CORRECTIVE REPRINT SENATE AMENDED PRIOR PRINTER'S NOS. 1668, 1995, 2057, PRINTER'S NO. 2343 2291, 2297, 2340
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 14, 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
1 energy source" in section 2 of the act of November 30, 2004 2 (P.L.1672, No.213), known as the Alternative Energy Portfolio 3 Standards Act, are amended to read: 4 Section 2. Definitions. 5 The following words and phrases when used in this act shall 6 have the meanings given to them in this section unless the 7 context clearly indicates otherwise: 8 "Alternative energy credit." A tradable instrument that is 9 used to establish, verify and monitor compliance with this act. 10 A unit of credit shall equal one megawatt hour of electricity 11 from an alternative energy source. The alternative energy credit 12 shall remain the property of the alternative energy system until 13 the alternative energy credit is voluntarily transferred by the 14 alternative energy system. 15 * * * 16 "Customer-generator." A nonutility owner or operator of a 17 net metered distributed generation system with a nameplate 18 capacity of not greater than 50 kilowatts if installed at a 19 residential service or not larger than [1,000] 3,000 kilowatts 20 at other customer service locations, except for customers whose 21 systems are above [one megawatt] three megawatts and up to [two] 22 five megawatts who make their systems available to operate in 23 parallel with the electric utility during grid emergencies as 24 defined by the regional transmission organization or where a 25 microgrid is in place for the primary or secondary purpose of 26 maintaining critical infrastructure, such as homeland security 27 assignments, emergency services facilities, hospitals, traffic 28 signals, wastewater treatment plants or telecommunications 29 facilities, provided that technical rules for operating 30 generators interconnected with facilities of an electric 20070H1203B2343 - 2 -
1 distribution company, electric cooperative or municipal electric 2 system have been promulgated by the Institute of Electrical and 3 Electronic Engineers and the Pennsylvania Public Utility 4 Commission. 5 * * * 6 "Force majeure." Upon its own initiative or upon a request 7 of an electric distribution company or an electric generator 8 supplier, the Pennsylvania Public Utility Commission, within 60 9 days, shall determine if alternative energy resources are 10 reasonably available in the marketplace in sufficient quantities 11 for the electric distribution companies and electric generation 12 suppliers to meet their obligations for that reporting period 13 under this act. In making this determination the commission 14 shall consider whether electric distribution companies or 15 electric generation suppliers have made a good faith effort to 16 acquire sufficient alternative energy to comply with their 17 obligations. Such good faith efforts shall include, but are not 18 limited to, banking alternative energy credits during their 19 transition periods, seeking alternative energy credits through 20 competitive solicitations and seeking to procure alternative 21 energy credits or alternative energy through long-term 22 contracts. In further making its determination the commission 23 shall assess the availability of alternative energy credits in 24 the Generation Attributes Tracking System (GATS) or its 25 successor, and the availability of alternative energy credits 26 generally in Pennsylvania and other jurisdictions in the PJM 27 Interconnection, L.L.C. regional transmission organization (PJM) 28 or its successor. The commission may also require solicitations 29 for alternative energy credits as part of default service before 30 requests of force majeure can be made. If the commission further 20070H1203B2343 - 3 -
1 determines that alternative energy resources are not reasonably 2 available in sufficient quantities in the marketplace for the 3 electric distribution companies and electric generation 4 suppliers to meet their obligations under this act, then the 5 commission shall modify the underlying obligation of the 6 electric distribution company or electric generation supplier or 7 recommend to the General Assembly that the underlying obligation 8 be eliminated. Commission modification of the electric 9 distribution company or electric generation supplier obligations 10 under this act shall be for that compliance period only. 11 Commission modification shall not automatically reduce the 12 obligation for subsequent compliance years. If the commission 13 modifies the electric distribution company or electric 14 generation supplier obligations under this act, the commission 15 may require the electric distribution company or electric 16 generation supplier to acquire additional alternative energy 17 credits in subsequent years equivalent to the obligation reduced 18 due to a force majeure declaration if the commission determines 19 that sufficient alternative energy credits exist in the 20 marketplace. 21 * * * 22 "Tier I alternative energy source." Energy derived from: 23 (1) Solar photovoltaic and solar thermal energy. 24 (2) Wind power. 25 (3) Low-impact hydropower. 26 (4) Geothermal energy. 27 (5) Biologically derived methane gas. 28 (6) Fuel cells. 29 (7) Biomass energy. 30 (8) Coal mine methane. 20070H1203B2343 - 4 -
1 * * * 2 Section 2. Sections 3(b), (e) and (f), 4 and 5 of the act 3 are amended to read: 4 Section 3. Alternative energy portfolio standards. 5 * * * 6 (b) Tier I and solar photovoltaic shares.-- 7 (1) Two years after the effective date of this act, at 8 least 1.5% of the electric energy sold by an electric 9 distribution company or electric generation supplier to 10 retail electric customers in this Commonwealth shall be 11 generated from Tier I alternative energy sources. Except as 12 provided in this section, the minimum percentage of electric 13 energy required to be sold to retail electric customers from 14 alternative energy sources shall increase to 2% three years 15 after the effective date of this act. The minimum percentage 16 of electric energy required to be sold to retail electric 17 customers from alternative energy sources shall increase by 18 at least 0.5% each year so that at least 8% of the electric 19 energy sold by an electric distribution company or electric 20 generation supplier to retail electric customers in that 21 certificated territory in the 15th year after the effective 22 date of this subsection is sold from Tier I alternative 23 energy resources. 24 (2) [Of the electric energy required to be sold from 25 Tier I sources, the total percentage that must be sold from 26 solar photovoltaic technologies is for:] The total percentage 27 of the electric energy sold by an electric distribution 28 company or an electric generation supplier to retail electric 29 customers in this Commonwealth that must be sold from solar 30 photovoltaic technologies is: 20070H1203B2343 - 5 -
1 [(i) Years 1 through 4 - 0.0013%. 2 (ii) Years 5 through 9 - 0.0203%. 3 (iii) Years 10 through 14 - 0.2500%. 4 (iv) Years 15 and thereafter - 0.5000%.] 5 (i) 0.0013% for June 1, 2006, through May 31, 2007. 6 (ii) 0.0030% for June 1, 2007, through May 31, 2008. 7 (iii) 0.0063% for June 1, 2008, through May 31, 8 2009. 9 (iv) 0.0120% for June 1, 2009, through May 31, 2010. 10 (v) 0.0203% for June 1, 2010, through May 31, 2011. 11 (vi) 0.0325% for June 1, 2011, through May 31, 2012. 12 (vii) 0.0510% for June 1, 2012, through May 31, 13 2013. 14 (viii) 0.0840% for June 1, 2013, through May 31, 15 2014. 16 (ix) 0.1440% for June 1, 2014, through May 31, 2015. 17 (x) 0.2500% for June 1, 2015, through May 31, 2016. 18 (xi) 0.2933% for June 1, 2016, through May 31, 2017. 19 (xii) 0.3400% for June 1, 2017, through May 31, 20 2018. 21 (xiii) 0.3900% for June 1, 2018, through May 31, 22 2019. 23 (xiv) 0.4433% for June 1, 2019, and thereafter. 24 (xiv) 0.4433% for June 1, 2019, through May 31, 25 2020. 26 (xv) 0.5000% for June 1, 2020, and thereafter. 27 The percentages in this paragraph shall apply to all 28 retail electricity sales in this Commonwealth. 29 (3) Upon commencement of the beginning of the 6th 30 reporting year, the commission shall undertake a review of 20070H1203B2343 - 6 -
1 the compliance by electric distribution companies and 2 electric generation suppliers with the requirements of this 3 act. The review shall also include the status of alternative 4 energy technologies within this Commonwealth and the capacity 5 to add additional alternative energy resources. The 6 commission shall use the results of this review to recommend 7 to the General Assembly additional compliance goals beyond 8 year 15. The commission shall work with the department in 9 evaluating the future alternative energy resource potential. 10 * * * 11 (e) Alternative energy credits.-- 12 (1) The commission shall establish an alternative energy 13 credits program as needed to implement this act. The 14 provision of services pursuant to this section shall be 15 exempt from the competitive procurement procedures of 62 16 Pa.C.S. (relating to procurement). 17 (2) The commission shall approve an independent entity 18 to serve as the alternative energy credits program 19 administrator. The administrator shall have those powers and 20 duties assigned by commission regulations. Such powers and 21 duties shall include, but not be limited to, the following: 22 (i) To create and administer an alternative energy 23 credits certification, tracking and reporting program. 24 This program should include, at a minimum, a process for 25 qualifying alternative energy systems and determining the 26 manner credits can be created, accounted for, transferred 27 and retired. 28 (ii) To submit reports to the commission at such 29 times and in such manner as the commission shall direct. 30 (3) All qualifying alternative energy systems must 20070H1203B2343 - 7 -
1 include a qualifying meter to record the cumulative electric 2 production to verify the advanced energy credit value. 3 Qualifying meters will be approved by the commission as 4 defined in paragraph (4). 5 (4) (i) An electric distribution company or electric 6 generation supplier shall comply with the applicable 7 requirements of this section by purchasing sufficient 8 alternative energy credits and submitting documentation 9 of compliance to the program administrator. 10 (ii) For purposes of this subsection, one 11 alternative energy credit shall represent one megawatt 12 hour of qualified alternative electric generation, 13 whether self-generated, purchased along with the electric 14 commodity or separately through a tradable instrument and 15 otherwise meeting the requirements of commission 16 regulations and the program administrator. 17 (5) The alternative energy credits program shall include 18 provisions requiring a reporting period as defined in section 19 2 for all covered entities under this act. The alternative 20 energy credits program shall also include a true-up period as 21 defined in section 2. The true-up period shall provide 22 entities covered under this act the ability to obtain the 23 required number of alternative energy credits or to make up 24 any shortfall of the alternative energy credits they may be 25 required to obtain to comply with this act. A force majeure 26 provision shall also be provided for under the true-up period 27 provisions. 28 (6) An electric distribution company and electric 29 generation supplier may bank or place in reserve alternative 30 energy credits produced in one reporting year for compliance 20070H1203B2343 - 8 -
1 in either or both of the two subsequent reporting years, 2 subject to the limitations set forth in this subsection and 3 provided that the electric distribution company and electric 4 generation supplier are in compliance for all previous 5 reporting years. In addition, the electric distribution 6 company and electric generation supplier shall demonstrate to 7 the satisfaction of the commission that such credits: 8 (i) were in excess of the alternative energy credits 9 needed for compliance in the year in which they were 10 generated and that such excess credits have not 11 previously been used for compliance under this act; 12 (ii) were produced by the generation of electrical 13 energy by alternative energy sources and sold to retail 14 customers during the year in which they were generated; 15 and 16 (iii) have not otherwise been nor will be sold, 17 retired, claimed or represented as part of satisfying 18 compliance with alternative or renewable energy portfolio 19 standards in other states. 20 (7) An electric distribution company or an electric 21 generation supplier with sales that are exempted under 22 subsection (d) may bank credits for retail sales of 23 electricity generated from Tier I and Tier II sources made 24 prior to the end of the cost-recovery period and after the 25 effective date of this act. Bankable credits shall be limited 26 to credits associated with electricity sold from Tier I and 27 Tier II sources during a reporting year which exceeds the 28 volume of sales from such sources by an electric distribution 29 company or electric generation supplier during the 12-month 30 period immediately preceding the effective date of this act. 20070H1203B2343 - 9 -
1 All credits banked under this subsection shall be available 2 for compliance with subsections (b) and (c) for no more than 3 two reporting years following the conclusion of the cost- 4 recovery period. 5 (8) The commission or its designee shall develop a 6 registry of pertinent information regarding all available 7 alternative energy credits, credit transactions among 8 electric distribution companies and electric generation 9 suppliers, the number of alternative energy credits sold or 10 transferred and the price paid for the sale or transfer of 11 the credits. The registry shall provide current information 12 to electric distribution companies, electric generation 13 suppliers and the general public on the status of alternative 14 energy credits created, sold or transferred within this 15 Commonwealth. 16 (9) The commission may impose an administrative fee on 17 an alternative energy credit transaction. The amount of this 18 fee may not exceed the actual direct cost of processing the 19 transaction by the alternative energy credits administrator. 20 The commission is authorized to utilize up to 5% of the 21 alternative compliance fees generated under subsection (f) 22 for administrative expenses directly associated with this 23 act. 24 (10) The commission shall establish regulations 25 governing the verification and tracking of energy efficiency 26 and demand-side management measures pursuant to this act, 27 which shall include benefits to all utility customer classes. 28 When developing regulations, the commission must give 29 reasonable consideration to existing and proposed regulations 30 and rules in existence in the regional transmission 20070H1203B2343 - 10 -
1 organizations that manage the transmission system in any part 2 of this Commonwealth. All verified reductions shall accrue 3 credits starting with the passage of this act. 4 (11) The commission shall within 120 days of the 5 effective date of this act develop a depreciation schedule 6 for alternative energy credits created through demand-side 7 management, energy efficiency and load management 8 technologies and shall develop standards for tracking and 9 verifying savings from energy efficiency, load management and 10 demand-side management measures. The commission shall allow 11 for a 60-day public comment period and shall issue final 12 standards within 30 days of the close of the public comment 13 period. 14 (12) (i) Unless a contractual provision explicitly 15 assigns alternative energy credits in a different manner, 16 the owner of the alternative energy system or a customer- 17 generator owns any and all alternative energy credits 18 associated with or created by the production of electric 19 energy by such facility or customer, and the owner or 20 customer shall be entitled to sell, transfer or take any 21 other action to which a legal owner of property is 22 entitled to take with respect to the credits. 23 (ii) This paragraph shall apply to all alternative 24 energy credits which were created pursuant to this act 25 prior to the effective date of this paragraph and which 26 will be created after the effective date of this 27 paragraph, regardless of when any underlying contract for 28 the purchase of electric energy or other products from 29 the generator that qualifies as an alternative energy 30 system was executed. 20070H1203B2343 - 11 -
1 (f) Alternative compliance payment.-- 2 (1) At the end of each program year, the program 3 administrator shall provide a report to the commission and to 4 each covered electric distribution company showing their 5 status level of alternative energy acquisition. 6 (2) The commission shall conduct a review of each 7 determination made under subsections (b) and (c). If, after 8 notice and hearing, the commission determines that an 9 electric distribution company or electric generation supplier 10 has failed to comply with subsections (b) and (c), the 11 commission shall impose an alternative compliance payment on 12 that company or supplier. 13 (3) The alternative compliance payment, with the 14 exception of the solar photovoltaic share compliance 15 requirement set forth in subsection (b)(2), shall be $45 16 times the number of additional alternative energy credits 17 needed in order to comply with subsection (b) or (c). 18 (4) The alternative compliance payment for the solar 19 photovoltaic share shall be 200% of the average market value 20 of solar renewable energy credits sold during the reporting 21 period within the service region of the regional transmission 22 organization, including, where applicable, the levelized up- 23 front rebates received by sellers of solar renewable energy 24 credits in other jurisdictions in the PJM Interconnection, 25 L.L.C. transmission organization (PJM) or its successor. 26 (5) The commission shall establish a process to provide 27 for, at least annually, a review of the alternative energy 28 market within this Commonwealth and the service territories 29 of the regional transmission organizations that manage the 30 transmission system in any part of this Commonwealth. The 20070H1203B2343 - 12 -
1 commission will use the results of this study to identify any 2 needed changes to the cost associated with the alternative 3 compliance payment program. If the commission finds that the 4 costs associated with the alternative compliance payment 5 program must be changed, the commission shall present these 6 findings to the General Assembly for legislative enactment. 7 * * * 8 Section 4. Portfolio requirements in other states. 9 If an electric distribution supplier or electric generation 10 company provider sells electricity in any other state and is 11 subject to renewable energy portfolio requirements in that 12 state, they shall list any such requirement and shall indicate 13 how it satisfied those renewable energy portfolio requirements. 14 To prevent double-counting, the electric distribution supplier 15 or electric generation company shall not satisfy Pennsylvania's 16 alternative energy portfolio requirements using alternative 17 energy used to satisfy another state's portfolio requirements[. 18 Energy derived only from alternative energy sources inside the 19 geographical boundaries of this Commonwealth or within the 20 service territory of any regional transmission organization that 21 manages the transmission system in any part of this Commonwealth 22 shall be eligible to meet the compliance requirements under this 23 act.] or alternative energy credits already purchased by 24 individuals, businesses, or government bodies that do not have a 25 compliance obligation under this act unless the individual, 26 business or government body sells those credits to the electric 27 distribution company or electric generation supplier. Energy 28 derived from alternative energy sources inside the geographical 29 boundaries of this Commonwealth shall be eligible to meet the 30 compliance requirements under this act. Energy derived from 20070H1203B2343 - 13 -
1 alternative energy sources located outside the geographical 2 boundaries of this Commonwealth but within the service territory 3 of a regional transmission organization that manages the 4 transmission system in any part of this Commonwealth shall only 5 be eligible to meet the compliance requirements of electric 6 distribution companies or electric generation suppliers located 7 within the service territory of the same regional transmission 8 organization. For purposes of compliance with this act, 9 alternative energy sources located in the PJM Interconnection, 10 L.L.C. regional transmission organization (PJM) or its successor 11 service territory shall be eligible to fulfill compliance 12 obligations of all Pennsylvania electric distribution companies 13 and electric generation suppliers. Energy derived from 14 alternative energy sources located outside the service territory 15 of a regional transmission organization that manages the 16 transmission system in any part of this Commonwealth shall not 17 be eligible to meet the compliance requirements of this act. 18 Electric distribution companies and electric generation 19 suppliers shall document that this energy was not used to 20 satisfy another state's renewable energy portfolio standards. 21 Section 5. Interconnection standards for customer-generator 22 facilities. 23 Excess generation from net-metered customer-generators shall 24 receive full retail value for all energy produced on an annual 25 basis. The commission shall develop technical and net metering 26 interconnection rules for customer-generators intending to 27 operate renewable onsite generators in parallel with the 28 electric utility grid, consistent with rules defined in other 29 states within the service region of the regional transmission 30 organization that manages the transmission system in any part of 20070H1203B2343 - 14 -
1 this Commonwealth. The commission shall convene a stakeholder 2 process to develop Statewide technical and net metering rules 3 for customer-generators. The commission shall develop these 4 rules within nine months of the effective date of this act. 5 Section 3. The addition of section 3(e)(12) of the act shall 6 apply to all alternative energy credits created under the act 7 before, on or after the effective date of this section, 8 regardless of when any underlying contract for the purchase of 9 electric energy or other products from the generator that 10 qualifies as an alternative energy system was executed. 11 Section 4. This act shall take effect immediately. 12 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY SOURCES," <-- 13 "CUSTOMER-GENERATOR," "FORCE MAJEURE" AND "NET METERING" IN 14 SECTION 2 OF THE ACT OF NOVEMBER 30, 2004 (P.L.1672, NO.213), 15 KNOWN AS THE ALTERNATIVE ENERGY PORTFOLIO STANDARDS ACT, ARE 16 AMENDED TO READ: 17 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY CREDIT," <-- 18 "CUSTOMER-GENERATOR," "FORCE MAJEURE," "NET METERING" AND "TIER 19 I ALTERNATIVE ENERGY SOURCE" IN SECTION 2 OF THE ACT OF NOVEMBER 20 30, 2004 (P.L.1672, NO.213), KNOWN AS THE ALTERNATIVE ENERGY 21 PORTFOLIO STANDARDS ACT, ARE AMENDED TO READ: 22 SECTION 2. DEFINITIONS. 23 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL 24 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE 25 CONTEXT CLEARLY INDICATES OTHERWISE: 26 "ALTERNATIVE ENERGY CREDIT." A TRADABLE INSTRUMENT THAT IS <-- 27 USED TO ESTABLISH, VERIFY AND MONITOR COMPLIANCE WITH THIS ACT. 28 A UNIT OF CREDIT SHALL EQUAL ONE MEGAWATT HOUR OF ELECTRICITY 29 FROM AN ALTERNATIVE ENERGY SOURCE. THE ALTERNATIVE ENERGY CREDIT 30 SHALL REMAIN THE PROPERTY OF THE ALTERNATIVE ENERGY SYSTEM UNTIL 20070H1203B2343 - 15 -
1 THE ALTERNATIVE ENERGY CREDIT IS VOLUNTARILY TRANSFERRED BY THE 2 ALTERNATIVE ENERGY SYSTEM. 3 * * * 4 "ALTERNATIVE ENERGY SOURCES." THE TERM SHALL INCLUDE THE <-- 5 FOLLOWING EXISTING AND NEW SOURCES FOR THE PRODUCTION OF 6 ELECTRICITY: 7 (1) SOLAR PHOTOVOLTAIC OR OTHER SOLAR ELECTRIC ENERGY. 8 (2) SOLAR THERMAL ENERGY. 9 (3) WIND POWER. 10 (4) LARGE-SCALE HYDROPOWER, WHICH SHALL MEAN THE 11 PRODUCTION OF ELECTRIC POWER BY HARNESSING THE HYDROELECTRIC 12 POTENTIAL OF MOVING WATER IMPOUNDMENTS, INCLUDING PUMPED 13 STORAGE THAT DOES NOT MEET THE REQUIREMENTS OF LOW-IMPACT 14 HYDROPOWER UNDER PARAGRAPH (5). 15 (5) LOW-IMPACT HYDROPOWER CONSISTING OF ANY TECHNOLOGY 16 THAT PRODUCES ELECTRIC POWER AND THAT HARNESSES THE 17 HYDROELECTRIC POTENTIAL OF MOVING WATER IMPOUNDMENTS, 18 PROVIDED THE HYDROPOWER SOURCE HAS A NAMEPLATE CAPACITY OF 21 19 MEGAWATTS OR LESS AND A LICENSE ISSUED BY THE FEDERAL ENERGY 20 REGULATORY COMMISSION FOR THE HYDROPOWER SOURCE WAS HELD IN 21 WHOLE OR IN PART BY A MUNICIPALITY OR ELECTRIC COOPERATIVE ON 22 JULY 1, 2007, OR SUCH INCREMENTAL HYDROELECTRIC DEVELOPMENT: 23 (I) DOES NOT ADVERSELY CHANGE EXISTING IMPACTS TO 24 AQUATIC SYSTEMS; 25 (II) MEETS THE CERTIFICATION STANDARDS ESTABLISHED 26 BY THE LOW IMPACT HYDROPOWER INSTITUTE AND AMERICAN 27 RIVERS, INC., OR THEIR SUCCESSORS; 28 (III) PROVIDES AN ADEQUATE WATER FLOW FOR PROTECTION 29 OF AQUATIC LIFE AND FOR SAFE AND EFFECTIVE FISH PASSAGE; 30 (IV) PROTECTS AGAINST EROSION; AND 20070H1203B2343 - 16 -
1 (V) PROTECTS CULTURAL AND HISTORIC RESOURCES. 2 (6) GEOTHERMAL ENERGY, WHICH SHALL MEAN ELECTRICITY 3 PRODUCED BY EXTRACTING HOT WATER OR STEAM FROM GEOTHERMAL 4 RESERVES IN THE EARTH'S CRUST AND SUPPLIED TO STEAM TURBINES 5 THAT DRIVE GENERATORS TO PRODUCE ELECTRICITY. 6 (7) BIOMASS ENERGY, WHICH SHALL MEAN THE GENERATION OF 7 ELECTRICITY UTILIZING THE FOLLOWING: 8 (I) ORGANIC MATERIAL FROM A PLANT THAT IS GROWN FOR 9 THE PURPOSE OF BEING USED TO PRODUCE ELECTRICITY OR IS 10 PROTECTED BY THE FEDERAL CONSERVATION RESERVE PROGRAM 11 (CRP) AND PROVIDED FURTHER THAT CROP PRODUCTION ON CRP 12 LANDS DOES NOT PREVENT ACHIEVEMENT OF THE WATER QUALITY 13 PROTECTION, SOIL EROSION PREVENTION OR WILDLIFE 14 ENHANCEMENT PURPOSES FOR WHICH THE LAND WAS PRIMARILY SET 15 ASIDE; OR 16 (II) ANY SOLID NONHAZARDOUS, CELLULOSIC WASTE 17 MATERIAL THAT IS SEGREGATED FROM OTHER WASTE MATERIALS, 18 SUCH AS WASTE PALLETS, CRATES AND LANDSCAPE OR RIGHT-OF- 19 WAY TREE TRIMMINGS OR AGRICULTURAL SOURCES, INCLUDING 20 ORCHARD TREE CROPS, VINEYARDS, GRAIN, LEGUMES, SUGAR AND 21 OTHER CROP BY-PRODUCTS OR RESIDUES. 22 (8) BIOLOGICALLY DERIVED METHANE GAS, WHICH SHALL 23 INCLUDE METHANE FROM THE ANAEROBIC DIGESTION OF ORGANIC 24 MATERIALS FROM YARD WASTE, SUCH AS GRASS CLIPPINGS AND 25 LEAVES, FOOD WASTE, ANIMAL WASTE AND SEWAGE SLUDGE. THE TERM 26 ALSO INCLUDES LANDFILL METHANE GAS. 27 (9) FUEL CELLS, WHICH SHALL MEAN ANY ELECTROCHEMICAL 28 DEVICE THAT CONVERTS CHEMICAL ENERGY IN A HYDROGEN-RICH FUEL 29 DIRECTLY INTO ELECTRICITY, HEAT AND WATER WITHOUT COMBUSTION. 30 (10) WASTE COAL, WHICH SHALL INCLUDE THE COMBUSTION OF 20070H1203B2343 - 17 -
1 WASTE COAL IN FACILITIES IN WHICH THE WASTE COAL WAS DISPOSED 2 OR ABANDONED PRIOR TO JULY 31, 1982, OR DISPOSED OF 3 THEREAFTER IN A PERMITTED COAL REFUSE DISPOSAL SITE 4 REGARDLESS OF WHEN DISPOSED OF, AND USED TO GENERATE 5 ELECTRICITY, OR SUCH OTHER WASTE COAL COMBUSTION MEETING 6 ALTERNATE ELIGIBILITY REQUIREMENTS ESTABLISHED BY REGULATION. 7 FACILITIES COMBUSTING WASTE COAL SHALL USE AT A MINIMUM A 8 COMBINED FLUIDIZED BED BOILER AND BE OUTFITTED WITH A 9 LIMESTONE INJECTION SYSTEM AND A FABRIC FILTER PARTICULATE 10 REMOVAL SYSTEM. ALTERNATIVE ENERGY CREDITS SHALL BE 11 CALCULATED BASED UPON THE PROPORTION OF WASTE COAL UTILIZED 12 TO PRODUCE ELECTRICITY AT THE FACILITY. 13 (11) COAL MINE METHANE, WHICH SHALL MEAN METHANE GAS 14 EMITTING FROM ABANDONED OR WORKING COAL MINES. 15 (12) DEMAND-SIDE MANAGEMENT CONSISTING OF THE MANAGEMENT 16 OF CUSTOMER CONSUMPTION OF ELECTRICITY OR THE DEMAND FOR 17 ELECTRICITY THROUGH THE IMPLEMENTATION OF: 18 (I) ENERGY EFFICIENCY TECHNOLOGIES, MANAGEMENT 19 PRACTICES OR OTHER STRATEGIES IN RESIDENTIAL, COMMERCIAL, 20 INSTITUTIONAL OR GOVERNMENT CUSTOMERS THAT REDUCE 21 ELECTRICITY CONSUMPTION BY THOSE CUSTOMERS; 22 (II) LOAD MANAGEMENT OR DEMAND RESPONSE 23 TECHNOLOGIES, MANAGEMENT PRACTICES OR OTHER STRATEGIES IN 24 RESIDENTIAL, COMMERCIAL, INDUSTRIAL, INSTITUTIONAL AND 25 GOVERNMENT CUSTOMERS THAT SHIFT ELECTRIC LOAD FROM 26 PERIODS OF HIGHER DEMAND TO PERIODS OF LOWER DEMAND; OR 27 (III) INDUSTRIAL BY-PRODUCT TECHNOLOGIES CONSISTING 28 OF THE USE OF A BY-PRODUCT FROM AN INDUSTRIAL PROCESS, 29 INCLUDING THE REUSE OF ENERGY FROM EXHAUST GASES OR OTHER 30 MANUFACTURING BY-PRODUCTS THAT ARE USED IN THE DIRECT 20070H1203B2343 - 18 -
1 PRODUCTION OF ELECTRICITY AT THE FACILITY OF A CUSTOMER. 2 (13) DISTRIBUTED GENERATION SYSTEM, WHICH SHALL MEAN THE 3 SMALL-SCALE POWER GENERATION OF ELECTRICITY AND USEFUL 4 THERMAL ENERGY. 5 * * * 6 "CUSTOMER-GENERATOR." A NONUTILITY OWNER OR OPERATOR OF A 7 NET METERED DISTRIBUTED GENERATION SYSTEM WITH A NAMEPLATE 8 CAPACITY OF NOT GREATER THAN 50 KILOWATTS IF INSTALLED AT A 9 RESIDENTIAL SERVICE OR NOT LARGER THAN [1,000] 3,000 KILOWATTS 10 AT OTHER CUSTOMER SERVICE LOCATIONS, EXCEPT FOR CUSTOMERS WHOSE 11 SYSTEMS ARE ABOVE [ONE MEGAWATT] THREE MEGAWATTS AND UP TO [TWO] 12 FIVE MEGAWATTS WHO MAKE THEIR SYSTEMS AVAILABLE TO OPERATE IN 13 PARALLEL WITH THE ELECTRIC UTILITY DURING GRID EMERGENCIES AS 14 DEFINED BY THE REGIONAL TRANSMISSION ORGANIZATION OR [WHERE A <-- 15 MICROGRID IS IN PLACE] WHO MAKE THEIR SYSTEMS AVAILABLE FOR THE <-- 16 PRIMARY OR SECONDARY PURPOSE OF MAINTAINING CRITICAL 17 INFRASTRUCTURE, SUCH AS HOMELAND SECURITY ASSIGNMENTS, EMERGENCY 18 SERVICES FACILITIES, HOSPITALS, TRAFFIC SIGNALS, WASTEWATER 19 TREATMENT PLANTS OR TELECOMMUNICATIONS FACILITIES, PROVIDED THAT 20 TECHNICAL RULES FOR OPERATING GENERATORS INTERCONNECTED WITH 21 FACILITIES OF AN ELECTRIC DISTRIBUTION COMPANY, ELECTRIC 22 COOPERATIVE OR MUNICIPAL ELECTRIC SYSTEM HAVE BEEN PROMULGATED 23 BY THE INSTITUTE OF ELECTRICAL AND ELECTRONIC ENGINEERS AND THE 24 PENNSYLVANIA PUBLIC UTILITY COMMISSION. A NET METERED <-- 25 DISTRIBUTED GENERATION SYSTEM CAPABLE OF PROVIDING MORE THAN ONE 26 MEGAWATT THROUGH ITS INTERCONNECTION SHALL COMPLY WITH ALL 27 TECHNICAL RULES NECESSARY TO ENSURE THAT SIGNIFICANT 28 FLUCTUATIONS IN THE ELECTRICAL SUPPLY TO THE ELECTRIC 29 DISTRIBUTION COMPANY, ELECTRIC COOPERATIVE OR MUNICIPAL ELECTRIC 30 SYSTEM WILL NOT INTERFERE WITH ITS OPERATIONS. 20070H1203B2343 - 19 -
1 * * * 2 "FORCE MAJEURE." UPON ITS OWN INITIATIVE OR UPON A REQUEST 3 OF AN ELECTRIC DISTRIBUTION COMPANY OR AN ELECTRIC GENERATOR 4 SUPPLIER, THE PENNSYLVANIA PUBLIC UTILITY COMMISSION, WITHIN 60 5 DAYS, SHALL DETERMINE IF ALTERNATIVE ENERGY RESOURCES ARE 6 REASONABLY AVAILABLE IN THE MARKETPLACE IN SUFFICIENT QUANTITIES 7 FOR THE ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION 8 SUPPLIERS TO MEET THEIR OBLIGATIONS FOR THAT REPORTING PERIOD 9 UNDER THIS ACT. IN MAKING THIS DETERMINATION THE COMMISSION 10 SHALL CONSIDER WHETHER ELECTRIC DISTRIBUTION COMPANIES OR 11 ELECTRIC GENERATION SUPPLIERS HAVE MADE A GOOD FAITH EFFORT TO 12 ACQUIRE SUFFICIENT ALTERNATIVE ENERGY TO COMPLY WITH THEIR 13 OBLIGATIONS. SUCH GOOD FAITH EFFORTS SHALL INCLUDE, BUT ARE NOT 14 LIMITED TO, BANKING ALTERNATIVE ENERGY CREDITS DURING THEIR 15 TRANSITION PERIODS, SEEKING ALTERNATIVE ENERGY CREDITS THROUGH 16 COMPETITIVE SOLICITATIONS AND SEEKING TO PROCURE ALTERNATIVE 17 ENERGY CREDITS OR ALTERNATIVE ENERGY THROUGH LONG-TERM 18 CONTRACTS. IN FURTHER MAKING ITS DETERMINATION THE COMMISSION 19 SHALL ASSESS THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS IN 20 THE GENERATION ATTRIBUTES TRACKING SYSTEM (GATS) OR ITS 21 SUCCESSOR, AND THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS 22 GENERALLY IN PENNSYLVANIA AND OTHER JURISDICTIONS IN THE PJM 23 INTERCONNECTION, L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM) 24 OR ITS SUCCESSOR. THE COMMISSION MAY ALSO REQUIRE SOLICITATIONS 25 FOR ALTERNATIVE ENERGY CREDITS AS PART OF DEFAULT SERVICE BEFORE 26 REQUESTS OF FORCE MAJEURE CAN BE MADE. IF THE COMMISSION FURTHER 27 DETERMINES THAT ALTERNATIVE ENERGY RESOURCES ARE NOT REASONABLY 28 AVAILABLE IN SUFFICIENT QUANTITIES IN THE MARKETPLACE FOR THE 29 ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION 30 SUPPLIERS TO MEET THEIR OBLIGATIONS UNDER THIS ACT, THEN THE 20070H1203B2343 - 20 -
1 COMMISSION SHALL MODIFY THE UNDERLYING OBLIGATION OF THE 2 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OR 3 RECOMMEND TO THE GENERAL ASSEMBLY THAT THE UNDERLYING OBLIGATION 4 BE ELIMINATED. COMMISSION MODIFICATION OF THE ELECTRIC <-- 5 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OBLIGATIONS 6 UNDER THIS ACT SHALL BE FOR THAT COMPLIANCE PERIOD ONLY. 7 COMMISSION MODIFICATION SHALL NOT AUTOMATICALLY REDUCE THE 8 OBLIGATION FOR SUBSEQUENT COMPLIANCE YEARS. IF THE COMMISSION 9 MODIFIES THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 10 GENERATION SUPPLIER OBLIGATIONS UNDER THIS ACT, THE COMMISSION 11 MAY REQUIRE THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 12 GENERATION SUPPLIER TO ACQUIRE ADDITIONAL ALTERNATIVE ENERGY 13 CREDITS IN SUBSEQUENT YEARS EQUIVALENT TO THE OBLIGATION REDUCED 14 DUE TO A FORCE MAJEURE DECLARATION IF THE COMMISSION DETERMINES 15 THAT SUFFICIENT ALTERNATIVE ENERGY CREDITS EXIST IN THE 16 MARKETPLACE. 17 * * * 18 "NET METERING." THE MEANS OF MEASURING THE DIFFERENCE 19 BETWEEN THE ELECTRICITY SUPPLIED BY AN ELECTRIC UTILITY AND THE 20 ELECTRICITY GENERATED BY A CUSTOMER-GENERATOR [WHEN THE 21 RENEWABLE ENERGY GENERATING SYSTEM IS INTENDED PRIMARILY], WHEN 22 ANY PORTION OF THE ELECTRICITY GENERATED BY THE ALTERNATIVE 23 ENERGY GENERATING SYSTEM IS USED TO OFFSET PART OR ALL OF THE 24 CUSTOMER-GENERATOR'S REQUIREMENTS FOR ELECTRICITY. VIRTUAL METER 25 AGGREGATION ON PROPERTIES OWNED OR LEASED AND OPERATED BY A 26 CUSTOMER-GENERATOR AND LOCATED WITHIN TWO MILES OF THE 27 BOUNDARIES OF THE CUSTOMER-GENERATOR'S PROPERTY AND WITHIN A 28 SINGLE ELECTRIC DISTRIBUTION COMPANY'S SERVICE TERRITORY SHALL 29 BE ELIGIBLE FOR NET METERING. AT THE END OF EACH MONTHLY BILLING <-- 30 PERIOD, THE ELECTRIC DISTRIBUTION COMPANY SHALL COMPENSATE THE 20070H1203B2343 - 21 -
1 CUSTOMER-GENERATOR FOR KILOWATT-HOURS GENERATED BY THE CUSTOMER- 2 GENERATOR OVER THE AMOUNT OF KILOWATT HOURS DELIVERED BY THE 3 ELECTRIC DISTRIBUTION COMPANY DURING THE BILLING PERIOD AT THE 4 ELECTRIC DISTRIBUTION COMPANY'S AVOIDED COST OF WHOLESALE POWER. 5 NO CONTRACT SHALL ABROGATE THE CUSTOMER-GENERATOR'S RIGHT TO 6 RECEIVE THESE PAYMENTS. NO CUSTOMER GENERATOR SHALL OPERATE MORE 7 THAN ONE ALTERNATIVE ENERGY PROJECT THAT IS ENGAGED IN VIRTUAL 8 METER AGGREGATION WITHIN EACH OF THE ELECTRIC DISTRIBUTION 9 COMPANY'S SERVICE TERRITORIES. 10 * * * 11 "TIER I ALTERNATIVE ENERGY SOURCE." ENERGY DERIVED FROM: <-- 12 (1) SOLAR PHOTOVOLTAIC AND SOLAR THERMAL ENERGY. 13 (2) WIND POWER. 14 (3) LOW-IMPACT HYDROPOWER. 15 (4) GEOTHERMAL ENERGY. 16 (5) BIOLOGICALLY DERIVED METHANE GAS. 17 (6) FUEL CELLS. 18 (7) BIOMASS ENERGY. 19 (8) COAL MINE METHANE. 20 * * * 21 SECTION 2. SECTION 3(B) AND (F) OF THE ACT ARE AMENDED AND 22 SUBSECTION (E) IS AMENDED BY ADDING A PARAGRAPH TO READ: 23 SECTION 3. ALTERNATIVE ENERGY PORTFOLIO STANDARDS. 24 * * * 25 (B) TIER I AND SOLAR PHOTOVOLTAIC SHARES.-- 26 (1) TWO YEARS AFTER THE EFFECTIVE DATE OF THIS ACT, AT 27 LEAST 1.5% OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC 28 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER TO 29 RETAIL ELECTRIC CUSTOMERS IN THIS COMMONWEALTH SHALL BE 30 GENERATED FROM TIER I ALTERNATIVE ENERGY SOURCES. EXCEPT AS 20070H1203B2343 - 22 -
1 PROVIDED IN THIS SECTION, THE MINIMUM PERCENTAGE OF ELECTRIC 2 ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC CUSTOMERS FROM 3 ALTERNATIVE ENERGY SOURCES SHALL INCREASE TO 2% THREE YEARS 4 AFTER THE EFFECTIVE DATE OF THIS ACT. THE MINIMUM PERCENTAGE 5 OF ELECTRIC ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC 6 CUSTOMERS FROM ALTERNATIVE ENERGY SOURCES SHALL INCREASE BY 7 AT LEAST 0.5% EACH YEAR SO THAT AT LEAST 8% OF THE ELECTRIC 8 ENERGY SOLD BY AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 9 GENERATION SUPPLIER TO RETAIL ELECTRIC CUSTOMERS IN THAT 10 CERTIFICATED TERRITORY IN THE 15TH YEAR AFTER THE EFFECTIVE 11 DATE OF THIS SUBSECTION IS SOLD FROM TIER I ALTERNATIVE 12 ENERGY RESOURCES. 13 (2) [OF THE ELECTRIC ENERGY REQUIRED TO BE SOLD FROM 14 TIER I SOURCES, THE TOTAL PERCENTAGE THAT MUST BE SOLD FROM 15 SOLAR PHOTOVOLTAIC TECHNOLOGIES IS FOR:] THE TOTAL PERCENTAGE 16 OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC DISTRIBUTION 17 COMPANY OR ELECTRIC GENERATION SUPPLIER TO RETAIL ELECTRIC 18 CUSTOMERS IN THIS COMMONWEALTH THAT MUST BE SOLD FROM SOLAR 19 PHOTOVOLTAIC TECHNOLOGIES IS: 20 [(I) YEARS 1 THROUGH 4 - 0.0013%. 21 (II) YEARS 5 THROUGH 9 - 0.0203%. 22 (III) YEARS 10 THROUGH 14 - 0.2500%. 23 (IV) YEARS 15 AND THEREAFTER - 0.5000%.] 24 (I) 0.0013% FOR JUNE 1, 2006, THROUGH MAY 31, 2007. 25 (II) 0.0030% FOR JUNE 1, 2007, THROUGH MAY 31, 2008. 26 (III) 0.0063% FOR JUNE 1, 2008, THROUGH MAY 31, 27 2009. 28 (IV) 0.0120% FOR JUNE 1, 2009, THROUGH MAY 31, 2010. 29 (V) 0.0203% FOR JUNE 1, 2010, THROUGH MAY 31, 2011. 30 (VI) 0.0325% FOR JUNE 1, 2011, THROUGH MAY 31, 2012. 20070H1203B2343 - 23 -
1 (VII) 0.0510% FOR JUNE 1, 2012, THROUGH MAY 31, 2 2013. 3 (VIII) 0.0840% FOR JUNE 1, 2013, THROUGH MAY 31, 4 2014. 5 (IX) 0.1440% FOR JUNE 1, 2014, THROUGH MAY 31, 2015. 6 (X) 0.2500% FOR JUNE 1, 2015, THROUGH MAY 31, 2016. 7 (XI) 0.2933% FOR JUNE 1, 2016, THROUGH MAY 31, 2017. 8 (XII) 0.3400% FOR JUNE 1, 2017, THROUGH MAY 31, 9 2018. 10 (XIII) 0.3900% FOR JUNE 1, 2018, THROUGH MAY 31, 11 2019. 12 (XIV) 0.4433% FOR JUNE 1, 2019, THROUGH MAY 31, 13 2020. 14 (XV) 0.5000% FOR JUNE 1, 2020, AND THEREAFTER. 15 (3) UPON COMMENCEMENT OF THE BEGINNING OF THE 6TH 16 REPORTING YEAR, THE COMMISSION SHALL UNDERTAKE A REVIEW OF 17 THE COMPLIANCE BY ELECTRIC DISTRIBUTION COMPANIES AND 18 ELECTRIC GENERATION SUPPLIERS WITH THE REQUIREMENTS OF THIS 19 ACT. THE REVIEW SHALL ALSO INCLUDE THE STATUS OF ALTERNATIVE 20 ENERGY TECHNOLOGIES WITHIN THIS COMMONWEALTH AND THE CAPACITY 21 TO ADD ADDITIONAL ALTERNATIVE ENERGY RESOURCES. THE 22 COMMISSION SHALL USE THE RESULTS OF THIS REVIEW TO RECOMMEND 23 TO THE GENERAL ASSEMBLY ADDITIONAL COMPLIANCE GOALS BEYOND 24 YEAR 15. THE COMMISSION SHALL WORK WITH THE DEPARTMENT IN 25 EVALUATING THE FUTURE ALTERNATIVE ENERGY RESOURCE POTENTIAL. 26 * * * 27 (E) ALTERNATIVE ENERGY CREDITS.-- 28 * * * 29 (12) (I) UNLESS A CONTRACTUAL PROVISION EXPLICITLY <-- 30 ASSIGNS ALTERNATIVE ENERGY CREDITS IN A DIFFERENT MANNER, THE 20070H1203B2343 - 24 -
1 OWNER OF THE ALTERNATIVE ENERGY SYSTEM OR A CUSTOMER- 2 GENERATOR OWNS ANY AND ALL ALTERNATIVE ENERGY CREDITS 3 ASSOCIATED WITH OR CREATED BY THE PRODUCTION OF ELECTRIC 4 ENERGY BY SUCH FACILITY OR CUSTOMER, AND THE OWNER OR 5 CUSTOMER SHALL BE ENTITLED TO SELL, TRANSFER OR TAKE ANY 6 OTHER ACTION TO WHICH A LEGAL OWNER OF PROPERTY IS ENTITLED 7 TO TAKE WITH RESPECT TO THE CREDITS. 8 (II) THIS PARAGRAPH SHALL APPLY TO ALL ALTERNATIVE <-- 9 ENERGY CREDITS CREATED PURSUANT TO THIS ACT EXCEPT THOSE 10 CREATED UNDER CONTRACTS WHICH WERE EXECUTED PRIOR TO THE 11 EFFECTIVE DATE OF THIS PARAGRAPH BETWEEN AN ELECTRIC 12 DISTRIBUTION COMPANY AND A COGENERATION FACILITY OR A 13 SMALL POWER PRODUCTION FACILITY AS THOSE TERMS ARE 14 DEFINED UNDER THE FEDERAL PUBLIC UTILITY REGULATORY 15 POLICIES ACT OF 1978 (16 U.S.C. § 824A-3). 16 (F) ALTERNATIVE COMPLIANCE PAYMENT.-- 17 (1) AT THE END OF EACH PROGRAM YEAR, THE PROGRAM 18 ADMINISTRATOR SHALL PROVIDE A REPORT TO THE COMMISSION AND TO 19 EACH COVERED ELECTRIC DISTRIBUTION COMPANY SHOWING THEIR 20 STATUS LEVEL OF ALTERNATIVE ENERGY ACQUISITION. 21 (2) THE COMMISSION SHALL CONDUCT A REVIEW OF EACH 22 DETERMINATION MADE UNDER SUBSECTIONS (B) AND (C). IF, AFTER 23 NOTICE AND HEARING, THE COMMISSION DETERMINES THAT AN 24 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER 25 HAS FAILED TO COMPLY WITH SUBSECTIONS (B) AND (C), THE 26 COMMISSION SHALL IMPOSE AN ALTERNATIVE COMPLIANCE PAYMENT ON 27 THAT COMPANY OR SUPPLIER. 28 (3) THE ALTERNATIVE COMPLIANCE PAYMENT, WITH THE 29 EXCEPTION OF THE SOLAR PHOTOVOLTAIC SHARE COMPLIANCE 30 REQUIREMENT SET FORTH IN SUBSECTION (B)(2), SHALL BE $45 20070H1203B2343 - 25 -
1 TIMES THE NUMBER OF ADDITIONAL ALTERNATIVE ENERGY CREDITS 2 NEEDED IN ORDER TO COMPLY WITH SUBSECTION (B) OR (C). 3 (4) THE ALTERNATIVE COMPLIANCE PAYMENT FOR THE SOLAR 4 PHOTOVOLTAIC SHARE SHALL BE 200% OF THE AVERAGE MARKET VALUE 5 OF SOLAR RENEWABLE ENERGY CREDITS SOLD DURING THE REPORTING 6 PERIOD WITHIN THE SERVICE REGION OF THE REGIONAL TRANSMISSION 7 ORGANIZATION, INCLUDING, WHERE APPLICABLE, THE LEVELIZED UP- 8 FRONT REBATES RECEIVED BY SELLERS OF SOLAR RENEWABLE ENERGY 9 CREDITS IN OTHER JURISDICTIONS IN THE PJM INTERCONNECTION, 10 L.L.C. TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR. 11 (5) THE COMMISSION SHALL ESTABLISH A PROCESS TO PROVIDE 12 FOR, AT LEAST ANNUALLY, A REVIEW OF THE ALTERNATIVE ENERGY 13 MARKET WITHIN THIS COMMONWEALTH AND THE SERVICE TERRITORIES 14 OF THE REGIONAL TRANSMISSION ORGANIZATIONS THAT MANAGE THE 15 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH. THE 16 COMMISSION WILL USE THE RESULTS OF THIS STUDY TO IDENTIFY ANY 17 NEEDED CHANGES TO THE COST ASSOCIATED WITH THE ALTERNATIVE 18 COMPLIANCE PAYMENT PROGRAM. IF THE COMMISSION FINDS THAT THE 19 COSTS ASSOCIATED WITH THE ALTERNATIVE COMPLIANCE PAYMENT 20 PROGRAM MUST BE CHANGED, THE COMMISSION SHALL PRESENT THESE 21 FINDINGS TO THE GENERAL ASSEMBLY FOR LEGISLATIVE ENACTMENT. 22 * * * 23 SECTION 3. SECTIONS 4 AND 5 OF THE ACT ARE AMENDED TO READ: 24 SECTION 4. PORTFOLIO REQUIREMENTS IN OTHER STATES. 25 IF AN ELECTRIC DISTRIBUTION SUPPLIER OR ELECTRIC GENERATION 26 COMPANY PROVIDER SELLS ELECTRICITY IN ANY OTHER STATE AND IS 27 SUBJECT TO RENEWABLE ENERGY PORTFOLIO REQUIREMENTS IN THAT 28 STATE, THEY SHALL LIST ANY SUCH REQUIREMENT AND SHALL INDICATE 29 HOW IT SATISFIED THOSE RENEWABLE ENERGY PORTFOLIO REQUIREMENTS. 30 TO PREVENT DOUBLE-COUNTING, THE ELECTRIC DISTRIBUTION SUPPLIER 20070H1203B2343 - 26 -
1 OR ELECTRIC GENERATION COMPANY SHALL NOT SATISFY PENNSYLVANIA'S 2 ALTERNATIVE ENERGY PORTFOLIO REQUIREMENTS USING ALTERNATIVE 3 ENERGY USED TO SATISFY ANOTHER STATE'S PORTFOLIO REQUIREMENTS[. 4 ENERGY DERIVED ONLY FROM ALTERNATIVE ENERGY SOURCES INSIDE THE 5 GEOGRAPHICAL BOUNDARIES OF THIS COMMONWEALTH OR WITHIN THE 6 SERVICE TERRITORY OF ANY REGIONAL TRANSMISSION ORGANIZATION THAT 7 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH 8 SHALL BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS UNDER THIS 9 ACT.] OR ALTERNATIVE ENERGY CREDITS ALREADY PURCHASED BY 10 INDIVIDUALS, BUSINESSES, OR GOVERNMENT BODIES THAT DO NOT HAVE A 11 COMPLIANCE OBLIGATION UNDER THIS ACT UNLESS THE INDIVIDUAL, 12 BUSINESS OR GOVERNMENT BODY SELLS THOSE CREDITS TO THE ELECTRIC 13 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER. ENERGY 14 DERIVED FROM ALTERNATIVE ENERGY SOURCES INSIDE THE GEOGRAPHICAL 15 BOUNDARIES OF THIS COMMONWEALTH SHALL BE ELIGIBLE TO MEET THE 16 COMPLIANCE REQUIREMENTS UNDER THIS ACT. ENERGY DERIVED FROM 17 ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE GEOGRAPHICAL 18 BOUNDARIES OF THIS COMMONWEALTH BUT WITHIN THE SERVICE TERRITORY 19 OF A REGIONAL TRANSMISSION ORGANIZATION THAT MANAGES THE 20 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH SHALL ONLY 21 BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF ELECTRIC 22 DISTRIBUTION COMPANIES OR ELECTRIC GENERATION SUPPLIERS LOCATED 23 WITHIN THE SERVICE TERRITORY OF THE SAME REGIONAL TRANSMISSION 24 ORGANIZATION. FOR PURPOSES OF COMPLIANCE WITH THIS ACT, 25 ALTERNATIVE ENERGY SOURCES LOCATED IN THE PJM INTERCONNECTION, 26 L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR 27 SERVICE TERRITORY SHALL BE ELIGIBLE TO FULFILL COMPLIANCE 28 OBLIGATIONS OF PIKE COUNTY LIGHT AND POWER COMPANY AND <-- 29 PENNSYLVANIA POWER COMPANY ALL PENNSYLVANIA ELECTRIC <-- 30 DISTRIBUTION COMPANIES AND ELECTRIC GENERATION SUPPLIERS. ENERGY 20070H1203B2343 - 27 -
1 DERIVED FROM ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE 2 SERVICE TERRITORY OF A REGIONAL TRANSMISSION ORGANIZATION THAT 3 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH 4 SHALL NOT BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF 5 THIS ACT. ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC 6 GENERATION SUPPLIERS SHALL DOCUMENT THAT THIS ENERGY WAS NOT 7 USED TO SATISFY ANOTHER STATE'S RENEWABLE ENERGY PORTFOLIO 8 STANDARDS. 9 SECTION 5. INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR 10 FACILITIES. 11 EXCESS GENERATION FROM NET-METERED CUSTOMER-GENERATORS SHALL 12 BE "TRUED-UP" RECEIVE FULL RETAIL VALUE FOR ALL ENERGY PRODUCED <-- 13 ON AN ANNUAL BASIS. THE COMMISSION SHALL DEVELOP TECHNICAL AND 14 NET METERING INTERCONNECTION RULES FOR CUSTOMER-GENERATORS 15 INTENDING TO OPERATE RENEWABLE ONSITE GENERATORS IN PARALLEL 16 WITH THE ELECTRIC UTILITY GRID, CONSISTENT WITH RULES DEFINED IN 17 OTHER STATES WITHIN THE SERVICE REGION OF THE REGIONAL 18 TRANSMISSION ORGANIZATION THAT MANAGES THE TRANSMISSION SYSTEM 19 IN ANY PART OF THIS COMMONWEALTH. THE COMMISSION SHALL CONVENE A 20 STAKEHOLDER PROCESS TO DEVELOP STATEWIDE TECHNICAL AND NET 21 METERING RULES FOR CUSTOMER-GENERATORS. THE COMMISSION SHALL 22 DEVELOP THESE RULES WITHIN NINE MONTHS OF THE EFFECTIVE DATE OF 23 THIS ACT. 24 SECTION 3.1. NOTWITHSTANDING THE ADDITION OF SECTION <-- 25 3(E)(12) OF THE ACT, NOTHING IN THIS ACT IS INTENDED TO REVERSE 26 OR MODIFY THE PENNSYLVANIA PUBLIC UTILITY COMMISSION'S ORDER 27 DOCKET NUMBER P-00052149. 28 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY. B22L66RLE/20070H1203B2343 - 28 -