1Amending the act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1),
2entitled "An act providing for alternative sources of energy;
3establishing the Alternative Energy Development Program, the
4Consumer Energy Program, the Home Energy Efficiency Loan
5Program, the Home Energy Efficiency Loan Fund and the
6Alternative Energy Production Tax Credit Program; and
7providing for the powers and duties of the Department of
8Environmental Protection," further providing for definitions
9and for pollution control technology projects.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. The definition of "pollution control technology
13project" in section 102 of the act of July 9, 2008 (1st
14Sp.Sess., P.L.1873, No.1), known as the Alternative Energy
15Investment Act, is amended and the section is amended by adding
16definitions to read:

17Section 102. Definitions.

18The following words and phrases when used in this act shall
19have the meanings given to them in this section unless the

1context clearly indicates otherwise:

2* * *

3"Bottoming-cycle cogeneration unit." A cogeneration unit in
4which the energy input to the unit is first used to produce
5useful thermal energy and at least some of the reject heat from
6the useful thermal energy application or process is then used
7for electricity production.

8* * *

9"Cogeneration unit." A stationary, coal-fired boiler or
10stationary, coal-fired combustion turbine which:

11(1) Has equipment used to produce electricity and useful
12thermal energy for industrial, commercial, heating or cooling
13purposes through the sequential use of energy.

14(2) Produces, for a topping-cycle cogeneration unit,
15during the 12-month period starting on the date the unit
16first produces electricity and during any calendar year after
17the 12-month period in which the unit first produces
18electricity:

19(i) Useful thermal energy not less than 5% of total
20energy output.

21(ii) Useful power that when added to one-half of
22useful thermal energy produced:

23(A) Is not less than 42.5% of total energy
24input, if useful thermal energy produced is 15% or
25more of total energy output.

26(B) Is not less than 45% of total energy input,
27if useful thermal energy produced is less than 15% of
28total energy output.

29(3) Produces, for a bottoming-cycle cogeneration unit,
30during the 12-month period starting on the date the unit

1first produces electricity and during any calendar year after
2the 12-month period in which the unit first produces
3electricity, useful power not less than 45% of total energy
4input.

5* * *

6"Electric generating unit." As follows:

7(1) Except as provided in paragraphs (4) and (5), a
8stationary, coal or coal refuse-fired boiler or stationary,
9coal-fired combustion turbine in this Commonwealth that
10serves or has served at any time, since the later of November
1115, 1990, or the start-up of the unit's combustion chamber, a
12generator with nameplate capacity of more than 25 MWe
13producing electricity for sale.

14(2) A stationary boiler or stationary combustion turbine
15in this Commonwealth that is not an electric generating unit
16under paragraph (1) that begins to combust coal or coal-
17derived fuel or to serve a generator with nameplate capacity
18of more than 25 MWe producing electricity for sale shall
19become an electric generating unit as provided in paragraph
20(1) on the first date on which it both combusts coal or coal-
21derived fuel and serves the generator.

22(3) A unit that qualifies as a cogeneration unit during
23the 12-month period starting on the date the unit first
24produces electricity and meets the requirements of paragraph
25(4) for at least one calendar year, but subsequently no
26longer meets the requirements, shall become an electric
27generating unit starting on the earlier of January 1 after
28the first calendar year during which the unit first no longer
29qualifies as a cogeneration unit or January 1 after the first
30calendar year during which the unit no longer meets the

1requirements of paragraph (4)(ii).

2(4) A unit that is an electric generating unit under
3paragraph (1) or (2) and meets both of the following
4requirements will not be an electric generating unit if it:

5(i) Qualifies as a cogeneration unit during the 12-
6month period starting on the date the unit first produces
7electricity and continues to qualify as a cogeneration
8unit.

9(ii) Has not served at any time, since the later of
10November 15, 1990, or the start-up of the unit's
11combustion chamber, a generator with nameplate capacity
12of more than 25 MWe supplying in any calendar year more
13than one-third of the unit's potential electric output
14capacity or 219,000 MWhs, whichever is greater, to any
15utility power distribution system for sale.

16(5) A "solid waste incineration unit" as defined in
17section 129(g)(1) of the Clean Air Act (69 Stat. 1, 42 U.S.C.
18§ 7429(g)(1)) that combusts "municipal waste" as defined in
19section 129(g)(5) of the Clean Air Act (42 U.S.C § 7429(g)
20(5)) is not an electric generating unit if it is subject to
21one of the following rules:

22(i) A Environmental Protection Agency-approved State
23plan for implementing the requirements of 40 CFR Pt. 60
24Subpt. Cb (relating to emissions guidelines and
25compliance times for large municipal waste combustors
26that are constructed on or before September 20, 1994).

27(ii) 40 CFR Pt. 60, Subpt. Eb (relating to standards
28of performance for large municipal waste combustors for
29which construction is commenced after September 20, 1994
30or for which modification or reconstruction is commenced

1after June 19, 1996).

2(iii) 40 CFR Pt. 60, Subpt. AAAA (relating to
3standards of performance for small municipal waste
4combustion units for which construction is commenced
5after August 30, 1999 or for which modification or
6reconstruction is commenced after June 6, 2001).

7(iv) An Environmental Protection Agency-approved
8State plan for implementing 40 CFR Pt. 60, Subpt. BBBB
9(relating to emission guidelines and compliance times for
10small municipal waste combustion units constructed on or
11before August 30, 1999).

12(v) 40 CFR Pt. 62, Subpt. FFF (relating to Federal
13plan requirements for large municipal waste combustors
14constructed on or before September 20, 1994).

15(vi) 40 CFR Pt. 62, Subpt. JJJ (relating to Federal
16plan requirements for small municipal waste combustion
17units constructed on or before August 30, 1999).

18* * *

19"Nameplate capacity." The maximum electrical generating
20output in MWe that the generator is capable of producing on a
21steady-state basis during continuous operation when not
22restricted by seasonal or other deratings:

23(1) As specified by the manufacturer, starting from the
24initial installation of the generator.

25(2) As specified by the person conducting the physical
26change, starting from the completion of a subsequent physical
27change in the generator resulting in an increase in the
28maximum electrical generating output in MWe.

29"Pollution control technology project." The acquisition,
30construction or installation of pollution control technology and

1equipment or other environmental-related project that enables an
2electric generating unit or cogeneration unit to meet any of the
3following requirements:

4[(1) Mercury emission reductions under 25 Pa. Code Ch.
5123 (relating to standards for contaminants).

6(2) The regulations adopted by the United States
7Environmental Protection Agency known as the Clean Air
8Mercury Rule codified at 40 CFR Pts. 60 (relating to
9standards of performance for new stationary sources), 72
10(relating to permits regulation) and 75 (relating to
11continuous emission monitoring).

12(3) Nitrogen oxides and sulfur dioxide emission
13reduction under 25 Pa. Code Chs. 121 (relating to general
14provisions), 129 (relating to standards for sources) and 145
15(relating to interstate pollution transport reduction).

16(4) The Clean Air Interstate Rule in 40 C.F.R. (relating
17to protection of environment).]

18(1) Air quality standards as set fourth by the
19Environmental Protection Agency, the Department of
20Environmental Protection or other local environmental
21regulatory agency.

22(2) Water quality standards as set fourth by the
23Environmental Protection Agency, the Susquehanna River Basin
24Commission, the Delaware River Basin Commission, the
25Department of Environmental Protection or other local
26environmental regulatory agency.

27(3) Standards for the handling, processing or
28disposition of solid waste materials, including, but not
29limited to, coal combustion residuals, as set fourth by the
30Environmental Protection Agency, the Department of

1Environmental Protection or other local environmental
2regulatory agency.

3* * *

4"Topping-cycle cogeneration unit." A cogeneration unit in
5which the energy input to the unit is first used to produce
6useful power, including electricity, and at least some of the
7reject heat from the electricity production is then used to
8provide useful thermal energy.

9* * *

10Section 2. Section 304 of the act is amended to read:

11Section 304. Pollution control technology projects.

12(a) Allocation.--The sum of $25,000,000 shall be transferred
13by the authority to the department for pollution control
14technology projects. The funds shall be utilized for grants to
15electric generating units located in this Commonwealth or
16cogeneration units, as defined under 25 Pa. Code § 123.202
17(relating to definitions), that utilize coal, as defined under
1825 Pa. Code § 123.202, as their primary fuel source[, and that
19have an installed capacity of less than 500 megawatts, located
20in this Commonwealth].

21(b) Distribution.--Each electric generating unit or 
22cogeneration unit shall be eligible to receive a pro rata share 
23of moneys allocated for pollution control technology projects 
24[based on criteria developed by the department. The department 
25shall publish the criteria to be used in the Pennsylvania 
26Bulletin and on its Internet website and shall submit the 
27criteria to the Environmental Resources and Energy Committee of 
28the Senate and the Environmental Resources and Energy Committee 
29of the House of Representatives for comment and review 60 days 
30prior to accepting a grant application under this section]. In
 

1no case shall the allocation made under subsection (a) be used 
2to provide grants to an electric generation unit or a 
3cogeneration unit for the purposes of conversion to a new fuel 
4source or for modifying a unit for the purposes of using 
5multiple fuel sources.

6Section 3. The criteria developed as of the effective date
7of this act by the Department of Environmental Protection
8pursuant to the section 304(b) of the act are hereby abrogated.

9Section 4. This act shall take effect in 60 days.