRACT SHALL ABROGATE THE CUSTOMER-GENERATOR'S RIGHT TO
6 RECEIVE THESE PAYMENTS. NO CUSTOMER GENERATOR SHALL OPERATE MORE
7 THAN ONE ALTERNATIVE ENERGY PROJECT THAT IS ENGAGED IN VIRTUAL
8 METER AGGREGATION WITHIN EACH OF THE ELECTRIC DISTRIBUTION
9 COMPANY'S SERVICE TERRITORIES.
10 * * *
11 "TIER I ALTERNATIVE ENERGY SOURCE." ENERGY DERIVED FROM: <--
12 (1) SOLAR PHOTOVOLTAIC AND SOLAR THERMAL ENERGY.
13 (2) WIND POWER.
14 (3) LOW-IMPACT HYDROPOWER.
15 (4) GEOTHERMAL ENERGY.
16 (5) BIOLOGICALLY DERIVED METHANE GAS.
17 (6) FUEL CELLS.
18 (7) BIOMASS ENERGY.
19 (8) COAL MINE METHANE.
20 * * *
21 SECTION 2. SECTION 3(B) AND (F) OF THE ACT ARE AMENDED AND
22 SUBSECTION (E) IS AMENDED BY ADDING A PARAGRAPH TO READ:
23 SECTION 3. ALTERNATIVE ENERGY PORTFOLIO STANDARDS.
24 * * *
25 (B) TIER I AND SOLAR PHOTOVOLTAIC SHARES.--
26 (1) TWO YEARS AFTER THE EFFECTIVE DATE OF THIS ACT, AT
27 LEAST 1.5% OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC
28 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER TO
29 RETAIL ELECTRIC CUSTOMERS IN THIS COMMONWEALTH SHALL BE
30 GENERATED FROM TIER I ALTERNATIVE ENERGY SOURCES. EXCEPT AS
20070H1203B2343 - 22 -
1 PROVIDED IN THIS SECTION, THE MINIMUM PERCENTAGE OF ELECTRIC
2 ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC CUSTOMERS FROM
3 ALTERNATIVE ENERGY SOURCES SHALL INCREASE TO 2% THREE YEARS
4 AFTER THE EFFECTIVE DATE OF THIS ACT. THE MINIMUM PERCENTAGE
5 OF ELECTRIC ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC
6 CUSTOMERS FROM ALTERNATIVE ENERGY SOURCES SHALL INCREASE BY
7 AT LEAST 0.5% EACH YEAR SO THAT AT LEAST 8% OF THE ELECTRIC
8 ENERGY SOLD BY AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC
9 GENERATION SUPPLIER TO RETAIL ELECTRIC CUSTOMERS IN THAT
10 CERTIFICATED TERRITORY IN THE 15TH YEAR AFTER THE EFFECTIVE
11 DATE OF THIS SUBSECTION IS SOLD FROM TIER I ALTERNATIVE
12 ENERGY RESOURCES.
13 (2) [OF THE ELECTRIC ENERGY REQUIRED TO BE SOLD FROM
14 TIER I SOURCES, THE TOTAL PERCENTAGE THAT MUST BE SOLD FROM
15 SOLAR PHOTOVOLTAIC TECHNOLOGIES IS FOR:] THE TOTAL PERCENTAGE
16 OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC DISTRIBUTION
17 COMPANY OR ELECTRIC GENERATION SUPPLIER TO RETAIL ELECTRIC
18 CUSTOMERS IN THIS COMMONWEALTH THAT MUST BE SOLD FROM SOLAR
19 PHOTOVOLTAIC TECHNOLOGIES IS:
20 [(I) YEARS 1 THROUGH 4 - 0.0013%.
21 (II) YEARS 5 THROUGH 9 - 0.0203%.
22 (III) YEARS 10 THROUGH 14 - 0.2500%.
23 (IV) YEARS 15 AND THEREAFTER - 0.5000%.]
24 (I) 0.0013% FOR JUNE 1, 2006, THROUGH MAY 31, 2007.
25 (II) 0.0030% FOR JUNE 1, 2007, THROUGH MAY 31, 2008.
26 (III) 0.0063% FOR JUNE 1, 2008, THROUGH MAY 31,
27 2009.
28 (IV) 0.0120% FOR JUNE 1, 2009, THROUGH MAY 31, 2010.
29 (V) 0.0203% FOR JUNE 1, 2010, THROUGH MAY 31, 2011.
30 (VI) 0.0325% FOR JUNE 1, 2011, THROUGH MAY 31, 2012.
20070H1203B2343 - 23 -
1 (VII) 0.0510% FOR JUNE 1, 2012, THROUGH MAY 31,
2 2013.
3 (VIII) 0.0840% FOR JUNE 1, 2013, THROUGH MAY 31,
4 2014.
5 (IX) 0.1440% FOR JUNE 1, 2014, THROUGH MAY 31, 2015.
6 (X) 0.2500% FOR JUNE 1, 2015, THROUGH MAY 31, 2016.
7 (XI) 0.2933% FOR JUNE 1, 2016, THROUGH MAY 31, 2017.
8 (XII) 0.3400% FOR JUNE 1, 2017, THROUGH MAY 31,
9 2018.
10 (XIII) 0.3900% FOR JUNE 1, 2018, THROUGH MAY 31,
11 2019.
12 (XIV) 0.4433% FOR JUNE 1, 2019, THROUGH MAY 31,
13 2020.
14 (XV) 0.5000% FOR JUNE 1, 2020, AND THEREAFTER.
15 (3) UPON COMMENCEMENT OF THE BEGINNING OF THE 6TH
16 REPORTING YEAR, THE COMMISSION SHALL UNDERTAKE A REVIEW OF
17 THE COMPLIANCE BY ELECTRIC DISTRIBUTION COMPANIES AND
18 ELECTRIC GENERATION SUPPLIERS WITH THE REQUIREMENTS OF THIS
19 ACT. THE REVIEW SHALL ALSO INCLUDE THE STATUS OF ALTERNATIVE
20 ENERGY TECHNOLOGIES WITHIN THIS COMMONWEALTH AND THE CAPACITY
21 TO ADD ADDITIONAL ALTERNATIVE ENERGY RESOURCES. THE
22 COMMISSION SHALL USE THE RESULTS OF THIS REVIEW TO RECOMMEND
23 TO THE GENERAL ASSEMBLY ADDITIONAL COMPLIANCE GOALS BEYOND
24 YEAR 15. THE COMMISSION SHALL WORK WITH THE DEPARTMENT IN
25 EVALUATING THE FUTURE ALTERNATIVE ENERGY RESOURCE POTENTIAL.
26 * * *
27 (E) ALTERNATIVE ENERGY CREDITS.--
28 * * *
29 (12) (I) UNLESS A CONTRACTUAL PROVISION EXPLICITLY <--
30 ASSIGNS ALTERNATIVE ENERGY CREDITS IN A DIFFERENT MANNER, THE
20070H1203B2343 - 24 -
1 OWNER OF THE ALTERNATIVE ENERGY SYSTEM OR A CUSTOMER-
2 GENERATOR OWNS ANY AND ALL ALTERNATIVE ENERGY CREDITS
3 ASSOCIATED WITH OR CREATED BY THE PRODUCTION OF ELECTRIC
4 ENERGY BY SUCH FACILITY OR CUSTOMER, AND THE OWNER OR
5 CUSTOMER SHALL BE ENTITLED TO SELL, TRANSFER OR TAKE ANY
6 OTHER ACTION TO WHICH A LEGAL OWNER OF PROPERTY IS ENTITLED
7 TO TAKE WITH RESPECT TO THE CREDITS.
8 (II) THIS PARAGRAPH SHALL APPLY TO ALL ALTERNATIVE <--
9 ENERGY CREDITS CREATED PURSUANT TO THIS ACT EXCEPT THOSE
10 CREATED UNDER CONTRACTS WHICH WERE EXECUTED PRIOR TO THE
11 EFFECTIVE DATE OF THIS PARAGRAPH BETWEEN AN ELECTRIC
12 DISTRIBUTION COMPANY AND A COGENERATION FACILITY OR A
13 SMALL POWER PRODUCTION FACILITY AS THOSE TERMS ARE
14 DEFINED UNDER THE FEDERAL PUBLIC UTILITY REGULATORY
15 POLICIES ACT OF 1978 (16 U.S.C. § 824A-3).
16 (F) ALTERNATIVE COMPLIANCE PAYMENT.--
17 (1) AT THE END OF EACH PROGRAM YEAR, THE PROGRAM
18 ADMINISTRATOR SHALL PROVIDE A REPORT TO THE COMMISSION AND TO
19 EACH COVERED ELECTRIC DISTRIBUTION COMPANY SHOWING THEIR
20 STATUS LEVEL OF ALTERNATIVE ENERGY ACQUISITION.
21 (2) THE COMMISSION SHALL CONDUCT A REVIEW OF EACH
22 DETERMINATION MADE UNDER SUBSECTIONS (B) AND (C). IF, AFTER
23 NOTICE AND HEARING, THE COMMISSION DETERMINES THAT AN
24 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER
25 HAS FAILED TO COMPLY WITH SUBSECTIONS (B) AND (C), THE
26 COMMISSION SHALL IMPOSE AN ALTERNATIVE COMPLIANCE PAYMENT ON
27 THAT COMPANY OR SUPPLIER.
28 (3) THE ALTERNATIVE COMPLIANCE PAYMENT, WITH THE
29 EXCEPTION OF THE SOLAR PHOTOVOLTAIC SHARE COMPLIANCE
30 REQUIREMENT SET FORTH IN SUBSECTION (B)(2), SHALL BE $45
20070H1203B2343 - 25 -
1 TIMES THE NUMBER OF ADDITIONAL ALTERNATIVE ENERGY CREDITS
2 NEEDED IN ORDER TO COMPLY WITH SUBSECTION (B) OR (C).
3 (4) THE ALTERNATIVE COMPLIANCE PAYMENT FOR THE SOLAR
4 PHOTOVOLTAIC SHARE SHALL BE 200% OF THE AVERAGE MARKET VALUE
5 OF SOLAR RENEWABLE ENERGY CREDITS SOLD DURING THE REPORTING
6 PERIOD WITHIN THE SERVICE REGION OF THE REGIONAL TRANSMISSION
7 ORGANIZATION, INCLUDING, WHERE APPLICABLE, THE LEVELIZED UP-
8 FRONT REBATES RECEIVED BY SELLERS OF SOLAR RENEWABLE ENERGY
9 CREDITS IN OTHER JURISDICTIONS IN THE PJM INTERCONNECTION,
10 L.L.C. TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR.
11 (5) THE COMMISSION SHALL ESTABLISH A PROCESS TO PROVIDE
12 FOR, AT LEAST ANNUALLY, A REVIEW OF THE ALTERNATIVE ENERGY
13 MARKET WITHIN THIS COMMONWEALTH AND THE SERVICE TERRITORIES
14 OF THE REGIONAL TRANSMISSION ORGANIZATIONS THAT MANAGE THE
15 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH. THE
16 COMMISSION WILL USE THE RESULTS OF THIS STUDY TO IDENTIFY ANY
17 NEEDED CHANGES TO THE COST ASSOCIATED WITH THE ALTERNATIVE
18 COMPLIANCE PAYMENT PROGRAM. IF THE COMMISSION FINDS THAT THE
19 COSTS ASSOCIATED WITH THE ALTERNATIVE COMPLIANCE PAYMENT
20 PROGRAM MUST BE CHANGED, THE COMMISSION SHALL PRESENT THESE
21 FINDINGS TO THE GENERAL ASSEMBLY FOR LEGISLATIVE ENACTMENT.
22 * * *
23 SECTION 3. SECTIONS 4 AND 5 OF THE ACT ARE AMENDED TO READ:
24 SECTION 4. PORTFOLIO REQUIREMENTS IN OTHER STATES.
25 IF AN ELECTRIC DISTRIBUTION SUPPLIER OR ELECTRIC GENERATION
26 COMPANY PROVIDER SELLS ELECTRICITY IN ANY OTHER STATE AND IS
27 SUBJECT TO RENEWABLE ENERGY PORTFOLIO REQUIREMENTS IN THAT
28 STATE, THEY SHALL LIST ANY SUCH REQUIREMENT AND SHALL INDICATE
29 HOW IT SATISFIED THOSE RENEWABLE ENERGY PORTFOLIO REQUIREMENTS.
30 TO PREVENT DOUBLE-COUNTING, THE ELECTRIC DISTRIBUTION SUPPLIER
20070H1203B2343 - 26 -
1 OR ELECTRIC GENERATION COMPANY SHALL NOT SATISFY PENNSYLVANIA'S
2 ALTERNATIVE ENERGY PORTFOLIO REQUIREMENTS USING ALTERNATIVE
3 ENERGY USED TO SATISFY ANOTHER STATE'S PORTFOLIO REQUIREMENTS[.
4 ENERGY DERIVED ONLY FROM ALTERNATIVE ENERGY SOURCES INSIDE THE
5 GEOGRAPHICAL BOUNDARIES OF THIS COMMONWEALTH OR WITHIN THE
6 SERVICE TERRITORY OF ANY REGIONAL TRANSMISSION ORGANIZATION THAT
7 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH
8 SHALL BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS UNDER THIS
9 ACT.] OR ALTERNATIVE ENERGY CREDITS ALREADY PURCHASED BY
10 INDIVIDUALS, BUSINESSES, OR GOVERNMENT BODIES THAT DO NOT HAVE A
11 COMPLIANCE OBLIGATION UNDER THIS ACT UNLESS THE INDIVIDUAL,
12 BUSINESS OR GOVERNMENT BODY SELLS THOSE CREDITS TO THE ELECTRIC
13 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER. ENERGY
14 DERIVED FROM ALTERNATIVE ENERGY SOURCES INSIDE THE GEOGRAPHICAL
15 BOUNDARIES OF THIS COMMONWEALTH SHALL BE ELIGIBLE TO MEET THE
16 COMPLIANCE REQUIREMENTS UNDER THIS ACT. ENERGY DERIVED FROM
17 ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE GEOGRAPHICAL
18 BOUNDARIES OF THIS COMMONWEALTH BUT WITHIN THE SERVICE TERRITORY
19 OF A REGIONAL TRANSMISSION ORGANIZATION THAT MANAGES THE
20 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH SHALL ONLY
21 BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF ELECTRIC
22 DISTRIBUTION COMPANIES OR ELECTRIC GENERATION SUPPLIERS LOCATED
23 WITHIN THE SERVICE TERRITORY OF THE SAME REGIONAL TRANSMISSION
24 ORGANIZATION. FOR PURPOSES OF COMPLIANCE WITH THIS ACT,
25 ALTERNATIVE ENERGY SOURCES LOCATED IN THE PJM INTERCONNECTION,
26 L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR
27 SERVICE TERRITORY SHALL BE ELIGIBLE TO FULFILL COMPLIANCE
28 OBLIGATIONS OF PIKE COUNTY LIGHT AND POWER COMPANY AND <--
29 PENNSYLVANIA POWER COMPANY ALL PENNSYLVANIA ELECTRIC <--
30 DISTRIBUTION COMPANIES AND ELECTRIC GENERATION SUPPLIERS. ENERGY
20070H1203B2343 - 27 -
1 DERIVED FROM ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE
2 SERVICE TERRITORY OF A REGIONAL TRANSMISSION ORGANIZATION THAT
3 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH
4 SHALL NOT BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF
5 THIS ACT. ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC
6 GENERATION SUPPLIERS SHALL DOCUMENT THAT THIS ENERGY WAS NOT
7 USED TO SATISFY ANOTHER STATE'S RENEWABLE ENERGY PORTFOLIO
8 STANDARDS.
9 SECTION 5. INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR
10 FACILITIES.
11 EXCESS GENERATION FROM NET-METERED CUSTOMER-GENERATORS SHALL
12 BE "TRUED-UP" RECEIVE FULL RETAIL VALUE FOR ALL ENERGY PRODUCED <--
13 ON AN ANNUAL BASIS. THE COMMISSION SHALL DEVELOP TECHNICAL AND
14 NET METERING INTERCONNECTION RULES FOR CUSTOMER-GENERATORS
15 INTENDING TO OPERATE RENEWABLE ONSITE GENERATORS IN PARALLEL
16 WITH THE ELECTRIC UTILITY GRID, CONSISTENT WITH RULES DEFINED IN
17 OTHER STATES WITHIN THE SERVICE REGION OF THE REGIONAL
18 TRANSMISSION ORGANIZATION THAT MANAGES THE TRANSMISSION SYSTEM
19 IN ANY PART OF THIS COMMONWEALTH. THE COMMISSION SHALL CONVENE A
20 STAKEHOLDER PROCESS TO DEVELOP STATEWIDE TECHNICAL AND NET
21 METERING RULES FOR CUSTOMER-GENERATORS. THE COMMISSION SHALL
22 DEVELOP THESE RULES WITHIN NINE MONTHS OF THE EFFECTIVE DATE OF
23 THIS ACT.
24 SECTION 3.1. NOTWITHSTANDING THE ADDITION OF SECTION <--
25 3(E)(12) OF THE ACT, NOTHING IN THIS ACT IS INTENDED TO REVERSE
26 OR MODIFY THE PENNSYLVANIA PUBLIC UTILITY COMMISSION'S ORDER
27 DOCKET NUMBER P-00052149.
28 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
B22L66RLE/20070H1203B2343 - 28 -