PUBLIC UTILITY CODE (66 PA.C.S.) - OMNIBUS AMENDMENTS
                 Act of Oct. 15, 2008, P.L. 1592, No. 129             Cl. 66
                             Session of 2008
                               No. 2008-129

     HB 2200

                                  AN ACT

     Amending Title 66 (Public Utilities) of the Pennsylvania
        Consolidated Statutes, further providing for director of
        operations, secretary, employees and consultants; repealing
        provisions relating to office of trial staff; further
        providing for bureaus and offices; providing for other
        bureaus, offices and positions; further providing for
        electric utility definitions; providing for energy efficiency
        and conservation program and for energy efficiency and
        conservation; further providing for duties of electric
        distribution companies and for market power remediation; and
        providing for procurement, for additional alternative energy
        sources and for carbon dioxide sequestration network.

        The General Assembly recognizes the following public policy
     findings and declares that the following objectives of the
     Commonwealth are served by this act:
            (1)  The health, safety and prosperity of all citizens of
        this Commonwealth are inherently dependent upon the
        availability of adequate, reliable, affordable, efficient and
        environmentally sustainable electric service at the least
        cost, taking into account any benefits of price stability
        over time and the impact on the environment.
            (2)  It is in the public interest to adopt energy
        efficiency and conservation measures and to implement energy
        procurement requirements designed to ensure that electricity
        obtained reduces the possibility of electric price
        instability, promotes economic growth and ensures affordable
        and available electric service to all residents.
            (3)  It is in the public interest to expand the use of
        alternative energy and to explore the feasibility of new
        sources of alternative energy to provide electric generation
        in this Commonwealth.

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

        Section 1.  Section 305(a) of Title 66 of the Pennsylvania
     Consolidated Statutes is amended to read:
      § 305.  Director of operations, secretary, employees and
                consultants.
        (a)  Director of operations.--The commission may appoint a
     director of operations who shall serve at the pleasure of the
     commission and shall be responsible for the day-to-day
     administration and operation of the bureaus and offices of the
     commission, except that the director of operations shall have
     responsibility for the [Office of Trial Staff] prosecutorial
     function only with regard to administrative matters.
        * * *
        Section 1.1.  Section 306 of Title 66 is repealed:
      [§ 306.  Office of Trial Staff.
        (a)  General rule.--The Office of Trial Staff to the
     Pennsylvania Public Utility Commission is hereby created. The
     Director of Trial Staff, who shall be the chief prosecutor of
     the commission, shall be appointed by the commission and hold
     office at its pleasure. The commission shall assign a permanent
     staff of such legal, technical and other employees of the
     commission as may be required for the proper conduct of the work
     of the Office of Trial Staff. Employees assigned to the Office
     of Trial Staff shall be under the supervision of the Director of
     Trial Staff and shall not be assigned to any duties other than
     with the Office of Trial Staff, except as the commission may on
     a temporary case-by-case basis permit where the performance of
     such other duties will not represent, or create the appearance
     of, a conflict of interest. The commission may designate
     employees of the Office of Trial Staff to serve as deputies to
     the Director of Trial Staff. The Director of Trial Staff may
     recommend persons for consideration by the commission as
     employees under his supervision. Attorneys assigned to the
     Office of Trial Staff may be removed by the commission only for
     good cause. The compensation of the Director of Trial Staff and
     the employees under his supervision shall be fixed by the
     commission. The Director of Trial Staff shall report and be
     responsible directly to the commission, provided that the
     Director of Trial Staff shall be responsible to the commission
     through the Director of Operations only for purposes of
     administrative matters.
        (b)  Power and duties.--
            (1)  The Office of Trial Staff shall be responsible for
        and shall assist in the development of, challenge of and
        representation on the record of all matters in the public
        interest in all commission proceedings except those involving
        transportation, safety, eminent domain, siting, service
        issues having no impact on rates and ability to pay, provided
        that the Director of Trial Staff may petition the commission
        or may be directed by the commission to intervene to protect
        the public interest in any proceeding involving
        transportation, safety, eminent domain, siting, service
        issues having no impact on rates and ability to pay. To
        assist in carrying out his powers and duties under this
        section, the Director of Trial Staff shall supervise the
        activities of the Office of Trial Staff in all commission
        proceedings in which he participates. If the Director of
        Trial Staff is of the opinion that the initiation of a
        proceeding is necessary to protect the public interest, he
        shall request that the commission initiate the appropriate
        proceeding. When he participates in a commission proceeding,
        it shall be the duty and responsibility of the Director of
        Trial Staff to prosecute in that proceeding.
            (2)  In addition to any other responsibility conveyed
        upon it by the commission, the Office of Trial Staff shall
        submit a report to the commission recommending whether the
        commission should enter upon a hearing in order to
        investigate the justness and reasonableness of a tariff filed
        pursuant to section 1308 (relating to voluntary changes in
        rates), to suspend the effectiveness of such tariff, to allow
        such tariff to be suspended by operation of law or to allow
        temporary rates pursuant to section 1310 (relating to
        temporary rates). The report:
                (i)  shall recommend only the initial action which
            the commission should take and shall not contain an
            opinion as to the portion of a proposed rate increase
            which appears to be just and reasonable, unless the
            report includes a finding that the proposed rate increase
            appears to be just and reasonable in its entirety;
                (ii)  shall be released to the public if the report
            recommends that no hearings need to be held regarding the
            proposed tariff or that the proposed tariff should not be
            suspended, and may be released to the public in other
            circumstances when, in the opinion of the commission,
            such release would be in the public interest;
                (iii)  shall be considered only as an indication of
            the Office of Trial Staff's opinion regarding whether
            there should be a hearing on the proposed tariff or
            whether the proposed tariff should be suspended; and
                (iv)  shall not be considered as evidence of the
            Office of Trial Staff's opinion regarding the justness
            and reasonableness of any proposed tariff in any
            subsequent commission proceeding.
            (3)  Except for the duties set out in paragraph (2),
        neither the Director of Trial Staff nor any employee whom the
        Director of Trial Staff supervises shall communicate with the
        commission, an administrative law judge or any other employee
        of the commission who is deciding or advising in the decision
        in an on-the-record proceeding, whether contested or
        uncontested, as defined in section 332(c) (relating to
        procedures in general), except through the practice and
        procedure available to all parties to commission
        proceedings.]
        Section 1.2.  Section 308(a)(2) and (4), (b), (c), (e), (f)
     and (g) of Title 66 are amended to read:
      § 308.  Bureaus and offices.
        (a)  Enumeration.--There shall be established within the
     commission the following bureaus and functions:
            * * *
            [(2)  Bureau of Conservation, Economics and Energy
        Planning.]
            * * *
            [(4)  Office of Special Assistants.]
        (b)  Law Bureau.--The Law Bureau shall be a multifunction
     legal staff, consisting of a prosecutory function, an advisory
     function, a representational function and an enforcement
     function. The Director of the Law Bureau shall be the chief
     counsel of the commission and shall serve at the pleasure of the
     commission. The commission may also, from time to time, appoint
     such assistant counsel to the commission as may be required for
     the proper conduct of the work of the Law Bureau. Assistant
     counsel may be removed by the commission only for good cause.
     The Law Bureau shall advise the commission on any and all
     matters. No counsel shall in the same case or a factually
     related case perform duties in the prosecutory and advisory
     functions, if such performance would represent a conflict of
     interest. Except for litigation referred to the Attorney General
     or other appropriate outside counsel, the Law Bureau solely
     shall be responsible to represent the commission upon appeals
     and other hearings in the courts of common pleas and in the
     Commonwealth Court, Supreme Court or other courts of this
     Commonwealth or in any Federal court or agency and in actions
     instituted to recover penalties and to enforce regulations and
     orders of the commission. [No member of the Law Bureau shall
     participate in any prosecutory function in any matter] If
     necessary to protect the public interest, the Law Bureau,
     pursuant to its prosecutorial function, may initiate and
     participate in proceedings before the commission unless directed
     by the commission to do so in a proceeding involving
     transportation, safety, eminent domain, siting, service issues
     having no impact on rates or ability to pay or assist the Office
     of Trial Staff in carrying out the duties of the Office of Trial
     Staff, nor shall any member of the Law Bureau receive assistance
     from the Office of Trial Staff in the performance of his duties.
     Except as provided in this section, the Law Bureau may receive
     assistance from any other bureau or office of the commission as
     determined to be necessary.
        [(c)  Bureau of Conservation, Economics and Energy
     Planning.--The Bureau of Conservation, Economics and Energy
     Planning shall conduct studies and research all matters within
     the commission's jurisdiction and advise the commission of the
     results thereof in order to enable the commission to provide
     prospective regulation in the best interest of all parties
     concerned. Such studies and research shall include long range
     forecasting of energy needs and development; research into the
     use of new, efficient and economic methods of energy production;
     the review of the efficiency of the present generating systems
     operated within this Commonwealth; and the development of an
     effective program of energy conservation. The commission shall
     require all electric and gas public utilities subject to its
     jurisdiction to file with it an annual conservation report which
     shows the plans and progress achieved on programs of energy
     conservation. The commission shall, by rule, prescribe
     guidelines for the form and manner of such annual conservation
     report which report shall describe the current and proposed
     programs of each such utility designed to educate and encourage
     its customers in the optimum, effective and efficient use by
     them of electric and gas energy. The report shall include an
     accounting of the monetary and personnel resources actually or
     proposed to be expended or devoted to and the actual or
     anticipated results of such programs. The bureau shall review
     all proposals for electric and gas public utility plant
     expansion and shall submit for consideration of the commission
     its findings on what impact, if any, the electric and gas public
     utility plant expansion will have on rates charged by the public
     utility.]
        * * *
        [(e)  Office of Special Assistants.--The Office of Special
     Assistants shall be a support staff which shall be responsible
     to assist in the preparation of commission orders and shall
     perform such other advisory duties as may be required of it by
     the commission. No member of the Office of Special Assistants
     shall participate in any prosecutory function in any matter
     before the commission. No member of the Office of Special
     Assistants shall assist the Office of Trial Staff in carrying
     out the duties of the Office of Trial Staff, nor shall any
     member of the Office of Special Assistants receive assistance
     from the Office of Trial Staff in the performance of his duties.
     Except as provided in this section, the Office of Special
     Assistants may receive assistance from, or provide assistance
     to, any other bureau or office of the commission as determined
     to be necessary.
        (f)  Other bureaus and offices.--The commission shall
     establish such bureau or bureaus to perform such duties as the
     commission may prescribe regarding all matters respecting rates
     of public utilities and all matters respecting common carriers
     and contract carriers. The establishment of these bureaus shall
     not be construed to prohibit the commission from establishing
     any additional bureaus which the commission finds necessary to
     protect the interests of the people of this Commonwealth. The
     bureaus may perform such other duties not inconsistent with law
     as the commission may direct.
        (g)  Staff testimony.--Members of the staff of the
     commission, except for the Office of Special Assistants, shall
     appear and present testimony in any proceeding before the
     commission when called by the commission, the chief counsel, the
     Director of Trial Staff or any of the parties to the proceeding.
     In addition to any cross-examination by the Office of Trial
     Staff as provided in section 306 (relating to Office of Trial
     Staff) or the chief counsel, any member of the commission staff
     who participates in the analysis, review and conclusions in any
     proceedings before the commission may, in the discretion of the
     Office of Trial Staff or the chief counsel and with the consent
     of the presiding officer, cross-examine any witness presented by
     the parties to the proceeding at the public hearing.]
        Section 1.3.  Title 66 is amended by adding a section to
     read:
      § 308.2.  Other bureaus, offices and positions.
        (a)  Establishment of other bureaus, offices and positions.--
     In addition to the specific bureaus established in this part,
     the commission may establish other bureaus, offices and
     positions to perform the following functions:
            (1)  Review and provide advice regarding applications,
        petitions, tariff filings and other matters filed with the
        commission.
            (2)  Provide advice, review exceptions and prepare orders
        regarding matters to be adjudicated.
            (3)  Conduct financial reviews, earnings analyses and
        other financial studies.
            (4)  Conduct economic research, forecasting, energy
        conservation studies, cost studies and other economic studies
        related to public utilities.
            (5)  Monitor industry markets to detect anticompetitive,
        discriminatory or other unlawful conduct.
            (6)  Insure adequate maintenance, safety and reliability
        of utility networks.
            (7)  Insure adequate service quality, efficiency and
        availability at just and reasonable rates.
            (8)  Conduct financial, management, operational and
        special audits.
            (9)  Provide consumer information, consumer protection
        and informal resolution of complaints.
            (10)  Insure adequate safety, insurance, fitness and
        other requirements relevant to transportation utilities.
            (11)  Take appropriate enforcement actions, including
        rate proceedings, service proceedings and allocation
        proceedings, necessary to insure compliance with this title,
        commission regulations and orders.
            (12)  Perform other functions the commission deems
        necessary for the proper work of the commission.
        (b)  Prohibition on commingling of functions.--A commission
     employee engaged in a prosecutory function may not, in that
     matter or a factually related matter, provide advice or
     assistance to a commission employee performing an advisory
     function as to that matter.
        Section 1.4.  Section 2803 of Title 66 is amended by adding
     definitions to read:
      § 2803.  Definitions.
        The following words and phrases when used in this chapter
     shall have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        * * *
        "Bilateral contract."  An agreement, as approved by the
     commission, reached by two parties, each acting in its own
     independent self-interest, as a result of negotiations free of
     undue influence, duress or favoritism, in which the electric
     energy supplier agrees to sell and the electric distribution
     company agrees to buy a quantity of electric energy at a
     specified price for a specified period of time under terms
     agreed to by both parties, and which follows a standard industry
     template widely accepted in the industry or variations thereto
     accepted by the parties. Standard industry templates may include
     the EEI Master Agreement for physical energy purchases and sales
     and the ISDA Master Agreement for financial energy purchases and
     sales.
        * * *
        "Default service provider."  An electric distribution company
     within its certified service territory or an alternative
     supplier approved by the commission that provides generation
     service to retail electric customers who:
            (1)  contract for electric power, including energy and
        capacity, and the chosen electric generation supplier does
        not supply the service; or
            (2)  do not choose an alternative electric generation
        supplier.
        * * *
        Section 2.  Title 66 is amended by adding sections to read:
      § 2806.1.  Energy efficiency and conservation program.
        (a)  Program.--The commission shall, by January 15, 2009,
     adopt an energy efficiency and conservation program to require
     electric distribution companies to adopt and implement cost-
     effective energy efficiency and conservation plans to reduce
     energy demand and consumption within the service territory of
     each electric distribution company in this Commonwealth. The
     program shall include:
            (1)  Procedures for the approval of plans submitted under
        subsection (b).
            (2)  An evaluation process, including a process to
        monitor and verify data collection, quality assurance and
        results of each plan and the program.
            (3)  An analysis of the cost and benefit of each plan
        submitted under subsection (b) in accordance with a total
        resource cost test approved by the commission.
            (4)  An analysis of how the program and individual plans
        will enable each electric distribution company to achieve or
        exceed the requirements for reduction in consumption under
        subsections (c) and (d).
            (5)  Standards to ensure that each plan includes a
        variety of energy efficiency and conservation measures and
        will provide the measures equitably to all classes of
        customers.
            (6)  Procedures to make recommendations as to additional
        measures that will enable an electric distribution company to
        improve its plan and exceed the required reductions in
        consumption under subsections (c) and (d).
            (7)  Procedures to require that electric distribution
        companies competitively bid all contracts with conservation
        service providers.
            (8)  Procedures to review all proposed contracts prior to
        the execution of the contract with conservation service
        providers to implement the plan. The commission may order the
        modification of a proposed contract to ensure that the plan
        meets the requirements for reduction in demand and
        consumption under subsections (c) and (d).
            (9)  Procedures to ensure compliance with requirements
        for reduction in consumption under subsections (c) and (d).
            (10)  A requirement for the participation of conservation
        service providers in the implementation of all or part of a
        plan.
            (11)  Cost recovery to ensure that measures approved are
        financed by the same customer class that will receive the
        direct energy and conservation benefits.
        (b)  Duties of electric distribution companies.--
            (1)  (i)  By July 1, 2009, each electric distribution
            company shall develop and file an energy efficiency and
            conservation plan with the commission for approval to
            meet the requirements of subsection (a) and the
            requirements for reduction in consumption under
            subsections (c) and (d). The plan shall be implemented
            upon approval by the commission. The following are the
            plan requirements:
                    (A)  The plan shall include specific proposals to
                implement energy efficiency and conservation measures
                to achieve or exceed the required reductions in
                consumption under subsections (c) and (d).
                    (B)  A minimum of 10% of the required reductions
                in consumption under subsections (c) and (d) shall be
                obtained from units of Federal, State and local
                government, including municipalities, school
                districts, institutions of higher education and
                nonprofit entities.
                    (C)  The plan shall explain how quality assurance
                and performance will be measured, verified and
                evaluated.
                    (D)  The plan shall state the manner in which the
                plan will achieve the requirements of the program
                under subsection (a) and will achieve or exceed the
                required reductions in consumption under subsections
                (c) and (d).
                    (E)  The plan shall include a contract with one
                or more conservation service providers selected by
                competitive bid to implement the plan or a portion of
                the plan as approved by the commission.
                    (F)  The plan shall include estimates of the cost
                of implementation of the energy efficiency and
                conservation measures in the plan.
                    (G)  The plan shall include specific energy
                efficiency measures for households at or below 150%
                of the Federal poverty income guidelines. The number
                of measures shall be proportionate to those
                households' share of the total energy usage in the
                service territory. The electric distribution company
                shall coordinate measures under this clause with
                other programs administered by the commission or
                another Federal or State agency. The expenditures of
                an electric distribution company under this clause
                shall be in addition to expenditures made under 52
                Pa. Code Ch. 58 (relating to residential low income
                usage reduction programs).
                    (H)  The plan shall include a proposed cost-
                recovery tariff mechanism, in accordance with section
                1307 (relating to sliding scale of rates;
                adjustments), to fund the energy efficiency and
                conservation measures and to ensure full and current
                recovery of the prudent and reasonable costs of the
                plan, including administrative costs, as approved by
                the commission.
                    (I)  The electric distribution company shall
                demonstrate that the plan is cost effective using a
                total resource cost test approved by the commission
                and provides a diverse cross section of alternatives
                for customers of all rate classes.
                    (J)  The plan shall require an annual independent
                evaluation of its cost-effectiveness and a full
                review of the results of each five-year plan required
                under subsection (c)(3) and, to the extent practical,
                how the plan will be adjusted on a going-forward
                basis as a result of the evaluation.
                    (K)  The plan shall include an analysis of the
                electric distribution company's administrative costs.
                (ii)  A new plan shall be filed with the commission
            every five years or as otherwise required by the
            commission. The plan shall set forth the manner in which
            the company will meet the required reductions in
            consumption under subsections (c) and (d).
                (iii)  No more than 2% of funds available to
            implement a plan under this subsection shall be allocated
            for experimental equipment or devices.
            (2)  The commission shall direct an electric distribution
        company to modify or terminate any part of a plan approved
        under this section if, after an adequate period for
        implementation, the commission determines that an energy
        efficiency or conservation measure included in the plan will
        not achieve the required reductions in consumption in a cost-
        effective manner under subsections (c) and (d).
            (3)  If part of a plan is modified or terminated under
        paragraph (2), the electric distribution company shall submit
        a revised plan describing actions to be taken to offer
        substitute measures or to increase the availability of
        existing measures in the plan to achieve the required
        reductions in consumption under subsections (c) and (d).
        (c)  Reductions in consumption.--The plans adopted under
     subsection (b) shall reduce electric consumption as follows:
            (1)  By May 31, 2011, total annual weather-normalized
        consumption of the retail customers of each electric
        distribution company shall be reduced by a minimum of 1%. The
        1% load reduction in consumption shall be measured against
        the electric distribution company's expected load as
        forecasted by the commission for June 1, 2009, through May
        31, 2010, with provisions made for weather adjustments and
        extraordinary loads that the electric distribution company
        must serve.
            (2)  By May 31, 2013, the total annual weather-normalized
        consumption of the retail customers of each electric
        distribution company shall be reduced by a minimum of 3%. The
        3% load reduction in consumption shall be measured against
        the electric distribution company's expected load as
        forecasted by the commission for June 1, 2009, through May
        31, 2010, with provisions made for weather adjustments and
        extraordinary loads that the electric distribution company
        must serve.
            (3)  By November 30, 2013, and every five years
        thereafter, the commission shall evaluate the costs and
        benefits of the program established under subsection (a) and
        of approved energy efficiency and conservation plans
        submitted to the program. The evaluation shall be consistent
        with a total resource cost test or a cost-benefit analysis
        determined by the commission. If the commission determines
        that the benefits of the program exceed the costs, the
        commission shall adopt additional required incremental
        reductions in consumption.
        (d)  Peak demand.--The plans adopted under subsection (b)
     shall reduce electric demand as follows:
            (1)  By May 31, 2013, the weather-normalized demand of
        the retail customers of each electric distribution company
        shall be reduced by a minimum of 4.5% of annual system peak
        demand in the 100 hours of highest demand. The reduction
        shall be measured against the electric distribution company's
        peak demand for June 1, 2007, through May 31, 2008.
            (2)  By November 30, 2013, the commission shall compare
        the total costs of energy efficiency and conservation plans
        implemented under this section to the total savings in energy
        and capacity costs to retail customers in this Commonwealth
        or other costs determined by the commission. If the
        commission determines that the benefits of the plans exceed
        the costs, the commission shall set additional incremental
        requirements for reduction in peak demand for the 100 hours
        of greatest demand or an alternative reduction approved by
        the commission. Reductions in demand shall be measured from
        the electric distribution company's peak demand for the
        period from June 1, 2011, through May 31, 2012. The
        reductions in consumption required by the commission shall be
        accomplished no later than May 31, 2017.
        (e)  Commission approval.--
            (1)  The commission shall conduct a public hearing on
        each plan and allow for the submission of recommendations by
        the Office of Consumer Advocate and the Office of Small
        Business Advocate and by members of the public as to how the
        electric distribution company could improve its plan or
        exceed the required reductions in consumption under
        subsections (c) and (d).
            (2)  The commission shall approve or disapprove a plan
        filed under subsection (b) within 120 days of submission. The
        following shall apply to an order disapproving a plan:
                (i)  The commission shall describe in detail the
            reasons for the disapproval.
                (ii)  The electric distribution company shall have 60
            days to file a revised plan to address the deficiencies
            identified by the commission. The revised plan shall be
            approved or disapproved by the commission within 60 days.
        (f)  Penalties.--
            (1)  The following shall apply for failure to submit a
        plan:
                (i)  An electric distribution company that fails to
            file a plan under subsection (b) shall be subject to a
            civil penalty of $100,000 per day until the plan is
            filed.
                (ii)  An electric distribution company that fails to
            file a revised plan under subsection (e)(2)(ii) shall be
            subject to a civil penalty of $100,000 per day until the
            plan is filed.
                (iii)  Penalties collected under this paragraph shall
            be deposited in the low-income electric customer
            assistance program of the energy distribution company for
            the respective service territory.
            (2)  The following shall apply to an electric
        distribution company that fails to achieve the reductions in
        consumption required under subsection (c) or (d):
                (i)  The electric distribution company shall be
            subject to a civil penalty not less than $1,000,000 and
            not to exceed $20,000,000 for failure to achieve the
            required reductions in consumption under subsection (c)
            or (d). Any penalty paid by an electric distribution
            company under this subparagraph shall not be recoverable
            from ratepayers.
                (ii)  If an electric distribution company fails to
            achieve the required reductions in consumption under
            subsection (c) or (d), responsibility to achieve the
            reductions in consumption shall be transferred to the
            commission. The commission shall do all of the following:
                    (A)  Implement a plan to achieve the required
                reductions in consumption under subsection (c) or
                (d).
                    (B)  Contract with conservation service providers
                as necessary to implement any portion of the plan.
        (g)  Limitation on costs.--The total cost of any plan
     required under this section shall not exceed 2% of the electric
     distribution company's total annual revenue as of December 31,
     2006. The provisions of this paragraph shall not apply to the
     cost of low-income usage reduction programs established under 52
     Pa. Code Ch. 58 (relating to residential low income usage
     reduction programs).
        (h)  Costs.--The commission shall recover from electric
     distribution companies the costs of implementing the program
     established under this section.
        (i)  Report.--The following shall apply:
            (1)  Each electric distribution company shall submit an
        annual report to the commission relating to the results of
        the energy efficiency and conservation plan within each
        electric distribution service territory. The report shall
        include all of the following:
                (i)  Documentation of program expenditures.
                (ii)  Measurement and verification of energy savings
            under the plan.
                (iii)  Evaluation of the cost-effectiveness of
            expenditures.
                (iv)  Any other information required by the
            commission.
            (2)  Beginning five years following the effective date of
        this section and annually thereafter, the commission shall
        submit a report to the Consumer Protection and Professional
        Licensure Committee of the Senate and the Consumer Affairs
        Committee of the House of Representatives.
        (j)  Existing funding sources.--Each electric distribution
     company shall, upon request by any person, provide a list of all
     eligible Federal and State funding programs available to
     ratepayers for energy efficiency and conservation. The list
     shall be posted on the electric distribution company's Internet
     website.
        (k)  Recovery.--
            (1)  An electric distribution company shall recover on a
        full and current basis from customers, through a reconcilable
        adjustment clause under section 1307, all reasonable and
        prudent costs incurred in the provision or management of a
        plan provided under this section. This paragraph shall apply
        to all electric distribution companies, including electric
        distribution companies subject to generation or other rate
        caps.
            (2)  Except as set forth in paragraph (3), decreased
        revenues of an electric distribution company due to reduced
        energy consumption or changes in energy demand shall not be a
        recoverable cost under a reconcilable automatic adjustment
        clause.
            (3)  Decreased revenue and reduced energy consumption may
        be reflected in revenue and sales data used to calculate
        rates in a distribution-base rate proceeding filed by an
        electric distribution company under section 1308 (relating to
        voluntary changes in rates).
        (l)  Applicability.--This section shall not apply to an
     electric distribution company with fewer than 100,000 customers.
        (m)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Conservation service provider."  An entity that provides
     information and technical assistance on measures to enable a
     person to increase energy efficiency or reduce energy
     consumption and that has no direct or indirect ownership,
     partnership or other affiliated interest with an electric
     distribution company.
        "Electric distribution company total annual revenue."
     Amounts paid to the electric distribution company for
     generation, transmission, distribution and surcharges by retail
     customers.
        "Energy efficiency and conservation measures."
            (1)  Technologies, management practices or other measures
        employed by retail customers that reduce electricity
        consumption or demand if all of the following apply:
                (i)  The technology, practice or other measure is
            installed on or after the effective date of this section
            at the location of a retail customer.
                (ii)  The technology, practice or other measure
            reduces consumption of energy or peak load by the retail
            customer.
                (iii)  The cost of the acquisition or installation of
            the measure is directly incurred in whole or in part by
            the electric distribution company.
            (2)  Energy efficiency and conservation measures shall
        include solar or solar photovoltaic panels, energy efficient
        windows and doors, energy efficient lighting, including exit
        sign retrofit, high bay fluorescent retrofit and pedestrian
        and traffic signal conversion, geothermal heating,
        insulation, air sealing, reflective roof coatings, energy
        efficient heating and cooling equipment or systems and energy
        efficient appliances and other technologies, practices or
        measures approved by the commission.
        "Peak demand."  The highest electrical requirement occurring
     during a specified period. For an electric distribution company,
     the term shall mean the sum of the metered consumption for all
     retail customers over that period.
        "Quality assurance."  All of the following:
            (1)  The auditing of buildings, equipment and processes
        to determine the cost-effectiveness of energy efficiency and
        conservation measures using nationally recognized tools and
        certification programs.
            (2)  Independent inspection of completed energy
        efficiency and conservation measures completed by third-party
        entities to evaluate the quality of the completed measure.
        "Real-time price."  A rate that directly reflects the
     different cost of energy during each hour.
        "Time-of-use rate."  A rate that reflects the costs of
     serving customers during different time periods, including off-
     peak and on-peak periods, but not as frequently as each hour.
        "Total resource cost test."  A standard test that is met if,
     over the effective life of each plan not to exceed 15 years, the
     net present value of the avoided monetary cost of supplying
     electricity is greater than the net present value of the
     monetary cost of energy efficiency conservation measures.
      § 2806.2.  Energy efficiency and conservation.
        (a)  Registry.--The commission shall, by March 1, 2009,
     establish a registry of approved persons qualified to provide
     conservation services to all classes of customers. In order to
     be included in the registry, a conservation service provider
     must meet experience and other qualifications determined by the
     commission.
        (b)  Application.--The commission shall develop an
     application for registration under subsection (a) and may charge
     a reasonable registration fee.
        Section 3.  Section 2807(e) of Title 66 is amended and the
     section is amended by adding subsections to read:
      § 2807.  Duties of electric distribution companies.
        * * *
        (e)  Obligation to serve.--[An electric distribution
     company's] A default service provider's obligation to provide
     electric generation supply service following [implementation of
     restructuring and the choice of alternative generation by a
     customer] the expiration of a generation rate cap specified
     under section 2804(4) (relating to standards for restructuring
     of electric industry) or a restructuring plan under section
     2806(f) (relating to implementation, pilot programs and
     performance-based rates) is revised as follows:
            (1)  While an electric distribution company collects
        either a competitive transition charge or an intangible
        transition charge or until 100% of its customers have choice,
        whichever is longer, the electric distribution company shall
        continue to have the full obligation to serve, including the
        connection of customers, the delivery of electric energy and
        the production or acquisition of electric energy for
        customers.
            [(2)  At the end of the transition period, the commission
        shall promulgate regulations to define the electric
        distribution company's obligation to connect and deliver and
        acquire electricity under paragraph (3) that will exist at
        the end of the phase-in period.
            (3)  If a customer contracts for electric energy and it
        is not delivered or if a customer does not choose an
        alternative electric generation supplier, the electric
        distribution company or commission-approved alternative
        supplier shall acquire electric energy at prevailing market
        prices to serve that customer and shall recover fully all
        reasonable costs.]
            (3.1)  Following the expiration of an electric
        distribution company's obligation to provide electric
        generation supply service to retail customers at capped
        rates, if a customer contracts for electric generation supply
        service and the chosen electric generation supplier does not
        provide the service or if a customer does not choose an
        alternative electric generation supplier, the default service
        provider shall provide electric generation supply service to
        that customer pursuant to a commission-approved competitive
        procurement plan. The electric power acquired shall be
        procured through competitive procurement processes and shall
        include one or more of the following:
                (i)  Auctions.
                (ii)  Requests for proposal.
                (iii)  Bilateral agreements entered into at the sole
            discretion of the default service provider which shall be
            at prices which are:
                    (A)  no greater than the cost of obtaining
                generation under comparable terms in the wholesale
                market, as determined by the commission at the time
                of execution of the contract; or
                    (B)  consistent with a commission-approved
                competition procurement process. Any agreement
                between affiliated parties shall be subject to review
                and approval of the commission under Chapter 21
                (relating to relations with affiliated interests). In
                no case shall the cost of obtaining generation from
                any affiliated interest be greater than the cost of
                obtaining generation under comparable terms in the
                wholesale market at the time of execution of the
                contract.
            (3.2)  The electric power procured pursuant to paragraph
        (3.1) shall include a prudent mix of the following:
                (i)  Spot market purchases.
                (ii)  Short-term contracts.
                (iii)  Long-term purchase contracts, entered into as
            a result of an auction, request for proposal or bilateral
            contract that is free of undue influence, duress or
            favoritism, of more than four and not more than 20 years.
            The default service provider shall have sole discretion
            to determine the source and fuel type. Long-term purchase
            contracts under this subparagraph may not constitute more
            than 25% of the default service provider's projected
            default service load unless the commission, after a
            hearing, determines for good cause that a greater portion
            of load is necessary to achieve least cost procurement.
            This subparagraph shall not apply to contracts executed
            under paragraph (5).
            (3.3)  The commission may determine that a contract is
        required to be extended for a longer term of up to 20 years,
        if the extension is necessary to ensure adequate and reliable
        service at least cost to customers over time.
            (3.4)  The prudent mix of contracts entered into pursuant
        to paragraphs (3.2) and (3.3) shall be designed to ensure:
                (i)  Adequate and reliable service.
                (ii)  The least cost to customers over time.
                (iii)  Compliance with the requirements of paragraph
            (3.1).
            (3.5)  Except as set forth in paragraph (5)(ii), the
        provisions of this section shall apply to any type of energy
        purchased by a default service provider to provide electric
        generation supply service, including energy or alternative
        energy portfolio standards credits required to be purchased
        under the act of November 30, 2004 (P.L.1672, No.213), known
        as the Alternative Energy Portfolio Standards Act. The
        commission shall apply paragraph (3.4) to comparable types of
        energy sources.
            (3.6)  The default service provider shall file a plan for
        competitive procurement with the commission and obtain
        commission approval of the plan considering the standards in
        paragraphs (3.1), (3.2), (3.3) and (3.4) before the
        competitive process is implemented. The commission shall hold
        hearings as necessary on the proposed plan. If the commission
        fails to issue a final order on the plan within nine months
        of the date that the plan is filed, the plan shall be deemed
        to be approved and the default service provider may implement
        the plan as filed. Costs incurred through an approved
        competitive procurement plan shall be deemed to be the least
        cost over time as required under paragraph (3.4)(ii).
            (3.7)  At the time the commission evaluates the plan and
        prior to approval, in determining if the default electric
        service provider's plan obtains generation supply at the
        least cost, the commission shall consider the default service
        provider's obligation to provide adequate and reliable
        service to customers and that the default service provider
        has obtained a prudent mix of contracts to obtain least cost
        on a long-term, short-term and spot market basis and shall
        make specific findings which shall include the following:
                (i)  The default service provider's plan includes
            prudent steps necessary to negotiate favorable generation
            supply contracts.
                (ii)  The default service provider's plan includes
            prudent steps necessary to obtain least cost generation
            supply contracts on a long-term, short-term and spot
            market basis.
                (iii)  Neither the default service provider nor its
            affiliated interest has withheld from the market any
            generation supply in a manner that violates Federal law.
            (3.8)  Notwithstanding sections 508 (relating to power of
        the commission to vary, reform and revise contracts) and 2102
        (relating to approval of contracts with affiliated
        interests), the commission may modify contracts or disallow
        costs only when the party seeking recovery of the costs of a
        procurement plan is, after hearing, found to be at fault for
        the following:
                (i)  not complying with the commission-approved
            procurement plan; or
                (ii)  the commission of fraud, collusion or market
            manipulation with regard to these contracts.
            (3.9)  The default service provider shall have the right
        to recover on a full and current basis, pursuant to a
        reconcilable automatic adjustment clause under section 1307
        (relating to sliding scale of rates; adjustments), all
        reasonable costs incurred under this section and a
        commission-approved competitive procurement plan.
            (4)  If a customer that chooses an alternative supplier
        and subsequently desires to return to the local distribution
        company for generation service, the local distribution
        company shall treat that customer exactly as it would any new
        applicant for energy service.
            (5)  (i)  Notwithstanding paragraph [(3)] (3.1), the
            electric distribution company or commission-approved
            alternative supplier may, in its sole discretion, offer
            large customers with a peak demand of 15 megawatts or
            greater at one meter at a location in its service
            territory any negotiated rate for service at all of the
            customers' locations within the service territory for any
            duration agreed upon by the electric distribution company
            or commission-approved alternative supplier and the large
            customer. The commission shall permit, but shall not
            require, an electric distribution company or commission-
            approved alternative supplier to provide service to large
            customers under this paragraph. Contract rates entered
            into under this paragraph shall be subject to review by
            the commission in order to ensure that all costs related
            to the rates are borne by the parties to the contract and
            that no costs related to the rates are borne by other
            customers or customer classes. If no costs related to the
            rates are borne by other customers or customer classes,
            the commission shall approve the contract within 90 days
            of its filing, or it shall be deemed approved by
            operation of law upon expiration of the 90 days.
            Information submitted under this paragraph shall be
            subject to the commission's procedures for the filing of
            confidential and proprietary information.
                (ii)  For purposes of providing service under this
            paragraph to customers with a peak demand of 20 megawatts
            or greater at one meter at a location within that
            distribution company's service territory, an electric
            distribution company that has completed its restructuring
            transition period as of the effective date of this
            paragraph may, in its sole discretion, acquire an
            interest in a generation facility or construct a
            generation facility specifically to meet the energy
            requirements of the customers, including the electric
            requirements of the customers' other billing locations
            within its service territory. The electric distribution
            company must commence construction of the generation
            facility or contract to acquire the generation interest
            within three years after the effective date of this
            paragraph, except that the electric distribution company
            may add to the generation facilities it commenced
            construction or contracted to acquire after this three-
            year period to serve additional load of customers for
            whom it commenced construction or contracted to acquire
            generation within three years. Nothing in this paragraph
            requires or authorizes the commission to require an
            electric distribution company to commence construction or
            acquire an interest in a generation facility. The
            electric distribution company's interest in the
            generation facility it built or contracted to acquire
            shall be no larger than necessary to meet peak demand of
            customers served under this subparagraph. During times
            when the customer's demand is less than the electric
            distribution company's generation interest, the electric
            distribution company may sell excess power on the
            wholesale market. At no time shall the costs associated
            with the generating facility interests be included in
            rate base or otherwise reflected in rates. The generation
            facility interests shall not be commission-regulated
            assets.
            (6)  A default service plan approved by the commission
        prior to the effective date of this section shall remain in
        effect through its approved term. At its sole discretion, the
        default service provider may propose amendments to its
        approved plan that are consistent with this section, and the
        commission shall issue a decision whether to approve or
        disapprove the proposed amendments within nine months of the
        date that the amendments are filed. If the commission fails
        to issue a final order within nine months, the amendments
        shall be deemed to be approved and the default service
        provider may implement the amendments as filed.
            (7)  The default service provider shall offer residential
        and small business customers a generation supply service rate
        that shall change no more frequently than on a quarterly
        basis. All default service rates shall be reviewed by the
        commission to ensure that the costs of providing service to
        each customer class are not subsidized by any other class.
        (f)  Smart meter technology and time of use rates.--
            (1)  Within nine months after the effective date of this
        paragraph, electric distribution companies shall file a smart
        meter technology procurement and installation plan with the
        commission for approval. The plan shall describe the smart
        meter technologies the electric distribution company proposes
        to install in accordance with paragraph (2).
            (2)  Electric distribution companies shall furnish smart
        meter technology as follows:
                (i)  Upon request from a customer that agrees to pay
            the cost of the smart meter at the time of the request.
                (ii)  In new building construction.
                (iii)  In accordance with a depreciation schedule not
            to exceed 15 years.
            (3)  Electric distribution companies shall, with customer
        consent, make available direct meter access and electronic
        access to customer meter data to third parties, including
        electric generation suppliers and providers of conservation
        and load management services.
            (4)  In no event shall lost or decreased revenues by an
        electric distribution company due to reduced electricity
        consumption or shifting energy demand be considered any of
        the following:
                (i)  A cost of smart meter technology recoverable
            under a reconcilable automatic adjustment clause under
            section 1307(b), except that decreased revenues and
            reduced energy consumption may be reflected in the
            revenue and sales data used to calculate rates in a
            distribution rate base rate proceeding filed under
            section 1308 (relating to voluntary changes in rates).
                (ii)  A recoverable cost.
            (5)  By January 1, 2010, or at the end of the applicable
        generation rate cap period, whichever is later, a default
        service provider shall submit to the commission one or more
        proposed time-of-use rates and real-time price plans. The
        commission shall approve or modify the time-of-use rates and
        real-time price plan within six months of submittal. The
        default service provider shall offer the time-of-use rates
        and real-time price plan to all customers that have been
        provided with smart meter technology under paragraph
        (2)(iii). Residential or commercial customers may elect to
        participate in time-of-use rates or real-time pricing. The
        default service provider shall submit an annual report to the
        price programs and the efficacy of the programs in affecting
        energy demand and consumption and the effect on wholesale
        market prices.
            (6)  The provisions of this subsection shall not apply to
        an electric distribution company with 100,000 or fewer
        customers.
            (7)  An electric distribution company may recover
        reasonable and prudent costs of providing smart meter
        technology under paragraph (2)(ii) and (iii), as determined
        by the commission. This paragraph includes annual
        depreciation and capital costs over the life of the smart
        meter technology and the cost of any system upgrades that the
        electric distribution company may require to enable the use
        of the smart meter technology which are incurred after the
        effective date of this paragraph, less operating and capital
        cost savings realized by the electric distribution company
        from the installation and use of the smart meter technology.
        Smart meter technology shall be deemed to be a new service
        offered for the first time under section 2804(4)(vi). An
        electric distribution company may recover smart meter
        technology costs:
                (i)  through base rates, including a deferral for
            future base rate recovery of current basis with carrying
            charge as determined by the commission; or
                (ii)  on a full and current basis through a
            reconcilable automatic adjustment clause under section
            1307.
        (g)  Definition.--As used in this section, the term "smart
     meter technology" means technology, including metering
     technology and network communications technology capable of
     bidirectional communication, that records electricity usage on
     at least an hourly basis, including related electric
     distribution system upgrades to enable the technology. The
     technology shall provide customers with direct access to and use
     of price and consumption information. The technology shall also:
            (1)  Directly provide customers with information on their
        hourly consumption.
            (2)  Enable time-of-use rates and real-time price
        programs.
            (3)  Effectively support the automatic control of the
        customer's electricity consumption by one or more of the
        following as selected by the customer:
                (i)  the customer;
                (ii)  the customer's utility; or
                (iii)  a third party engaged by the customer or the
            customer's utility.
        Section 4.  Section 2811 of Title 66 is amended by adding a
     subsection to read:
      § 2811.  Market power remediation.
        * * *
        (e.1)  Market misconduct.--
            (1)  If an electric distribution company or any of its
        affiliated companies or any company that an electric
        distribution company has purchased generation from is found
        guilty of market manipulation, exercising market power or
        collusion by the Federal Energy Regulatory Commission or any
        Federal or State court or, if an electric distribution
        company or any one of its affiliated companies or any company
        that an electric distribution company has purchased
        generation from settles a claim of market manipulation,
        exercising market power or collusion that is brought by a
        regional transmission operator's market monitoring unit, the
        Federal Energy Regulatory Commission or another entity, the
        commission:
                (i)  Shall direct the electric distribution company
            to take any and all reasonable action to quantify the
            effect of the market misconduct upon Pennsylvania
            ratepayers.
                (ii)  Following public hearing on the matter and a
            finding of public interest, may direct the electric
            distribution company to take any and all reasonable legal
            action, including the filing of a lawsuit as may be
            necessary, to recover the quantified damages which shall
            be used to recompense Pennsylvania ratepayers affected by
            the market misconduct.
            (2)  If the electric distribution company fails to pursue
        reasonable action to quantify or seek recovery of damages for
        Pennsylvania ratepayers affected by market manipulation, the
        exercise of market power or collusion, the commission is
        authorized, following notice and an opportunity of the
        electric distribution company to comply or contest, to assess
        a civil penalty, which shall not be recovered in rates, of
        not more than $10,000 per day for failure or neglect to obey
        an order of the commission, the continuance of the failure or
        neglect being a separate offense.
            (3)  Any monetary damages recovered by the electric
        distribution company shall be paid to affected Pennsylvania
        ratepayers in the form of a credit to their electric bills or
        as refunds.
            (4)  The provisions of this subsection shall be held to
        be in addition to and not in substitution for or limitation
        of any other provision of this title.
        * * *
        Section 5.  Title 66 is amended by adding sections to read:
      § 2813.  Procurement of power.
        Except as provided under the act of November 30, 2004
     (P.L.1672, No.213), known as the Alternative Energy Portfolio
     Standards Act, the commission may not order a default service
     provider to procure power from a specific generation supplier,
     from a specific generation fuel type or from new generation
     only.
      § 2814.  Additional alternative energy sources.
        (a)  Alternative energy sources.--The term "alternative
     energy sources" as defined under section 2 of the act of
     November 30, 2004 (P.L.1672, No.213), known as the Alternative
     Energy Portfolio Standards Act, shall also include low-impact
     hydropower consisting of any technology that produces electric
     power and that harnesses the hydroelectric potential of moving
     water impoundments if one of the following applies:
            (1)  (i)  the hydropower source has a Federal Energy
            Regulatory Commission licensed capacity of 21 megawatts
            or less; and
                (ii)  the license for the hydropower source was
            issued by the Federal Energy Regulatory Commission on or
            prior to January 1, 1984, and held on July 1, 2007, in
            whole or in part by a municipality located wholly within
            this Commonwealth or by an electric cooperative
            incorporated in this Commonwealth.
            (2)  The incremental hydroelectric development:
                (i)  does not adversely change existing impacts to
            aquatic systems;
                (ii)  meets the certification standards established
            by the Low Impact Hydropower Institute and American
            Rivers, Inc., or their successors;
                (iii)  provides an adequate water flow for protection
            of aquatic life and for safe and effective fish passage;
                (iv)  protects against erosion; and
                (v)  protects cultural and historic resources.
        (b)  Biomass.--The term "biomass energy" as defined under
     section 2 of the Alternative Energy Portfolio Standards Act
     shall also include the generation of electricity utilizing by-
     products of the pulping process and wood manufacturing process,
     including bark, wood chips, sawdust and lignins in spent pulping
     liquors. Electricity from biomass energy under this subsection
     generated inside this Commonwealth shall be eligible as a Tier I
     alternative energy source. Electricity from biomass energy under
     this subsection generated outside this Commonwealth shall be
     eligible as a Tier II alternative energy source.
        (c)  Increase in Tier I.--The commission shall at least
     quarterly increase the percentage share of Tier I alternative
     energy sources required to be sold by an electric distribution
     company or electric generation supplier under section 3(b)(1) of
     the Alternative Energy Portfolio Standards Act to reflect any
     new biomass energy or low-impact hydropower resources that
     qualify as a Tier I alternative energy source under this
     section. No new resource qualifying as biomass energy or low-
     impact hydropower under this section shall be eligible to
     generate Tier I alternative energy credits until the commission
     has increased the percentage share of Tier I to reflect these
     additional resources.
      § 2815.  Carbon dioxide sequestration network.
        (a)  Assessment.--
            (1)  By April 1, 2009, the department shall complete a
        study to identify suitable geological formations, including
        sites within or in proximity to the Medina, Tuscarora or
        Oriskany Sandstone formation for the location of a State
        network.
            (2)  By June 1, 2009, the department, in consultation
        with the commission, shall hire one or more independent
        experts pursuant to 62 Pa.C.S. Pt. I (relating to
        Commonwealth Procurement Code), as necessary, to conduct an
        assessment of the following:
                (i)  Estimates of capital requirements and
            expenditures necessary for the establishment, operation
            and maintenance of a State network.
                (ii)  The collection of data to allow a safety
            assessment.
                (iii)  An assessment of all potential risk to
            individuals, property and the environment associated with
            the geological sequestration of carbon dioxide in a State
            network. The assessment, which shall be completed by
            October 1, 2009, shall include an analysis of the
            following:
                    (A)  Existing Federal and State regulatory
                standards for the storage of carbon dioxide.
                    (B)  Factors contained in the United States
                Environmental Protection Agency's Vulnerability
                Evaluation Framework for Geologic Sequestration of
                Carbon Dioxide (EPA 430-R-08-009, dated July 10,
                2008).
                    (C)  The different types of insurance, bonds,
                other instruments and recommended levels of insurance
                which should be carried by the operator of the State
                network during the construction and operation of the
                State network.
                    (D)  The availability of commercial insurance.
                    (E)  Models for the establishment of a
                Commonwealth fund to provide protection against risk
                to be funded by the operator.
        (b)  Transmission of study and assessment.--
            (1)  The department shall submit the study conducted
        under subsection (a)(1) to the Governor, the chairman and
        minority chairman of the Environmental Resources and Energy
        Committee of the Senate, the chairman and minority chairman
        of the Environmental Resources and Energy Committee of the
        House of Representatives and the department no later than May
        1, 2009.
            (2)  The independent expert shall submit the final
        assessment under subsection (a)(2) to the Governor, the
        chairman and minority chairman of the Environmental Resources
        and Energy Committee of the Senate, the chairman and minority
        chairman of the Environmental Resources and Energy Committee
        of the House of Representatives and the department no later
        than November 1, 2009.
        (c)  Department.--The following shall apply:
            (1)  The department shall review the assessment submitted
        under subsection (a)(2) and all geologic sequestration
        requirements associated with a State network, including
        geological site characterization, modeling and verification
        of fluid movement, corrective action, well construction,
        operation, mechanical integrity testing, monitoring and site
        closure.
            (2)  Following the review under paragraph (1), the
        department may conduct a pilot project to determine the
        viability of establishing a State network in this
        Commonwealth.
        (d)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Carbon dioxide sequestration."  The storage of carbon
     dioxide in a supercritical phase within a geological subsurface
     formation such as a deep saline aquifer with suitable cap rock,
     sealing faults and anticlines that includes compression,
     dehydration and leak detection monitoring equipment and
     pipelines to transport carbon dioxide captured by an advanced
     coal combustion with limited carbon emissions plant to an
     underground storage site. The term shall not include use of the
     carbon dioxide for enhanced oil recovery.
        "Department."  The Department of Conservation and Natural
     Resources of the Commonwealth.
        "State network."  A carbon dioxide sequestration network
     established on lands owned by the Commonwealth, or lands on
     which the Commonwealth has acquired the right to store carbon
     dioxide, that have been designated by the Department of
     Conservation and Natural Resources for the storage of carbon
     dioxide.
        Section 6.  This act shall take effect in 30 days.

     APPROVED--The 15th day of October, A. D. 2008.

     EDWARD G. RENDELL