1Providing for the regulation of certain reciprocal internal
2combustion engines<-; and imposing certain powers and duties on 
3the Department of Environmental Protection.

4The General Assembly of the Commonwealth of Pennsylvania
5hereby enacts as follows:

6Section 1. Definitions.

7The following words and phrases when used in this act shall
8have the meanings given to them in this section unless the
9context clearly indicates otherwise:

10"Demand response generating resource." <-A stationary 
11generator subject to an agreement or obligation to provide power 
12in response to power grid needs, economic signals from 
13competitive wholesale electric markets or special retail rates. 
<-14A generator which is compensated as a demand response resource 
15by PJM or a generator compensated to participate in a demand 
16response program for PJM. The term shall not include a generator
 

1that derives its energy from an alternative energy source that 
2qualifies as a Tier I source under the act of November 30, 2004 
3(P.L.1672, No.213), known as the Alternative Energy Portfolio 
4Standards Act.

5"Department." The Department of Environmental Protection of
6the Commonwealth.

<-7"Emergency." The term shall mean:

8(1) An electric power outage due to:

9(i) a failure of the electrical grid;

10(ii) an on-site disaster;

11(iii) local equipment failure;

12(iv) a public service emergency, such as a flood, a
13fire or a natural disaster; or

14(v) a severe weather condition, such as a hurricane
15or tornado.

16(2) Any situation in which there is a deviation of
17voltage or frequency from the electric public utility or
18regional transmission operator to the premise of 5% or
19greater below standard voltage or frequency.

20"Emergency generator." A stationary generator whose
21operation is limited to emergencies and required testing and
22maintenance. The term shall not include any demand response
23generating resources.

24"Energy year." The 12-month period beginning on June 1 and
25ending on May 31.

26"Environmental Protection Agency" or "EPA." The United
27States Environmental Protection Agency or the administrator of
28the United States Environmental Protection Agency.

29"Federal Energy Regulatory Commission" or "FERC." The
30Federal Energy Regulatory Commission or the administrator of the

1Federal Energy Regulatory Commission.

<-2"Nonemergency generator." A stationary generator that:

3(1) May be used during an emergency.

4(2) May be used for testing and maintenance purposes.

5(3) May be used for any other purpose at times other
6than during an emergency.

7(4) Is a demand response generating resource.

<-8"Generator." A machine powered by a reciprocating internal
9combustion engine that converts mechanical energy into electric
10energy.

11"PJM interconnection" or "PJM." The regional transmission
12organization registered to do business in this Commonwealth as
13PJM Interconnection, L.L.C., or any successor to PJM as the
14regional transmission organization, approved by the Federal
15Energy Regulatory Commission to manage the wholesale procurement
16of electricity and electric generation capacity, and serving all
17or parts of the states of Delaware, the District of Columbia,
18Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey,
19North Carolina, Ohio, Pennsylvania, Tennessee, Virginia and West
20Virginia.

<-21"Stationary generator." An emergency or nonemergency
22generator powered by a reciprocating internal combustion engine
23which is not a "nonroad engine" as the term is defined in 40 CFR
2489.2 (relating to definitions). The term shall not include
25residential generators used only during times of emergency,
26existing generators at fire stations, new or existing stationary
27internal combustion engines used at a nuclear power plant as an
28emergency generator which is subject to the regulations of the
29Nuclear Regulatory Commission, or generators less than 37
30kilowatts.

1Section 2. Registration of <-nonemergency generators demand 
2response generating resources.

3(a) Registration.--Beginning with the energy year commencing
4in 2014 and every five two years thereafter, <-nonemergency 
5generators <-demand response generating resources shall register
6with the department. Immediately upon any changes to the
7registration information provided under paragraph (1), (2), (3),
<-8(4) or (5) (4), (5) or (6), updated registration information
9shall be submitted to the department. Within 90 days of the
10effective date of this act, the department shall provide the
11form and manner for the registration required under this
12section, which shall include:

13(1) A generator owner's contact information.

14(2) The physical address where the generator is or will
15be installed and the date of installation.

16(3) A description of the generator, including make,
17model number, serial number and year of manufacture.

18(4) The standby power rating <-and horsepower of the 
19generator and rated power of the engine powering the
20generator.

<-21(5) The type of demand response program in which the
22generator participates and the name and address of the
23aggregator, if any.

<-24(5) (6) Any additional information the department deems
25necessary<-., consistent with 40 CFR §§ 60.4214(d)(1) (relating 
26to What are my notification, reporting, and recordkeeping 
27requirements if I am an owner or operator of a stationary CI 
28internal combustion engine?), 60.4245(e)(1) (relating to What 
29are my notification, reporting, and recordkeeping 
30requirements if I am an owner or operator of a stationary SI
 

1internal combustion engine?) and 63.6650(h)(1) (relating to 
2What reports must I submit and when?).

<-3(b) Streamlined compliance certification form.--Within 120
4days of the effective date of this act, the department shall
5publish a technical guidance document detailing measurement and
6verification options to comply with the reasonable assurance
7requirement under paragraph (1), and a compliance certification
8form that the owner or operator of a nonemergency generator
9shall submit for the energy year beginning in 2016, and every
10five years thereafter, and at any time when the information
11required under subsection (a)(1), (2), (3) or (5) is revised or
12becomes outdated. Information on the form shall include, but is
13not limited to:

14(1) Information adequate to reasonably assure the
15department that the nonemergency generator meets the
16requirements of section 4.

17(2) Attestation of an owner or operator that the
18information supplied in the compliance certification form is
19accurate and that the nonemergency generator has been and
20will continue to be operated and fueled in a manner
21consistent with the requirements under section 4 and assured
22under paragraph (1).

23(c) <-(b) Registration fees.--The department shall assess a
24registration fee for each <-nonemergency generator demand response 
25generating resource that registers in accordance with this
26section. For the energy year beginning in 2014, the fee shall be
27$40 per <-nonemergency generator demand response generating 
28resource. The fees authorized under this subsection shall be
29adjusted annually to reflect any upward changes in the Consumer
30Price Index for All Urban Consumers for the Pennsylvania, New

1Jersey, Delaware and Maryland area in the preceding 12 months,
2and the department shall immediately submit the adjusted amounts
3to the Legislative Reference Bureau for publication as a notice
4in the Pennsylvania Bulletin.

5Section 3. Reporting and recordkeeping requirements for
<-6nonemergency generators demand response generating 
7resources.

8(a) Reporting.--The owner or operator of a <-nonemergency 
9generator <-demand response generating resource shall annually
10report to the department all of the following information no
11later than 90 days after the completion of each energy year:

12(1) The daily and annual fuel types and amounts consumed
13by the engine powering each <-generator demand response 
14generating resource.

15(2) The daily and annual hours of operation, delineated
16by testing and maintenance hours, emergency hours and
17nonemergency hours.

18(3) <-Descriptions of emergencies requiring operation. Any 
19additional information the department deems necessary, 
20consistent with 40 CFR §§ 60.4214(d)(1) (relating to What are 
21my notification, reporting, and recordkeeping requirements if 
22I am an owner or operator of a stationary CI internal 
23combustion engine?), 60.4245(e)(1) (relating to What are my 
24notification, reporting, and recordkeeping requirements if I 
25am an owner or operator of a stationary SI internal 
26combustion engine?) and 63.6650(h)(1) (relating to What 
27reports must I submit and when?).

28(b) Recordkeeping.--The owner or operator of a <-nonemergency 
29generator <-demand response generating resource shall maintain
30each record required by section 2 and this section for a minimum

1of five years after the date the record is made. The owner or
2operator shall promptly provide copies of records to the
3department, if requested.

<-4Section 4. Emissions standards for nonemergency generators.

5Beginning in energy year 2016, nonemergency generators shall
6not exceed the emissions standards as set forth under this
7section under full load design conditions or at the load
8conditions specified by the applicable testing methods.

9(1) New engines shall meet the applicable Tier 3 or Tier
104 emissions standards set forth by the EPA under 40 CFR Pt.
1160 Subpt. IIII (relating to standards of performance for
12stationary compression ignition internal combustion engines)
13or JJJJ (relating to standards of performance for stationary
14spark ignition internal combustion engines).

15(2) Existing engines with a rated horsepower of greater
16than 37 kilowatts but less than or equal to 750 kilowatts
17shall meet the Tier 3 emissions standards set forth by the
18EPA under 40 CFR Pt. 60 Subpt. IIII or JJJJ.

19(3) Existing engines with a rated horsepower of greater
20than 750 kilowatts shall meet the Tier 4 standards set forth
21by the EPA under 40 CFR Pt. 60 Subpt. IIII or JJJJ.

<-22Section 4. Confidentiality.

23The registration and reporting requirements under sections 2 
24and 3 shall be subject to the provisions of section 13.2 of the 
25act of January 8, 1960 (1959 P.L.2119, No.787), known as the Air 
26Pollution Control Act.

27Section 5. Blind compliance audit.

28(a) Department duties.--Beginning nine months after the
29beginning of the 2014 energy year, and at the beginning of every
30energy year thereafter, the department shall forward a list of

<-1nonemergency generators demand response generating resources
2compiled under section 2(a) to the Pennsylvania Public Utility
3Commission for the purpose of an annual compliance audit.

4(b) Pennsylvania Public Utility Commission duties.--Pursuant
5to the authority provided to the Pennsylvania Public Utility
6Commission under PJM's Open Access Transmission Tariff,
7Attachment M, Section D and the "Required Disclosure" provisions
8of section 18.17.2 of the Operating Agreement of PJM, the
9commission shall conduct a blind compliance audit pursuant to
10this section to ensure that <-nonemergency generators demand 
11response generating resources participating in PJM programs and
12those nonemergency generators <-demand response generating 
13resources participating in programs established under 66 Pa.C.S.
14§ 2806.1 (relating to energy efficiency and conservation
15program) meet the requirements of this act. The commission shall
16do all of the following:

17(1) Request annually from PJM a listing of all demand
18response generating resources located in this Commonwealth.
19Except as provided for by this section, the commission shall
20not disclose any confidential or proprietary information
21received from PJM pursuant to this section.

22(2) Compare the list of <-nonemergency generators demand 
23response generating resources provided by the department
24under subsection (a) with the list of demand response
25generating resources provided under paragraph (1).

26(3) Where a <-nonemergency generator demand response 
27generating resource is found to be listed as a demand
28response generating resource in PJM but is not included on
29the list provided by the department, the commission shall
30confirm that the nonemergency generator <-demand response
 

1generating resource is participating in the PJM markets as a
2demand response generating resource.

3(4) In any instance where the commission confirms that
4the <-nonemergency generator demand response generating 
5resource is participating in the PJM markets as a demand
6response generating resource but has not complied with this
7act, the commission shall notify FERC enforcement staff
8alleging a violation of PJM's Open Access Transmission
9Tariff, and may, at its discretion, also file a complaint
10with FERC, with a request that consideration of the complaint
11be expedited.

12(5) In any instance where the commission determines that
13noncompliance with this act is deliberate and continuing, the
14commission shall refer the matter to the Attorney General for
15prosecution under the act of December 17, 1968 (P.L.1224,
16No.387), known as the Unfair Trade Practices and Consumer
17Protection Law, and shall concomitantly notify the department
18that a referral has been made.

19Section 6. Violations and penalties.

20(a) Penalties.--The department shall establish <-and enforce
21civil penalties for failure to comply with sections <-2, 3 and 4 2 
22and 3. In determining the amount of the penalty, the department
23shall consider all of the following:

24(1) Willfulness of the violation.

25(2) Damage to air, soil, water or other natural resource
26of this Commonwealth or their uses.

27(3) Any financial benefit that the owner or operator
28realized as a result of noncompliance.

29(4) The necessity to deter future violations of this
30act.

1(5) The compliance history of the owner or operator.

2(6) Costs realized by the department as a result of the
3violation.

4(7) The size of the source or facility.

5(8) The severity and duration of the violation.

6(9) The owner's or operator's cooperation in resolving
7the violation.

8(10) The amount of time it took the owner or operator to
9achieve compliance.

10(11) Whether the violation was voluntarily reported.

11(12) Other factors unique to the owner or operator of
12the source or facility.

13(b) Continuing violations.--Each violation of any provision
14of this act and each day of continued violation shall constitute
15a separate offense and violation.

<-16(c) Limitation on action.--Notwithstanding the provisions of
17any other statute to the contrary, an action for a civil or
18criminal penalty under this act may be commenced at any time
19within a period of seven years from the date the offense is
20discovered.

21Section 7. Disposition of fees, fines and civil penalties.

22All fees, fines and civil penalties levied and collected
23under this act shall be paid into and administered in accordance
24with the Clean Air Fund, as established under section 9.2 of the
25act of January 8, 1960 (1959 P.L.2119, No.787), known as the Air
26Pollution Control Act.

27Section 8. Severability.

28The provisions of this act are severable. If any provision of
29this act or its application to any person or circumstance is
30held invalid, the invalidity shall not affect other provisions

1or applications of this act which can be given effect without
2the invalid provision or application.

3Section 9. Effective date.

4This act shall take effect immediately.