PRINTER'S NO. 1419
No. 1030 Session of 2004
INTRODUCED BY ERICKSON, CONTI, WAUGH, ORIE, KUKOVICH, SCHWARTZ, PICCOLA, MUSTO, EARLL, PIPPY, C. WILLIAMS, BOSCOLA, RAFFERTY, M. WHITE AND STACK, MARCH 15, 2004
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 15, 2004
AN ACT 1 Providing for the sale of electric energy generated from 2 renewable and environmentally beneficial sources, for the 3 acquisition of electric energy generated from renewable and 4 environmentally beneficial sources by electric distribution 5 and supply companies and for the powers and duties of the 6 Pennsylvania Public Utility Commission; and imposing 7 penalties. 8 The General Assembly of the Commonwealth of Pennsylvania 9 hereby enacts as follows: 10 Section 1. Short title. 11 This act shall be known and may be cited as the Renewable and 12 Environmentally Beneficial Portfolio Standards Act. 13 Section 2. Definitions. 14 The following words and phrases when used in this act shall 15 have the meanings given to them in this section unless the 16 context clearly indicates otherwise: 17 "Commission." The Pennsylvania Public Utility Commission of 18 the Commonwealth. 19 "Electric distribution company." An incorporated entity that 20 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 "Environmentally beneficial resources." Any of the 5 following: 6 (1) Electricity generated from waste coal facilities 7 which became operational after December 31, 1999. 8 (2) Electricity generated using energy conservation 9 measures, as defined by the Pennsylvania Public Utility 10 Commission, including, but not limited to, state-of-the-art 11 efficiency improvements and carbon offsets. 12 (3) Other environmentally beneficial energy resources as 13 determined by the Pennsylvania Public Utility Commission by 14 regulation. 15 "Renewable and environmentally beneficial energy credit." A 16 tradable instrument that is used to track and verify compliance 17 with the provisions of this act. 18 "Renewable and environmentally beneficial portfolio 19 standards." Standards establishing that a certain amount of 20 renewable energy is included as part of the sources of electric 21 generation by electric utilities within this Commonwealth. 22 "Renewable resources." Any of the following: 23 (1) Solar photovoltaic energy. 24 (2) Solar thermal energy. 25 (3) Wind power. 26 (4) Low-impact hydropower. 27 (5) Geothermal energy. 28 (6) Biologically derived methane gas. 29 (7) Energy from waste and sustainable biomass energy, 30 including, but not limited to, agricultural waste and crops 20040S1030B1419 - 2 -
1 grown for fuel. 2 (8) Other renewable energy resources as determined by 3 the Pennsylvania Public Utility Commission by regulation. 4 The term does not include municipal solid, industrial, residual 5 or any hazardous waste burned for the generation of electric 6 energy. 7 Section 3. Renewable and environmentally beneficial portfolio 8 standard. 9 (a) General rule.--In the fifteenth year after the effective 10 date of this section and each year thereafter, at least 10% of 11 the electric energy sold by an electric distribution company or 12 electric generation supplier to retail customers in this 13 Commonwealth shall be generated from renewable and 14 environmentally beneficial resources. Such electric energy 15 generated from renewable and environmentally beneficial 16 resources shall be generated at facilities within the geographic 17 limits of an independent system operator that operates a 18 transmission system and interstate power pool delivering 19 electric energy to retail customers in this Commonwealth. 20 (b) Phase-in.-- 21 (1) Three years after the effective date of this 22 section, at least 2% of the electric energy sold by an 23 electric distribution company or electric generation supplier 24 to retail customers in this Commonwealth shall be generated 25 from renewable and environmentally beneficial resources. 26 (2) Six years after the effective date of this section, 27 at least 4% of the electric energy sold by an electric 28 distribution company or electric generation supplier to 29 retail customers in this Commonwealth shall be generated from 30 renewable and environmentally beneficial resources. 20040S1030B1419 - 3 -
1 (3) Nine years after the effective date of this section, 2 at least 6% of the electric energy sold by an electric 3 distribution company or electric generation supplier to 4 retail customers in this Commonwealth shall be generated from 5 renewable and environmentally beneficial resources. 6 (4) Twelve years after the effective date of this 7 section, at least 8% of the electric energy sold by an 8 electric distribution company or electric generation supplier 9 to retail customers in this Commonwealth shall be generated 10 from renewable and environmentally beneficial resources. 11 (5) Fifteen years after the effective date of this 12 section, at least 10% of the electric energy sold by an 13 electric distribution company or electric generation supplier 14 to retail customers in this Commonwealth shall be generated 15 from renewable and environmentally beneficial resources. 16 (c) Minimum requirement for renewable energy.--At least 70% 17 of the renewable and beneficial energy portfolio of an electric 18 distribution company or electric generation supplier sold to 19 retail customers in this Commonwealth must be generated from 20 renewable resources. 21 (d) Credits.-- 22 (1) The commission shall establish a renewable and 23 environmentally beneficial energy tradable credits program as 24 needed to implement this act. 25 (2) (i) An electric distribution company or electric 26 generation supplier shall comply with the applicable 27 requirements of this section by purchasing sufficient 28 renewable and environmentally beneficial energy credits 29 and submitting documentation of compliance to the program 30 administrator. 20040S1030B1419 - 4 -
1 (ii) For purposes of this subsection, one renewable 2 energy credit shall represent one megawatt hour of 3 qualified renewable electric energy, whether self- 4 generated, purchased along with the electric commodity or 5 separately through a tradable instrument and otherwise 6 meeting the requirements of commission regulations and 7 the program administrator. 8 (3) The commission shall approve an independent entity 9 to serve as the renewable and environmentally beneficial 10 energy credits program administrator. The administrator shall 11 have those powers and duties assigned by commission 12 regulations. Such powers and duties shall include, but not be 13 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 (e) 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 20040S1030B1419 - 5 -
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) $50 times the number of additional renewable and 5 environmentally beneficial energy credits needed in order 6 to comply with subsection (a) or (b); or 7 (ii) 200% of the average market value of renewable 8 and environmentally beneficial energy credits sold for 9 the year times the number of additional energy credits 10 required to comply with subsection (a) or (b) for that 11 year. 12 (f) Transfer to Clean Air Fund.-- 13 (1) Notwithstanding the provisions of 66 Pa.C.S. §§ 511 14 (relating to disposition, appropriation and disbursement of 15 assessments and fees) and 3315 (relating to disposition of 16 fines and penalties), penalties imposed pursuant to this act 17 shall be paid into the Clean Air Fund established by section 18 9.2 of the act of January 8, 1960 (1959 P.L.2119, No.787), 19 known as the Air Pollution Control Act. 20 (2) A separate account is established in the Clean Air 21 Fund to receive the penalties imposed pursuant to this act. 22 (3) The money in the account shall be utilized solely 23 for projects that will increase the amount of electric energy 24 generated from renewable and environmentally beneficial 25 resources for purposes of compliance with subsections (a) and 26 (b). 27 Section 4. Effective date. 28 This act shall take effect in 90 days. B13L66MEP/20040S1030B1419 - 6 -