PRINTER'S NO. 3769

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2701 Session of 1988


        INTRODUCED BY DALEY, STAIRS, PETRARCA, J. L. WRIGHT, HALUSKA,
           ARGALL, KASUNIC, S. H. SMITH, LUCYK, BLACK, MARKOSEK AND
           WOZNIAK, OCTOBER 4, 1988

        REFERRED TO COMMITTEE ON MINES AND ENERGY MANAGEMENT,
           OCTOBER 4, 1988

                                     AN ACT

     1  Amending the act of April 9, 1929 (P.L.177, No.175), entitled
     2     "An act providing for and reorganizing the conduct of the
     3     executive and administrative work of the Commonwealth by the
     4     Executive Department thereof and the administrative
     5     departments, boards, commissions, and officers thereof,
     6     including the boards of trustees of State Normal Schools, or
     7     Teachers Colleges; abolishing, creating, reorganizing or
     8     authorizing the reorganization of certain administrative
     9     departments, boards, and commissions; defining the powers and
    10     duties of the Governor and other executive and administrative
    11     officers, and of the several administrative departments,
    12     boards, commissions, and officers; fixing the salaries of the
    13     Governor, Lieutenant Governor, and certain other executive
    14     and administrative officers; providing for the appointment of
    15     certain administrative officers, and of all deputies and
    16     other assistants and employes in certain departments, boards,
    17     and commissions; and prescribing the manner in which the
    18     number and compensation of the deputies and all other
    19     assistants and employes of certain departments, boards and
    20     commissions shall be determined," establishing the Department
    21     of Energy and providing for its powers and duties; creating
    22     the Energy Research and Development Advisory Board and
    23     prescribing its functions; further providing for the
    24     composition of the Environmental Quality Board and for
    25     special powers relating to State vehicles; providing for
    26     energy or fuel supply emergencies and for coordination of
    27     monitoring of supplies of energy resources; further providing
    28     for the composition of the Energy Development Authority and
    29     for indebtedness of the Energy Development Authority; and
    30     transferring personnel, appropriations and equipment.

    31     The General Assembly of the Commonwealth of Pennsylvania

     1  hereby enacts as follows:
     2     Section 1.  Section 201 of the act of April 9, 1929 (P.L.177,
     3  No.175), known as The Administrative Code of 1929, amended
     4  December 30, 1984 (P.L.1299, No.245) and repealed in part May
     5  26, 1988 (P.L.414, No.72), is amended to read:
     6     Section 201.  Executive Officers, Administrative Departments
     7  and Independent Administrative Boards and Commissions.--The
     8  executive and administrative work of this Commonwealth shall be
     9  performed by the Executive Department, consisting of the
    10  Governor, Lieutenant Governor, Secretary of the Commonwealth,
    11  Attorney General, Auditor General, State Treasurer, and
    12  Secretary of Education; by the Executive Board, and the
    13  Pennsylvania State Police; by the following administrative
    14  departments: Department of State, Office of Attorney General,
    15  Department of Corrections, Department of the Auditor General,
    16  Treasury Department, Department of Education, Department of
    17  Military Affairs, Insurance Department, Department of Banking,
    18  Department of Agriculture, Department of Transportation,
    19  Department of Health, Department of Labor and Industry,
    20  Department of Aging, Department of Public Welfare, Department of
    21  General Services, Department of Revenue, Department of Commerce,
    22  Department of Community Affairs [and], Department of
    23  Environmental Resources and Department of Energy; and by the
    24  following independent administrative boards and commissions:
    25  Pennsylvania Game Commission, Pennsylvania Fish Commission,
    26  State Civil Service Commission, Pennsylvania Public Utility
    27  Commission, the Pennsylvania Historical and Museum Commission
    28  and the Pennsylvania Securities Commission.
    29     All of the provisions of this act, which apply generally to
    30  administrative departments, or generally except to the
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     1  Department of the Auditor General, the Treasury Department and
     2  the Office of Attorney General, shall apply to the Executive
     3  Board and to the Pennsylvania State Police.
     4     Section 2.  Section 203 of the act, amended December 3, 1970
     5  (P.L.834, No.275), July 22, 1975 (P.L.75, No.45), June 20, 1978
     6  (P.L.477, No.70), December 6, 1982 (P.L.774, No.223) and June
     7  30, 1988 (P.L.475, No.80) and repealed in part April 29, 1988
     8  (P.L.381, No.60), is amended to read:
     9     Section 203.  Advisory Boards and Commissions.--The following
    10  advisory boards and commissions are placed in and made parts of
    11  the respective administrative departments, as follows:
    12     In the Department of Military Affairs,
    13         State Military Reservation Commission,
    14     In the Department of Environmental Resources,
    15         Citizens Advisory Council;
    16     In the Department of Health,
    17         Advisory Health Board;
    18     In the Department of Labor and Industry,
    19         Advisory Council on Affairs of the Handicapped,
    20         Advisory Board on Problems of Older Workers,
    21         Policy, Planning and Evaluation Advisory Committee;
    22     In the Department of Public Welfare,
    23         State Board of Public Welfare,
    24         Advisory Committee for the Blind,
    25         Advisory Committee for General and Special Hospitals,
    26         Advisory Committee for Children and Youth,
    27         Advisory Committee for Public Assistance,
    28         Advisory Committee for Mental Health and Mental
    29             Retardation;
    30     In the Department of Commerce,
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     1         Board of the Ben Franklin Partnership Fund[.];
     2     In the Department of Energy,
     3         Energy Research and Development Advisory Board.
     4     Section 3.  Sections 206 and 207.1(d)(1) of the act, amended
     5  December 30, 1984 (P.L.1299, No.245), are amended to read:
     6     Section 206.  Department Heads.--Each administrative
     7  department shall have as its head an officer who shall, either
     8  personally, by deputy, or by the duly authorized agent or
     9  employe of the department, and subject at all times to the
    10  provisions of this act, exercise the powers and perform the
    11  duties by law vested in and imposed upon the department.
    12     The following officers shall be the heads of the
    13  administrative departments following their respective titles:
    14     Secretary of the Commonwealth, of the Department of State;
    15     Auditor General, of the Department of the Auditor General;
    16     State Treasurer, of the Treasury Department;
    17     Attorney General, of the Office of Attorney General;
    18     Secretary of Education, of the Department of Education;
    19     Adjutant General, of the Department of Military Affairs;
    20     Insurance Commissioner, of the Insurance Department;
    21     Secretary of Banking, of the Department of Banking;
    22     Secretary of Agriculture, of the Department of Agriculture;
    23     Secretary of Transportation, of the Department of
    24         Transportation;
    25     Secretary of Health, of the Department of Health;
    26     Secretary of Labor and Industry, of the Department of Labor
    27         and Industry;
    28     Secretary of Aging, of the Department of Aging;
    29     Secretary of Public Welfare, of the Department of Public
    30         Welfare;
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     1     Secretary of Revenue, of the Department of Revenue;
     2     Secretary of Commerce, of the Department of Commerce;
     3     Secretary of Community Affairs, of the Department of
     4         Community Affairs;
     5     Secretary of Environmental Resources, of the Department of
     6         Environmental Resources;
     7     Secretary of Energy, of the Department of Energy;
     8     Secretary of General Services, of the Department of General
     9         Services;
    10     Secretary of Corrections, of the Department of Corrections.
    11     Section 207.1.  Gubernatorial Appointments.--* * *
    12     (d)  The Governor shall nominate in accordance with the
    13  provisions of the Constitution of the Commonwealth of
    14  Pennsylvania and, by and with the advice and consent of a
    15  majority of the members elected to the Senate appoint persons to
    16  fill the following positions:
    17     (1)  The Secretary of Education, the Secretary of the
    18  Commonwealth, the Adjutant General, the Insurance Commissioner,
    19  the Secretary of Banking, the Secretary of Agriculture, the
    20  Secretary of Transportation, the Secretary of Health, the
    21  Commissioner of the State Police, the Secretary of Corrections,
    22  the Secretary of Labor and Industry, the Secretary of Aging, the
    23  Secretary of Public Welfare, the Secretary of General Services,
    24  the Secretary of Revenue, the Secretary of Commerce, the
    25  Secretary of Community Affairs [and], the Secretary of
    26  Environmental Resources and the Secretary of Energy.
    27     * * *
    28     Section 4.  Section 448 of the act is amended by adding a
    29  clause to read:
    30     Section 448.  Advisory Boards and Commissions.--The advisory
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     1  boards and commissions, within the several administrative
     2  departments, shall be constituted as follows:
     3     * * *
     4     (q)  The Energy Research and Development Advisory Board shall
     5  consist of the Secretary of Energy, the Secretary of Commerce,
     6  the Secretary of Environmental Resources, the Chairman of the
     7  Pennsylvania Public Utility Commission, the Executive Director
     8  of the Energy Development Authority and eight (8) members
     9  appointed by the Governor, one (1) of whom shall be designated
    10  as chairman. The eight (8) appointed members shall be
    11  knowledgeable in fields related to energy development,
    12  production and use and shall be appointed by the Governor as
    13  follows: two (2) members shall be from an electric power utility
    14  which operates at least one coal-fired generating station, one
    15  (1) member shall be the owner or an operator of a gas or oil
    16  producing operation, one (1) member shall be the owner or an
    17  operator of an anthracite coal mining operation, one (1) member
    18  shall be the owner or an operator of a bituminous coal mining
    19  operation, one (1) member shall be from a small power producer
    20  or shall be knowledgeable in renewable energy resources and two
    21  (2) members shall be from the energy research staff of an
    22  accredited Pennsylvania university or college. The membership of
    23  the Energy Research Development Advisory Board shall also
    24  include four (4) members of the General Assembly or their
    25  designees, one (1) appointed by the President pro tempore of the
    26  Senate, one (1) by the Minority Leader of the Senate, one (1) by
    27  the Speaker of the House of Representatives and one (1) by the
    28  Minority Leader of the House of representatives.
    29     The term of office of each member appointed by the Governor
    30  shall be four (4) years, measured from the third Tuesday of
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     1  January of the year in which the member takes office, or until
     2  his successor has been appointed except, that in the initial
     3  appointments of the members of the board, the Governor shall
     4  appoint four (4) members for terms of two (2) years each and
     5  four (4) members for terms of three (3) years each.
     6     Any member appointed to fill a vacancy created otherwise than
     7  by expiration of a term shall be appointed for the unexpired
     8  term of the member whom he is to succeed. Members of the board
     9  shall not receive any compensation for their service, but shall
    10  be reimbursed for actual and necessary expenses incurred in the
    11  performance of their duties and shall receive a per diem
    12  allowance of ninety dollars ($90).
    13     A majority of the members shall constitute a quorum. Meetings
    14  of the board shall be held at least quarterly or at the call of
    15  the chairman, or at the request of at least six (6) members of
    16  the board.
    17     The Department of Energy shall provide technical assistance
    18  and support services to the board.
    19     Section 5.  Section 471 of the act, amended November 1, 1979
    20  (P.L.251, No.83), is amended to read:
    21     Section 471.  Environmental Quality Board.--The Environmental
    22  Quality Board shall consist of the Secretary of Environmental
    23  Resources, who shall be chairman thereof, the Secretary of
    24  Health, the Secretary of Commerce, the Secretary of
    25  Transportation, the Secretary of Agriculture, the Secretary of
    26  Labor and Industry, the Secretary of Community Affairs, the
    27  Secretary of Energy, the Executive Director of the Fish
    28  Commission, the Executive Director of the Game Commission, the
    29  Chairman of the Public Utilities Commission, the Executive
    30  Director of the State Planning Board, the Executive Director of
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     1  the Pennsylvania Historical and Museum Commission, [five] four
     2  members of the Citizens Advisory Council, and four members of
     3  the General Assembly. The Citizens Advisory Council members
     4  shall be designated by, and serve at the pleasure of, the
     5  Citizens Advisory Council. One of the General Assembly members
     6  shall be designated by, and serve at the pleasure of, the
     7  President Pro Tempore of the Senate, one by the Minority Leader
     8  of the Senate, one by the Speaker of the House of
     9  Representatives and one by the Minority Leader of the House of
    10  Representatives. In addition to the heads of the various
    11  departments as elsewhere in this act provided, the other members
    12  of the board may have named alternates to serve in their stead,
    13  the alternates for the members of the board from the Citizens
    14  Advisory Council to be selected by that council from members of
    15  the council and each other alternate to be selected by that
    16  particular member of the board in whose stead he is to serve. No
    17  person will serve as alternate for more than one board member.
    18     Eight members of the board shall constitute a quorum.
    19     Section 6.  The act is amended by adding an article to read:
    20                           ARTICLE XIX-B
    21           POWERS AND DUTIES OF THE DEPARTMENT OF ENERGY,
    22                ITS OFFICERS AND ITS ADVISORY BOARD
    23     Section 1901-B.  Department of Energy Established.--The
    24  Department of Energy, which is hereby established as an
    25  administrative department, shall have the powers and duties
    26  granted to and imposed upon it by this article and by any other
    27  statutory provisions. In addition, the Department of Energy and
    28  the Secretary of Energy shall have all the powers and duties
    29  granted to and imposed upon the former Pennsylvania Energy
    30  Office prior to the effective date of this article.
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     1     Section 1902-B.  The Department of Energy shall have the
     2  power and its duty shall be:
     3     (1)  To promote the development of this Commonwealth's
     4  indigenous energy resources, consistent with economic
     5  feasibility, environmental protection and public health and
     6  safety by providing information, technical assistance and
     7  financial assistance.
     8     (2)  To promote the efficient use and conservation of energy
     9  in this Commonwealth through the conduct of a Statewide
    10  educational program and by providing information, technical
    11  assistance and financial assistance.
    12     (3)  To serve as the primary agency in this Commonwealth for
    13  the collection, maintenance and analysis of information on all
    14  forms of energy, conservation of energy and related subjects.
    15     (4)  To maintain a liaison with energy producers, suppliers,
    16  distributors and consumers and other State and Federal agencies
    17  concerning energy-related matters.
    18     (5)  In cooperation with the Energy Research and Development
    19  Advisory Board and the Energy Development Authority, to promote
    20  research and development efforts which will contribute to the
    21  integrity and adequacy of Pennsylvania's energy resources, with
    22  priority given to research and development involving utilization
    23  of Pennsylvania's coal resources and pollution control methods
    24  which will facilitate utilization of Pennsylvania coal.
    25     (6)  To encourage the development of new markets for
    26  Pennsylvania's indigenous energy resources.
    27     (7)  To monitor energy prices and evaluate rate and price
    28  policies.
    29     (8)  To establish an energy information forecasting system.
    30     (9)  To determine the effect of energy and fuel shortages on
    19880H2701B3769                  - 9 -

     1  consumers.
     2     (10)  To coordinate the monitoring of energy or fuel supplies
     3  to determine whether there exists or is likely to exist an
     4  emergency shortage pursuant to section 2802-C(a) of this act and
     5  to conduct emergency allocation measures during a period of
     6  declared energy or fuel supply emergencies, pursuant to section
     7  2802-C(b) of this act in accordance with an Emergency Allocation
     8  Plan. The Emergency Allocation Plan shall be developed and
     9  implemented by the department in conjunction with the
    10  Pennsylvania Public Utility Commission and the Pennsylvania
    11  Emergency Management Agency and shall be part of the
    12  Pennsylvania Energy Policy and Plan.
    13     (11)  To review, study and monitor the efficiency of energy
    14  utilization in State Government operations and suggest remedial
    15  measures. The department shall direct all Commonwealth agencies
    16  to develop, subject to the department's approval, contingency
    17  plans for dealing with energy or fuel supply emergencies.
    18  Portions of emergency allocation or contingency plans which
    19  pertain to energy industries regulated by the Pennsylvania
    20  Public Utility Commission shall be made available to the
    21  department upon request.
    22     (12)  To assist in the review of plans, policies, rules and
    23  regulations of other Commonwealth agencies regarding energy
    24  development, production, conversion, distribution, transmission,
    25  use or conservation.
    26     (13)  To intervene in the proceedings of the Pennsylvania
    27  Public Utility Commission and regulatory proceedings of other
    28  State or Federal agencies if the proceedings relate to energy
    29  development, production, conversion, distribution, transmission,
    30  use or conservation.
    19880H2701B3769                 - 10 -

     1     (14)  To apply for, accept and expend grants-in-aid and
     2  assistance for energy programs from public and private sources
     3  and to serve as the manager and coordinator of Federal energy
     4  grants, petroleum overcharge funds and private energy funds.
     5     (15)  To update and publish, at least once every five years,
     6  a Pennsylvania Energy Policy and Plan developed by the Energy
     7  Research and Development Advisory Board. The Pennsylvania Energy
     8  Policy and Plan shall include information regarding the
     9  development, production, distribution, consumption and
    10  conservation of energy in this Commonwealth. The Emergency
    11  Allocation Plan shall be included in the Pennsylvania Energy
    12  Policy and Plan. The Pennsylvania Energy Policy and Plan and any
    13  amendments thereto shall be submitted to the Governor and the
    14  General Assembly.
    15     (16)  To provide necessary staff and assistance to the Energy
    16  Research and Development Advisory Board and the Energy
    17  Development Authority.
    18     (17)  To assist in the implementation of the act of December
    19  15, 1980 (P.L.1203, No.222), known as the "Building Energy
    20  Conservation Act," and to establish a Building Energy
    21  Conservation Committee, pursuant to section 304 of the "Building
    22  Energy Conservation Act."
    23     (18)  To enter into interstate compacts or agreements to
    24  carry out energy research and planning with other states or the
    25  Federal Government.
    26     (19)  To advise the Governor and the General Assembly
    27  regarding State, Federal and international energy policies,
    28  practices, programs and legislation and to submit proposed
    29  legislation to the General Assembly for its consideration.
    30     (20)  To issue subpoenas and conduct hearings and
    19880H2701B3769                 - 11 -

     1  investigations.
     2     (21)  To acquire, purchase, grant and contract for eminent
     3  domain title to real property to demonstrate facilities for
     4  improved energy efficiency.
     5     (22)  To construct and operate facilities which improve
     6  energy efficiency.
     7     (23)  To contract with any other public agency or
     8  corporation.
     9     (24)  To keep complete and accurate minutes of all hearings
    10  held before the department or any division of the department.
    11     (25)  To promulgate regulations necessary to administer this
    12  article and to administer any applicable Federal regulations.
    13     (26)  To cooperate with all other Federal and State agencies
    14  in carrying out its responsibilities.
    15     Section 1903-B.  Organization.--The Department of Energy
    16  shall be organized into an Executive Office and three divisions.
    17  The Secretary of Energy shall appoint as the head of each of the
    18  following divisions a person knowledgeable and experienced in
    19  the areas for which that division is responsible:
    20     (1)  Office of Administration.
    21     (2)  Office of Energy Policy and Programs.
    22     (3)  Office of Energy Planning and Evaluation.
    23     Section 1904-B.  Divisions.--(a)  The Secretary of Energy
    24  shall be responsible for the general administration and
    25  coordination of the Department of Energy and its divisions. The
    26  Secretary shall appoint a Chief Counsel who shall provide legal
    27  services to the department.
    28     (b)  The Office of Administration shall be headed by a Deputy
    29  Secretary for Administration who shall be appointed by the
    30  Secretary of Energy. The Office of Administration shall have
    19880H2701B3769                 - 12 -

     1  responsibility for personnel and fiscal management, information
     2  systems and office systems and services and shall have such
     3  other responsibilities as may be assigned by the Secretary of
     4  Energy.
     5     (c)  The Office of Energy Policy and Programs shall be headed
     6  by a Deputy Secretary for Energy Policy and Programs who shall
     7  be appointed by the Secretary of Energy. The Office of Energy
     8  Policy and Programs shall have responsibility for administration
     9  of grants, nuclear energy, fossil fuels, renewable energy
    10  resources, utility issues and energy conservation programs and
    11  shall have such other responsibilities as may be assigned by the
    12  Secretary of Energy.
    13     (d)  The Office of Energy Planning and Evaluation shall be
    14  headed by a Deputy Secretary for Energy Planning and Evaluation
    15  who shall be appointed by the Secretary of Energy. The Office of
    16  Energy Planning and Evaluation shall have responsibility for
    17  regulatory affairs, emergency preparedness, market evaluation
    18  and promotion, intergovernmental relations, community relations,
    19  public information and shall have such other responsibilities as
    20  may be assigned by the Secretary of Energy.
    21     Section 1905-B.  Salary of the Secretary of Energy.--The
    22  Secretary of Energy shall receive an annual salary, payable in
    23  equal semi-monthly installments of seventy-two thousand dollars
    24  ($72,000).
    25     Section 1906-B.  Energy Research and Development Advisory
    26  Board.--(a)  The Energy Research and Development Advisory Board
    27  shall have the responsibility for developing a Pennsylvania
    28  Energy Policy and Plan for this Commonwealth.
    29     (b)  The board shall assist and provide advice to the
    30  Secretary of Energy and the Energy Development Authority. The
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     1  Secretary of Energy and the Energy Development Authority shall
     2  work with and receive advice from the Energy Research and
     3  Development Advisory Board in the development of energy programs
     4  and projects in this Commonwealth.
     5     (c)  The functions of the Energy Research and Development
     6  Advisory Board shall include, but not be limited to, the
     7  following:
     8     (1)  Providing liaison among energy producers, labor
     9  organizations, academia and agencies of the Commonwealth and the
    10  United States on matters relating to energy and encouraging the
    11  exchange of information regarding energy research and
    12  development between the Commonwealth and other states and
    13  nations.
    14     (2)  Providing coordination and oversight of all energy
    15  research programs conducted at colleges and universities located
    16  within this Commonwealth and, where possible, provide
    17  coordination and oversight of all energy research programs
    18  conducted in the private sector.
    19     (3)  Recommending energy research and development projects,
    20  with priority being given to demonstrations of technology which
    21  enhance the production and use of Pennsylvania coals and the
    22  more efficient combustion of all fossil fuels. Before the board
    23  makes any recommendation, it shall first consult with agencies
    24  of the Federal government that have jurisdiction over matters
    25  involving energy, colleges and universities within this
    26  Commonwealth, and other state governments in order to avoid
    27  duplication of effort and expense.
    28     (4)  Assisting the Energy Development Authority in the
    29  evaluation of energy research and development projects which
    30  apply to the Energy Development Authority for financial or
    19880H2701B3769                 - 14 -

     1  technical assistance.
     2     (5)  Assisting the Secretary of Energy in developing
     3  environmentally sound, cost-effective energy programs and
     4  policies and procedures to implement such programs.
     5     Section 7.  Sections 2407.1, 2801-C and 2802-C of the act,
     6  added December 14, 1982 (P.L.1213, No.280), are amended to read:
     7     Section 2407.1.  Special Power Relating to State Vehicles.--
     8  (a)  The Department of General Services, in cooperation with the
     9  Department of Energy, shall, on an ongoing basis, monitor the
    10  research and development efforts to produce synthetic motor
    11  vehicle fuel derived in whole or in part from coal and shall
    12  determine the feasibility of converting State-owned vehicles to
    13  operate on such synthetic fuel.
    14     (b)  In making [its] the determination of the feasibility of
    15  using a synthetic motor vehicle fuel derived in whole or in part
    16  from coal, the [department is] departments are authorized to
    17  utilize such synthetic fuel in a limited number of State-owned
    18  vehicles on an experimental basis and to make necessary
    19  mechanical changes in those vehicles to facilitate the
    20  experimentation.
    21     (c)  If, as a result of the monitoring and experimentation
    22  conducted in accordance with subsections (a) and (b), the
    23  [department determines] departments determine that there is a
    24  sufficient, assured supply of such synthetic fuel which can be
    25  used in one or more State-owned vehicles at a reasonable cost
    26  and without creating any significant threat to the environment,
    27  the [department] departments shall submit to the General
    28  Assembly a plan for such conversion. Such plan shall be
    29  accompanied by a summary report setting forth the basis for the
    30  [department's] determination that such conversion is feasible.
    19880H2701B3769                 - 15 -

     1     Section 2801-C.  Definitions.--The following words and
     2  phrases when used in this article shall have the meanings given
     3  to them in this section unless the context clearly indicates
     4  otherwise:
     5     "Authority" means the Energy Development Authority.
     6     "Board" means the board of directors of the authority.
     7     "Bond" or "Bonds" means notes, bonds, refunding or renewal
     8  notes and bonds and other evidence of indebtedness or
     9  obligations which the authority is authorized to issue.
    10     "Cost" means the expense of construction and the expense of
    11  acquisition of all structures, lands and other property rights
    12  and interests in land necessary to a project. The term also
    13  includes the expense of demolishing, removing or relocating any
    14  buildings or structures on lands acquired or to be acquired,
    15  including the expense of acquiring any lands to which such
    16  buildings or structures may be moved or relocated; sewage
    17  treatment, waste treatment and pollution control facilities;
    18  railroad sidings, spurs or branch lines; all labor, materials,
    19  machinery and equipment, fixtures; financing charges; interest
    20  on all bonds prior to and during construction, and for a period
    21  of one year thereafter; engineering, financial and legal
    22  services; plans, specifications, studies, surveys necessary or
    23  incidental to determining the feasibility or practicability of
    24  constructing a project; administrative expenses; reserves for
    25  interest and for extension, enlargements, additions and
    26  improvements; and such other expenses as may be necessary or
    27  incidental to the construction of the project and the placing of
    28  the same in operation.
    29     "Energy or fuel supply emergency" means a state of emergency,
    30  declared by proclamation of the Governor within twenty-four
    19880H2701B3769                 - 16 -

     1  hours after the occurrence of an energy resource shortage or
     2  supply or distribution problem resulting because of an absence
     3  of availability or a critically reduced supply of any energy
     4  source, which cannot be satisfactorily alleviated or resolved by
     5  or under the authority of State regulatory authorities having
     6  jurisdiction over such energy resources, thereby jeopardizing
     7  the health, safety, welfare and economic well-being of the
     8  inhabitants of this Commonwealth.
     9     "Energy resource" means any force or material which yields or
    10  has the potential to yield energy, including, but not limited
    11  to, electrical, fossil and nuclear sources.
    12     "Person" means a natural person, corporation, partnership,
    13  association, and any municipality of this Commonwealth and any
    14  public corporation, authority or body whatsoever.
    15     "Petroleum product" includes motor gasoline, kerosene,
    16  distillates (including Number 2 fuel oil) and diesel fuel.
    17     "Project" means an activity, entirely or largely conducted in
    18  Pennsylvania, which cannot be effectively funded using privately
    19  available resources, relating to:
    20     (1)  basic and applied research concerning energy use,
    21  renewable energy resources and energy extraction, transmission,
    22  storage or conversion;
    23     (2)  limited scale demonstration of innovative or
    24  commercially unproven technology to promote the production, use
    25  or conservation of energy; [or]
    26     (3)  activities to promote or remove obstacles to the
    27  utilization and transportation of Pennsylvania energy resources,
    28  including but not limited to limited scale synthetic fuel
    29  facilities and the conversion or technological improvement of
    30  industrial, commercial or agricultural systems to utilize
    19880H2701B3769                 - 17 -

     1  Pennsylvania coal or renewable energy resources: Provided, That
     2  no such facility unreasonably interferes with private waste
     3  recycling industries[.];
     4     (4)  activities to promote and develop projects, on a local
     5  or regional basis, for the cogeneration of power through the
     6  utilization of solid waste; or
     7     (5)  activities which seek to reduce pollution and are
     8  associated with energy development, production or distribution.
     9     "Renewable energy source" means any method, process or
    10  substance whose supply is rejuvenated through natural processes
    11  and, subject to those material processes, remains relatively
    12  constant, including, but not limited to, biomass conversion,
    13  geothermal energy, solar and wind energy and hydroelectric
    14  power, and excluding those sources of energy used in the fission
    15  and fusion processes.
    16     Section 2802-C.  [Emergency Petroleum Product Shortages.--(a)
    17  The Governor may, by executive order, proclaim a state of
    18  emergency based upon a finding that there impends or exists a
    19  substantial shortage of petroleum products available for use in
    20  Pennsylvania which poses a serious threat to health, safety or
    21  welfare of the public.] Energy or Fuel Supply Emergency.--(a)
    22  In the event that the threat or danger of an energy or fuel
    23  supply emergency is imminent, the Governor may, after
    24  consultation with the Lieutenant Governor, the Department of
    25  Energy, the Pennsylvania Public Utility Commission and the
    26  Department of Environmental Resources, declare a state of energy
    27  or fuel supply emergency. A state of energy or fuel supply
    28  emergency shall remain in effect for the maximum period of
    29  ninety days [and may be extended], but may be terminated or
    30  extended by the Governor unless the termination or extension is
    19880H2701B3769                 - 18 -

     1  disapproved by concurrent resolution adopted by both Houses of
     2  the General Assembly. A state of emergency may be declared for
     3  all or any portion of the Commonwealth.
     4     (b)  [Upon proclamation of a state of emergency, the Governor
     5  shall designate a State agency to conduct emergency allocation
     6  measures during the period of the declared emergency. Emergency
     7  allocation measures may consist of:
     8     (1)  the administration of any emergency allocation powers
     9  delegated to the State by the President or any Federal agency;
    10     (2)  the implementation of a set aside program, for not more
    11  than one percent (1%) of the petroleum products available for
    12  use in Pennsylvania, to alleviate hardship or meet emergency
    13  needs. A set aside program shall be established in conformity
    14  with any Federal law, regulations or executive orders governing
    15  petroleum allocation, and shall apply only to petroleum products
    16  found to be in a substantial shortage;
    17     (3)  measures to reduce the demand for or consumption of
    18  gasoline; and
    19     (4)  other measures identified by the Governor in his
    20  executive order proclaiming a state of emergency as necessary to
    21  protect the public health, safety and welfare.
    22     (c)  The agency designated by the Governor to conduct
    23  emergency measures may, during the period of the emergency,
    24  adopt rules and regulations pursuant to section 204 of the act
    25  of July 31, 1968 (P.L.769, No.240), referred to as the
    26  Commonwealth Documents Law. Any regulation adopted during a
    27  state of emergency shall be automatically rescinded upon the
    28  expiration of the emergency.
    29     (d)  The Governor may designate a state agency to monitor
    30  supplies of petroleum products available for use in the
    19880H2701B3769                 - 19 -

     1  Commonwealth to determine whether there exists, or is likely to
     2  exist, an emergency shortage.
     3     (1)  In order to monitor supplies of petroleum products, the
     4  agency may require recordkeeping and periodic reports from
     5  petroleum suppliers. These reporting and recordkeeping
     6  requirements shall, to the maximum extent possible, employ
     7  Federally mandated reports and records, avoid any unnecessary
     8  duplicative reporting or recordkeeping, and minimize paperwork,
     9  recordkeeping and reporting requirements.
    10     (2)  Reports filed and records maintained pursuant to this
    11  subsection shall be deemed confidential.
    12     (3)  When a petroleum supplier or a company providing
    13  information to a petroleum supplier claims that the information
    14  requested by the agency is confidential, proprietary, market or
    15  trade secret information, or when the information is deemed
    16  confidential pursuant to this section, the agency shall not
    17  disclose such information publicly or to any other governmental
    18  agency unless the information is aggregated as part of a
    19  statistical report in which the data and individual companies
    20  supplying the data cannot be identified.
    21     (4)  No employe or appointee of the agency or other person
    22  may release information from a petroleum product company that
    23  would enable data provided by or relating to individual
    24  customers of the petroleum company to be identified as relating
    25  to or coming from the individual customer. Any person disclosing
    26  such information in violation of this section shall be guilty of
    27  a misdemeanor, shall be subject to disciplinary action,
    28  including reprimand, suspension or termination, and may be
    29  ordered to make restitution to any injured or aggrieved party
    30  for losses or damages shown.
    19880H2701B3769                 - 20 -

     1     (5)  In order to obtain information required pursuant to this
     2  subsection, the agency designated by the Governor to monitor
     3  supplies of petroleum products may receive or share information
     4  from any other Commonwealth, Federal or local agency: Provided,
     5  That the agency shall provide the same confidentiality to
     6  information recovered as is provided by the supplying agency.]
     7  Upon proclamation of a state of emergency, the Governor shall
     8  have the power:
     9     (1)  To direct the Department of Energy to conduct emergency
    10  petroleum allocation measures which may consist of any of the
    11  following:
    12     (i)  The administration of any emergency petroleum allocation
    13  powers delegated to the State by the President or any Federal
    14  agency.
    15     (ii)  The implementation of a set-aside program, for not more
    16  than one per centum (1%) of the petroleum products available for
    17  use in Pennsylvania, to alleviate hardship or meet emergency
    18  needs. A set-aside program shall be established in conformity
    19  with any Federal law, regulations or executive orders governing
    20  petroleum allocation, and shall apply only to petroleum products
    21  found to be in a substantial shortage.
    22     (iii)  Measures to reduce the demand for or consumption of
    23  petroleum products.
    24     (iv)  The adoption of rules and regulations in the manner
    25  provided by law. Any regulation adopted during a state of
    26  emergency shall be automatically rescinded upon the expiration
    27  of the emergency.
    28     (v)  Any other measures deemed necessary to protect the
    29  public health, safety and welfare.
    30     (2)  To encourage increased use of renewable energy sources.
    19880H2701B3769                 - 21 -

     1     (3)  To suspend or modify existing state standards and
     2  requirements affecting or affected by the use of energy
     3  resources, including those related to air quality control.
     4     (4)  To order specific restrictions on the use and sale of
     5  energy resources, including, but not limited to:
     6     (i)  Restrictions on the interior temperature of public,
     7  commercial, industrial and school buildings.
     8     (ii)  Restrictions on the hours and days during which public,
     9  commercial, industrial and school buildings may be open.
    10     (iii)  Restrictions on lighting levels in public, commercial,
    11  industrial and school buildings.
    12     (iv)  Restrictions on the use of display and decorative
    13  lighting.
    14     (v)  Restrictions on the use of privately owned vehicles or a
    15  reduction in speed limits.
    16     (vi)  Restrictions on the use of public transportation,
    17  including directions to close a public transportation facility.
    18     (vii)  Restrictions on the use of pupil transportation
    19  programs operated by public schools.
    20     (viii)  Reduction in the number of elevators operating in
    21  office buildings during nonpeak hours.
    22     (ix)  Curtailment of nighttime sports, entertainment and
    23  recreational activities.
    24     (x)  Closing of public museums, art galleries and historic
    25  buildings.
    26     (xi)  Requiring Sunday closings of retail establishments,
    27  except for those retail establishments that provide goods or
    28  services essential to the public welfare.
    29     (xii)  Reduction in the number of hours during which retail
    30  establishments may be open for business, except for those retail
    19880H2701B3769                 - 22 -

     1  establishments which provide goods or services essential to the
     2  public welfare. Any retail establishment subject to this
     3  subclause shall be permitted to set its specific hours of
     4  operation, provided the total number of hours does not exceed
     5  the maximum number of hours authorized pursuant to this
     6  subclause.
     7     (c)  Any restrictions ordered by the Governor shall be
     8  automatically rescinded upon the expiration of the emergency.
     9     (d)  Any actions taken by the Governor pursuant to this
    10  section, insofar as they may apply to a regulated utility, shall
    11  not conflict with or supersede regulations or orders of the
    12  Pennsylvania Public Utility Commission or curtailment procedures
    13  on file with the Pennsylvania Public Utility Commission, nor
    14  shall any restrictions on the use of fuel for the generation of
    15  energy or on the transportation of fuel for the generation of
    16  energy be imposed prior to consultation with the Pennsylvania
    17  Public Utility Commission.
    18     (e)  An executive order, proclamation or directive issued
    19  under this section shall be disseminated promptly by means
    20  calculated to bring its contents to the attention of the
    21  citizens of this Commonwealth and published in accordance with
    22  the law. The Governor shall notify the General Assembly promptly
    23  of an executive order, proclamation or directive issued under
    24  this article.
    25     (f)  Any person who knowingly violates any order,
    26  proclamation or directive issued by the Governor under this
    27  section commits a misdemeanor of the third degree and shall,
    28  upon conviction, be sentenced to pay a fine of not more than
    29  $500. Each day of a continuing violation shall be a separate
    30  offense.
    19880H2701B3769                 - 23 -

     1     (g)  Nothing in this article shall limit the authority of the
     2  Pennsylvania Public Utility Commission to regulate public
     3  utility service as provided in Title 66 of the Pennsylvania
     4  Consolidated Statutes (relating to public utilities).
     5     Section 8.  The act is amended by adding a section to read:
     6     Section 2802.1-C.  Coordination of Monitoring of Supplies of
     7  Energy Resources.--(a)  The Department of Energy shall
     8  coordinate the monitoring of supplies of energy resources
     9  available for use in this Commonwealth to determine whether
    10  there exists, or is likely to exist, an emergency shortage.
    11     (b)  In order to coordinate the monitoring of energy
    12  resources, the Department of Energy may require recordkeeping
    13  and periodic reports from energy resource suppliers. These
    14  reporting and recordkeeping requirements shall, to the maximum
    15  extent possible, employ mandated reports and records of other
    16  Commonwealth, Federal or local agencies, avoid any unnecessary
    17  duplicative reporting or recordkeeping, and minimize paperwork,
    18  recordkeeping and reporting requirements.
    19     (c)  Any agency that provides or receives reports or records
    20  under this act, any other act, any rule or regulation or any
    21  executive order or similar directive for the purpose of
    22  monitoring or coordinating the monitoring of supplies of energy
    23  resources shall keep such records or reports confidential unless
    24  the reports or records are deemed to be public information
    25  pursuant to the act, rule or regulation, executive order or
    26  directive under which they are provided.
    27     (d)  When an energy resource supplier or a company providing
    28  information to an energy resource supplier claims that the
    29  information requested by the agency is confidential,
    30  proprietary, market or trade secret information, or when the
    19880H2701B3769                 - 24 -

     1  information is deemed confidential pursuant to this section, the
     2  agency shall not disclose such information publicly or to any
     3  other governmental agency unless the information is aggregated
     4  as part of a statistical report in which the data and individual
     5  companies supplying the data cannot be identified.
     6     (e)  No employe or appointee of the agency or other person
     7  may release information from an energy resource company that
     8  would enable data provided by or relating to individual
     9  customers of the energy resource company to be identified as
    10  relating to or coming from the individual customer. Any person
    11  disclosing such information in violation of this section shall
    12  be guilty of a misdemeanor of the third degree, shall be subject
    13  to disciplinary action, including reprimand, suspension or
    14  termination, and may be ordered to make restitution to any
    15  injured or aggrieved party for losses or damages shown.
    16     (f)  In order to obtain information required pursuant to this
    17  section, the Department of Energy may receive or share
    18  information from any other Commonwealth, Federal or local
    19  agency: Provided, however, That the Department of Energy shall
    20  provide the same confidentiality to information received as is
    21  provided by the supplying agency.
    22     Section 9.  Section 2803-C of the act, amended or added
    23  December 14, 1982 (P.L.1213, No.280) and July 11, 1985 (P.L.211,
    24  No.55), is amended to read:
    25     Section 2803-C.  Energy Development Authority.--(a)  There is
    26  hereby established within the Department of Energy the Energy
    27  Development Authority.
    28     (b)  The authority shall be governed and all of its corporate
    29  powers exercised by a board of directors which shall be composed
    30  of the following individuals:
    19880H2701B3769                 - 25 -

     1     (1)  Nine members to be appointed by the Governor, one of
     2  whom shall be designated as chairman. At least two members shall
     3  be members of the general public. The members initially
     4  appointed shall serve for terms of two, three and four years,
     5  respectively, the particular term of each to be designated by
     6  the Governor at the time of appointment. The terms of all of
     7  their successors shall be four years each, except that any
     8  person appointed to fill a vacancy shall serve only for the
     9  unexpired term. Every member's term shall extend until his
    10  successor is appointed and qualified. Any appointment of a
    11  member of the authority shall be subject to the advice and
    12  consent of a majority of all of the members of the Senate. Any
    13  appointed member of the authority shall be eligible for
    14  reappointment.
    15     (2)  The Secretary of Energy or his designee.
    16     [(2)] (3)  The Secretary of Environmental Resources or his
    17  designee.
    18     [(3)] (4)  The Secretary of Banking or his designee.
    19     [(4)] (5)  The Secretary of Commerce or his designee.
    20     [(5)] (6)  The Secretary of Agriculture or his designee.
    21     [(6)] (7)  Two members of the Senate, one from the majority
    22  party and one from the minority party, to be appointed by the
    23  President pro tempore to serve at his pleasure, or the designees
    24  appointed by such members.
    25     [(7)] (8)  Two members of the House of Representatives, one
    26  from the majority party and one from the minority party, to be
    27  appointed by the Speaker of the House to serve at his pleasure,
    28  or the designees appointed by such members.
    29     [(8)](9)  The Consumer Advocate or his designee.
    30     [(9)] (10)  The Chairman of the Public Utility Commission or
    19880H2701B3769                 - 26 -

     1  his designee.
     2     (11)  The Chairman of the Energy Research and Development
     3  Advisory Board.
     4     (c)  The members of the board of directors shall be entitled
     5  to no compensation for their services as members but shall be
     6  entitled to reimbursement for all necessary expenses incurred in
     7  connection with the performance of their duties as members.
     8     (d)  The board of directors shall provide for the holding of
     9  regular and special meetings. Ten directors attending shall
    10  constitute a quorum for the transaction of any business and at
    11  least six votes shall be required to adopt any action, except
    12  that at least nine votes shall be required to approve financial
    13  assistance for any project.
    14     Section 10.  Section 2804-C(a) of the act, added December 14,
    15  1982 (P.L.1213, No.280), is amended to read:
    16     Section 2804-C.  Technical and Financial Support.--(a)  The
    17  [Governor shall designate a State agency to] Department of
    18  Energy shall provide staff services to the authority for its
    19  administration of the act, including technical services to
    20  assist the authority in carrying out the provisions of this
    21  article.
    22     * * *
    23     Section 11.  Section 2807-C(a) of the act, amended July 20,
    24  1983 (P.L.52, No.26), is amended to read:
    25     Section 2807-C.  Authority Indebtedness.--(a)  The authority
    26  shall have the power and hereby is authorized from time to time,
    27  by resolution of the authority and subject to the written
    28  approval of the Governor, to issue its negotiable bonds in such
    29  principal amount as, in the opinion of the authority, shall be
    30  necessary to provide sufficient funds for any of its corporate
    19880H2701B3769                 - 27 -

     1  purposes, the establishment of reserves to secure such bonds and
     2  all other expenditures of the authority incident to and
     3  necessary or convenient to carry out its corporate purposes and
     4  powers. The authority may issue its bonds to provide financial
     5  assistance for projects only after the authority has first
     6  identified and approved such projects. The aggregate principal
     7  amount of bonds and notes of the authority shall not exceed
     8  [$200,000,000] $400,000,000 outstanding at any one time.
     9     * * *
    10     Section 12.  All personnel, allocations, appropriations,
    11  equipment, files, records, contracts, agreements, obligations
    12  and other material which are used, employed or expended in
    13  connection with the powers, duties or functions of the
    14  Pennsylvania Energy Office are hereby transferred to the
    15  Department of Energy established by this act with the same force
    16  and effect as if the appropriations had been made to and said
    17  items had been the property of the Department of Energy in the
    18  first instance, and as if said contracts, agreements and
    19  obligations had been incurred or entered into by the Department
    20  of Energy. The personnel, appropriations, equipment and other
    21  items and material transferred by this section shall include
    22  Federal grants and funds and other benefits from any Federal
    23  program. All personnel transferred pursuant to this act shall
    24  retain any civil service employment status assigned to the
    25  personnel.
    26     Section 13.  In addition to the retention of civil service
    27  employment status by employees transferred to the Department of
    28  Energy, all new positions in the Department of Energy shall be
    29  deemed to be included in the list of positions set forth in
    30  section 3(d) of the act of August 5, 1941 (P.L.752, No.286),
    19880H2701B3769                 - 28 -

     1  known as the Civil Service Act, and the provisions and benefits
     2  of that act shall be applicable to all employees of the
     3  Department of Energy.
     4     Section 14.  (a)  Nothing set forth in this act shall
     5  supersede any curtailment plans which are established and
     6  approved by any Federal regulatory commission, the Pennsylvania
     7  Public Utility Commission or any ordinance duly adopted by any
     8  municipality or public gas system.
     9     (b)  All orders, permits, regulations, decisions and other
    10  actions of the Pennsylvania Energy Office or any department,
    11  board, commission or agency whose functions have been
    12  transferred by this act to the Department of Energy shall remain
    13  in full force and effect until modified, repealed, superseded or
    14  otherwise changed by appropriate action of the Department of
    15  Energy.
    16     (c)  The Department of Energy shall not have any authority to
    17  take any action affecting the jurisdiction of the Pennsylvania
    18  Public Utility Commission or any Federal administrative or
    19  regulatory agency. The Secretary of Energy, or his designee,
    20  however, shall have the authority to appear before the
    21  Pennsylvania Public Utility Commission or any Federal
    22  administrative or regulatory agency to provide information
    23  concerning State energy policies.
    24     Section 15.  All acts and parts of acts are repealed insofar
    25  as they are inconsistent with this act.
    26     Section 16.  This act shall take effect in 180 days.



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