PRINTER'S NO.  3623

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2405

Session of

2010

  

  

INTRODUCED BY DePASQUALE, VITALI, ROSS, PAYTON, FREEMAN, BRIGGS, MUNDY, SANTARSIERO, M. O'BRIEN, BELFANTI, BRADFORD, CALTAGIRONE, D. COSTA, EVERETT, GALLOWAY, HORNAMAN, HOUGHTON, JOSEPHS, McILVAINE SMITH, MOUL, SHAPIRO, R. TAYLOR, THOMAS AND WAGNER, APRIL 23, 2010

  

  

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, APRIL 23, 2010  

  

  

  

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 and for alternative energy

9

portfolio standards; providing for solar photovoltaic and

10

solar thermal energy system requirements; further providing

11

for interagency responsibilities; providing for sequestration

12

facility permitting and for title to carbon dioxide, immunity

13

and transfer of liability; establishing the Carbon Dioxide

14

Indemnification Fund; providing for carbon dioxide

15

sequestration facility and transportation pipeline on

16

Commonwealth State forest lands; and providing for

17

application of the Public Utility Code to transporters of

18

carbon dioxide.

19

The General Assembly of the Commonwealth of Pennsylvania

20

hereby enacts as follows:

21

Section 1.  The definitions of "alternative energy sources"

22

and "force majeure" in section 2 of the act of November 30, 2004

23

(P.L.1672, No.213), known as the Alternative Energy Portfolio

24

Standards Act, amended July 17, 2007 (P.L.114, No.35), are

 


1

amended, the definition of "Tier II alternative energy source"

2

is amended by adding paragraphs and the section is amended by

3

adding definitions 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

* * *

9

"Alternative energy sources."  The term shall include the

10

following existing and new sources for the production of

11

electricity:

12

(1)  Solar photovoltaic or other solar electric energy.

13

(2)  Solar thermal energy.

14

(3)  Wind power.

15

(4)  Large-scale hydropower, which shall mean the

16

production of electric power by harnessing the hydroelectric

17

potential of moving water impoundments, including pumped

18

storage that does not meet the requirements of low-impact

19

hydropower under paragraph (5).

20

(5)  Low-impact hydropower consisting of any technology

21

that produces electric power and that harnesses the

22

hydroelectric potential of moving water impoundments,

23

provided such incremental hydroelectric development:

24

(i)  does not adversely change existing impacts to

25

aquatic systems;

26

(ii)  meets the certification standards established

27

by the Low Impact Hydropower Institute and American

28

Rivers, Inc., or their successors;

29

(iii)  provides an adequate water flow for protection

30

of aquatic life and for safe and effective fish passage;

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1

(iv)  protects against erosion; and

2

(v)  protects cultural and historic resources.

3

(6)  Geothermal energy, which shall mean electricity

4

produced by extracting hot water or steam from geothermal

5

reserves in the earth's crust and supplied to steam turbines

6

that drive generators to produce electricity.

7

(7)  Biomass energy, which shall mean the generation of

8

electricity utilizing the following:

9

(i)  organic material from a plant that is grown for

10

the purpose of being used to produce electricity or is

11

protected by the Federal Conservation Reserve Program

12

(CRP) and provided further that crop production on CRP

13

lands does not prevent achievement of the water quality

14

protection, soil erosion prevention or wildlife

15

enhancement purposes for which the land was primarily set

16

aside; or

17

(ii)  any solid nonhazardous, cellulosic waste

18

material that is segregated from other waste materials,

19

such as waste pallets, waste utility poles and railroad

20

ties used by facilities in operation within this

21

Commonwealth as of the effective date of this act, so

22

long as the facility employs the best available

23

technology to reduce or control emissions of air

24

pollutants under the act of January 8, 1960 (1959

25

P.L.2119, No.787), known as the Air Pollution Control

26

Act, crates and landscape or right-of-way tree trimmings

27

or agricultural sources, including orchard tree crops,

28

vineyards, grain, legumes, sugar and other crop by-

29

products or residues.

30

(8)  Biologically derived methane gas, which shall

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1

include methane from the anaerobic digestion of organic

2

materials from yard waste, such as grass clippings and

3

leaves, food waste, animal waste and sewage sludge. The term

4

also includes landfill methane gas.

5

(9)  Fuel cells, which shall mean any electrochemical

6

device that converts chemical energy in a hydrogen-rich fuel

7

directly into electricity, heat and water without combustion.

8

(10)  Waste coal, which shall include the combustion of

9

waste coal in facilities in which the waste coal was disposed

10

or abandoned prior to July 31, 1982, or disposed of

11

thereafter in a permitted coal refuse disposal site

12

regardless of when disposed of, and used to generate

13

electricity, or such other waste coal combustion meeting

14

alternate eligibility requirements established by regulation.

15

Facilities combusting waste coal shall use at a minimum a

16

combined fluidized bed boiler and be outfitted with a

17

limestone injection system and a fabric filter particulate

18

removal system. Alternative energy credits shall be

19

calculated based upon the proportion of waste coal utilized

20

to produce electricity at the facility.

21

(11)  Coal mine methane, which shall mean methane gas

22

emitting from abandoned or working coal mines.

23

(12)  Demand-side management consisting of the management

24

of customer consumption of electricity or the demand for

25

electricity through the implementation of:

26

(i)  energy efficiency technologies, management

27

practices or other strategies in residential, commercial,

28

institutional or government customers that reduce

29

electricity consumption by those customers;

30

(ii)  load management or demand response

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1

technologies, management practices or other strategies in

2

residential, commercial, industrial, institutional and

3

government customers that shift electric load from

4

periods of higher demand to periods of lower demand; or

5

(iii)  industrial by-product technologies consisting

6

of the use of a by-product from an industrial process,

7

including the reuse of energy from exhaust gases or other

8

manufacturing by-products that are used in the direct

9

production of electricity at the facility of a customer.

10

(13)  Distributed generation system, which shall mean the

11

small-scale power generation of electricity and useful

12

thermal energy.

13

(14)  Advanced coal combustion with limited carbon

14

dioxide emissions, which means the production of electric

15

power from a generation facility that is fueled by coal,

16

waste coal or gas derived from an advanced coal gasification

17

plant or a plant that is retrofitted to capture carbon

18

dioxide that:

19

(i)  Begins commercial operation after January 1,

20

2009, and captures, either in the advanced coal

21

gasification plant or in the electrical generation

22

facility, and delivers to a carbon dioxide sequestration

23

facility in this Commonwealth for permanent

24

sequestration, at least the following amounts of all

25

carbon dioxide produced:

26

(A)  40% from June 1, 2020, to May 31, 2024.

27

(B)  60% from June 1, 2024, to May 31, 2029.

28

(C)  90% from June 1, 2029, and thereafter.

29

(D)  The requirement under clause (C) shall be

30

waived if commercially proven and project-financeable

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1

technology is not available as determined by the

2

department.

3

(ii)  Has been designed to accommodate the required

4

additional processing equipment to produce power with a

5

maximum of 1,000 pounds of carbon dioxide emissions per

6

megawatt hour or begins commercial operation before

7

January 1, 2009, and captures and delivers to a carbon

8

dioxide sequestration facility in this Commonwealth for

9

permanent sequestration no less than the following amount

10

of carbon dioxide produced:

11

(A)  40% from June 1, 2020, to May 31, 2024.

12

(B)  60% from June 1, 2024, to May 31, 2029.

13

(C)  90% from June 1, 2029, and thereafter. The

14

requirement under this clause shall be waived if

15

commercially proven and project-financeable

16

technology is not available, as determined by the

17

department.

18

* * *

19

"Carbon dioxide."  Anthropogenically generated carbon dioxide

20

of sufficient purity and quality as to not compromise the

21

ability of the carbon dioxide transportation pipeline or

22

sequestration facility to safely and effectively transport and

23

sequester the carbon dioxide.

24

"Carbon dioxide sequestration facility."  The term shall

25

include the following:

26

(1)  geological subsurface formations within this

27

Commonwealth with suitable cap rock, sealing faults and

28

anticline for the permanent storage of carbon dioxide from

29

advanced coal combustion with limited carbon dioxide

30

emissions plants or other sources within this Commonwealth

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1

along with the facilities necessary to transport the carbon

2

dioxide from the surface to the subsurface formations and

3

monitor the permanent storage of the carbon dioxide in

4

subsurface formations; or

5

(2)  facilities that convert captured carbon dioxide to a

6

stable form that will safely and permanently sequester the

7

carbon dioxide; or

8

(3)  other capture and sequestration processes that

9

permanently sequester carbon dioxide.

10

The term shall not include use of the carbon dioxide for

11

enhanced resource recovery or the carbon dioxide transportation

12

pipelines used to transport the carbon dioxide to the

13

sequestration facility.

14

"Carbon dioxide transportation pipeline."  A pipeline within

15

this Commonwealth used to transport carbon dioxide from a

16

facility within this Commonwealth to a carbon dioxide

17

sequestration facility.

18

* * *

19

"DCNR."  The Department of Conservation and Natural Resources

20

of the Commonwealth.

21

* * *

22

"Enhanced resource recovery."  The use of carbon dioxide

23

injection or other techniques for increasing the amount of oil,

24

natural gas or coal bed methane extracted from geologic

25

formations.

26

"Force majeure."  Upon its own initiative or upon a request

27

of an electric distribution company or an electric generator

28

supplier, the Pennsylvania Public Utility Commission, within 60

29

days, shall determine if alternative energy resources are

30

reasonably available in the marketplace in sufficient quantities

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1

for the electric distribution companies and electric generation

2

suppliers to meet their obligations for that reporting period

3

under this act. The commission shall declare a force majeure for

4

any reporting period if it determines the price of available

5

alternative energy credits exceeds the cost of applicable

6

alternative energy compliance payments established under this

7

act. The commission shall not declare a force majeure for any

8

reporting period based solely on the price of alternative energy

9

credits if the alternative energy credit prices are less than

10

the cost of applicable alternative compliance payments

11

established under this act. In making this determination, the

12

commission shall consider whether electric distribution

13

companies or electric generation suppliers have made a good

14

faith effort to acquire sufficient alternative energy to comply

15

with their obligations. Such good faith efforts shall include,

16

but are not limited to, banking alternative energy credits

17

during their transition periods, seeking alternative energy

18

credits through competitive solicitations and seeking to procure

19

alternative energy credits or alternative energy through long-

20

term contracts. In further making its determination, the

21

commission shall assess the availability of alternative energy

22

credits in the Generation Attributes Tracking System (GATS) or

23

its successor and the availability of alternative energy credits

24

generally in Pennsylvania and other jurisdictions in the PJM

25

Interconnection, L.L.C. regional transmission organization (PJM)

26

or its successor. The commission may also require solicitations

27

for alternative energy credits as part of default service before

28

requests of force majeure can be made. If the commission further

29

determines that alternative energy resources are not reasonably

30

available in sufficient quantities in the marketplace for the

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1

electric distribution companies and electric generation

2

suppliers to meet their obligations under this act, then the

3

commission shall modify the underlying obligation of the

4

electric distribution company or electric generation supplier or

5

recommend to the General Assembly that the underlying obligation

6

be eliminated. Commission modification of the electric

7

distribution company or electric generation supplier obligations

8

under this act shall be for that compliance period only.

9

Commission modification shall not automatically reduce the

10

obligation for subsequent compliance years. If the commission

11

modifies the electric distribution company or electric

12

generation supplier obligations under this act, the commission

13

may require the electric distribution company or electric

14

generation supplier to acquire additional alternative energy

15

credits in subsequent years equivalent to the obligation reduced

16

due to a force majeure declaration if the commission determines

17

that sufficient alternative energy credits exist in the

18

marketplace.

19

* * *

20

"Person."  An individual, corporation, partnership,

21

association or other entity recognized by law as the subject of

22

rights, duties or obligations. The term includes the United

23

States, a Federal agency, the Commonwealth, an agency or

24

instrumentality of the Commonwealth and a political subdivision.

25

* * *

26

"Solar thermal energy."  Technology utilizing solar energy

27

for water heating or for generating energy.

28

* * *

29

"Tier II alternative energy source."  Energy derived from:

30

* * *

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1

(8)  Advanced coal combustion with limited carbon dioxide

2

emissions.

3

* * *

4

Section 2.  Section 3(a), (b), (c), (e)(6), (7) and (12),

5

(f), (g) and (h) of the act, amended July 17, 2007 (P.L.114,

6

No.35), are amended and the section is amended by adding

7

subsections to read:

8

Section 3.  Alternative energy portfolio standards.

9

(a)  General compliance and cost recovery.--

10

(1)  From the effective date of this act through and

11

including the 15th year after enactment of this act and each

12

year thereafter, the electric energy sold by an electric

13

distribution company or electric generation supplier to

14

retail electric customers in this Commonwealth shall be

15

comprised of electricity generated from alternative energy

16

sources and in the percentage amounts as described under

17

subsections [(b) and (c)] (b), (c) and (c.1).

18

(2)  Electric distribution companies and electric

19

generation suppliers shall satisfy both requirements set

20

forth in subsections [(b) and (c)] (b), (c) and (c.1),

21

provided, however, that an electric distribution company or

22

an electric generation supplier shall be excused from its

23

obligations under this section to the extent that the

24

commission determines that force majeure exists.

25

(3)  All costs for:

26

(i)  the purchase of electricity generated from

27

alternative energy sources, including the costs of the

28

regional transmission organization, in excess of the

29

regional transmission organization real-time locational

30

marginal pricing, or its successor, at the delivery point

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1

of the alternative energy source for the electrical

2

production of the alternative energy sources; and

3

(ii)  payments for alternative energy credits,in both

4

cases that are voluntarily acquired by an electric

5

distribution company during the cost recovery period on

6

behalf of its customers shall be deferred as a regulatory

7

asset by the electric distribution company and fully

8

recovered, with a return on the unamortized balance,

9

pursuant to an automatic energy adjustment clause under

10

66 Pa.C.S. § 1307 (relating to sliding scale of rates;

11

adjustments) as a cost of generation supply under 66

12

Pa.C.S. § 2807 (relating to duties of electric

13

distribution companies) in the first year after the

14

expiration of its cost-recovery period. After the cost-

15

recovery period, any direct or indirect costs for the

16

purchase by electric distribution of resources to comply

17

with this section, including, but not limited to, the

18

purchase of electricity generated from alternative energy

19

sources, payments for alternative energy credits, cost of

20

credits banked, payments to any third party

21

administrators for performance under this act and costs

22

levied by a regional transmission organization to ensure

23

that alternative energy sources are reliable, shall be

24

recovered on a full and current basis pursuant to an

25

automatic energy adjustment clause under 66 Pa.C.S. §

26

1307 as a cost of generation supply under 66 Pa.C.S. §

27

2807.

28

(b)  Tier I and solar photovoltaic and solar thermal energy 

29

shares.--

30

(1)  [Two years after the effective date of this act, at

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1

least 1.5% of the electric energy sold by an electric

2

distribution company or electric generation supplier to

3

retail electric customers in this Commonwealth shall be

4

generated from Tier I alternative energy sources. Except as

5

provided in this section, the minimum percentage of electric

6

energy required to be sold to retail electric customers from

7

alternative energy sources shall increase to 2% three years

8

after the effective date of this act. The minimum percentage

9

of electric energy required to be sold to retail electric

10

customers from alternative energy sources shall increase by

11

at least 0.5% each year so that at least 8% of the electric

12

energy sold by an electric distribution company or electric

13

generation supplier to retail electric customers in that

14

certificated territory in the 15th year after the effective

15

date of this subsection is sold from Tier I alternative

16

energy resources.] The minimum percentage of electric energy

17

required to be sold to retail electric customers from Tier I

18

alternative energy sources is:

19

(i)  1.5013% for June 1, 2006, through May 31, 2007.

20

(ii)  1.503% for June 1, 2007, through May 31, 2008.

21

(iii)  2.0063% for June 1, 2008, through May 31,

22

2009.

23

(iv)  2.512% for June 1, 2009, through May 31, 2010. 

24

(v)  3.0203% for June 1, 2010, through May 31, 2011.

25

(vi)  3.5504% for June 1, 2011, through May 31, 2012.

26

(vii)  4.0752% for June 1, 2012, through May 31,

27

2013.

28

(viii)  4.6218% for June 1, 2013, through May 31,

29

2014.

30

(ix)  5.4516% for June 1, 2014, through May 31, 2015.

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1

(x)  6.05% for June 1, 2015, through May 31, 2016.

2

(xi)  6.66% for June 1, 2016, through May 31, 2017.

3

(xii)  7.25% for June 1, 2017, through May 31, 2018.

4

(xiii)  7.87% for June 1, 2018, through May 31, 2019. 

5

(xiv)  8.75% for June 1, 2019, through May 31, 2020.

6

(xv)  9.72% for June 1, 2020, through May 31, 2021.

7

(xvi)  10.85% for June 1, 2021, through May 31, 2022.

8

(xvii)  12.15% for June 1, 2022, through May 31,

9

2023.

10

(xviii)  13.45% for June 1, 2023, through May 31,

11

2024.

12

(xix)  15.00% for June 1, 2024, and thereafter.

13

(1.1)  The commission shall comply with the requirements

14

of 66 Pa.C.S. § 2814 (relating to additional alternative

15

energy sources) by annually increasing the percentage share

16

of Tier I alternative energy sources required to be sold by

17

an electric distribution company or electric generation

18

supplier under paragraph (1) to reflect any new alternative

19

energy source provided for by 66 Pa.C.S. § 2814. Any annual

20

increase will be applied to the next compliance year

21

requirement.

22

(2)  The total percentage of the electric energy sold by

23

an electric distribution company or electric generation

24

supplier to retail electric customers in this Commonwealth

25

that must be sold from solar photovoltaic and solar thermal

26

energy technologies is:

27

(i)  0.0013% for June 1, 2006, through May 31, 2007.

28

(ii)  0.0030% for June 1, 2007, through May 31, 2008.

29

(iii)  0.0063% for June 1, 2008, through May 31,

30

2009.

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1

(iv)  0.0120% for June 1, 2009, through May 31, 2010.

2

(v)  0.0203% for June 1, 2010, through May 31, 2011.

3

[(vi)  0.0325% for June 1, 2011, through May 31,

4

2012.

5

(vii)  0.0510% for June 1, 2012, through May 31,

6

2013.

7

(viii)  0.0840% for June 1, 2013, through May 31,

8

2014.

9

(ix)  0.1440% for June 1, 2014, through May 31, 2015.

10

(x)  0.2500% for June 1, 2015, through May 31, 2016.

11

(xi)  0.2933% for June 1, 2016, through May 31, 2017.

12

(xii)  0.3400% for June 1, 2017, through May 31,

13

2018.

14

(xiii)  0.3900% for June 1, 2018, through May 31,

15

2019.

16

(xiv)  0.4433% for June 1, 2019, through May 31,

17

2020.

18

(xv)  0.5000% for June 1, 2020, and thereafter.]

19

(vi)  0.0504% for June 1, 2011, through May 31, 2012.

20

(vii)  0.0752% for June 1, 2012, through May 31,

21

2013.

22

(viii)  0.1218% for June 1, 2013, through May 31,

23

2014.

24

(ix)  0.2016% for June 1, 2014, through May 31, 2015.

25

(x)  0.3% for June 1, 2015, through May 31, 2016.

26

(xi)  0.41% for June 1, 2016, through May 31, 2017.

27

(xii)  0.5% for June 1, 2017, through May 31, 2018.

28

(xiii)  0.62% for June 1, 2018, through May 31, 2019.

29

(xiv)  0.75% for June 1, 2019, through May 31, 2020.

30

(xv)  0.97% for June 1, 2020, through May 31, 2021.

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1

(xvi)  1.35% for June 1, 2021, through May 31, 2022.

2

(xvii)  1.9% for June 1, 2022, through May 31, 2023.

3

(xviii)  2.45% for June 1, 2023, through May 31,

4

2024.

5

(xix)  3% for June 1, 2024, and thereafter.

6

(3)  Upon commencement of the beginning of the 6th

7

reporting year, and every five years thereafter, the

8

commission shall undertake a review of the compliance by

9

electric distribution companies and electric generation

10

suppliers with the requirements of this act. The review shall

11

also include the status of alternative energy technologies

12

within this Commonwealth and the capacity to add additional

13

alternative energy resources. The commission shall use the

14

results of this review to recommend to the General Assembly

15

additional compliance goals beyond year [15] 21. The

16

commission shall work with the department in evaluating the

17

future alternative energy resource potential.

18

(4)  Electric energy and alternative energy credits from

19

solar photovoltaic and solar thermal energy technologies

20

supplied to retail customers shall be generated from solar

21

photovoltaic and solar thermal energy systems located within

22

this Commonwealth in meeting the requirements of paragraph

23

(2). This paragraph shall apply to all contracts or short-

24

term purchases made after December 31, 2010.

25

(5)  Notwithstanding the other provisions of this act,

26

credits purchased or contracted for prior to the effective

27

date of this subsection may be used to demonstrate compliance

28

under this subsection.

29

(c)  Tier II share.--Of the electrical energy required to be

30

sold from alternative energy sources identified in Tier II, the

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1

percentage that must be from these technologies is for:

2

(1)  Years 1 through 4 - 4.2%.

3

(2)  Years 5 through 9 - 6.2%.

4

(3)  Years 10 through 14 - [8.2%] 11.2%.

5

(4)  Years 15 and thereafter - [10.0%] 13.0%.

6

(c.1)  Retail sales from advanced coal combustion.--The total

7

electric energy sold by an electric distribution company or

8

electric generation supplier to retail electric customers in

9

this Commonwealth that shall be sold from advanced coal

10

combustion with limited carbon dioxide emissions is all of the

11

electric energy available from advanced coal combustion with

12

limited carbon dioxide emissions up to a maximum of 3.0% of the

13

total electric energy sold by an electric distribution company

14

or electric generation supplier to retail electric customers in

15

this Commonwealth for the reporting period which begins June 1,

16

2020, and for each reporting period thereafter pursuant to

17

subsection (c). If at any time on or after June 1, 2020, a 

18

carbon dioxide sequestration facility permitted to permanently

19

sequester carbon dioxide in this Commonwealth is not operating

20

and capable of receiving carbon dioxide for sequestration

21

through no fault of an advanced coal combustion with limited

22

carbon dioxide emissions plant, then an advanced coal combustion

23

with limited carbon dioxide emissions plant shall not be

24

eligible to generate alternative energy credits. A coal

25

combustion plant existing as of the effective date of this

26

subsection, however, that has been retrofitted by installing

27

carbon capture technology need not sequester carbon dioxide

28

until the sequestration facility is capable of receiving carbon

29

dioxide in order to generate alternative energy credits,

30

provided that:

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1

(1)  The plant is capable of capturing the amount of

2

carbon dioxide required by paragraph (14) of the definition

3

of "alternative energy sources" in section 2.

4

(2)  The total value of the alternative energy credits

5

sold by the advanced coal combustion with limited carbon

6

dioxide emissions plant during times when the carbon dioxide

7

emissions from the plant are not sequestered shall not exceed

8

the costs that the plant incurred in installing carbon

9

capture equipment, equipment necessary to process coal for

10

carbon capture purposes, equipment necessary to transport the

11

carbon dioxide to the carbon dioxide sequestration facility

12

and costs incurred in connection with the operation of the

13

plant that are due to the capture and transportation of

14

carbon dioxide, as determined by the department. Costs

15

incurred by an advanced coal combustion with limited carbon

16

dioxide emissions plant shall not include Federal or State

17

financial assistance received by the plant.

18

(c.2)  Force majeure.--On or after December 31, 2020, if the

19

commission determines that an advanced coal combustion with

20

limited carbon dioxide emissions plant is not operating and

21

capable of capturing the amount of carbon dioxide required by

22

paragraph (14) of the definition of "alternative energy sources"

23

in section 2 during a reporting period, this determination shall

24

constitute force majeure, and electric distribution companies

25

and electric generation suppliers shall be excused from all or

26

part of their obligation under subsection (c.1) during that

27

reporting period, provided the requirements in the definition of

28

"force majeure" in section 2 have been met, as determined by the

29

commission. Should force majeure be declared pursuant to this

30

subsection, then subsection (c.1)(2) shall remain in full force

- 17 -

 


1

and effect to the extent that any such credits remain available

2

under this act.

3

(c.3)  Long-term contracts.--Upon review and approval of the

4

commission, an electric distribution company may enter into a

5

long-term contract of up to 25 years to purchase the energy,

6

capacity or alternative energy credits of an advanced coal

7

combustion with limited carbon dioxide emissions plant. The

8

contract shall provide for the recovery of costs associated with

9

carbon capture, including, but not limited to, any fees charged

10

by the owner or operator of the carbon dioxide sequestration

11

facility or a carbon dioxide transportation pipeline. The

12

commission shall determine whether the contract is reasonable,

13

taking into consideration the following:

14

(1)  The price of the energy purchased under the long-

15

term contract. The contract shall provide that if the carbon

16

dioxide sequestration facility is not operating and capable

17

of receiving carbon dioxide for sequestration for a period of

18

no less than 90 days, the price of energy under the contract

19

shall be reduced to account for the advanced coal combustion

20

with limited carbon dioxide emissions plant's reduced

21

operating costs.

22

(2)  The price of capacity purchased under the long-term

23

contract.

24

(3)  The price of alternative energy credits, provided

25

that the cost of an alternative energy credit purchased from

26

advanced coal combustion with limited carbon dioxide

27

emissions shall not exceed $45 per megawatt hour (MWh).

28

(4)  Prior to the effective date of the contract, the

29

value of any carbon dioxide emission credits or other credits

30

that the seller obtains from the advanced coal combustion

- 18 -

 


1

with limited carbon dioxide emissions plant.

2

(5)  After the effective date of the contract, the value

3

of any additional Federal or State carbon credits, allowances

4

or other financial benefits shall be reflected in the price

5

of the resource in a manner which recognizes savings to

6

customers and does not reduce the economic return to the

7

seller, provided that the seller demonstrates that it has

8

made a commercially reasonable effort to distribute any

9

economic incentives it has realized to electric distribution

10

companies. A contract approved by the commission under this

11

subsection shall be deemed to meet the requirements of 66

12

Pa.C.S. § 2807(e) (relating to duties of electric

13

distribution companies).

14

* * *

15

(e)  Alternative energy credits.--

16

* * *

17

(6)  An electric distribution company and electric

18

generation supplier may bank or place in reserve alternative

19

energy credits produced in one reporting year for compliance

20

in [either or both] any or all of the [two] four subsequent

21

reporting years, subject to the limitations set forth in this

22

subsection and provided that the electric distribution

23

company and electric generation supplier are in compliance

24

for all previous reporting years. In addition, the electric

25

distribution company and electric generation supplier shall

26

demonstrate to the satisfaction of the commission that such

27

credits:

28

(i)  were in excess of the alternative energy credits

29

needed for compliance in the year in which they were

30

generated and that such excess credits have not

- 19 -

 


1

previously been used for compliance under this act;

2

(ii)  were produced by the generation of electrical

3

energy by alternative energy sources and sold to retail

4

customers during the year in which they were generated;

5

and

6

(iii)  have not otherwise been nor will be sold,

7

retired, claimed or represented as part of satisfying

8

compliance with alternative or renewable energy portfolio

9

standards in other states.

10

(7)  An electric distribution company or an electric

11

generation supplier with sales that are exempted under

12

subsection (d) may bank credits for retail sales of

13

electricity generated from Tier I and Tier II sources made

14

prior to the end of the cost-recovery period and after the

15

effective date of this act. Bankable credits shall be limited

16

to credits associated with electricity sold from Tier I and

17

Tier II sources during a reporting year which exceeds the

18

volume of sales from such sources by an electric distribution

19

company or electric generation supplier during the 12-month

20

period immediately preceding the effective date of this act.

21

All credits banked under this subsection shall be available

22

for compliance with subsections (b) and (c) for no more than

23

[two] four reporting years following the conclusion of the

24

cost-recovery period.

25

* * *

26

(12)  (i)  Unless a contractual provision explicitly

27

assigns alternative energy credits in a different manner,

28

the owner of the alternative energy system or a customer-

29

generator owns any and all alternative energy credits

30

associated with or created by the production of electric

- 20 -

 


1

energy by such facility or customer, and the owner or

2

customer shall be entitled to sell, transfer or take any

3

other action to which a legal owner of property is

4

entitled to take with respect to the credits.

5

(ii)  This paragraph shall apply to all alternative

6

energy credits created pursuant to this act.

7

(f)  Market Development and Long-Term Contracting.--

8

(1)  The commission shall promote the development of

9

alternative energy through the adoption of alternative energy

10

credit procurement rules that ensure market diversity,

11

competition and a reliable supply of alternative energy

12

credits to all electric distribution companies and electric

13

generation suppliers. These rules shall include, but are not

14

limited to, long-term contracts for alternative energy

15

credits and electric distribution company procurement of

16

alternative energy credits at the request of competitive

17

retail suppliers.

18

(2)  These rules shall require that each winning bid be

19

selected solely on the least cost alternative energy credit

20

offered and shall award contracts on a pay-as-bid basis. For

21

purposes of this subsection, the term "pay-as-bid" shall mean

22

winning bidders are paid according to their bid price and not

23

a single clearing price.

24

(3)  The commission shall determine that each procurement

25

under this subsection is competitive based on its standard

26

protocols for determining competitiveness. If it is

27

determined that a procurement event was not competitive, the

28

commission shall set a date for another procurement event

29

which, in the case of the first procurement event, shall take

30

place no later than 180 days after the initial procurement

- 21 -

 


1

event and, in the case of the second procurement event, shall

2

take place no later than one year after the initial

3

procurement event.

4

(4)  The commission shall require procurement of

5

qualifying Tier I alternative energy credits, other than

6

solar energy credits, subject to the following terms:

7

(i)  The first procurement for 25% of the following

8

compliance year obligations under subsection (b), for a

9

contract period of at least ten years, shall be conducted

10

no later than 120 days after the effective date of this

11

subsection.

12

(ii)  The second procurement for an additional 25% of

13

the following compliance year obligations under

14

subsection (b), for a contract period of at least ten

15

years, shall be conducted no later than December 31,

16

2011.

17

(iii)  Alternative energy credits from resources

18

eligible to participate under these procurement rules

19

shall have an in-service date as of the effective date of

20

this section or later and shall be located in this

21

Commonwealth.

22

(5)  The commission shall require procurement of

23

qualifying solar energy alternative energy credits subject to

24

the following terms:

25

(i)  The process shall recognize that different

26

procurement approaches are necessary based on the size of

27

the solar energy systems used to serve residential,

28

commercial and government customers.

29

(ii)  Aggregation of solar energy resources shall be

30

used for solar energy systems with a nameplate capacity

- 22 -

 


1

of no greater than 200 kilowatts and may be used for

2

other resources.

3

(iii)  Financial security requirements imposed on

4

solar developers and other sellers not render solar

5

energy projects financially infeasible.

6

(iv)  Contract periods for procurement mandated under

7

this subsection shall be at least ten years and shall be

8

subject to the following:

9

(A)  The first procurement for at least 55% of

10

the following compliance year obligation under

11

subsection (b) shall be conducted no later than 120

12

days after the effective date of this subsection.

13

(B)  The second procurement for at least 45% of

14

the compliance obligation under subsection (b) for

15

the following compliance year shall be conducted no

16

later than December 31, 2011.

17

(C)  The third procurement for at least 30% of

18

the compliance obligation under subsection (b) for

19

the following compliance year shall be conducted no

20

later than December 31, 2012.

21

(D)  The fourth procurement for at least 25% of

22

the compliance obligation under subsection (b) for

23

the following compliance year shall be conducted no

24

later than December 31, 2013.

25

(E)  The fifth procurement for at least 20% of

26

the compliance obligation under subsection (b) for

27

the following compliance year shall be conducted no

28

later than December 31, 2014.

29

(F)  For each compliance year commencing with

30

June 1, 2015, the procurement of at least 15% of the

- 23 -

 


1

compliance obligation under subsection (b) shall be

2

conducted no later than December 31 of the year

3

preceding that compliance year.

4

(v)  Upon commencement of the compliance year ending

5

May 31, 2015, and thereafter in conjunction with the

6

reviews required under subsection (b)(3), the commission

7

shall undertake a review of the procurement processes

8

under this subsection, the compliance by electric

9

distribution companies and electric generation suppliers

10

with the requirements of this act and the overall market

11

conditions. The commission shall use the results of this

12

review to determine whether to modify the procurement

13

processes established in accordance with this subsection.

14

[(f)] (g)  Alternative compliance payment.--

15

(1)  At the end of each program year, the program

16

administrator shall provide a report to the commission and to

17

each covered electric distribution company showing their

18

status level of alternative energy acquisition.

19

(2)  The commission shall conduct a review of each

20

determination made under subsections [(b) and (c)] (b), (c) 

21

and (c.1). If, after notice and hearing, the commission

22

determines that an electric distribution company or electric

23

generation supplier has failed to comply with subsections

24

[(b) and (c)] (b), (c) and (c.1) in the absence of force

25

majeure, the commission shall impose an alternative

26

compliance payment on that company or supplier.

27

(3)  The alternative compliance payment, with the

28

exception of the solar photovoltaic and solar thermal energy 

29

share compliance requirement set forth in subsection (b)(2),

30

shall be $45 times the number of additional alternative

- 24 -

 


1

energy credits needed in order to comply with subsection (b)

2

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] The

11

alternative compliance payment for the solar alternative

12

share shall be set at $450 per megawatt hour (MWh) per year

13

beginning January 1, 2011, and the amount shall be reduced by

14

3% each year thereafter.

15

(5)  The commission shall establish a process to provide

16

for, at least annually, a review of the alternative energy

17

market within this Commonwealth and the service territories

18

of the regional transmission organizations that manage the

19

transmission system in any part of this Commonwealth. The

20

commission will use the results of this study to identify any

21

needed changes to the cost associated with the alternative

22

compliance payment program. If the commission finds that the

23

costs associated with the alternative compliance payment

24

program must be changed, the commission shall present these

25

findings to the General Assembly for legislative enactment.

26

[(g)] (h)  Transfer to sustainable development funds.--

27

(1)  Notwithstanding the provisions of 66 Pa.C.S. §§ 511

28

(relating to disposition, appropriation and disbursement of

29

assessments and fees) and 3315 (relating to disposition of

30

fines and penalties), alternative compliance payments imposed

- 25 -

 


1

pursuant to this act shall be paid into Pennsylvania's

2

Sustainable Energy Funds created under the commission's

3

restructuring orders under 66 Pa.C.S. Ch. 28 (relating to

4

restructuring of electric utility industry). Alternative

5

compliance payments shall be paid into a special fund of the

6

Pennsylvania Sustainable Energy Board, established by the

7

commission under Docket M-00031715, and made available to the

8

Regional Sustainable Energy Funds under procedures and

9

guidelines approved by the Pennsylvania Energy Board.

10

(2)  The alternative compliance payments shall be

11

utilized solely for projects within this Commonwealth that

12

will increase the amount of electric energy generated from

13

alternative energy resources within this Commonwealth for

14

purposes of compliance with subsections [(b) and (c)] (b),

15

(c) and (c.1).

16

[(h)] (i)  Nonseverability.--The provisions of subsection (a)

17

are declared to be nonseverable. If any provision of subsection

18

(a) is held invalid, the remaining provisions of this act shall

19

be void.

20

Section 3.  The act is amended by adding a section to read:

21

Section 3.1.  Solar photovoltaic and solar thermal energy system

22

requirements.

23

In order for new or upgrades to existing solar photovoltaic

24

and solar thermal energy systems to qualify for solar

25

alternative energy credits the following requirements shall

26

apply:

27

(1)  A solar photovoltaic or solar thermal energy system

28

shall be installed by an approved participating contractor or

29

a contractor who subcontracts with an approved participating

30

contractor under the department's grant program administered

- 26 -

 


1

under section 306 of the act of July 9, 2008 (1st Sp.Sess.,

2

P.L.1873, No.1), known as the Alternative Energy Investment

3

Act.

4

(2)  If the solar photovoltaic or solar thermal energy

5

system will be installed in a municipality that licenses

6

electrical contractors or a municipality that requires an

7

electrical contractor be licensed, the final electrical

8

connection of a solar photovoltaic system shall be made by an

9

electrical contractor licensed in that municipality or a

10

person employed by the licensed electrical contractor.

11

(3)  The solar photovoltaic or solar thermal energy

12

installation shall be completed in accordance with the

13

applicable codes, including, but not limited to, those

14

relating to structural integrity, electrical installation and

15

electrical safety. An electrical inspection shall be

16

performed by an electrical inspector licensed in

17

certification categories 10, 19 and 25. Copies of the

18

required permits and inspection certificates shall be

19

provided to the department.

20

(4)  Credits generated from non-electricity-generating

21

solar thermal energy systems shall at a minimum be calculated

22

based upon a formula established by the commission in

23

consultation with the department and shall consider such

24

things as a standard BTU to kWh equivalency.

25

Section 4.  Section 7(c) of the act is amended and the

26

section is amended by adding a subsection to read:

27

Section 7.  Interagency responsibilities.

28

* * *

29

(c)  Cooperation between commission and department.--The

30

commission and the department shall work cooperatively to

- 27 -

 


1

monitor the performance of all aspects of this act [and will].  

2

The commission, in cooperation with the department, shall 

3

provide an annual report to the chairman and minority chairman

4

of the Environmental Resources and Energy Committee of the

5

Senate and the chairman and minority chairman of the

6

Environmental Resources and Energy Committee of the House of

7

Representatives. The report shall include at a minimum:

8

(1)  The status of the compliance with the provisions of

9

this act by electric distribution companies and electric

10

generation suppliers.

11

(2)  Current costs of alternative energy on a per

12

kilowatt hour basis for all alternative energy technology

13

types.

14

(3)  Costs associated with the alternative energy credits

15

program under this act, including the number of alternative

16

compliance payments.

17

(4)  The status of the alternative energy marketplace

18

within this Commonwealth.

19

(5)  Recommendations for program improvements.

20

(6)  The total megawatts installed and megawatt hours

21

generated by alternative energy systems a year prior to and

22

since the effective date of this paragraph.

23

(7)  The infrastructure needs associated with the

24

transmission and distribution of energy generated by

25

alternative energy systems within this Commonwealth.

26

(8)  An analysis of ratepayer impacts developed in

27

cooperation with the commission, the department and the

28

Office of the Consumer Advocate. The analysis shall provide a

29

balanced assessment of the costs and benefits from this act

30

to ratepayers in this Commonwealth and shall include at a

- 28 -

 


1

minimum:

2

(i)  The total cost of compliance incurred through

3

purchase of alternative energy credits and alternative

4

compliance payments by each electric distribution company

5

and electric generation supplier in this Commonwealth.

6

(ii)  Quantification of the price suppression effects

7

on the competitive wholesale electricity market from

8

alternative energy generated for compliance with this

9

act.

10

(iii)  The amount of air and water pollution reduced

11

and quantifications of any associated avoided cost of

12

compliance.

13

(iv)  The amount of private investment in generation

14

leveraged by the compliance costs.

15

(d)  Ratepayer notification.--The commission shall annually

16

provide a one-page ratepayer notification summary of the cost of

17

compliance with this act compared to the related benefits of

18

compliance with this act as determined in the analysis required

19

by subsection (c)(8). Electric distribution companies and

20

electric generation suppliers shall distribute the ratepayer

21

notification summary each year.

22

Section 5.  The act is amended by adding sections to read:

23

Section 8.1.  Sequestration facility permitting.

24

(a)  Prohibition.--No person may operate a carbon dioxide

25

sequestration facility without a permit from the department.

26

(b)  Facility sites.--The Environmental Quality Board shall,

27

by regulation, establish the conditions under which a carbon

28

dioxide sequestration facility may be located, developed and

29

operated. The regulations promulgated by the board shall provide

30

for the protection of public health, safety and environment.

- 29 -

 


1

(c)  All carbon dioxide sequestration facilities.--For all

2

carbon dioxide sequestration facilities, the regulations

3

required by subsection (b) shall include, but not be limited to,

4

the following:

5

(1)  Criteria used to determine that carbon dioxide has

6

been permanently sequestered.

7

(2)  Sequestration facility performance standards.

8

(3)  Monitoring, recordkeeping and reporting

9

requirements.

10

(4)  Fees in an amount sufficient to recover the

11

department's cost of administering this section.

12

(5)  Public participation in the permitting process.

13

(6)  Other requirements necessary to evaluate the

14

proposed carbon dioxide sequestration facility and to ensure

15

safe and environmentally protective operation of the

16

facility.

17

(d)  Geologic carbon dioxide sequestration facilities.--For

18

geologic carbon dioxide sequestration facilities the regulations

19

required by subsection (b) shall include, but not be limited to,

20

the following:

21

(1)  Geologic site characterization.

22

(2)  Well location restrictions and well construction

23

standards, including operation and mechanical integrity

24

testing.

25

(3)  Risk assessment, corrective action and emergency

26

response requirements.

27

(4)  Facility closure, postclosure and final closure

28

certification requirements.

29

(5)  Financial assurance requirements, including bonding

30

or insurance, in amounts sufficient to ensure the carbon

- 30 -

 


1

dioxide sequestration facility will be constructed, operated,

2

closed and monitored during the postclosure period in

3

accordance with regulations promulgated under this section,

4

including those regulations designed to ensure the safe and

5

environmentally protective operation of the facility. The

6

operator of the sequestration facility shall provide

7

financial assurance for mitigation of and compensation for

8

any damage caused by the injection and storage of carbon

9

dioxide or the escape, release or migration of carbon dioxide

10

from the carbon dioxide sequestration facility.

11

(6)  Fees for every ton of carbon dioxide accepted by a

12

carbon dioxide sequestration facility in an amount sufficient

13

to monitor and maintain the facility after final closure of

14

the facility and to take remedial actions if necessary after

15

final closure of the facility. The fees shall be paid by the

16

operator of a carbon dioxide sequestration facility to the

17

department on a quarterly basis.

18

(7)  Public notice requirements, including notification

19

of a release.

20

(8)  Public participation in the closure certification

21

process.

22

(e)  Powers, duties and enforcement authority of

23

department.--The department shall have the same powers, duties

24

and enforcement authority provided by the act of July 7, 1980

25

(P.L.380, No.97), known as the Solid Waste Management Act, to

26

carry out the purposes of this section. Operators of a carbon

27

dioxide sequestration facility shall have the same rights and be

28

subject to the same penalties as provided by the Solid Waste

29

Management Act; however, an administrative penalty assessed by

30

the department for a violation of this section shall not exceed

- 31 -

 


1

$50,000 per day per violation.

2

Section 8.2.  Title to carbon dioxide, immunity and transfer of

3

liability.

4

(a)  Title to carbon dioxide.--The right, title and interest

5

in and to carbon dioxide delivered to a carbon dioxide

6

sequestration facility by the advanced coal combustion with

7

limited carbon dioxide emission plants that, individually or

8

collectively, first meet the maximum requirements of section

9

3(c.1), as determined by the department, shall be transferred to

10

the carbon dioxide sequestration facility and the facility shall

11

accept and receive the right, title and interest in and to such

12

carbon dioxide, including, but not limited to, liabilities

13

associated with the carbon dioxide, current or future

14

environmental benefits, marketing claims, associated voluntary

15

or compliance-based emissions allocations or offsets, but not

16

alternative energy credits provided by section 3(e).

17

(b)  Immunity.--Upon and after transfer and conveyance of

18

carbon dioxide as provided under subsection (a), the owner of an

19

advanced coal combustion plant with limited carbon dioxide

20

emissions shall be immune from liabilities regarding the storage

21

of carbon dioxide within and the release, escape or migration of

22

carbon dioxide from the carbon dioxide sequestration facility.

23

(c)  Transfer of liability.--Upon final closure of a carbon

24

dioxide sequestration facility, as determined by the department,

25

the right, title or interest in the carbon dioxide and liability

26

for any release from the facility shall be transferred to and

27

accepted by the Commonwealth provided the operator of the carbon

28

dioxide sequestration facility has paid the appropriate fees

29

under section 8.1.

30

Section 8.3.  Carbon Dioxide Indemnification Fund.

- 32 -

 


1

(a)  Establishment.--There is hereby established in the State

2

Treasury a nonlapsing fund to be known as the Carbon Dioxide

3

Indemnification Fund. Money collected by the department under

4

section 8.1(d)(6) shall be deposited in the fund and shall only

5

be expended by the department to monitor and maintain carbon

6

dioxide sequestration facilities after final closure and to take

7

remedial actions, if necessary, after final closure.

8

(b)  Money collected under section 8.1.--Fines, civil

9

penalties and permit fees collected by the department under

10

section 8.1 are hereby appropriated to the department to carry

11

out the purposes of section 8.1.

12

Section 8.4.  Carbon dioxide sequestration facility and

13

transportation pipeline on Commonwealth lands.

14

The Commonwealth may lease Commonwealth-owned lands and DCNR

15

may lease State forest land owned by the Commonwealth to any

16

person, on terms and conditions as DCNR may consider

17

appropriate, if the facility is consistent with and does not

18

interfere with the uses and purposes of the Commonwealth-owned

19

lands, as determined by the Department of General Services or as

20

determined by DCNR if the facility is proposed to be located on

21

State forest land, for the development and operation of a carbon

22

dioxide sequestration facility and carbon dioxide transportation

23

pipeline necessary to deliver carbon dioxide to the facility. In

24

considering the potential lease of State forest land, DCNR shall

25

review sites of interest to persons seeking to operate a carbon

26

dioxide sequestration facility and shall complete an

27

environmental review prior to offering a site for lease. A

28

carbon dioxide sequestration facility or carbon dioxide

29

transportation pipeline developed and operated on Commonwealth

30

State forest lands shall only be utilized to store carbon

- 33 -

 


1

dioxide generated within this Commonwealth. All rents and other

2

payments from any lease of Commonwealth State forest land under

3

this section shall be deposited into the Environmental

4

Stewardship Fund established in 27 Pa.C.S. § 6104 (relating to

5

fund).

6

Section 8.5.  Application of the Public Utility Code to

7

transporters of carbon dioxide.

8

Entities transporting or conveying carbon dioxide by pipeline

9

or conduit for compensation under this act shall be considered a

10

public utility under 66 Pa.C.S. § 102 (relating to definitions)

11

and subject to the provisions of 66 Pa.C.S. (relating to public

12

utilities).

13

Section 6.  The provisions of this act are severable. If any

14

provision of this act or its application to any person or

15

circumstance is held invalid, the invalidity shall not affect

16

other provisions or applications of this act which can be given

17

effect without the invalid provision or application.

18

Section 7.  Repeals are as follows:

19

(1)  The General Assembly declares that the repeal under

20

paragraph (2) is necessary to effectuate the amendment of

21

section 3(e)(12) of the act.

22

(2)  Section 3.1 of the act of July 17, 2007 (P.L.114,

23

No.35), entitled "An act amending the act of November 30,

24

2004 (P.L.1672, No.213), entitled, 'An act providing for the

25

sale of electric energy generated from renewable and

26

environmentally beneficial sources, for the acquisition of

27

electric energy generated from renewable and environmentally

28

beneficial sources by electric distribution and supply

29

companies and for the powers and duties of the Pennsylvania

30

Public Utility Commission,' further providing for the

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1

definitions of 'alternative energy credit,' 'customer-

2

generator,' 'force majeure,' 'net metering,' and 'Tier I

3

alternative energy source,' for alternative energy portfolio

4

standards, for portfolio requirements in other states and for

5

interconnection standards for customer-generator facilities,"

6

is repealed.

7

Section 8. The following shall apply:

8

(1)  The amendment of section 3(e)(12) of the act shall

9

apply to all alternative energy credits created under the act

10

on or after the effective date of this section, regardless of

11

when any underlying contract for the purchase of electric

12

energy or other products from the generator that qualifies as

13

an alternative energy system was executed.

14

(2)  Notwithstanding 66 Pa.C.S. §§ 508 (relating to

15

powers of the commission to vary, reform and revise

16

contracts) and 2102 (relating to approval of contracts with

17

affiliated interests), the commission may modify contracts or

18

disallow costs of alternative energy credit contracts under

19

this act only when the party seeking recovery of the costs of

20

these contracts is, after hearing, found to be at fault for

21

the following:

22

(i)  not complying with the commission-approved

23

alternative energy credit procurement rules; or

24

(ii)  fraud, collusion or market manipulation with

25

regard to these contracts.

26

(3)  Notwithstanding the other provisions of this act,

27

alternative energy credits acquired or contracted for prior

28

to the effective date of this section may be used to

29

demonstrate compliance under this act.

30

Section 9.  This act shall take effect immediately.

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