1Amending the act of November 30, 2004 (P.L.1672, No.213),
2entitled, "An act providing for the sale of electric energy
3generated from renewable and environmentally beneficial
4sources, for the acquisition of electric energy generated
5from renewable and environmentally beneficial sources by
6electric distribution and supply companies and for the powers
7and duties of the Pennsylvania Public Utility Commission,"
8further providing for alternative energy portfolio standards
9and for portfolio requirements in other states.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Sections 3(b) and (f) and 4 of the act of
13November 30, 2004 (P.L.1672, No.213), known as the Alternative
14Energy Portfolio Standards Act, amended July 17, 2007 (P.L.114,
15No.35), are amended to read:

16Section 3. Alternative energy portfolio standards.

17* * *

18(b) Tier I and solar photovoltaic shares.--

19(1) Two years after the effective date of this act, at

1least 1.5% of the electric energy sold by an electric
2distribution company or electric generation supplier to
3retail electric customers in this Commonwealth shall be
4generated from Tier I alternative energy sources. [Except as
5provided in this section, the minimum percentage of electric
6energy required to be sold to retail electric customers from
7alternative energy sources shall increase to 2% three years
8after the effective date of this act. The minimum percentage
9of electric energy required to be sold to retail electric
10customers from alternative energy sources shall increase by
11at least 0.5% each year so that at least 8% of the electric
12energy sold by an electric distribution company or electric
13generation supplier to retail electric customers in that
14certificated territory in the 15th year after the effective
15date of this subsection is sold from Tier I alternative
16energy resources.] The minimum percentage of electric energy 
17required to be sold to retail electric customers from 
18alternative energy sources shall be:

19(i) 4.5% for June 1, 2013, through May 31, 2014.

20(ii) 5% for June 1, 2014, through May 31, 2015.

21(iii) 5.5% for June 1, 2015, through May 31, 2016.

22(iv) 6% for June 1, 2016, through May 31, 2017.

23(v) 7.5% for June 1, 2017, through May 31, 2018.

24(vi) 9% for June 1, 2018, through May 31, 2019.

25(vii) 10.5% for June 1, 2019, through May 31, 2020.

26(viii) 12% for June 1, 2020, through May 31, 2021.

27(ix) 13.5% for June 1, 2021, through May 31, 2022.

28(x) 15% for June 1, 2022, and thereafter.

29(2) The total percentage of the electric energy sold by
30an electric distribution company or electric generation

1supplier to retail electric customers in this Commonwealth
2that must be sold from solar photovoltaic technologies is:

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

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

5(iii) 0.0063% for June 1, 2008, through May 31,
62009.

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

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

9(vi) 0.0325% for June 1, 2011, through May 31, 2012.

10(vii) 0.0510% for June 1, 2012, through May 31,
112013.

12(viii) [0.0840%] 0.1959% for June 1, 2013, through
13May 31, 2014.

14(ix) [0.1440%] 0.3408% for June 1, 2014, through May
1531, 2015.

16(x) [0.2500%] 0.4857% for June 1, 2015, through May
1731, 2016.

18(xi) [0.2933%] 0.6306% for June 1, 2016, through May
1931, 2017.

20(xii) [0.3400%] 0.7755% for June 1, 2017, through
21May 31, 2018.

22(xiii) [0.3900%] 0.9204% for June 1, 2018, through
23May 31, 2019.

24(xiv) [0.4433%] 1.0653% for June 1, 2019, through
25May 31, 2020.

26(xv) [0.5000%] 1.2102% for June 1, 2020, [and
27thereafter] through June 1, 2021.

28(xvi) 1.3551% for June 1, 2021, through May 31,
292022.

30(xvii) 1.5000% for June 1, 2022, and thereafter.

1(3) Upon commencement of the beginning of the 6th
2reporting year, the commission shall undertake a review of
3the compliance by electric distribution companies and
4electric generation suppliers with the requirements of this
5act. The review shall also include the status of alternative
6energy technologies within this Commonwealth and the capacity
7to add additional alternative energy resources. The
8commission shall use the results of this review to recommend
9to the General Assembly additional compliance goals beyond
10year 15. The commission shall work with the department in
11evaluating the future alternative energy resource potential.

12* * *

13(f) Alternative compliance payment.--

14(1) At the end of each program year, the program
15administrator shall provide a report to the commission and to
16each covered electric distribution company showing their
17status level of alternative energy acquisition.

18(2) The commission shall conduct a review of each
19determination made under subsections (b) and (c). If, after
20notice and hearing, the commission determines that an
21electric distribution company or electric generation supplier
22has failed to comply with subsections (b) and (c), the
23commission shall impose an alternative compliance payment on
24that company or supplier.

25(3) The alternative compliance payment, with the
26exception of the solar photovoltaic share compliance
27requirement set forth in subsection (b)(2), shall be $45
28times the number of additional alternative energy credits
29needed in order to comply with subsection (b) or (c).

30(4) The alternative compliance payment for the solar

1photovoltaic share shall be [200% of the average market value
2of solar renewable energy credits sold during the reporting
3period within the service region of the regional transmission
4organization, including, where applicable, the levelized up-
5front rebates received by sellers of solar renewable energy
6credits in other jurisdictions in the PJM Interconnection,
7L.L.C. transmission organization (PJM) or its successor.] as 
8follows:

9(i) For June 1, 2013, through May 31, 2014, $250 per
10megawatt hour.

11(ii) For June 1, 2014, through May 31, 2015, $225
12per megawatt hour.

13(iii) For June 1, 2015, through May 31, 2016, $200
14per megawatt hour.

15(iv) For June 1, 2016, through May 31, 2017, $175
16per megawatt hour.

17(v) For June 1, 2017, through May 31, 2018, $150 per
18megawatt hour.

19(vi) For June 1, 2018, through May 31, 2019, $125
20per megawatt hour.

21(vii) For June 1, 2019, through May 31, 2020, $100
22per megawatt hour.

23(viii) For June 1, 2020, through May 31, 2021, $75
24per megawatt hour.

25(ix) For June 1, 2021 and thereafter, $50 per
26megawatt hour.

27(5) The commission shall establish a process to provide
28for, at least annually, a review of the alternative energy
29market within this Commonwealth and the service territories
30of the regional transmission organizations that manage the

1transmission system in any part of this Commonwealth. The
2commission will use the results of this study to identify any
3needed changes to the cost associated with the alternative
4compliance payment program. If the commission finds that the
5costs associated with the alternative compliance payment
6program must be changed, the commission shall present these
7findings to the General Assembly for legislative enactment.

8* * *

9Section 4. Portfolio requirements in other states.

10(a) Requirements.--If an electric distribution supplier or
11electric generation company provider sells electricity in any
12other state and is subject to renewable energy portfolio
13requirements in that state, they shall list any such requirement
14and shall indicate how it satisfied those renewable energy
15portfolio requirements. To prevent double-counting, the electric
16distribution supplier or electric generation company shall not
17satisfy Pennsylvania's alternative energy portfolio requirements
18using alternative energy used to satisfy another state's
19portfolio requirements or alternative energy credits already
20purchased by individuals, businesses or government bodies that
21do not have a compliance obligation under this act unless the
22individual, business or government body sells those credits to
23the electric distribution company or electric generation
24supplier. Energy derived from alternative energy sources inside
25the geographical boundaries of this Commonwealth shall be
26eligible to meet the compliance requirements under this act.
27Energy derived from alternative energy sources located outside
28the geographical boundaries of this Commonwealth but within the
29service territory of a regional transmission organization that
30manages the transmission system in any part of this Commonwealth

1shall only be eligible to meet the compliance requirements of
2electric distribution companies or electric generation suppliers
3located within the service territory of the same regional
4transmission organization. For purposes of compliance with this
5act, alternative energy sources located in the PJM
6Interconnection, L.L.C. regional transmission organization (PJM)
7or its successor service territory shall be eligible to fulfill
8compliance obligations of all Pennsylvania electric distribution
9companies and electric generation suppliers. Energy derived from
10alternative energy sources located outside the service territory
11of a regional transmission organization that manages the
12transmission system in any part of this Commonwealth shall not
13be eligible to meet the compliance requirements of this act.
14Electric distribution companies and electric generation
15suppliers shall document that this energy was not used to
16satisfy another state's renewable energy portfolio standards.

17(b) Solar photovoltaic technology.--To meet the requirements
18of this section, all solar photovoltaic technology registered
19after the effective date of this subsection shall directly
20deliver the electricity it generates to the distribution system
21operated by an electric distribution company operating within
22this Commonwealth and currently obligated to meet the compliance
23requirements contained in this act.

24Section 2. The following provisions shall apply to contracts
25for the purchase of solar alternative energy entered into after
26May 31, 2013, by entities with a solar alternative energy
27portfolio standard compliance obligation:

28(1) The amendment of section 3(b) and (f) of the act.

29(2) The amendment of section 4 of the act.

30Section 3. This act shall take effect in 60 days.