PRINTER'S NO. 2277
No. 1506 Session of 2008
INTRODUCED BY KASUNIC, RHOADES, WOZNIAK, MUSTO, STOUT, COSTA,
LAVALLE, ORIE, LOGAN, TARTAGLIONE, WASHINGTON, ROBBINS, PUNT,
PIPPY, FONTANA, MADIGAN, EICHELBERGER, EARLL, WONDERLING AND
BROWNE, JUNE 29, 2008
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 29, 2008
AN ACT
1 Amending the act of November 30, 2004 (P.L.1672, No.213),
2 entitled, "An act providing for the sale of electric energy
3 generated from renewable and environmentally beneficial
4 sources, for the acquisition of electric energy generated
5 from renewable and environmentally beneficial sources by
6 electric distribution and supply companies and for the powers
7 and duties of the Pennsylvania Public Utility Commission,"
8 further defining "alternative energy sources" and "Tier II
9 alternative energy source"; defining "carbon dioxide
10 sequestration network" and "enhanced oil recovery"; further
11 providing for alternative energy portfolio standards;
12 providing for a carbon dioxide sequestration network; and
13 making an appropriation.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The definitions of "alternative energy sources"
17 and "Tier II alternative energy source" in section 2 of the act
18 of November 30, 2004 (P.L.1672, No.213), known as the
19 Alternative Energy Portfolio Standards Act, are amended and the
20 section is amended by adding definitions to read:
21 Section 2. Definitions.
22 The following words and phrases when used in this act shall
1 have the meanings given to them in this section unless the
2 context clearly indicates otherwise:
3 * * *
4 "Alternative energy sources." The term shall include the
5 following existing and new sources for the production of
6 electricity:
7 (1) Solar photovoltaic or other solar electric energy.
8 (2) Solar thermal energy.
9 (3) Wind power.
10 (4) Large-scale hydropower, which shall mean the
11 production of electric power by harnessing the hydroelectric
12 potential of moving water impoundments, including pumped
13 storage that does not meet the requirements of low-impact
14 hydropower under paragraph (5).
15 (5) Low-impact hydropower consisting of any technology
16 that produces electric power and that harnesses the
17 hydroelectric potential of moving water impoundments,
18 provided such incremental hydroelectric development:
19 (i) does not adversely change existing impacts to
20 aquatic systems;
21 (ii) meets the certification standards established
22 by the Low Impact Hydropower Institute and American
23 Rivers, Inc., or their successors;
24 (iii) provides an adequate water flow for protection
25 of aquatic life and for safe and effective fish passage;
26 (iv) protects against erosion; and
27 (v) protects cultural and historic resources.
28 (6) Geothermal energy, which shall mean electricity
29 produced by extracting hot water or steam from geothermal
30 reserves in the earth's crust and supplied to steam turbines
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1 that drive generators to produce electricity.
2 (7) Biomass energy, which shall mean the generation of
3 electricity utilizing the following:
4 (i) organic material from a plant that is grown for
5 the purpose of being used to produce electricity or is
6 protected by the Federal Conservation Reserve Program
7 (CRP) and provided further that crop production on CRP
8 lands does not prevent achievement of the water quality
9 protection, soil erosion prevention or wildlife
10 enhancement purposes for which the land was primarily set
11 aside; or
12 (ii) any solid nonhazardous, cellulosic waste
13 material that is segregated from other waste materials,
14 such as waste pallets, crates and landscape or right-of-
15 way tree trimmings or agricultural sources, including
16 orchard tree crops, vineyards, grain, legumes, sugar and
17 other crop by-products or residues.
18 (8) Biologically derived methane gas, which shall
19 include methane from the anaerobic digestion of organic
20 materials from yard waste, such as grass clippings and
21 leaves, food waste, animal waste and sewage sludge. The term
22 also includes landfill methane gas.
23 (9) Fuel cells, which shall mean any electrochemical
24 device that converts chemical energy in a hydrogen-rich fuel
25 directly into electricity, heat and water without combustion.
26 (10) Waste coal, which shall include the combustion of
27 waste coal in facilities in which the waste coal was disposed
28 or abandoned prior to July 31, 1982, or disposed of
29 thereafter in a permitted coal refuse disposal site
30 regardless of when disposed of, and used to generate
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1 electricity, or such other waste coal combustion meeting
2 alternate eligibility requirements established by regulation.
3 Facilities combusting waste coal shall use at a minimum a
4 combined fluidized bed boiler and be outfitted with a
5 limestone injection system and a fabric filter particulate
6 removal system. Alternative energy credits shall be
7 calculated based upon the proportion of waste coal utilized
8 to produce electricity at the facility.
9 (11) Coal mine methane, which shall mean methane gas
10 emitting from abandoned or working coal mines.
11 (12) Demand-side management consisting of the management
12 of customer consumption of electricity or the demand for
13 electricity through the implementation of:
14 (i) energy efficiency technologies, management
15 practices or other strategies in residential, commercial,
16 institutional or government customers that reduce
17 electricity consumption by those customers;
18 (ii) load management or demand response
19 technologies, management practices or other strategies in
20 residential, commercial, industrial, institutional and
21 government customers that shift electric load from
22 periods of higher demand to periods of lower demand; or
23 (iii) industrial by-product technologies consisting
24 of the use of a by-product from an industrial process,
25 including the reuse of energy from exhaust gases or other
26 manufacturing by-products that are used in the direct
27 production of electricity at the facility of a customer.
28 (13) Distributed generation system, which shall mean the
29 small-scale power generation of electricity and useful
30 thermal energy.
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1 (14) Advanced coal gasification with limited carbon
2 emissions, which means the production of electric power from
3 a generation facility:
4 (i) that is fueled by gas derived from an advanced
5 coal gasification with limited carbon emissions plant
6 that:
7 (A) has been designed and constructed to capture
8 a portion of its carbon dioxide production for
9 delivery to a carbon dioxide sequestration network;
10 and
11 (B) has been designed to accommodate the
12 required additional processing equipment to produce
13 power with a maximum of 1,000 pounds of carbon
14 dioxide emissions per megawatt hour; and
15 (ii) for which:
16 (A) a plan approval or construction permit has
17 been issued by the Department of Environmental
18 Protection or an approved local air pollution control
19 agency in accordance with the act of January 8, 1960
20 (1959 P.L.2119, No.787), known as the Air Pollution
21 Control Act, after the effective date of this
22 paragraph; or
23 (B) a plan approval or construction permit has
24 been issued by a delegated state, other than the
25 Commonwealth, or local air pollution control agency
26 of a state, other than the Commonwealth, in
27 accordance with section 165 or 172 of the Clean Air
28 Act (69 Stat. 322, 42 U.S.C. § 7401 et. seq.) after
29 the effective date of this paragraph.
30 * * *
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1 "Carbon dioxide sequestration network." A geological
2 subsurface formation such as a deep saline aquifer with suitable
3 cap rock, sealing faults and anticlines that allow for the
4 storage of carbon dioxide in a supercritical phase, combined
5 with a network of compression, dehydration and leak detection
6 monitoring equipment and pipelines to transport carbon dioxide
7 captured by an advanced coal gasification with limited carbon
8 emissions plant to an underground storage site. The term shall
9 not include use of the carbon dioxide for enhanced oil recovery.
10 * * *
11 "Enhanced oil recovery." The use of carbon dioxide injection
12 or other techniques for increasing the amount of oil that can be
13 extracted from an oil field.
14 * * *
15 "Tier II alternative energy source." Energy derived from:
16 (1) Waste coal.
17 (2) Distributed generation systems.
18 (3) Demand-side management.
19 (4) Large-scale hydropower.
20 (5) Municipal solid waste.
21 (6) Generation of electricity utilizing by-products of
22 the pulping process and wood manufacturing process, including
23 bark, wood chips, sawdust and lignin in spent pulping
24 liquors.
25 (6.1) Advanced coal gasification with limited carbon
26 emissions.
27 (7) Integrated combined coal gasification technology.
28 * * *
29 Section 2. Section 3(c) of the act is amended to read:
30 Section 3. Alternative energy portfolio standards.
20080S1506B2277 - 6 -
1 * * *
2 (c) Tier II [share] and advanced coal gasification with
3 limited carbon emissions shares.--
4 (1) Of the electrical energy required to be sold from
5 alternative energy sources identified in Tier II, the
6 percentage that must be from these technologies, other than
7 from advanced coal gasification with limited carbon
8 emissions, is for:
9 [(1)] (i) Years 1 through 4 - 4.2%.
10 [(2)] (ii) Years 5 through [9] 8 - 6.2%.
11 [(3) Years 10 through 14 - 8.2%.
12 (4) Years 15 and thereafter - 10.0%.]
13 (2) Commencing in year 9 with the reporting period which
14 begins June 1, 2014, and continuing for each reporting period
15 thereafter, the Tier II requirements shall be as follows:
16 (i) Year 9 - 9.2%.
17 (ii) Years 10 through 14 - 11.2%
18 (iii) Years 15 and thereafter - 13.0%.
19 (3) Of the electrical energy required to be sold from
20 alternative energy sources identified in Tier II, the
21 percentage that must be from advanced coal gasification with
22 limited carbon emissions technologies is 3.0% for the
23 reporting period which begins June 1, 2014, and 3.0% for each
24 reporting period thereafter pursuant to paragraph (2).
25 (4) In order to facilitate the development of advanced
26 coal gasification with limited carbon emissions technologies
27 necessary to meet the requirements of paragraphs (2) and (3),
28 an electric distribution company or electric generation
29 supplier may, but shall not be required to, enter into an
30 agreement for a term of up to 20 years to purchase the energy
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1 or capacity of an advanced coal gasification with limited
2 carbon emissions facility or any alternative energy credits
3 associated with the energy generated by such a facility.
4 * * *
5 Section 3. The act is amended by adding a section to read:
6 Section 8.1. Carbon dioxide sequestration network.
7 (a) Establishment.--The Commonwealth shall develop, own and
8 operate a carbon dioxide sequestration network utilizing
9 appropriate geological formations on Commonwealth-owned lands
10 where the Commonwealth has mineral rights.
11 (b) Carbon dioxide sequestration network study.--
12 (1) In order to facilitate the requirements of
13 subsection (a), the Department of Conservation and Natural
14 Resources shall conduct a carbon dioxide sequestration
15 network study to identify suitable geological formations,
16 including, but not limited to, sites within or in proximity
17 to the Medina Tuscarora or Oriskany Sandstone formations, and
18 to provide estimates of capital requirements and expenditures
19 necessary for establishment of the network. The study may be
20 undertaken by Department of Conservation and Natural
21 Resources personnel. All or a portion of the study may be
22 conducted by the Department of Conservation and Natural
23 Resources pursuant to 62 Pa.C.S. Pt. I (relating to
24 Commonwealth procurement code).
25 (2) The Department of Conservation and Natural Resources
26 shall complete the study required by paragraph (1) and submit
27 a copy of the completed study to the Governor and to the
28 chairman and minority chairman of the Environmental Resources
29 and Energy Committee of the Senate and the chairman and
30 minority chairman of the Environmental Resources and Energy
20080S1506B2277 - 8 -
1 Committee of the House of Representatives no later than
2 January 31, 2010. Interim reports on the status and results
3 of the study shall be provided by the Department of
4 Conservation and Natural Resources to the Governor and to the
5 chairman and minority chairman of the Environmental Resources
6 and Energy Committee of the Senate and the chairman and
7 minority chairman of the Environmental Resources and Energy
8 Committee of the House of Representatives by December 31,
9 2008, and June 30, 2009.
10 (c) Title to carbon dioxide.--Upon transporting carbon
11 dioxide to the property line of the Commonwealth-owned lands on
12 which the Commonwealth's carbon dioxide sequestration network is
13 located, the owner of an advanced coal gasification with limited
14 carbon emissions plant shall transfer and convey and the
15 Commonwealth shall accept and receive all rights, title and
16 interest in and to and any liabilities associated with the
17 carbon dioxide, including any current or future environmental
18 benefits, marketing claims, tradable credits, emissions
19 allocations or offsets, voluntary or compliance-based,
20 associated therewith, but not including energy credits provided
21 by section 3(e).
22 (d) Indemnification.--Notwithstanding any law to the
23 contrary, the Commonwealth shall indemnify, hold harmless,
24 defend and release the owner of an advanced coal gasification
25 with limited carbon emissions plant from and against any civil
26 liability arising out of or resulting from the storage, escape,
27 release or migration of carbon dioxide inside the boundary line
28 of the Commonwealth-owned lands on which the Commonwealth's
29 carbon dioxide sequestration network is located, including the
30 escape, release or migration of carbon dioxide sequestered in
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1 the subsurface storage site.
2 Section 4. The sum of $10,000,000 is hereby appropriated to
3 the Department of Conservation and Natural Resources for the
4 fiscal year July 1, 2008, to June 30, 2009, to carry out the
5 provisions of section 8.1 of the act. This appropriation shall
6 be a continuing appropriation and shall lapse on June 30, 2010.
7 Section 5. This act shall take effect as follows:
8 (1) This section shall take effect immediately.
9 (2) The addition of section 8.1(b) of the act shall take
10 effect July 1, 2008, or immediately, whichever is later.
11 (3) The remainder of this act shall take effect in 60
12 days.
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