SENATE AMENDED PRIOR PRINTER'S NOS. 1668, 1995, 2057, PRINTER'S NO. 2297 2291
No. 1203 Session of 2007
INTRODUCED BY HORNAMAN, GEORGE, DePASQUALE, GERBER, McCALL, CALTAGIRONE, CONKLIN, DeWEESE, EACHUS, GIBBONS, HARHAI, HARKINS, JAMES, JOSEPHS, KORTZ, MAHONEY, MANDERINO, McGEEHAN, MUNDY, M. O'BRIEN, PRESTON, SAINATO, SHIMKUS, STABACK, SURRA, TANGRETTI, THOMAS, VITALI, YUDICHAK, CURRY, FREEMAN, K. SMITH, GOODMAN, BENNINGTON, M. SMITH, PETRONE, LENTZ, GRUCELA, FABRIZIO, WALKO AND GEIST, MAY 24, 2007
SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, IN SENATE, RE-REPORTED AS AMENDED, JULY 12, 2007
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 providing for definitions, for alternative energy <-- 9 portfolio standards, for portfolio requirements in other 10 states and for interconnection standards for customer- 11 generator facilities. FURTHER PROVIDING FOR THE DEFINITIONS <-- 12 OF "ALTERNATIVE ENERGY SOURCES," CREDIT," "CUSTOMER- <-- 13 GENERATOR," "FORCE MAJEURE," AND "NET METERING," AND "TIER I <-- 14 ALTERNATIVE ENERGY SOURCE," FOR ALTERNATIVE ENERGY PORTFOLIO 15 STANDARDS, FOR PORTFOLIO REQUIREMENTS IN OTHER STATES AND FOR 16 INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR FACILITIES. 17 The General Assembly of the Commonwealth of Pennsylvania 18 hereby enacts as follows: 19 Section 1. The definitions of "alternative energy credit," <-- 20 "customer-generator," "force majeure" and "Tier I alternative 21 energy source" in section 2 of the act of November 30, 2004
1 (P.L.1672, No.213), known as the Alternative Energy Portfolio 2 Standards Act, are amended to read: 3 Section 2. Definitions. 4 The following words and phrases when used in this act shall 5 have the meanings given to them in this section unless the 6 context clearly indicates otherwise: 7 "Alternative energy credit." A tradable instrument that is 8 used to establish, verify and monitor compliance with this act. 9 A unit of credit shall equal one megawatt hour of electricity 10 from an alternative energy source. The alternative energy credit 11 shall remain the property of the alternative energy system until 12 the alternative energy credit is voluntarily transferred by the 13 alternative energy system. 14 * * * 15 "Customer-generator." A nonutility owner or operator of a 16 net metered distributed generation system with a nameplate 17 capacity of not greater than 50 kilowatts if installed at a 18 residential service or not larger than [1,000] 3,000 kilowatts 19 at other customer service locations, except for customers whose 20 systems are above [one megawatt] three megawatts and up to [two] 21 five megawatts who make their systems available to operate in 22 parallel with the electric utility during grid emergencies as 23 defined by the regional transmission organization or where a 24 microgrid is in place for the primary or secondary purpose of 25 maintaining critical infrastructure, such as homeland security 26 assignments, emergency services facilities, hospitals, traffic 27 signals, wastewater treatment plants or telecommunications 28 facilities, provided that technical rules for operating 29 generators interconnected with facilities of an electric 30 distribution company, electric cooperative or municipal electric 20070H1203B2297 - 2 -
1 system have been promulgated by the Institute of Electrical and 2 Electronic Engineers and the Pennsylvania Public Utility 3 Commission. 4 * * * 5 "Force majeure." Upon its own initiative or upon a request 6 of an electric distribution company or an electric generator 7 supplier, the Pennsylvania Public Utility Commission, within 60 8 days, shall determine if alternative energy resources are 9 reasonably available in the marketplace in sufficient quantities 10 for the electric distribution companies and electric generation 11 suppliers to meet their obligations for that reporting period 12 under this act. In making this determination the commission 13 shall consider whether electric distribution companies or 14 electric generation suppliers have made a good faith effort to 15 acquire sufficient alternative energy to comply with their 16 obligations. Such good faith efforts shall include, but are not 17 limited to, banking alternative energy credits during their 18 transition periods, seeking alternative energy credits through 19 competitive solicitations and seeking to procure alternative 20 energy credits or alternative energy through long-term 21 contracts. In further making its determination the commission 22 shall assess the availability of alternative energy credits in 23 the Generation Attributes Tracking System (GATS) or its 24 successor, and the availability of alternative energy credits 25 generally in Pennsylvania and other jurisdictions in the PJM 26 Interconnection, L.L.C. regional transmission organization (PJM) 27 or its successor. The commission may also require solicitations 28 for alternative energy credits as part of default service before 29 requests of force majeure can be made. If the commission further 30 determines that alternative energy resources are not reasonably 20070H1203B2297 - 3 -
1 available in sufficient quantities in the marketplace for the 2 electric distribution companies and electric generation 3 suppliers to meet their obligations under this act, then the 4 commission shall modify the underlying obligation of the 5 electric distribution company or electric generation supplier or 6 recommend to the General Assembly that the underlying obligation 7 be eliminated. Commission modification of the electric 8 distribution company or electric generation supplier obligations 9 under this act shall be for that compliance period only. 10 Commission modification shall not automatically reduce the 11 obligation for subsequent compliance years. If the commission 12 modifies the electric distribution company or electric 13 generation supplier obligations under this act, the commission 14 may require the electric distribution company or electric 15 generation supplier to acquire additional alternative energy 16 credits in subsequent years equivalent to the obligation reduced 17 due to a force majeure declaration if the commission determines 18 that sufficient alternative energy credits exist in the 19 marketplace. 20 * * * 21 "Tier I alternative energy source." Energy derived from: 22 (1) Solar photovoltaic and solar thermal energy. 23 (2) Wind power. 24 (3) Low-impact hydropower. 25 (4) Geothermal energy. 26 (5) Biologically derived methane gas. 27 (6) Fuel cells. 28 (7) Biomass energy. 29 (8) Coal mine methane. 30 * * * 20070H1203B2297 - 4 -
1 Section 2. Sections 3(b), (e) and (f), 4 and 5 of the act 2 are amended to read: 3 Section 3. Alternative energy portfolio standards. 4 * * * 5 (b) Tier I and solar photovoltaic shares.-- 6 (1) Two years after the effective date of this act, at 7 least 1.5% of the electric energy sold by an electric 8 distribution company or electric generation supplier to 9 retail electric customers in this Commonwealth shall be 10 generated from Tier I alternative energy sources. Except as 11 provided in this section, the minimum percentage of electric 12 energy required to be sold to retail electric customers from 13 alternative energy sources shall increase to 2% three years 14 after the effective date of this act. The minimum percentage 15 of electric energy required to be sold to retail electric 16 customers from alternative energy sources shall increase by 17 at least 0.5% each year so that at least 8% of the electric 18 energy sold by an electric distribution company or electric 19 generation supplier to retail electric customers in that 20 certificated territory in the 15th year after the effective 21 date of this subsection is sold from Tier I alternative 22 energy resources. 23 (2) [Of the electric energy required to be sold from 24 Tier I sources, the total percentage that must be sold from 25 solar photovoltaic technologies is for:] The total percentage 26 of the electric energy sold by an electric distribution 27 company or an electric generation supplier to retail electric 28 customers in this Commonwealth that must be sold from solar 29 photovoltaic technologies is: 30 [(i) Years 1 through 4 - 0.0013%. 20070H1203B2297 - 5 -
1 (ii) Years 5 through 9 - 0.0203%. 2 (iii) Years 10 through 14 - 0.2500%. 3 (iv) Years 15 and thereafter - 0.5000%.] 4 (i) 0.0013% for June 1, 2006, through May 31, 2007. 5 (ii) 0.0030% for June 1, 2007, through May 31, 2008. 6 (iii) 0.0063% for June 1, 2008, through May 31, 7 2009. 8 (iv) 0.0120% for June 1, 2009, through May 31, 2010. 9 (v) 0.0203% for June 1, 2010, through May 31, 2011. 10 (vi) 0.0325% for June 1, 2011, through May 31, 2012. 11 (vii) 0.0510% for June 1, 2012, through May 31, 12 2013. 13 (viii) 0.0840% for June 1, 2013, through May 31, 14 2014. 15 (ix) 0.1440% for June 1, 2014, through May 31, 2015. 16 (x) 0.2500% for June 1, 2015, through May 31, 2016. 17 (xi) 0.2933% for June 1, 2016, through May 31, 2017. 18 (xii) 0.3400% for June 1, 2017, through May 31, 19 2018. 20 (xiii) 0.3900% for June 1, 2018, through May 31, 21 2019. 22 (xiv) 0.4433% for June 1, 2019, and thereafter. 23 (xiv) 0.4433% for June 1, 2019, through May 31, 24 2020. 25 (xv) 0.5000% for June 1, 2020, and thereafter. 26 The percentages in this paragraph shall apply to all 27 retail electricity sales in this Commonwealth. 28 (3) Upon commencement of the beginning of the 6th 29 reporting year, the commission shall undertake a review of 30 the compliance by electric distribution companies and 20070H1203B2297 - 6 -
1 electric generation suppliers with the requirements of this 2 act. The review shall also include the status of alternative 3 energy technologies within this Commonwealth and the capacity 4 to add additional alternative energy resources. The 5 commission shall use the results of this review to recommend 6 to the General Assembly additional compliance goals beyond 7 year 15. The commission shall work with the department in 8 evaluating the future alternative energy resource potential. 9 * * * 10 (e) Alternative energy credits.-- 11 (1) The commission shall establish an alternative energy 12 credits program as needed to implement this act. The 13 provision of services pursuant to this section shall be 14 exempt from the competitive procurement procedures of 62 15 Pa.C.S. (relating to procurement). 16 (2) The commission shall approve an independent entity 17 to serve as the alternative energy credits program 18 administrator. The administrator shall have those powers and 19 duties assigned by commission regulations. Such powers and 20 duties shall include, but not be limited to, the following: 21 (i) To create and administer an alternative energy 22 credits certification, tracking and reporting program. 23 This program should include, at a minimum, a process for 24 qualifying alternative energy systems and determining the 25 manner credits can be created, accounted for, transferred 26 and retired. 27 (ii) To submit reports to the commission at such 28 times and in such manner as the commission shall direct. 29 (3) All qualifying alternative energy systems must 30 include a qualifying meter to record the cumulative electric 20070H1203B2297 - 7 -
1 production to verify the advanced energy credit value. 2 Qualifying meters will be approved by the commission as 3 defined in paragraph (4). 4 (4) (i) An electric distribution company or electric 5 generation supplier shall comply with the applicable 6 requirements of this section by purchasing sufficient 7 alternative energy credits and submitting documentation 8 of compliance to the program administrator. 9 (ii) For purposes of this subsection, one 10 alternative energy credit shall represent one megawatt 11 hour of qualified alternative electric generation, 12 whether self-generated, purchased along with the electric 13 commodity or separately through a tradable instrument and 14 otherwise meeting the requirements of commission 15 regulations and the program administrator. 16 (5) The alternative energy credits program shall include 17 provisions requiring a reporting period as defined in section 18 2 for all covered entities under this act. The alternative 19 energy credits program shall also include a true-up period as 20 defined in section 2. The true-up period shall provide 21 entities covered under this act the ability to obtain the 22 required number of alternative energy credits or to make up 23 any shortfall of the alternative energy credits they may be 24 required to obtain to comply with this act. A force majeure 25 provision shall also be provided for under the true-up period 26 provisions. 27 (6) An electric distribution company and electric 28 generation supplier may bank or place in reserve alternative 29 energy credits produced in one reporting year for compliance 30 in either or both of the two subsequent reporting years, 20070H1203B2297 - 8 -
1 subject to the limitations set forth in this subsection and 2 provided that the electric distribution company and electric 3 generation supplier are in compliance for all previous 4 reporting years. In addition, the electric distribution 5 company and electric generation supplier shall demonstrate to 6 the satisfaction of the commission that such credits: 7 (i) were in excess of the alternative energy credits 8 needed for compliance in the year in which they were 9 generated and that such excess credits have not 10 previously been used for compliance under this act; 11 (ii) were produced by the generation of electrical 12 energy by alternative energy sources and sold to retail 13 customers during the year in which they were generated; 14 and 15 (iii) have not otherwise been nor will be sold, 16 retired, claimed or represented as part of satisfying 17 compliance with alternative or renewable energy portfolio 18 standards in other states. 19 (7) An electric distribution company or an electric 20 generation supplier with sales that are exempted under 21 subsection (d) may bank credits for retail sales of 22 electricity generated from Tier I and Tier II sources made 23 prior to the end of the cost-recovery period and after the 24 effective date of this act. Bankable credits shall be limited 25 to credits associated with electricity sold from Tier I and 26 Tier II sources during a reporting year which exceeds the 27 volume of sales from such sources by an electric distribution 28 company or electric generation supplier during the 12-month 29 period immediately preceding the effective date of this act. 30 All credits banked under this subsection shall be available 20070H1203B2297 - 9 -
1 for compliance with subsections (b) and (c) for no more than 2 two reporting years following the conclusion of the cost- 3 recovery period. 4 (8) The commission or its designee shall develop a 5 registry of pertinent information regarding all available 6 alternative energy credits, credit transactions among 7 electric distribution companies and electric generation 8 suppliers, the number of alternative energy credits sold or 9 transferred and the price paid for the sale or transfer of 10 the credits. The registry shall provide current information 11 to electric distribution companies, electric generation 12 suppliers and the general public on the status of alternative 13 energy credits created, sold or transferred within this 14 Commonwealth. 15 (9) The commission may impose an administrative fee on 16 an alternative energy credit transaction. The amount of this 17 fee may not exceed the actual direct cost of processing the 18 transaction by the alternative energy credits administrator. 19 The commission is authorized to utilize up to 5% of the 20 alternative compliance fees generated under subsection (f) 21 for administrative expenses directly associated with this 22 act. 23 (10) The commission shall establish regulations 24 governing the verification and tracking of energy efficiency 25 and demand-side management measures pursuant to this act, 26 which shall include benefits to all utility customer classes. 27 When developing regulations, the commission must give 28 reasonable consideration to existing and proposed regulations 29 and rules in existence in the regional transmission 30 organizations that manage the transmission system in any part 20070H1203B2297 - 10 -
1 of this Commonwealth. All verified reductions shall accrue 2 credits starting with the passage of this act. 3 (11) The commission shall within 120 days of the 4 effective date of this act develop a depreciation schedule 5 for alternative energy credits created through demand-side 6 management, energy efficiency and load management 7 technologies and shall develop standards for tracking and 8 verifying savings from energy efficiency, load management and 9 demand-side management measures. The commission shall allow 10 for a 60-day public comment period and shall issue final 11 standards within 30 days of the close of the public comment 12 period. 13 (12) (i) Unless a contractual provision explicitly 14 assigns alternative energy credits in a different manner, 15 the owner of the alternative energy system or a customer- 16 generator owns any and all alternative energy credits 17 associated with or created by the production of electric 18 energy by such facility or customer, and the owner or 19 customer shall be entitled to sell, transfer or take any 20 other action to which a legal owner of property is 21 entitled to take with respect to the credits. 22 (ii) This paragraph shall apply to all alternative 23 energy credits which were created pursuant to this act 24 prior to the effective date of this paragraph and which 25 will be created after the effective date of this 26 paragraph, regardless of when any underlying contract for 27 the purchase of electric energy or other products from 28 the generator that qualifies as an alternative energy 29 system was executed. 30 (f) Alternative compliance payment.-- 20070H1203B2297 - 11 -
1 (1) At the end of each program year, the program 2 administrator shall provide a report to the commission and to 3 each covered electric distribution company showing their 4 status level of alternative energy acquisition. 5 (2) The commission shall conduct a review of each 6 determination made under subsections (b) and (c). If, after 7 notice and hearing, the commission determines that an 8 electric distribution company or electric generation supplier 9 has failed to comply with subsections (b) and (c), the 10 commission shall impose an alternative compliance payment on 11 that company or supplier. 12 (3) The alternative compliance payment, with the 13 exception of the solar photovoltaic share compliance 14 requirement set forth in subsection (b)(2), shall be $45 15 times the number of additional alternative energy credits 16 needed in order to comply with subsection (b) or (c). 17 (4) The alternative compliance payment for the solar 18 photovoltaic share shall be 200% of the average market value 19 of solar renewable energy credits sold during the reporting 20 period within the service region of the regional transmission 21 organization, including, where applicable, the levelized up- 22 front rebates received by sellers of solar renewable energy 23 credits in other jurisdictions in the PJM Interconnection, 24 L.L.C. transmission organization (PJM) or its successor. 25 (5) The commission shall establish a process to provide 26 for, at least annually, a review of the alternative energy 27 market within this Commonwealth and the service territories 28 of the regional transmission organizations that manage the 29 transmission system in any part of this Commonwealth. The 30 commission will use the results of this study to identify any 20070H1203B2297 - 12 -
1 needed changes to the cost associated with the alternative 2 compliance payment program. If the commission finds that the 3 costs associated with the alternative compliance payment 4 program must be changed, the commission shall present these 5 findings to the General Assembly for legislative enactment. 6 * * * 7 Section 4. Portfolio requirements in other states. 8 If an electric distribution supplier or electric generation 9 company provider sells electricity in any other state and is 10 subject to renewable energy portfolio requirements in that 11 state, they shall list any such requirement and shall indicate 12 how it satisfied those renewable energy portfolio requirements. 13 To prevent double-counting, the electric distribution supplier 14 or electric generation company shall not satisfy Pennsylvania's 15 alternative energy portfolio requirements using alternative 16 energy used to satisfy another state's portfolio requirements[. 17 Energy derived only from alternative energy sources inside the 18 geographical boundaries of this Commonwealth or within the 19 service territory of any regional transmission organization that 20 manages the transmission system in any part of this Commonwealth 21 shall be eligible to meet the compliance requirements under this 22 act.] or alternative energy credits already purchased by 23 individuals, businesses, or government bodies that do not have a 24 compliance obligation under this act unless the individual, 25 business or government body sells those credits to the electric 26 distribution company or electric generation supplier. Energy 27 derived from alternative energy sources inside the geographical 28 boundaries of this Commonwealth shall be eligible to meet the 29 compliance requirements under this act. Energy derived from 30 alternative energy sources located outside the geographical 20070H1203B2297 - 13 -
1 boundaries of this Commonwealth but within the service territory 2 of a regional transmission organization that manages the 3 transmission system in any part of this Commonwealth shall only 4 be eligible to meet the compliance requirements of electric 5 distribution companies or electric generation suppliers located 6 within the service territory of the same regional transmission 7 organization. For purposes of compliance with this act, 8 alternative energy sources located in the PJM Interconnection, 9 L.L.C. regional transmission organization (PJM) or its successor 10 service territory shall be eligible to fulfill compliance 11 obligations of all Pennsylvania electric distribution companies 12 and electric generation suppliers. Energy derived from 13 alternative energy sources located outside the service territory 14 of a regional transmission organization that manages the 15 transmission system in any part of this Commonwealth shall not 16 be eligible to meet the compliance requirements of this act. 17 Electric distribution companies and electric generation 18 suppliers shall document that this energy was not used to 19 satisfy another state's renewable energy portfolio standards. 20 Section 5. Interconnection standards for customer-generator 21 facilities. 22 Excess generation from net-metered customer-generators shall 23 receive full retail value for all energy produced on an annual 24 basis. The commission shall develop technical and net metering 25 interconnection rules for customer-generators intending to 26 operate renewable onsite generators in parallel with the 27 electric utility grid, consistent with rules defined in other 28 states within the service region of the regional transmission 29 organization that manages the transmission system in any part of 30 this Commonwealth. The commission shall convene a stakeholder 20070H1203B2297 - 14 -
1 process to develop Statewide technical and net metering rules 2 for customer-generators. The commission shall develop these 3 rules within nine months of the effective date of this act. 4 Section 3. The addition of section 3(e)(12) of the act shall 5 apply to all alternative energy credits created under the act 6 before, on or after the effective date of this section, 7 regardless of when any underlying contract for the purchase of 8 electric energy or other products from the generator that 9 qualifies as an alternative energy system was executed. 10 Section 4. This act shall take effect immediately. 11 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY SOURCES," <-- 12 "CUSTOMER-GENERATOR," "FORCE MAJEURE" AND "NET METERING" IN 13 SECTION 2 OF THE ACT OF NOVEMBER 30, 2004 (P.L.1672, NO.213), 14 KNOWN AS THE ALTERNATIVE ENERGY PORTFOLIO STANDARDS ACT, ARE 15 AMENDED TO READ: 16 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY CREDIT," <-- 17 "CUSTOMER-GENERATOR," "FORCE MAJEURE," "NET METERING" AND "TIER 18 I ALTERNATIVE ENERGY SOURCE" IN SECTION 2 OF THE ACT OF NOVEMBER 19 30, 2004 (P.L.1672, NO.213), KNOWN AS THE ALTERNATIVE ENERGY 20 PORTFOLIO STANDARDS ACT, ARE AMENDED TO READ: 21 SECTION 2. DEFINITIONS. 22 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 23 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 24 CONTEXT CLEARLY INDICATES OTHERWISE: 25 "ALTERNATIVE ENERGY CREDIT." A TRADABLE INSTRUMENT THAT IS <-- 26 USED TO ESTABLISH, VERIFY AND MONITOR COMPLIANCE WITH THIS ACT. 27 A UNIT OF CREDIT SHALL EQUAL ONE MEGAWATT HOUR OF ELECTRICITY 28 FROM AN ALTERNATIVE ENERGY SOURCE. THE ALTERNATIVE ENERGY CREDIT 29 SHALL REMAIN THE PROPERTY OF THE ALTERNATIVE ENERGY SYSTEM UNTIL 30 THE ALTERNATIVE ENERGY CREDIT IS VOLUNTARILY TRANSFERRED BY THE 20070H1203B2297 - 15 -
1 ALTERNATIVE ENERGY SYSTEM. 2 * * * 3 "ALTERNATIVE ENERGY SOURCES." THE TERM SHALL INCLUDE THE <-- 4 FOLLOWING EXISTING AND NEW SOURCES FOR THE PRODUCTION OF 5 ELECTRICITY: 6 (1) SOLAR PHOTOVOLTAIC OR OTHER SOLAR ELECTRIC ENERGY. 7 (2) SOLAR THERMAL ENERGY. 8 (3) WIND POWER. 9 (4) LARGE-SCALE HYDROPOWER, WHICH SHALL MEAN THE 10 PRODUCTION OF ELECTRIC POWER BY HARNESSING THE HYDROELECTRIC 11 POTENTIAL OF MOVING WATER IMPOUNDMENTS, INCLUDING PUMPED 12 STORAGE THAT DOES NOT MEET THE REQUIREMENTS OF LOW-IMPACT 13 HYDROPOWER UNDER PARAGRAPH (5). 14 (5) LOW-IMPACT HYDROPOWER CONSISTING OF ANY TECHNOLOGY 15 THAT PRODUCES ELECTRIC POWER AND THAT HARNESSES THE 16 HYDROELECTRIC POTENTIAL OF MOVING WATER IMPOUNDMENTS, 17 PROVIDED THE HYDROPOWER SOURCE HAS A NAMEPLATE CAPACITY OF 21 18 MEGAWATTS OR LESS AND A LICENSE ISSUED BY THE FEDERAL ENERGY 19 REGULATORY COMMISSION FOR THE HYDROPOWER SOURCE WAS HELD IN 20 WHOLE OR IN PART BY A MUNICIPALITY OR ELECTRIC COOPERATIVE ON 21 JULY 1, 2007, OR SUCH INCREMENTAL HYDROELECTRIC DEVELOPMENT: 22 (I) DOES NOT ADVERSELY CHANGE EXISTING IMPACTS TO 23 AQUATIC SYSTEMS; 24 (II) MEETS THE CERTIFICATION STANDARDS ESTABLISHED 25 BY THE LOW IMPACT HYDROPOWER INSTITUTE AND AMERICAN 26 RIVERS, INC., OR THEIR SUCCESSORS; 27 (III) PROVIDES AN ADEQUATE WATER FLOW FOR PROTECTION 28 OF AQUATIC LIFE AND FOR SAFE AND EFFECTIVE FISH PASSAGE; 29 (IV) PROTECTS AGAINST EROSION; AND 30 (V) PROTECTS CULTURAL AND HISTORIC RESOURCES. 20070H1203B2297 - 16 -
1 (6) GEOTHERMAL ENERGY, WHICH SHALL MEAN ELECTRICITY 2 PRODUCED BY EXTRACTING HOT WATER OR STEAM FROM GEOTHERMAL 3 RESERVES IN THE EARTH'S CRUST AND SUPPLIED TO STEAM TURBINES 4 THAT DRIVE GENERATORS TO PRODUCE ELECTRICITY. 5 (7) BIOMASS ENERGY, WHICH SHALL MEAN THE GENERATION OF 6 ELECTRICITY UTILIZING THE FOLLOWING: 7 (I) ORGANIC MATERIAL FROM A PLANT THAT IS GROWN FOR 8 THE PURPOSE OF BEING USED TO PRODUCE ELECTRICITY OR IS 9 PROTECTED BY THE FEDERAL CONSERVATION RESERVE PROGRAM 10 (CRP) AND PROVIDED FURTHER THAT CROP PRODUCTION ON CRP 11 LANDS DOES NOT PREVENT ACHIEVEMENT OF THE WATER QUALITY 12 PROTECTION, SOIL EROSION PREVENTION OR WILDLIFE 13 ENHANCEMENT PURPOSES FOR WHICH THE LAND WAS PRIMARILY SET 14 ASIDE; OR 15 (II) ANY SOLID NONHAZARDOUS, CELLULOSIC WASTE 16 MATERIAL THAT IS SEGREGATED FROM OTHER WASTE MATERIALS, 17 SUCH AS WASTE PALLETS, CRATES AND LANDSCAPE OR RIGHT-OF- 18 WAY TREE TRIMMINGS OR AGRICULTURAL SOURCES, INCLUDING 19 ORCHARD TREE CROPS, VINEYARDS, GRAIN, LEGUMES, SUGAR AND 20 OTHER CROP BY-PRODUCTS OR RESIDUES. 21 (8) BIOLOGICALLY DERIVED METHANE GAS, WHICH SHALL 22 INCLUDE METHANE FROM THE ANAEROBIC DIGESTION OF ORGANIC 23 MATERIALS FROM YARD WASTE, SUCH AS GRASS CLIPPINGS AND 24 LEAVES, FOOD WASTE, ANIMAL WASTE AND SEWAGE SLUDGE. THE TERM 25 ALSO INCLUDES LANDFILL METHANE GAS. 26 (9) FUEL CELLS, WHICH SHALL MEAN ANY ELECTROCHEMICAL 27 DEVICE THAT CONVERTS CHEMICAL ENERGY IN A HYDROGEN-RICH FUEL 28 DIRECTLY INTO ELECTRICITY, HEAT AND WATER WITHOUT COMBUSTION. 29 (10) WASTE COAL, WHICH SHALL INCLUDE THE COMBUSTION OF 30 WASTE COAL IN FACILITIES IN WHICH THE WASTE COAL WAS DISPOSED 20070H1203B2297 - 17 -
1 OR ABANDONED PRIOR TO JULY 31, 1982, OR DISPOSED OF 2 THEREAFTER IN A PERMITTED COAL REFUSE DISPOSAL SITE 3 REGARDLESS OF WHEN DISPOSED OF, AND USED TO GENERATE 4 ELECTRICITY, OR SUCH OTHER WASTE COAL COMBUSTION MEETING 5 ALTERNATE ELIGIBILITY REQUIREMENTS ESTABLISHED BY REGULATION. 6 FACILITIES COMBUSTING WASTE COAL SHALL USE AT A MINIMUM A 7 COMBINED FLUIDIZED BED BOILER AND BE OUTFITTED WITH A 8 LIMESTONE INJECTION SYSTEM AND A FABRIC FILTER PARTICULATE 9 REMOVAL SYSTEM. ALTERNATIVE ENERGY CREDITS SHALL BE 10 CALCULATED BASED UPON THE PROPORTION OF WASTE COAL UTILIZED 11 TO PRODUCE ELECTRICITY AT THE FACILITY. 12 (11) COAL MINE METHANE, WHICH SHALL MEAN METHANE GAS 13 EMITTING FROM ABANDONED OR WORKING COAL MINES. 14 (12) DEMAND-SIDE MANAGEMENT CONSISTING OF THE MANAGEMENT 15 OF CUSTOMER CONSUMPTION OF ELECTRICITY OR THE DEMAND FOR 16 ELECTRICITY THROUGH THE IMPLEMENTATION OF: 17 (I) ENERGY EFFICIENCY TECHNOLOGIES, MANAGEMENT 18 PRACTICES OR OTHER STRATEGIES IN RESIDENTIAL, COMMERCIAL, 19 INSTITUTIONAL OR GOVERNMENT CUSTOMERS THAT REDUCE 20 ELECTRICITY CONSUMPTION BY THOSE CUSTOMERS; 21 (II) LOAD MANAGEMENT OR DEMAND RESPONSE 22 TECHNOLOGIES, MANAGEMENT PRACTICES OR OTHER STRATEGIES IN 23 RESIDENTIAL, COMMERCIAL, INDUSTRIAL, INSTITUTIONAL AND 24 GOVERNMENT CUSTOMERS THAT SHIFT ELECTRIC LOAD FROM 25 PERIODS OF HIGHER DEMAND TO PERIODS OF LOWER DEMAND; OR 26 (III) INDUSTRIAL BY-PRODUCT TECHNOLOGIES CONSISTING 27 OF THE USE OF A BY-PRODUCT FROM AN INDUSTRIAL PROCESS, 28 INCLUDING THE REUSE OF ENERGY FROM EXHAUST GASES OR OTHER 29 MANUFACTURING BY-PRODUCTS THAT ARE USED IN THE DIRECT 30 PRODUCTION OF ELECTRICITY AT THE FACILITY OF A CUSTOMER. 20070H1203B2297 - 18 -
1 (13) DISTRIBUTED GENERATION SYSTEM, WHICH SHALL MEAN THE 2 SMALL-SCALE POWER GENERATION OF ELECTRICITY AND USEFUL 3 THERMAL ENERGY. 4 * * * 5 "CUSTOMER-GENERATOR." A NONUTILITY OWNER OR OPERATOR OF A 6 NET METERED DISTRIBUTED GENERATION SYSTEM WITH A NAMEPLATE 7 CAPACITY OF NOT GREATER THAN 50 KILOWATTS IF INSTALLED AT A 8 RESIDENTIAL SERVICE OR NOT LARGER THAN [1,000] 3,000 KILOWATTS 9 AT OTHER CUSTOMER SERVICE LOCATIONS, EXCEPT FOR CUSTOMERS WHOSE 10 SYSTEMS ARE ABOVE [ONE MEGAWATT] THREE MEGAWATTS AND UP TO [TWO] 11 FIVE MEGAWATTS WHO MAKE THEIR SYSTEMS AVAILABLE TO OPERATE IN 12 PARALLEL WITH THE ELECTRIC UTILITY DURING GRID EMERGENCIES AS 13 DEFINED BY THE REGIONAL TRANSMISSION ORGANIZATION OR [WHERE A <-- 14 MICROGRID IS IN PLACE] WHO MAKE THEIR SYSTEMS AVAILABLE FOR THE <-- 15 PRIMARY OR SECONDARY PURPOSE OF MAINTAINING CRITICAL 16 INFRASTRUCTURE, SUCH AS HOMELAND SECURITY ASSIGNMENTS, EMERGENCY 17 SERVICES FACILITIES, HOSPITALS, TRAFFIC SIGNALS, WASTEWATER 18 TREATMENT PLANTS OR TELECOMMUNICATIONS FACILITIES, PROVIDED THAT 19 TECHNICAL RULES FOR OPERATING GENERATORS INTERCONNECTED WITH 20 FACILITIES OF AN ELECTRIC DISTRIBUTION COMPANY, ELECTRIC 21 COOPERATIVE OR MUNICIPAL ELECTRIC SYSTEM HAVE BEEN PROMULGATED 22 BY THE INSTITUTE OF ELECTRICAL AND ELECTRONIC ENGINEERS AND THE 23 PENNSYLVANIA PUBLIC UTILITY COMMISSION. A NET METERED <-- 24 DISTRIBUTED GENERATION SYSTEM CAPABLE OF PROVIDING MORE THAN ONE 25 MEGAWATT THROUGH ITS INTERCONNECTION SHALL COMPLY WITH ALL 26 TECHNICAL RULES NECESSARY TO ENSURE THAT SIGNIFICANT 27 FLUCTUATIONS IN THE ELECTRICAL SUPPLY TO THE ELECTRIC 28 DISTRIBUTION COMPANY, ELECTRIC COOPERATIVE OR MUNICIPAL ELECTRIC 29 SYSTEM WILL NOT INTERFERE WITH ITS OPERATIONS. 30 * * * 20070H1203B2297 - 19 -
1 "FORCE MAJEURE." UPON ITS OWN INITIATIVE OR UPON A REQUEST 2 OF AN ELECTRIC DISTRIBUTION COMPANY OR AN ELECTRIC GENERATOR 3 SUPPLIER, THE PENNSYLVANIA PUBLIC UTILITY COMMISSION, WITHIN 60 4 DAYS, SHALL DETERMINE IF ALTERNATIVE ENERGY RESOURCES ARE 5 REASONABLY AVAILABLE IN THE MARKETPLACE IN SUFFICIENT QUANTITIES 6 FOR THE ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION 7 SUPPLIERS TO MEET THEIR OBLIGATIONS FOR THAT REPORTING PERIOD 8 UNDER THIS ACT. IN MAKING THIS DETERMINATION THE COMMISSION 9 SHALL CONSIDER WHETHER ELECTRIC DISTRIBUTION COMPANIES OR 10 ELECTRIC GENERATION SUPPLIERS HAVE MADE A GOOD FAITH EFFORT TO 11 ACQUIRE SUFFICIENT ALTERNATIVE ENERGY TO COMPLY WITH THEIR 12 OBLIGATIONS. SUCH GOOD FAITH EFFORTS SHALL INCLUDE, BUT ARE NOT 13 LIMITED TO, BANKING ALTERNATIVE ENERGY CREDITS DURING THEIR 14 TRANSITION PERIODS, SEEKING ALTERNATIVE ENERGY CREDITS THROUGH 15 COMPETITIVE SOLICITATIONS AND SEEKING TO PROCURE ALTERNATIVE 16 ENERGY CREDITS OR ALTERNATIVE ENERGY THROUGH LONG-TERM 17 CONTRACTS. IN FURTHER MAKING ITS DETERMINATION THE COMMISSION 18 SHALL ASSESS THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS IN 19 THE GENERATION ATTRIBUTES TRACKING SYSTEM (GATS) OR ITS 20 SUCCESSOR, AND THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS 21 GENERALLY IN PENNSYLVANIA AND OTHER JURISDICTIONS IN THE PJM 22 INTERCONNECTION, L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM) 23 OR ITS SUCCESSOR. THE COMMISSION MAY ALSO REQUIRE SOLICITATIONS 24 FOR ALTERNATIVE ENERGY CREDITS AS PART OF DEFAULT SERVICE BEFORE 25 REQUESTS OF FORCE MAJEURE CAN BE MADE. IF THE COMMISSION FURTHER 26 DETERMINES THAT ALTERNATIVE ENERGY RESOURCES ARE NOT REASONABLY 27 AVAILABLE IN SUFFICIENT QUANTITIES IN THE MARKETPLACE FOR THE 28 ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION 29 SUPPLIERS TO MEET THEIR OBLIGATIONS UNDER THIS ACT, THEN THE 30 COMMISSION SHALL MODIFY THE UNDERLYING OBLIGATION OF THE 20070H1203B2297 - 20 -
1 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OR 2 RECOMMEND TO THE GENERAL ASSEMBLY THAT THE UNDERLYING OBLIGATION 3 BE ELIMINATED. COMMISSION MODIFICATION OF THE ELECTRIC <-- 4 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OBLIGATIONS 5 UNDER THIS ACT SHALL BE FOR THAT COMPLIANCE PERIOD ONLY. 6 COMMISSION MODIFICATION SHALL NOT AUTOMATICALLY REDUCE THE 7 OBLIGATION FOR SUBSEQUENT COMPLIANCE YEARS. IF THE COMMISSION 8 MODIFIES THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 9 GENERATION SUPPLIER OBLIGATIONS UNDER THIS ACT, THE COMMISSION 10 MAY REQUIRE THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 11 GENERATION SUPPLIER TO ACQUIRE ADDITIONAL ALTERNATIVE ENERGY 12 CREDITS IN SUBSEQUENT YEARS EQUIVALENT TO THE OBLIGATION REDUCED 13 DUE TO A FORCE MAJEURE DECLARATION IF THE COMMISSION DETERMINES 14 THAT SUFFICIENT ALTERNATIVE ENERGY CREDITS EXIST IN THE 15 MARKETPLACE. 16 * * * 17 "NET METERING." THE MEANS OF MEASURING THE DIFFERENCE 18 BETWEEN THE ELECTRICITY SUPPLIED BY AN ELECTRIC UTILITY AND THE 19 ELECTRICITY GENERATED BY A CUSTOMER-GENERATOR [WHEN THE 20 RENEWABLE ENERGY GENERATING SYSTEM IS INTENDED PRIMARILY], WHEN 21 ANY PORTION OF THE ELECTRICITY GENERATED BY THE ALTERNATIVE 22 ENERGY GENERATING SYSTEM IS USED TO OFFSET PART OR ALL OF THE 23 CUSTOMER-GENERATOR'S REQUIREMENTS FOR ELECTRICITY. VIRTUAL METER 24 AGGREGATION ON PROPERTIES OWNED OR LEASED AND OPERATED BY A 25 CUSTOMER-GENERATOR AND LOCATED WITHIN TWO MILES OF THE 26 BOUNDARIES OF THE CUSTOMER-GENERATOR'S PROPERTY AND WITHIN A 27 SINGLE ELECTRIC DISTRIBUTION COMPANY'S SERVICE TERRITORY SHALL 28 BE ELIGIBLE FOR NET METERING. AT THE END OF EACH MONTHLY BILLING <-- 29 PERIOD, THE ELECTRIC DISTRIBUTION COMPANY SHALL COMPENSATE THE 30 CUSTOMER-GENERATOR FOR KILOWATT-HOURS GENERATED BY THE CUSTOMER- 20070H1203B2297 - 21 -
1 GENERATOR OVER THE AMOUNT OF KILOWATT HOURS DELIVERED BY THE 2 ELECTRIC DISTRIBUTION COMPANY DURING THE BILLING PERIOD AT THE 3 ELECTRIC DISTRIBUTION COMPANY'S AVOIDED COST OF WHOLESALE POWER. 4 NO CONTRACT SHALL ABROGATE THE CUSTOMER-GENERATOR'S RIGHT TO 5 RECEIVE THESE PAYMENTS. NO CUSTOMER GENERATOR SHALL OPERATE MORE 6 THAN ONE ALTERNATIVE ENERGY PROJECT THAT IS ENGAGED IN VIRTUAL 7 METER AGGREGATION WITHIN EACH OF THE ELECTRIC DISTRIBUTION 8 COMPANY'S SERVICE TERRITORIES. 9 * * * 10 "TIER I ALTERNATIVE ENERGY SOURCE." ENERGY DERIVED FROM: <-- 11 (1) SOLAR PHOTOVOLTAIC AND SOLAR THERMAL ENERGY. 12 (2) WIND POWER. 13 (3) LOW-IMPACT HYDROPOWER. 14 (4) GEOTHERMAL ENERGY. 15 (5) BIOLOGICALLY DERIVED METHANE GAS. 16 (6) FUEL CELLS. 17 (7) BIOMASS ENERGY. 18 (8) COAL MINE METHANE. 19 * * * 20 SECTION 2. SECTION 3(B) AND (F) OF THE ACT ARE AMENDED AND 21 SUBSECTION (E) IS AMENDED BY ADDING A PARAGRAPH TO READ: 22 SECTION 3. ALTERNATIVE ENERGY PORTFOLIO STANDARDS. 23 * * * 24 (B) TIER I AND SOLAR PHOTOVOLTAIC SHARES.-- 25 (1) TWO YEARS AFTER THE EFFECTIVE DATE OF THIS ACT, AT 26 LEAST 1.5% OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC 27 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER TO 28 RETAIL ELECTRIC CUSTOMERS IN THIS COMMONWEALTH SHALL BE 29 GENERATED FROM TIER I ALTERNATIVE ENERGY SOURCES. EXCEPT AS 30 PROVIDED IN THIS SECTION, THE MINIMUM PERCENTAGE OF ELECTRIC 20070H1203B2297 - 22 -
1 ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC CUSTOMERS FROM 2 ALTERNATIVE ENERGY SOURCES SHALL INCREASE TO 2% THREE YEARS 3 AFTER THE EFFECTIVE DATE OF THIS ACT. THE MINIMUM PERCENTAGE 4 OF ELECTRIC ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC 5 CUSTOMERS FROM ALTERNATIVE ENERGY SOURCES SHALL INCREASE BY 6 AT LEAST 0.5% EACH YEAR SO THAT AT LEAST 8% OF THE ELECTRIC 7 ENERGY SOLD BY AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 8 GENERATION SUPPLIER TO RETAIL ELECTRIC CUSTOMERS IN THAT 9 CERTIFICATED TERRITORY IN THE 15TH YEAR AFTER THE EFFECTIVE 10 DATE OF THIS SUBSECTION IS SOLD FROM TIER I ALTERNATIVE 11 ENERGY RESOURCES. 12 (2) [OF THE ELECTRIC ENERGY REQUIRED TO BE SOLD FROM 13 TIER I SOURCES, THE TOTAL PERCENTAGE THAT MUST BE SOLD FROM 14 SOLAR PHOTOVOLTAIC TECHNOLOGIES IS FOR:] THE TOTAL PERCENTAGE 15 OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC DISTRIBUTION 16 COMPANY OR ELECTRIC GENERATION SUPPLIER TO RETAIL ELECTRIC 17 CUSTOMERS IN THIS COMMONWEALTH THAT MUST BE SOLD FROM SOLAR 18 PHOTOVOLTAIC TECHNOLOGIES IS: 19 [(I) YEARS 1 THROUGH 4 - 0.0013%. 20 (II) YEARS 5 THROUGH 9 - 0.0203%. 21 (III) YEARS 10 THROUGH 14 - 0.2500%. 22 (IV) YEARS 15 AND THEREAFTER - 0.5000%.] 23 (I) 0.0013% FOR JUNE 1, 2006, THROUGH MAY 31, 2007. 24 (II) 0.0030% FOR JUNE 1, 2007, THROUGH MAY 31, 2008. 25 (III) 0.0063% FOR JUNE 1, 2008, THROUGH MAY 31, 26 2009. 27 (IV) 0.0120% FOR JUNE 1, 2009, THROUGH MAY 31, 2010. 28 (V) 0.0203% FOR JUNE 1, 2010, THROUGH MAY 31, 2011. 29 (VI) 0.0325% FOR JUNE 1, 2011, THROUGH MAY 31, 2012. 30 (VII) 0.0510% FOR JUNE 1, 2012, THROUGH MAY 31, 20070H1203B2297 - 23 -
1 2013. 2 (VIII) 0.0840% FOR JUNE 1, 2013, THROUGH MAY 31, 3 2014. 4 (IX) 0.1440% FOR JUNE 1, 2014, THROUGH MAY 31, 2015. 5 (X) 0.2500% FOR JUNE 1, 2015, THROUGH MAY 31, 2016. 6 (XI) 0.2933% FOR JUNE 1, 2016, THROUGH MAY 31, 2017. 7 (XII) 0.3400% FOR JUNE 1, 2017, THROUGH MAY 31, 8 2018. 9 (XIII) 0.3900% FOR JUNE 1, 2018, THROUGH MAY 31, 10 2019. 11 (XIV) 0.4433% FOR JUNE 1, 2019, THROUGH MAY 31, 12 2020. 13 (XV) 0.5000% FOR JUNE 1, 2020, AND THEREAFTER. 14 (3) UPON COMMENCEMENT OF THE BEGINNING OF THE 6TH 15 REPORTING YEAR, THE COMMISSION SHALL UNDERTAKE A REVIEW OF 16 THE COMPLIANCE BY ELECTRIC DISTRIBUTION COMPANIES AND 17 ELECTRIC GENERATION SUPPLIERS WITH THE REQUIREMENTS OF THIS 18 ACT. THE REVIEW SHALL ALSO INCLUDE THE STATUS OF ALTERNATIVE 19 ENERGY TECHNOLOGIES WITHIN THIS COMMONWEALTH AND THE CAPACITY 20 TO ADD ADDITIONAL ALTERNATIVE ENERGY RESOURCES. THE 21 COMMISSION SHALL USE THE RESULTS OF THIS REVIEW TO RECOMMEND 22 TO THE GENERAL ASSEMBLY ADDITIONAL COMPLIANCE GOALS BEYOND 23 YEAR 15. THE COMMISSION SHALL WORK WITH THE DEPARTMENT IN 24 EVALUATING THE FUTURE ALTERNATIVE ENERGY RESOURCE POTENTIAL. 25 * * * 26 (E) ALTERNATIVE ENERGY CREDITS.-- 27 * * * 28 (12) (I) UNLESS A CONTRACTUAL PROVISION EXPLICITLY <-- 29 ASSIGNS ALTERNATIVE ENERGY CREDITS IN A DIFFERENT MANNER, THE 30 OWNER OF THE ALTERNATIVE ENERGY SYSTEM OR A CUSTOMER- 20070H1203B2297 - 24 -
1 GENERATOR OWNS ANY AND ALL ALTERNATIVE ENERGY CREDITS 2 ASSOCIATED WITH OR CREATED BY THE PRODUCTION OF ELECTRIC 3 ENERGY BY SUCH FACILITY OR CUSTOMER, AND THE OWNER OR 4 CUSTOMER SHALL BE ENTITLED TO SELL, TRANSFER OR TAKE ANY 5 OTHER ACTION TO WHICH A LEGAL OWNER OF PROPERTY IS ENTITLED 6 TO TAKE WITH RESPECT TO THE CREDITS. 7 (II) THIS PARAGRAPH SHALL APPLY TO ALL ALTERNATIVE <-- 8 ENERGY CREDITS CREATED PURSUANT TO THIS ACT EXCEPT THOSE 9 CREATED UNDER CONTRACTS WHICH WERE EXECUTED PRIOR TO THE 10 EFFECTIVE DATE OF THIS PARAGRAPH BETWEEN AN ELECTRIC 11 DISTRIBUTION COMPANY AND A COGENERATION FACILITY OR A 12 SMALL POWER PRODUCTION FACILITY AS THOSE TERMS ARE 13 DEFINED UNDER THE FEDERAL PUBLIC UTILITY REGULATORY 14 POLICIES ACT OF 1978 (16 U.S.C. § 824A-3). 15 (F) ALTERNATIVE COMPLIANCE PAYMENT.-- 16 (1) AT THE END OF EACH PROGRAM YEAR, THE PROGRAM 17 ADMINISTRATOR SHALL PROVIDE A REPORT TO THE COMMISSION AND TO 18 EACH COVERED ELECTRIC DISTRIBUTION COMPANY SHOWING THEIR 19 STATUS LEVEL OF ALTERNATIVE ENERGY ACQUISITION. 20 (2) THE COMMISSION SHALL CONDUCT A REVIEW OF EACH 21 DETERMINATION MADE UNDER SUBSECTIONS (B) AND (C). IF, AFTER 22 NOTICE AND HEARING, THE COMMISSION DETERMINES THAT AN 23 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER 24 HAS FAILED TO COMPLY WITH SUBSECTIONS (B) AND (C), THE 25 COMMISSION SHALL IMPOSE AN ALTERNATIVE COMPLIANCE PAYMENT ON 26 THAT COMPANY OR SUPPLIER. 27 (3) THE ALTERNATIVE COMPLIANCE PAYMENT, WITH THE 28 EXCEPTION OF THE SOLAR PHOTOVOLTAIC SHARE COMPLIANCE 29 REQUIREMENT SET FORTH IN SUBSECTION (B)(2), SHALL BE $45 30 TIMES THE NUMBER OF ADDITIONAL ALTERNATIVE ENERGY CREDITS 20070H1203B2297 - 25 -
1 NEEDED IN ORDER TO COMPLY WITH SUBSECTION (B) OR (C). 2 (4) THE ALTERNATIVE COMPLIANCE PAYMENT FOR THE SOLAR 3 PHOTOVOLTAIC SHARE SHALL BE 200% OF THE AVERAGE MARKET VALUE 4 OF SOLAR RENEWABLE ENERGY CREDITS SOLD DURING THE REPORTING 5 PERIOD WITHIN THE SERVICE REGION OF THE REGIONAL TRANSMISSION 6 ORGANIZATION, INCLUDING, WHERE APPLICABLE, THE LEVELIZED UP- 7 FRONT REBATES RECEIVED BY SELLERS OF SOLAR RENEWABLE ENERGY 8 CREDITS IN OTHER JURISDICTIONS IN THE PJM INTERCONNECTION, 9 L.L.C. TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR. 10 (5) THE COMMISSION SHALL ESTABLISH A PROCESS TO PROVIDE 11 FOR, AT LEAST ANNUALLY, A REVIEW OF THE ALTERNATIVE ENERGY 12 MARKET WITHIN THIS COMMONWEALTH AND THE SERVICE TERRITORIES 13 OF THE REGIONAL TRANSMISSION ORGANIZATIONS THAT MANAGE THE 14 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH. THE 15 COMMISSION WILL USE THE RESULTS OF THIS STUDY TO IDENTIFY ANY 16 NEEDED CHANGES TO THE COST ASSOCIATED WITH THE ALTERNATIVE 17 COMPLIANCE PAYMENT PROGRAM. IF THE COMMISSION FINDS THAT THE 18 COSTS ASSOCIATED WITH THE ALTERNATIVE COMPLIANCE PAYMENT 19 PROGRAM MUST BE CHANGED, THE COMMISSION SHALL PRESENT THESE 20 FINDINGS TO THE GENERAL ASSEMBLY FOR LEGISLATIVE ENACTMENT. 21 * * * 22 SECTION 3. SECTIONS 4 AND 5 OF THE ACT ARE AMENDED TO READ: 23 SECTION 4. PORTFOLIO REQUIREMENTS IN OTHER STATES. 24 IF AN ELECTRIC DISTRIBUTION SUPPLIER OR ELECTRIC GENERATION 25 COMPANY PROVIDER SELLS ELECTRICITY IN ANY OTHER STATE AND IS 26 SUBJECT TO RENEWABLE ENERGY PORTFOLIO REQUIREMENTS IN THAT 27 STATE, THEY SHALL LIST ANY SUCH REQUIREMENT AND SHALL INDICATE 28 HOW IT SATISFIED THOSE RENEWABLE ENERGY PORTFOLIO REQUIREMENTS. 29 TO PREVENT DOUBLE-COUNTING, THE ELECTRIC DISTRIBUTION SUPPLIER 30 OR ELECTRIC GENERATION COMPANY SHALL NOT SATISFY PENNSYLVANIA'S 20070H1203B2297 - 26 -
1 ALTERNATIVE ENERGY PORTFOLIO REQUIREMENTS USING ALTERNATIVE 2 ENERGY USED TO SATISFY ANOTHER STATE'S PORTFOLIO REQUIREMENTS[. 3 ENERGY DERIVED ONLY FROM ALTERNATIVE ENERGY SOURCES INSIDE THE 4 GEOGRAPHICAL BOUNDARIES OF THIS COMMONWEALTH OR WITHIN THE 5 SERVICE TERRITORY OF ANY REGIONAL TRANSMISSION ORGANIZATION THAT 6 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH 7 SHALL BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS UNDER THIS 8 ACT.] OR ALTERNATIVE ENERGY CREDITS ALREADY PURCHASED BY 9 INDIVIDUALS, BUSINESSES, OR GOVERNMENT BODIES THAT DO NOT HAVE A 10 COMPLIANCE OBLIGATION UNDER THIS ACT UNLESS THE INDIVIDUAL, 11 BUSINESS OR GOVERNMENT BODY SELLS THOSE CREDITS TO THE ELECTRIC 12 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER. ENERGY 13 DERIVED FROM ALTERNATIVE ENERGY SOURCES INSIDE THE GEOGRAPHICAL 14 BOUNDARIES OF THIS COMMONWEALTH SHALL BE ELIGIBLE TO MEET THE 15 COMPLIANCE REQUIREMENTS UNDER THIS ACT. ENERGY DERIVED FROM 16 ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE GEOGRAPHICAL 17 BOUNDARIES OF THIS COMMONWEALTH BUT WITHIN THE SERVICE TERRITORY 18 OF A REGIONAL TRANSMISSION ORGANIZATION THAT MANAGES THE 19 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH SHALL ONLY 20 BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF ELECTRIC 21 DISTRIBUTION COMPANIES OR ELECTRIC GENERATION SUPPLIERS LOCATED 22 WITHIN THE SERVICE TERRITORY OF THE SAME REGIONAL TRANSMISSION 23 ORGANIZATION. FOR PURPOSES OF COMPLIANCE WITH THIS ACT, 24 ALTERNATIVE ENERGY SOURCES LOCATED IN THE PJM INTERCONNECTION, 25 L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR 26 SERVICE TERRITORY SHALL BE ELIGIBLE TO FULFILL COMPLIANCE 27 OBLIGATIONS OF PIKE COUNTY LIGHT AND POWER COMPANY AND <-- 28 PENNSYLVANIA POWER COMPANY ALL PENNSYLVANIA ELECTRIC <-- 29 DISTRIBUTION COMPANIES AND ELECTRIC GENERATION SUPPLIERS. ENERGY 30 DERIVED FROM ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE 20070H1203B2297 - 27 -
1 SERVICE TERRITORY OF A REGIONAL TRANSMISSION ORGANIZATION THAT 2 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH 3 SHALL NOT BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF 4 THIS ACT. ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC 5 GENERATION SUPPLIERS SHALL DOCUMENT THAT THIS ENERGY WAS NOT 6 USED TO SATISFY ANOTHER STATE'S RENEWABLE ENERGY PORTFOLIO 7 STANDARDS. 8 SECTION 5. INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR 9 FACILITIES. 10 EXCESS GENERATION FROM NET-METERED CUSTOMER-GENERATORS SHALL 11 BE "TRUED-UP" RECEIVE FULL RETAIL VALUE FOR ALL ENERGY PRODUCED <-- 12 ON AN ANNUAL BASIS. THE COMMISSION SHALL DEVELOP TECHNICAL AND 13 NET METERING INTERCONNECTION RULES FOR CUSTOMER-GENERATORS 14 INTENDING TO OPERATE RENEWABLE ONSITE GENERATORS IN PARALLEL 15 WITH THE ELECTRIC UTILITY GRID, CONSISTENT WITH RULES DEFINED IN 16 OTHER STATES WITHIN THE SERVICE REGION OF THE REGIONAL 17 TRANSMISSION ORGANIZATION THAT MANAGES THE TRANSMISSION SYSTEM 18 IN ANY PART OF THIS COMMONWEALTH. THE COMMISSION SHALL CONVENE A 19 STAKEHOLDER PROCESS TO DEVELOP STATEWIDE TECHNICAL AND NET 20 METERING RULES FOR CUSTOMER-GENERATORS. THE COMMISSION SHALL 21 DEVELOP THESE RULES WITHIN NINE MONTHS OF THE EFFECTIVE DATE OF 22 THIS ACT. 23 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. B22L66RLE/20070H1203B2297 - 28 -