THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HORNAMAN, FABRIZIO, SONNEY, HARKINS AND J. EVANS, MARCH 18, 2010

REFERRED TO COMMITTEE ON STATE GOVERNMENT, MARCH 18, 2010  

AN ACT

Authorizing the Department of General Services to lease

submerged lands in excess of 25 acres within Erie County, for

the development, construction and operation of utility scale

offshore wind generation facilities.

The General Assembly finds and declares as follows:

(1)  That the potential for generation of electricity

through development of wind energy conversion systems in Lake

Erie would provide significant benefits to the Commonwealth.

(2)  That legislation should be enacted to permit the

development, construction and operation of wind energy

conversion facilities in Lake Erie.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Lands within the Lake Erie Basin.

(a)  Authorization.--The Commonwealth owns lands within the

bed of Lake Erie, all of which lands are located in Erie County.

(b)  The Department of General Services, with the concurrence

of the Department of Environmental Protection, acting on behalf

of the Commonwealth, is hereby authorized to lease submerged

lands in excess of 25 acres within the bed of Lake Erie in Erie

County for the development of utility scale systems to convert

wind energy to electricity. This development may include

electrical collection and transmission facilities and other

related structures.

Section 2.  Lease conditions.

(a)  Qualifications of lessees.--A lease approved under

section 1 shall be restricted to lessees who can demonstrate the

expertise and capability to develop wind energy conversion

projects and who have a high likelihood of community and public

acceptance in Erie County.

(b)  Waters of the Commonwealth.--A lease approved under

section 1 shall insure reasonable accommodation for fishing,

maritime commerce and other current and future commercial and

recreational uses of the waters of the Commonwealth now held in

the public trust.

(c)  Term of lease.--A lease approved under section 1 shall

be for a term of up to 49 years and may be extended, at the

option of the lessee, for all or any portion of the leased

premises for an additional term of up to 49 years. Any such

lease shall contain a provision for termination after ten years

if the lessee has not initiated construction of wind energy

conversion systems.

(d)  Improvements.--Development of the parcels authorized to

be leased in this section shall be for utility scale systems to

convert wind energy to electricity, including electrical

collection and transmission facilities and other related

structures. No construction, installation or operation of wind

energy conversion facilities or other related structures on the

lands subject to lease shall commence without adherence to

Federal and State laws and prior receipt of all applicable

Federal and State permits.

(e)  Covenants.--These conditions shall be covenants that run

with the land and shall be binding upon the lessee, any

sublessee and their respective successors and assigns. Should

the lessee, any sublessee or any of their respective successors

or assigns permit the parcels authorized to be leased under this

section, or any portion thereof, to be used in a manner

inconsistent with the conditions contained in this subsection,

all rights and interests in the lease authorized by this act

shall terminate immediately.

(f)  Lease agreement.--Any such lease and any other documents

hereby contemplated shall be approved as to form and legality by

the Attorney General and the Office of General Counsel and shall

be executed by the Department of General Services, with the

concurrence of the Department of Environmental Protection, which

approvals shall not be unreasonably withheld, in the name of the

Commonwealth. The lease shall grant the lessee, and all

successors, assigns and sublessees, the right to use the above-

described premises, or to assign the lease or sublease or permit

the sublease of the above-described premises for the purposes of

development of utility scale systems to convert wind energy to

electricity. The lease shall also grant the lessee, and all

successors, assigns and sublessees, the right to develop,

construct and operate one or more submarine electrical

transmission cables from the above-described premises to the

shoreline in Erie County.

(g)  Sublease.--The Department of General Services, with the

concurrence of the Department of Environmental Protection,

acting on behalf of the Commonwealth, is also specifically

authorized to enter into one or more nondisturbance agreements

with any sublessee of the premises described in this section

pursuant to which the Commonwealth will agree that, if the

Commonwealth succeeds to the interest of the sublessor under a

sublease, it will not terminate the sublease unless the

sublessee is in default.

(h)  Consideration.--The Department of General Services shall

lease the land within the bed of Lake Erie as described in

subsection (b) upon such terms and conditions and for such

consideration as it shall, with the concurrence of the

Department of Environmental Protection, establish through the

lease agreements.

(i)  Costs and fees.--Costs and fees incidental to the lease

authorized by this section shall be borne by the lessee,

including the costs incurred by the Department of General

Services and the Department of Environmental Protection, in the

preparation, execution and review of the lease, nondisturbance

agreements and related documents.

Section 3.  Other applicable legislation.

Nothing herein shall affect or otherwise limit the

requirements of the provisions of the act of November 26, 1978

(P.L.1375, No.325), known as the Dam Safety and Encroachments

Act, which may require further measures to provide for public

access and use of the land and adjacent water.

Section 4.  Sunset provision.

In the event that a lease authorized by this act does not

occur within 24 months following the effective date of this act,

the authority contained in this act shall be void.

Section 5.  Effective date.

This act shall take effect immediately.