1Providing for the regulation of certain reciprocal internal
2combustion engines.

3The General Assembly of the Commonwealth of Pennsylvania
4hereby enacts as follows:

5Section 1. Definitions.

6The following words and phrases when used in this act shall
7have the meanings given to them in this section unless the
8context clearly indicates otherwise:

9"Demand response generating resource." A stationary
10generator subject to an agreement or obligation to provide power
11in response to power grid needs, economic signals from
12competitive wholesale electric markets or special retail rates.

13"Department." The Department of Environmental Protection of
14the Commonwealth.

15"Emergency." The term shall mean:

16(1) An electric power outage due to:

1(i) a failure of the electrical grid;

2(ii) an on-site disaster;

3(iii) local equipment failure;

4(iv) a public service emergency, such as a flood, a
5fire or a natural disaster; or

6(v) a severe weather condition, such as a hurricane
7or tornado.

8(2) Any situation in which there is a deviation of
9voltage or frequency from the electric public utility or
10regional transmission operator to the premise of 5% or
11greater below standard voltage or frequency.

12"Emergency generator." A stationary generator whose
13operation is limited to emergencies and required testing and
14maintenance. The term shall not include any demand response
15generating resources.

16"Energy year." The 12-month period beginning on June 1 and
17ending on May 31.

18"Environmental Protection Agency" or "EPA." The United
19States Environmental Protection Agency or the administrator of
20the United States Environmental Protection Agency.

21"Federal Energy Regulatory Commission" or "FERC." The
22Federal Energy Regulatory Commission or the administrator of the
23Federal Energy Regulatory Commission.

24"Nonemergency generator." A stationary generator that:

25(1) May be used during an emergency.

26(2) May be used for testing and maintenance purposes.

27(3) May be used for any other purpose at times other
28than during an emergency.

29(4) Is a demand response generating resource.

30"PJM interconnection" or "PJM." The regional transmission

1organization registered to do business in this Commonwealth as
2PJM Interconnection, L.L.C., or any successor to PJM as the
3regional transmission organization, approved by the Federal
4Energy Regulatory Commission to manage the wholesale procurement
5of electricity and electric generation capacity, and serving all
6or parts of the states of Delaware, the District of Columbia,
7Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey,
8North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West
9Virginia.

10"Stationary generator." An emergency or nonemergency
11generator powered by a reciprocating internal combustion engine
12which is not a "nonroad engine" as the term is defined in 40 CFR
1389.2 (relating to definitions). The term shall not include
14residential generators used only during times of emergency,
15existing generators at fire stations, new or existing stationary
16internal combustion engines used at a nuclear power plant as an
17emergency generator which is subject to the regulations of the
18Nuclear Regulatory Commission, or generators less than 37
19kilowatts.

20Section 2. Registration of nonemergency generators.

21(a) Registration.--Beginning with the energy year commencing
22in 2014 and every five years thereafter, nonemergency generators
23shall register with the department. Immediately upon any changes
24to the registration information provided under paragraph (1),
25(2), (3), (4) or (5), updated registration information shall be
26submitted to the department. Within 90 days of the effective
27date of this act, the department shall provide the form and
28manner for the registration required under this section, which
29shall include:

30(1) A generator owner's contact information.

1(2) The physical address where the generator is or will
2be installed and the date of installation.

3(3) A description of the generator, including make,
4model number, serial number and year of manufacture.

5(4) The standby power rating and horsepower of the
6engine powering the generator.

7(5) Any additional information the department deems
8necessary.

9(b) Streamlined compliance certification form.--Within 120
10days of the effective date of this act, the department shall
11publish a technical guidance document detailing measurement and
12verification options to comply with the reasonable assurance
13requirement under paragraph (1), and a compliance certification
14form that the owner or operator of a nonemergency generator
15shall submit for the energy year beginning in 2016, and every
16five years thereafter, and at any time when the information
17required under subsection (a)(1), (2), (3) or (5) is revised or
18becomes outdated. Information on the form shall include, but is
19not limited to:

20(1) Information adequate to reasonably assure the
21department that the nonemergency generator meets the
22requirements of section 4.

23(2) Attestation of an owner or operator that the
24information supplied in the compliance certification form is
25accurate and that the nonemergency generator has been and
26will continue to be operated and fueled in a manner
27consistent with the requirements under section 4 and assured
28under paragraph (1).

29(c) Registration fees.--The department shall assess a
30registration fee for each nonemergency generator that registers

1in accordance with this section. For the energy year beginning
2in 2014, the fee shall be $40 per nonemergency generator. The
3fees authorized under this subsection shall be adjusted annually
4to reflect any upward changes in the Consumer Price Index for
5All Urban Consumers for the Pennsylvania, New Jersey, Delaware
6and Maryland area in the preceding 12 months, and the department
7shall immediately submit the adjusted amounts to the Legislative
8Reference Bureau for publication as a notice in the Pennsylvania
9Bulletin.

10Section 3. Reporting and recordkeeping requirements for
11nonemergency generators.

12(a) Reporting.--The owner or operator of a nonemergency
13generator shall annually report to the department all of the
14following information no later than 90 days after the completion
15of each energy year:

16(1) The daily and annual fuel types and amounts consumed
17by the engine powering each generator.

18(2) The daily and annual hours of operation, delineated
19by testing and maintenance hours, emergency hours and
20nonemergency hours.

21(3) Descriptions of emergencies requiring operation.

22(b) Recordkeeping.--The owner or operator of a nonemergency
23generator shall maintain each record required by section 2 and
24this section for a minimum of five years after the date the
25record is made. The owner or operator shall promptly provide
26copies of records to the department, if requested.

27Section 4. Emissions standards for nonemergency generators.

28Beginning in energy year 2016, nonemergency generators shall
29not exceed the emissions standards as set forth under this
30section under full load design conditions or at the load

1conditions specified by the applicable testing methods.

2(1) New engines shall meet the applicable Tier 3 or Tier
34 emissions standards set forth by the EPA under 40 CFR Pt.
460 Subpt. IIII (relating to standards of performance for
5stationary compression ignition internal combustion engines)
6or JJJJ (relating to standards of performance for stationary
7spark ignition internal combustion engines).

8(2) Existing engines with a rated horsepower of greater
9than 37 kilowatts but less than or equal to 750 kilowatts
10shall meet the Tier 3 emissions standards set forth by the
11EPA under 40 CFR Pt. 60 Subpt. IIII or JJJJ.

12(3) Existing engines with a rated horsepower of greater
13than 750 kilowatts shall meet the Tier 4 standards set forth
14by the EPA under 40 CFR Pt. 60 Subpt. IIII or JJJJ.

15Section 5. Blind compliance audit.

16(a) Department duties.--Beginning nine months after the
17beginning of the 2014 energy year, and at the beginning of every
18energy year thereafter, the department shall forward a list of
19nonemergency generators compiled under section 2(a) to the
20Pennsylvania Public Utility Commission for the purpose of an
21annual compliance audit.

22(b) Pennsylvania Public Utility Commission duties.--Pursuant
23to the authority provided to the Pennsylvania Public Utility
24Commission under PJM's Open Access Transmission Tariff,
25Attachment M, Section D and the "Required Disclosure" provisions
26of section 18.17.2 of the Operating Agreement of PJM, the
27commission shall conduct a blind compliance audit pursuant to
28this section to ensure that nonemergency generators
29participating in PJM programs and those nonemergency generators
30participating in programs established under 66 Pa.C.S. § 2806.1

1(relating to energy efficiency and conservation program) meet
2the requirements of this act. The commission shall do all of the
3following:

4(1) Request annually from PJM a listing of all demand
5response generating resources located in this Commonwealth.
6Except as provided for by this section, the commission shall
7not disclose any confidential or proprietary information
8received from PJM pursuant to this section.

9(2) Compare the list of nonemergency generators provided
10by the department under subsection (a) with the list of
11demand response generating resources provided under paragraph
12(1).

13(3) Where a nonemergency generator is found to be listed
14as a demand response generating resource in PJM but is not
15included on the list provided by the department, the
16commission shall confirm that the nonemergency generator is
17participating in the PJM markets as a demand response
18generating resource.

19(4) In any instance where the commission confirms that
20the nonemergency generator is participating in the PJM
21markets as a demand response generating resource but has not
22complied with this act, the commission shall notify FERC
23enforcement staff alleging a violation of PJM's Open Access
24Transmission Tariff, and may, at its discretion, also file a
25complaint with FERC, with a request that consideration of the
26complaint be expedited.

27(5) In any instance where the commission determines that
28noncompliance with this act is deliberate and continuing, the
29commission shall refer the matter to the Attorney General for
30prosecution under the act of December 17, 1968 (P.L.1224,

1No.387), known as the Unfair Trade Practices and Consumer
2Protection Law, and shall concomitantly notify the department
3that a referral has been made.

4Section 6. Violations and penalties.

5(a) Penalties.--The department shall establish civil
6penalties for failure to comply with sections 2, 3 and 4. In
7determining the amount of the penalty, the department shall
8consider all of the following:

9(1) Willfulness of the violation.

10(2) Damage to air, soil, water or other natural resource
11of this Commonwealth or their uses.

12(3) Any financial benefit that the owner or operator
13realized as a result of noncompliance.

14(4) The necessity to deter future violations of this
15act.

16(5) The compliance history of the owner or operator.

17(6) Costs realized by the department as a result of the
18violation.

19(7) The size of the source or facility.

20(8) The severity and duration of the violation.

21(9) The owner's or operator's cooperation in resolving
22the violation.

23(10) The amount of time it took the owner or operator to
24achieve compliance.

25(11) Whether the violation was voluntarily reported.

26(12) Other factors unique to the owner or operator of
27the source or facility.

28(b) Continuing violations.--Each violation of any provision
29of this act and each day of continued violation shall constitute
30a separate offense and violation.

1Section 7. Disposition of fees, fines and civil penalties.

2All fees, fines and civil penalties levied and collected
3under this act shall be paid into and administered in accordance
4with the Clean Air Fund, as established under section 9.2 of the
5act of January 8, 1960 (1959 P.L.2119, No.787), known as the Air
6Pollution Control Act.

7Section 8. Severability.

8The provisions of this act are severable. If any provision of
9this act or its application to any person or circumstance is
10held invalid, the invalidity shall not affect other provisions
11or applications of this act which can be given effect without
12the invalid provision or application.

13Section 9. Effective date.

14This act shall take effect immediately.