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                                                         PRINTER'S NO. 9

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 7 Special Session No. 1 of 2007-2008


        INTRODUCED BY ERICKSON, MUSTO, STOUT, RAFFERTY, TARTAGLIONE,
           C. WILLIAMS, O'PAKE, GREENLEAF, WONDERLING, FONTANA, WAUGH,
           WASHINGTON, TOMLINSON AND BROWNE, OCTOBER 4, 2007

        REFERRED TO ENERGY POLICIES, OCTOBER 4, 2007

                                     AN ACT

     1  Establishing the Solar Energy System Incentives Program; and
     2     providing for powers and duties of the Pennsylvania Public
     3     Utility Commission and the Department of Environmental
     4     Protection and for incentives and rebates.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Solar Energy
     9  System Incentives Program.
    10  Section 2.  Definitions.
    11     The following words and phrases when used in this act shall
    12  have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Account."  The Solar Energy System Incentives Account
    15  consisting of funds appropriated from the General Assembly or
    16  received from Federal grants and loans.
    17     "Commission."  The Pennsylvania Public Utility Commission.
    18     "Department."  The Department of Environmental Protection of


     1  the Commonwealth.
     2     "Solar energy system."  Equipment that provides for the
     3  collection and use of incident solar energy for water heating,
     4  space heating or cooling or other applications that would
     5  normally require a conventional source of energy such as
     6  petroleum products, natural gas or electricity that performs
     7  primarily with solar energy. In other systems in which solar
     8  energy is used in a supplemental way, only those components that
     9  collect and transfer solar energy shall be included in this
    10  definition.
    11     "Solar photovoltaic system."  A device that converts incident
    12  sunlight into electrical current.
    13     "Solar thermal system."  A device that traps heat from
    14  incident sunlight in order to heat water.
    15     "Sustainable Energy Fund PV Grant Program."  Pennsylvania's
    16  Sustainable Energy Fund, established under the Pennsylvania
    17  Public Utility Commission's restructuring orders under 66
    18  Pa.C.S. Ch. 28 (relating to restructuring of electric utility
    19  industry).
    20  Section 3.  Account.
    21     (a)  Establishment of account.--The Solar Energy System
    22  Incentives Account is hereby established in the General Fund to
    23  be utilized by the department for the creation, development,
    24  administration, management and implementation of the Solar
    25  Energy System Incentives Program established under this act.
    26     (b)  Moneys deposited in account.--All of the following
    27  moneys shall be deposited into the account:
    28         (1)  Federal or State funds or both appropriated by the
    29     General Assembly for the purposes of this act.
    30         (2)  Notwithstanding any other provision of law to the
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     1     contrary, any interest earned upon money deposited into the
     2     account.
     3     (c)  Continuous appropriation.--
     4         (1)  Except as provided in paragraph (2), notwithstanding
     5     any other provision of law to the contrary, the money in the
     6     account is continuously appropriated without regard to fiscal
     7     years to the department for the implementation and
     8     administration of the program.
     9         (2)  The money in the account may be expended by the
    10     department for the implementation and administration of the
    11     program only upon appropriation by the General Assembly.
    12  Section 4.  Solar Energy System Incentives Program established.
    13     (a)  Establishment.--There is established within the
    14  department the Solar Energy System Incentives Program.
    15     (b)  Purpose.--The program shall provide for the creation,
    16  development, administration, management and implementation of a
    17  program to provide financial incentives for the purchase and
    18  installation of solar energy systems. Any resident of this
    19  Commonwealth who purchases and installs a new solar energy
    20  system of 1.0 kilowatts or larger for a solar photovoltaic
    21  system, or a solar energy system that provides at least 30% of a
    22  building's hot water consumption for a solar thermal system from
    23  July 1, 2007, through June 30, 2015, is eligible for a rebate on
    24  a portion of the purchase price of that solar energy system.
    25  Section 5.  Solar photovoltaic system incentive.
    26     (a)  Eligibility requirements.--A solar photovoltaic system
    27  qualifies for a rebate if:
    28         (1)  The system is installed by a master electrician,
    29     electrical contractor or solar contractor and is recognized
    30     by the Sustainable Energy Fund PV Grant Program or similar
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     1     program developed by the department.
     2         (2)  The system complies with State interconnection
     3     standards as approved by the commission.
     4         (3)  The system complies with all applicable electrical
     5     and electrician and building codes as determined by State and
     6     local jurisdictional authority.
     7     (b)  Rebate amounts.--The rebate amount shall be set at $3
     8  per watt based on the total nominal wattage rating of the
     9  system. The maximum allowable rebate per solar photovoltaic
    10  system installation shall be as follows:
    11         (1)  Twenty thousand dollars for a residence.
    12         (2)  Three hundred thousand dollars for a place of
    13     business, a publicly owned or operated facility or a facility
    14     owned or operated by a private, not-for-profit organization,
    15     including condominiums, housing associations or apartment
    16     buildings.
    17  Section 6.  Solar thermal system incentive.
    18     (a)  Eligibility requirements.--A solar thermal system
    19  qualifies for a rebate if:
    20         (1)  The system is installed by a plumbing contractor or
    21     solar contractor and is recognized by the Sustainable Energy
    22     Fund PV Grant Program or similar program developed by the
    23     department.
    24         (2)  The system complies with all applicable electrical,
    25     electrician and building codes as determined by State and
    26     local jurisdictional authority.
    27     (b)  Rebate amounts.--Authorized rebates for installation of
    28  solar thermal systems for the first two years after the
    29  effective date of this act and thereafter set by the department
    30  shall be as follows:
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     1         (1)  One thousand dollars for a residence.
     2         (2)  Twenty percent of the cost up to a maximum of $5,000
     3     for a place of business, a publicly owned or operated
     4     facility, or a facility owned or operated by a not-for-profit
     5     entity, including condominiums, homeowners associations and
     6     apartment buildings. British thermal units (Btu) must be
     7     verified by approved metering equipment.
     8  Section 7.  Rebate availability.
     9     The department shall determine and publish public information
    10  on an Internet website on the availability of funds and other
    11  details, including the amount of rebate money remaining in the
    12  fund. The total dollar amount of all rebates issued by the
    13  department is subject to the total amount of appropriations in
    14  any fiscal year for this program. If funds are insufficient
    15  during the current fiscal year to meet qualifying application
    16  needs, any requests for rebates received during the fiscal year
    17  may be processed during the following fiscal year. Requests for
    18  rebates received in a fiscal year that are processed during the
    19  following fiscal year shall be given priority over requests for
    20  rebates received during the following fiscal year. The
    21  department shall set the rebate level as market conditions deem
    22  appropriate after the first two years from the effective date of
    23  this act.
    24  Section 8.  Standards.
    25     To be eligible for solar photovoltaic incentives, solar
    26  photovoltaic system equipment must comply with the hardware
    27  standards criteria defined under the Sustainable Energy Fund PV
    28  Grant Program or set forth by the commission. These systems must
    29  be verified and inspected as defined by the commission, as
    30  applicable. To be eligible for solar thermal incentives, solar
    20071S0007B0009                  - 5 -     

     1  thermal system equipment must comply with the hardware standards
     2  criteria defined by the commission. These systems must be
     3  verified and inspected as defined by the commission, as
     4  applicable.
     5  Section 9.  Effective date.
     6     This act shall take effect in 60 days.
















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