1Amend Bill, page 1, lines 1 through 3, by striking out all of
2said lines and inserting

3Providing for the registration and reporting of certain
4reciprocal internal combustion engines; imposing certain
5powers and duties on the Department of Environmental
6Protection; and providing for an air quality impact study.

7Amend Bill, page 1, lines 6 through 16; pages 2 through 10,
8lines 1 through 30; page 11, lines 1 through 4, by striking out
9all of said lines on said pages and inserting

10Section 1. Short title.

11This act shall be known and may be cited as the Reciprocal
12Internal Combustion Engine Act.

13Section 2. Definitions.

14The following words and phrases when used in this act shall
15have the meanings given to them in this section unless the
16context clearly indicates otherwise:

17"Calendar year." The 12-month period beginning January 1 and
18ending December 31.

19"Demand response generating resource." A generator which is
20compensated as a demand response resource by PJM or a generator
21compensated to participate in a demand response program for PJM.
22The term shall not include a generator that derives its energy
23from an alternative energy source that qualifies as a Tier I
24energy source under the act of November 30, 2004 (P.L.1672,
25No.213), known as the Alternative Energy Portfolio Standards
26Act.

27"Department." The Department of Environmental Protection of
28the Commonwealth.

29"Generator." A machine powered by a reciprocal internal
30combustion engine that converts mechanical energy into electric
31energy.

32"PJM Interconnection" or "PJM." The independent system
33operator and regional transmission organization authorized by
34the Federal Energy Regulatory Commission to manage the wholesale
35procurement of electricity and electric generation capacity that

1serves this Commonwealth.

2"Stakeholders." A party that has a direct interest in this
3act, including representatives of environmental advocacy groups,
4electric power generators, owners or operators of demand
5response generating resources, conservation service provider as
6defined in 66 Pa.C.S. § 2806.1(m) (relating to energy efficiency
7and conservation program), the Office of Consumer Advocate and
8the Small Business Advocate.

9Section 3. Registration.

10(a) Requirement.--

11(1) Beginning with calendar year 2015, each demand
12response generating resource must register with the
13department.

14(2) Within 90 days of the effective date of this
15section, the department shall provide the form and manner for
16the registration required under this section, which shall
17include:

18(i) A generator owner's contact information.

19(ii) The physical address where the generator is or
20will be installed and the date of installation.

21(iii) A description of the generator's engine,
22including make, model, maximum engine rating in kW,
23horsepower or brake horsepower and model year.

24(iv) The type of demand response program in which
25the generator participates.

26(3) Within 45 days of a change to the registration
27information provided under paragraph (2), updated
28registration information must be submitted to the department.

29(b) Fee.--The department shall assess a registration fee for
30each demand response generating resource that registers in
31accordance with this section. For the calendar year beginning in
322015, the fee shall be $100 per demand response generating
33resource. The fee authorized under this subsection may be
34adjusted annually to reflect any upward changes in the Consumer
35Price Index for All Urban Consumers for the Pennsylvania, New
36Jersey, Delaware and Maryland area in the preceding 12 months,
37and the department shall immediately submit the adjusted amounts
38to the Legislative Reference Bureau for publication as a notice
39in the Pennsylvania Bulletin.

40Section 4. Reporting and recordkeeping requirements.

41(a) Reporting.--The owner or operator of a demand response
42generating resource must annually report to the department all
43of the following information no later than March 31 of each
44calendar year:

45(1) The annual fuel types utilized and estimated amounts
46consumed by the engine powering each demand response
47generating resource.

48(2) The daily and annual hours of demand response
49operations. For the purposes of this paragraph, a demand
50response operation shall include hours of operations that are
51used to meet contractual or other obligations as a demand

1response generating resource, including hours of operation
2for both PJM emergency demand response programs and PJM
3economic demand response programs, which must be separately
4reported to the department.

5(3) The estimated number of hours the engine operated
6for testing and maintenance or other similar purposes.

7(4) Any additional information the department deems
8necessary consistent with requirements under the following:

9(i) 40 CFR Pt. 60 Subpt. IIII (relating to standards
10of performance for stationary compression ignition
11internal combustion engines) or JJJJ (relating to
12standards of performance for stationary spark ignition
13internal combustion engines).

14(ii) 40 CFR Pt. 63 Subpt. ZZZZ (relating to National
15Emissions Standards for Hazardous Air Pollutants for
16Stationary Reciprocating Internal Combustion Engines).

17(b) Recordkeeping.--The owner or operator of a demand
18response generating resource must maintain each record required
19under section 3(a) and this section for a minimum of five years
20after the date the record is made. An owner or operator must
21promptly provide copies of records to the department, if
22requested.

23Section 5. Air quality impact study.

24(a) Authorization.--The department shall, utilizing a
25qualified independent third party, conduct a scientific study to
26determine if there is a relationship between the use of demand
27response generating resources and the Commonwealth's ability to
28achieve and maintain the National Ambient Air Quality Standards.
29The study shall determine if there are socioeconomic, health and
30environmental impacts associated with the use of demand response
31generating resources. The study must utilize a minimum of two
32years of data as reported to the department under section 3(a)
33from geographically dispersed locations and other verifiable and
34available data.

35(b) Criteria.--The department, in consultation with
36stakeholders, shall develop the criteria to be examined for the
37air quality impact study authorized under subsection (a). At a
38minimum, the criteria shall include all of the following:

39(1) An examination of the emissions produced from demand
40response generating resources, including benzene, ozone-
41forming precursors, carbon monoxide, oxides of nitrogen and
42particulate matter.

43(2) A cost-benefit analysis to determine the cost
44effectiveness of retrofitting demand response generating
45resources with commercially available technologies.

46(c) Findings and conclusions.--The air quality impact study
47authorized under subsection (a) shall be completed and a copy of
48the study and a summary of the findings and conclusions shall be
49transmitted to the chairman and minority chairman of the
50Environmental Resources and Energy Committee of the Senate and
51the chairman and minority chairman of the Environmental

1Resources and Energy Committee of the House of Representatives
2no later than December 31, 2017.

3(d) Appropriation.--Notwithstanding any other law, the
4department may utilize $250,000 of the unexpended Alternative
5Energy Series 2010B proceeds allocated to the department under
6section 304(a) of the act of July 9, 2008 (1st Sp.Sess.,
7P.L.1873, No.1), known as the Alternative Energy Investment Act,
8for the purpose of funding the study under this section.

9Section 6. Confidentiality.

10The registration and reporting requirements under sections 3
11and 4 shall be subject to all of the following:

12(1) Section 13.2 of the act of January 8, 1960 (1959
13P.L.2119, No.787), known as the Air Pollution Control Act.

14(2) The act of November 29, 2006 (P.L.1435, No.156), 
15known as the Public Utility Confidential Security Information 
16Disclosure Protection Act.

17Section 7. Blind compliance audit.

18(a) Department duties.--Beginning October 1, 2015, and at
19the beginning of every calendar year thereafter, the department
20shall forward a list of demand response generating resources
21compiled under section 3(a) to the Pennsylvania Public Utility
22Commission for the purpose of an annual compliance audit.

23(b) Pennsylvania Public Utility Commission duties.--Pursuant
24to the authority provided to the Pennsylvania Public Utility
25Commission under PJM's Open Access Transmission Tariff,
26Attachment M, Section D and the "Required Disclosure" provisions
27of section 18.17.2 of the Operating Agreement of PJM, the
28commission shall conduct a blind compliance audit under this
29section to ensure that demand response generating resources
30participating in PJM programs meet the requirements of this act.
31The commission shall do all of the following:

32(1) Request annually from PJM a listing of all demand
33response generating resources located in this Commonwealth.
34The commission may not disclose any confidential or
35proprietary information received from PJM pursuant to this
36section.

37(2) Compare the list of demand response generating
38resources provided by the department under subsection (a)
39with the list of demand response generating resources
40provided under paragraph (1).

41(3) If a demand response generating resource is found to
42be listed as a demand response generating resource in PJM but
43is not included on the list provided by the department, the
44commission shall confirm that the demand response generating
45resource is participating in the PJM markets as a demand
46response generating resource.

47(4) If the commission confirms that the demand response
48generating resource is participating in the PJM markets as a
49demand response generating resource but has not complied with
50this act, the commission shall act as follows:

51(i) The commission shall notify the owner and

1operator of the demand response generating resource and
2PJM of the violation. For a first offense, the owner or
3operator shall have 60 days to comply with this act and
4must provide evidence of compliance to the commission.
5If, after 60 days, the noncompliance continues, the
6commission shall proceed under section 8.

7(ii) For a second, subsequent or continuing offense,
8the commission shall proceed under section 8.

9Section 8. Violations and penalties.

10The commission shall enforce violations and levy penalties
11under this act as follows:

12(1) For a first offense under section 7(b)(4)(i), the
13commission shall levy a $300 civil penalty.

14(2) For a second, subsequent or continuing offense under
15section 7(b)(4)(ii), the commission shall levy a $500 civil
16penalty in addition to a $25 per day fine for each day of
17continued violation.

18Section 9. Disposition of fees, fines and civil penalties.

19(a) Fees.--Fees collected by the department under this act
20shall be retained by the department for the purpose of
21administration of this act.

22(b) Fines and civil penalties.--Fines and civil penalties
23collected by the commission under this act shall be retained by
24the commission for the purpose of administration of this act.

25Section 10. Severability.

26The provisions of this act are severable. If any provision of
27this act or its application to any person or circumstance is
28held invalid, the invalidity shall not affect other provisions
29or applications of this act which can be given effect without
30the invalid provision or application.

31Section 40. Effective date.

32This act shall take effect immediately.