PRINTER'S NO. 2968
No. 2174 Session of 2003
INTRODUCED BY ROSS, RUBLEY, ARGALL, BASTIAN, CAPPELLI, CREIGHTON, CURRY, EACHUS, FLICK, FRANKEL, FREEMAN, GEORGE, GINGRICH, GRUCELA, HARPER, HARRIS, HERSHEY, JOSEPHS, LEACH, LEVDANSKY, MANN, McCALL, McILHINNEY, MUNDY, ROONEY, STURLA, TANGRETTI, VEON, VITALI, WATSON, YOUNGBLOOD, YUDICHAK AND E. Z. TAYLOR, NOVEMBER 24, 2003
REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, NOVEMBER 24, 2003
AN ACT 1 Providing for the sale of electric energy generated from 2 renewable sources, for the acquisition of this power by 3 electric distribution and supply companies and for the powers 4 and duties of the Pennsylvania Public Utility Commission; and 5 imposing penalties. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Short title. 9 This act shall be known and may be cited as the Renewable 10 Portfolio Standards Act. 11 Section 2. Definitions. 12 The following words and phrases when used in this act shall 13 have the meanings given to them in this section unless the 14 context clearly indicates otherwise: 15 "Commission." The Pennsylvania Public Utility Commission. 16 "Electric distribution company." An incorporated entity that 17 receives electric power from an electric generator and
1 distributes that power to consumers. 2 "Electric generation supplier." An incorporated entity that 3 generates and supplies electric power. 4 "Renewable energy credit." A tradable instrument that is 5 used to track and verify compliance with the provisions of this 6 act. 7 "Renewable portfolio standards." Standards establishing that 8 a certain amount of renewable energy is included as part of the 9 sources of electric generation by electric utilities within this 10 Commonwealth. 11 "Renewable resources." Any of the following: 12 (1) Solar photovoltaic energy. 13 (2) Solar thermal energy. 14 (3) Wind power. 15 (4) Low-impact hydropower. 16 (5) Geothermal energy. 17 (6) Biologically derived methane gas. 18 (7) Energy from waste and sustainable biomass energy. 19 The term does not include municipal solid, industrial, residual 20 or any hazardous waste burned for the generation of electric 21 energy. 22 Section 3. Renewable portfolio standard. 23 (a) General rule.--In the tenth year after the effective 24 date of this section and each year thereafter, at least 10% of 25 the electric energy sold by an electric distribution company or 26 electric generation supplier to retail customers in this 27 Commonwealth shall be generated from renewable resources. Such 28 electric energy generated from renewable resources shall be 29 generated at facilities within the geographic limits of an 30 independent system operator that operates a transmission system 20030H2174B2968 - 2 -
1 and interstate power pool delivering electric energy to retail 2 customers in this Commonwealth. 3 (b) Phase-in.-- 4 (1) One year after the effective date of this section, 5 at least 2.5% of the electric energy sold by an electric 6 distribution company or electric generation supplier to 7 retail customers in this Commonwealth shall be generated from 8 renewable resources. 9 (2) Except as provided in paragraph (3), the minimum 10 percentage of electric energy required to be generated from 11 renewable resources shall increase to 3% two years after the 12 effective date of this section and shall increase by an 13 additional 0.5% for each succeeding year thereafter. 14 (3) After the expiration of the period for collection of 15 the competitive transition charge from retail customers in an 16 individual certificated territory, the minimum percentage of 17 electric energy required to be generated from renewable 18 resources shall increase by an equal amount in each year so 19 that at least 10% of the electric energy sold by an electric 20 distribution company or electric generation supplier to 21 retail customers in that certificated territory in the tenth 22 year after the effective date of this subsection is generated 23 from renewable resources. 24 (c) Credits.-- 25 (1) The commission shall establish a renewable energy 26 tradable credits program as needed to implement this act. 27 (2) (i) An electric distribution company or electric 28 generation supplier shall comply with the applicable 29 requirements of this section by purchasing sufficient 30 renewable energy credits and submitting documentation of 20030H2174B2968 - 3 -
1 compliance to the program administrator. 2 (ii) For purposes of this subsection, one renewable 3 energy credit shall represent one megawatt hour of 4 qualified renewable electric energy, whether self- 5 generated, purchased along with the electric commodity or 6 separately through a tradable instrument and otherwise 7 meeting the requirements of commission regulations and 8 the program administrator. 9 (3) The commission shall approve an independent entity 10 to serve as the renewable energy credits program 11 administrator. The administrator shall have those powers and 12 duties assigned by commission regulations. Such powers and 13 duties shall include, but not be limited to, the following: 14 (i) to create and administer a renewable energy 15 tradable credits certification, tracking and reporting 16 program; 17 (ii) to perform audits to verify that each electric 18 distribution company and electric generation supplier is 19 in compliance with subsection (a) or (b); and 20 (iii) to submit reports to the commission at such 21 times and in such manner as the commission shall direct. 22 (d) Penalties.-- 23 (1) At the end of each program year, the program 24 administrator shall make a determination whether each 25 electric distribution company and electric generation 26 supplier is in compliance with subsection (a) or (b). 27 (2) The commission shall conduct a review of each 28 determination made under paragraph (1). If, after notice and 29 hearing, the commission determines that an electric 30 distribution company or electric generation supplier has 20030H2174B2968 - 4 -
1 failed to comply with subsection (a) or (b), the commission 2 shall impose a civil penalty on that company or supplier, 3 which penalty shall be the lesser of the following: 4 (i) fifty dollars times the number of additional 5 renewable energy credits needed in order to comply with 6 subsection (a) or (b); or 7 (ii) two hundred percent of the average market value 8 of renewable energy credits sold for the year times the 9 number of additional energy credits required to comply 10 with subsection (a) or (b) for that year. 11 (e) Transfer to Clean Air Fund.-- 12 (1) Notwithstanding the provisions of 66 Pa.C.S. §§ 511 13 (relating to disposition, appropriation and disbursement of 14 assessments and fees) and 3315 (relating to disposition of 15 fines and penalties), penalties imposed pursuant to this act 16 shall be paid into the Clean Air Fund established by section 17 9.2 of the act of January 8, 1960 (1959 P.L.2119, No.787), 18 known as the Air Pollution Control Act. 19 (2) A separate account is established in the Clean Air 20 Fund to receive the penalties imposed pursuant to this act. 21 (3) The money in the account shall be utilized solely 22 for projects that will increase the amount of electric energy 23 generated from renewable resources for purposes of compliance 24 with subsections (a) and (b). 25 Section 4. Effective date. 26 This act shall take effect in 90 days. K7L66DMS/20030H2174B2968 - 5 -