1Providing for the deactivation of coal-fired electric generation
2facilities; establishing the Coal-Fired Electric Generation
3Facilities Deactivation Commission and providing for the
4commission's powers and duties; establishing the Displaced
5Coal-Fired Electric Generation Facilities Employee Assistance
6and Environmental Remediation Fund; making an appropriation;
7and making a related repeal.

8TABLE OF CONTENTS

9Chapter 1. Preliminary Provisions

10Section 101. Short title.

11Section 102. Declaration of policy.

12Section 103. Definitions.

13Chapter 3. Commission

14Section 301. Coal-Fired Electric Generation Deactivation
15Commission.

16Section 302. Powers and duties.

17Chapter 5. Deactivation

18Section 501. Certificate of deactivation.

19Section 502. Review of applications.

1Section 503. Appeals.

2Section 504. Coal waste cogeneration.

3Section 505. Employee notification and severance benefits.

4Chapter 7. Funding

5Section 701. Fund.

6Chapter 9. Violations

7Section 901. Penalties.

8Chapter 21. Miscellaneous Provisions

9Section 2101. Repeal.

10Section 2102. Effective date.

11The General Assembly of the Commonwealth of Pennsylvania
12hereby enacts as follows:

13CHAPTER 1

14PRELIMINARY PROVISIONS

15Section 101. Short title.

16This act shall be known and may be cited as the Coal-Fired
17Electric Generation Facilities Deactivation Act.

18Section 102. Declaration of policy.

19The General Assembly finds and declares as follows:

20(1) Reasonably priced reliable sources of electric power
21generated in this Commonwealth are vital to the health,
22safety and welfare of the residents and to the prosperity of
23this Commonwealth's economy.

24(2) It is the responsibility of State government to
25ensure that a reliable supply of electric power is generated
26at a level consistent with the need for such electric power
27for the protection of public health, safety and the
28environment.

29(3) Coal-fired electric generation power plants are
30developed primarily through the free enterprise system and

1require a major commitment of funds and resources from
2shareholders and taxpayers, and the decision to deactivate
3coal-fired electric generation power plants will have a long-
4term impact on the Commonwealth's economy.

5(4) Commonwealth coal-fired electric generation power
6plants that sell into the wholesale power market strengthen
7competition and enhance the reliability of the electric
8transmission system and are vital to public interest.

9(5) The deactivation of coal-fired electric generation
10facilities significantly affects this Commonwealth's economy,
11environment, electric reliability and the general health,
12safety and welfare of this Commonwealth's residents.

13(6) Federal, State and local rules, regulations,
14practices and procedures relating to the deactivation of
15coal-fired electric generation facilities are inadequate to
16protect the economy and environment and fail to provide
17societal benefits, family-sustaining jobs and electric power
18reliability, which increase costs to the consumers of this
19Commonwealth in the form of higher electric rates.

20(7) Existing Federal, State and local rules,
21regulations, practices and procedures relating to the
22deactivation of coal-fired electric generation facilities do
23not provide adequate opportunity for State officials,
24municipalities, affected employees and individuals and groups
25interested in protecting the economy and environment to
26participate in the decision to deactivate coal-fired electric
27generation facilities.

28(8) Coordinating a thorough review and investigation
29into the adverse impacts on the economy, electric power
30reliability and the environment associated with the

1deactivation of coal-fired electric generation power plants
2should be consolidated in a single body that will render
3final decisions concerning the deactivation, cleanup and
4remediation of coal-fired electric generation power plants.

5(9) It is the responsibility of the General Assembly to
6provide a forum for the expeditious resolution of all matters
7concerning the deactivation of coal-fired electric generation
8facilities, which access shall be open to all employees,
9individuals, groups, State officials, municipalities and
10other interested groups to enable them to participate in the
11decision-making process.

12Section 103. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

16"Agency." A State or local agency.

17"Applicant." An operator who submits an application for a
18certificate under section 501.

19"Certificate." The certificate of approval to commence the
20deactivation of a facility issued by the commission.

21"Coal-fired electric generation facility." An electric
22generating facility, and associated facilities located within
23this Commonwealth, which use coal and coal byproducts to operate
24at a capacity of five megawatts or more and sell the electricity
25produced into the wholesale market at rates and charges
26established by a Federal agency. The term does not include a
27coal-fired cogeneration facility.

28"Commission." The Coal-Fired Electric Generation Facilities
29Deactivation Commission established in section 301.

30"Department." The Department of Environmental Protection of

1the Commonwealth.

2"Facility." A coal-fired electric generation facility.

3"Federal agency." The term includes:

4(1) The Federal Energy Resource Commission.

5(2) The United States Environmental Protection Agency.

6(3) The Nuclear Regulatory Commission.

7"Fund." The Displaced Coal-Fired Electric Generation
8Facilities Employee Assistance and Environmental Remediation
9Fund established in section 701.

10"Municipality." A city of the first, second, second class A
11or third class, borough, incorporated town, township of the
12first or second class, county of the second class through eighth
13class or home rule municipality or similar general purpose unit
14of government which is created by the General Assembly that has
15adopted land use or zoning regulations.

16"Mothballed." The classification of a facility as
17unavailable for an extended period of time because of the
18facility's removal from service for economic or non-equipment-
19related reasons.

20"Operator." An individual, domestic or foreign corporation,
21political subdivision or other entity which owns or operates a
22facility, however organized, whether investor-owned, publicly
23owned or cooperatively owned and regardless of whether the
24facility is subject to the jurisdiction of the PUC. The term
25does not include the owner or operator of a coal-fired
26cogeneration facility.

27"PJM." The regional transmission organization registered to
28do business in this Commonwealth as PJM Interconnection, LLC, or
29a successor to PJM as the regional transmission organization,
30approved by the Federal Energy Regulatory Commission to manage

1the wholesale procurement of electricity and electric generation
2capacity and serving all or parts of the states of Delaware,
3Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey,
4North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West
5Virginia and the District of Columbia.

6"PUC." The Pennsylvania Public Utility Commission.

7"RMR contract." A contract whereby an operator receives a
8regulated rate rather than a competitive rate for electricity
9supplied to PJM.

10CHAPTER 3

11COMMISSION

12Section 301. Coal-Fired Electric Generation Deactivation
13Commission.

14(a) Establishment and composition.--There is established the
15Coal-Fired Electric Generation Facility Deactivation Commission,
16which shall consist of the following members:

17(1) The chairperson of the PUC, who shall serve as
18chairperson of the commission.

19(2) A representative of PJM.

20(3) The Secretary of Environmental Protection.

21(4) The Secretary of Labor and Industry.

22(5) The Secretary of Community and Economic Development.

23(6) One appointee of the President pro tempore of the
24Senate.

25(7) One appointee of the Speaker of the House of
26Representatives.

27(8) Two members of the public, to be appointed by the
28Governor.

29(b) Oath.--Each member of the commission shall take an oath
30to administer the duties of office faithfully and impartially.

1The oath shall be filed in the office of the Secretary of the
2Commonwealth.

3(c) Expenses.--A member of the commission shall serve
4without compensation, but shall be reimbursed for actual
5expenses necessarily incurred in the performance of the member's
6duties. The following apply:

7(1) The commission may engage a consultant or expert
8witness that it deems necessary to implement its
9responsibilities under this act.

10(2) To the maximum extent possible, commission staff
11shall be drawn from existing State agencies.

12(d) Quorum.--A quorum shall consist of a majority of the
13members of the commission. A majority vote of the commission
14shall be required for all action, including a certification
15decision.

16(e) Records.--

17(1) The commission is subject to the act of February 14,
182008 (P.L.6, No.3), known as the Right-to-Know Law.

19(2) Notwithstanding paragraph (1), the commission may
20not disclose trade secrets or privileged, confidential or
21proprietary information, except to another government agency
22for the sole purpose of rendering an advisory opinion,
23obtained by or submitted to the commission under this act.
24The information must be proven to qualify under this
25paragraph to the satisfaction of the commission.

26Section 302. Powers and duties.

27The commission shall:

28(1) Approve, delay or deny applications for
29certification to deactivate a facility. The deactivation of a
30facility is subject to final approval by the commission.

1(2) Identify government approvals which are required for
2the deactivation of a facility by State statute, municipal
3ordinance or PJM regulation.

4(3) Coordinate government approvals required by an
5agency of the Federal or State government or a municipality,
6including PJM, to permit the deactivation of a facility.
7Affected State and municipal agencies, including PJM, shall
8forward their findings from review related to deactivation of
9a facility, the record supporting the findings and a
10recommendation for final action to the commission.

11(4) Summon and examine witnesses and compel the
12production and examination of documents and other evidence
13that may be necessary for the discharging of duties imposed
14under this act.

15(5) Conduct public hearings upon receipt of an
16application for a certificate to deactivate a facility.

17(6) Require information from the operator as the
18commission deems necessary to accompany applications for
19certificates and require the operator to assist in the
20coordination of a public hearing, investigation or study
21which the commission may undertake.

22(7) Conduct inspections, surveys, monitoring or testing,
23with or without notice to an operator, as deemed necessary
24under this act.

25(8) Approve, with or without conditions, or deny
26applications for certification filed under section 501.

27(9) Adopt rules and regulations as deemed necessary to
28implement this act.

29CHAPTER 5

30DEACTIVATION

1Section 501. Certificate of deactivation.

2(a) Certificate required.--An operator may not deactivate a
3facility unless:

4(1) Except as set forth in subsection (b), the operator
5has provided notice to the commission one year prior to the
6proposed date of deactivation, which includes:

7(i) Whether the facility is being retired or
8mothballed.

9(ii) The desired deactivation date.

10(2) The operator has obtained a certificate from the
11commission.

12(b) Deactivation commenced.--If the operator has commenced
13the deactivation of a facility within the 12 months immediately
14preceding the effective date of this act, the operator must
15submit an application for a certificate in accordance with this
16section. This subsection shall also apply to mothballed
17facilities regardless of the date the facility was mothballed.

18(c) Facility acquired or leased.--If an operator's facility
19has been acquired or contracts have been entered into for the
20lease or deconstruction of the site prior to, on or following
21the effective date of this act, the operator must submit an
22application for a certificate in accordance with this section.

23(d) Contents.--An application must include the following:

24(1) The name, address and telephone number of the owner
25and operator proposing to deactivate the facility.

26(2) A full description and map of the facility detailing
27the location, function, operating characteristics and
28complete plans for all structures, including transmission
29facilities, associated with the facility.

30(3) Copies of each contract with a cogeneration facility

1for the transportation and utilization of waste coal as a
2fuel source prior to the proposed date of deactivation.

3(4) A complete report of the applicant's public
4involvement activities undertaken prior to the filing of the
5application, including any of the following:

6(i) Media coverage.

7(ii) Direct mailing.

8(iii) Fliers.

9(iv) Newsletters.

10(v) Public meeting.

11(vi) Establishment of a community advisory group.

12(vii) Other efforts to obtain local involvement in
13the deactivation process.

14(5) A summary of the effort made by the applicant to do
15any of the following:

16(i) Make appropriate upgrades to comply with Federal
17agency regulations.

18(ii) Sell or lease the facility.

19(iii) Contract with cogeneration facilities
20operating in this Commonwealth for the removal of coal
21waste and production of at least one half of the lost
22megawatts resulting from the proposed deactivation.

23(iv) Assist the municipality in which the facility
24is located.

25(v) Provide employees of the facility with job
26training and financial assistance.

27(6) A summary of the effort made by the applicant to
28pursue Federal, State and local economic development,
29environmental grant or loan opportunities in order to remain
30in active status.

1(7) An analysis of the deactivation's projected effect
2on electric reliability in this Commonwealth.

3(8) An analysis of the facility's economic impact on the
4affected region and this Commonwealth through the use of the
5Federal Energy Resource Commission's approved economic
6planning process.

7(e) Notice.--Public notice shall:

8(1) Be given at least 30 days immediately preceding the
9filing of an application of the proposed deactivation and
10shall include:

11(i) The location of the facility.

12(ii) A general description of the facility.

13(iii) The number of employees impacted.

14(iv) Potential electric reliability or market power
15issues.

16(v) A statement that the proposed deactivation is
17subject to approval by the commission.

18(2) Public notice shall be provided to:

19(i) The commission.

20(ii) PJM.

21(iii) Employees of the facility.

22(iv) The municipality in which the facility is
23located.

24(v) Landowners whose property borders the facility.

25(vi) Each person that has contracted with the
26facility to perform services on the facility's behalf,
27including transmission providers, mining operations,
28transportation service providers and cogeneration
29facilities.

30(vii) The general public in a newspaper of general

1circulation in the county or municipality in which the
2plant is located.

3(f) Interim or emergency certificate.--Notwithstanding any
4other provision of this act, an operator may petition the
5commission for an interim or emergency certificate based upon a
6showing that the public interest requires a prompt decision with
7respect to the facility. The commission shall render a decision
8on the petition within 90 days of the date the petition is
9filed. The commission shall adopt rules and regulations for:

10(1) Reviewing the petition and giving due consideration
11to the effect on the availability of an adequate and reliable
12electric supply.

13(2) Assessing economic and environmental impacts.

14(g) Alterations of existing facility.--Replacement of a
15facility with a similar facility, or the repair, modification,
16retrofitting, enhancement or reconfiguration of a facility shall
17not constitute a deactivation of a facility.

18(h) Regulations.--The commission shall promulgate
19regulations prescribing fees to pay expenses associated with the
20review of applications filed with the commission under this
21section. All application fees collected by the commission shall
22be deposited into the fund. If a majority of the members of the
23commission finds that an applicant's initial fees are
24insufficient to pay the expenses associated with the
25application, including the expenses associated with a legal
26review, the commission shall assess a supplemental application
27fee to cover the additional expenses. An applicant's failure to
28pay a fee assessed under this subsection shall be grounds for
29denial of the application.

30Section 502. Review of applications.

1The commission shall use the following procedures in
2reviewing an application for a certificate:

3(1) Within 15 days of the filing of an application, the
4commission shall notify the applicant whether the application
5is in the proper form and addresses the matters that are
6outlined in this section or the regulations promulgated under
7this act. The following apply:

8(i) An application meeting the requirements of this
9act shall be docketed.

10(ii) An application deemed to be deficient shall be
11returned to the applicant, together with a concise
12statement of the application's deficiencies. Within 15
13days of the resubmission of an application following a
14rejection for deficiency, the commission shall docket the
15application, specifying any additional deficiencies noted
16by the commission.

17(2) Within 60 days following the commission's docketing
18of an application, the commission shall:

19(i) Determine the issues to be considered in
20evaluating the application, including:

21(A) Reliability.

22(B) Market power.

23(C) Economic and congestion impacts.

24(ii) Identify State and local agencies for the
25purpose of providing findings and recommendations for
26final action on the issues.

27(3) The commission shall limit the scope of an agency's
28investigation if the commission finds that more than one
29agency has jurisdiction over a matter at issue in the
30approval process. In this instance, the commission shall

1determine which agency shall make the necessary findings on
2the issue after giving proper consideration to the expertise
3and resources available to each agency involved.

4(4) PJM and an agency shall:

5(i) Investigate the issue assigned for review.

6(ii) Conclude the investigation and issue the
7findings and recommendations for final action not more
8than 120 days following the identification of agencies
9under paragraph (2)(ii). If the investigation is not
10issued within the designated time frame, the commission
11shall perform the review.

12(5) Within 30 days after the final date of submission of
13the findings and recommendations for final action, the
14commission shall convene a hearing on the application in
15accordance with the following:

16(i) The purpose of the hearing is to provide the
17opportunity to address, in a single forum and from a
18consolidated, Statewide perspective, the issues reviewed
19and the recommendations made by the identified agencies.
20The evidence presented to an agency at a hearing held
21prior to the commission's hearing shall not be
22entertained.

23(ii) The commission shall limit the presentation of
24repetitive or cumulative evidence.

25(iii) The hearing:

26(A) Shall proceed on at least 30 days' notice to
27the parties and the public.

28(B) Must be concluded within 30 days following
29its initiation.

30(C) Shall be conducted expeditiously.

1(iv) In the discretion of the commission, for good
2cause shown, the time prescribed for the hearing may be
3extended for up to 30 additional days.

4(6) Within 60 days of the conclusion of the hearing, the
5commission shall issue the final decision on the application.
6The following apply:

7(i) A decision in favor of the application shall
8constitute approval of the proposed deactivation of the
9facility.

10(ii) The commission's decision shall explicitly
11address each of the findings and recommendations received
12from agencies and include the commission's reasons for
13accepting, rejecting or modifying, in whole or in part,
14any of those findings and recommendations.

15(7) The commission may delay the deactivation of a
16facility if upgrades to the transmission system deemed
17necessary to reduce the effects of the proposed deactivation
18will not be completed by the proposed deactivation date. The
19commission shall work with an operator of a facility to
20identify the upgrades that are needed to accommodate the
21deactivation, the expected completion dates and temporary
22operating solutions. Operators are prohibited from
23deactivating a facility to ensure reliability under an RMR
24contract approved by the Federal Energy Resource Commission.

25(8) The commission may deny an application for a
26certificate to deactivate a facility if the commission
27determines that:

28(i) It would be more cost effective for ratepayers
29if the facility were to remain in normal operation,
30either with or without capital additions or operating

1improvements, than if the operator were to implement a
2plan for replacing the power which the operator is, or
3could be made, capable of producing.

4(ii) The continued operation of the facility is
5necessary to provide adequate and reliable electric
6service to PJM and the public.

7(iii) There are less costly alternatives by which
8the operator could maintain the ability to provide
9adequate and reliable electric service to PJM and the
10public.

11(9) If the commission's decision is to approve the
12deactivation of a facility, no action may be taken by an
13agency or another person that would prevent the facility from
14entering into a contract with another entity for:

15(i) The sale or lease of the deactivated facility.

16(ii) The environmental remediation of a deactivated
17facility.

18(iii) The cogeneration of a minimum of 50% of the
19PJM tariffed megawatts displaced through the use of coal
20waste as required under section 504.

21Section 503. Appeals.

22A party aggrieved by a decision of the commission may obtain
23judicial review of the decision in accordance with 2 Pa.C.S. Ch.
247 Subch. A (relating to judicial review of Commonwealth agency
25action).

26Section 504. Coal waste cogeneration.

27(a) Contracts.--Upon approval by the commission to
28deactivate a facility, an operator shall immediately enter into
29a contract for:

30(1) The environmental remediation of the facility and

1associated facilities.

2(2) The production of 50% of displaced megawatts
3originally filed under tariff with PJM for a period of two
4years or until the facility has utilized all contracted coal,
5including coal waste, located on the facility or associated
6facilities.

7(b) Pennsylvania waste coal cogenerators.--In complying with
8section 501, an operator in receipt of a certificate to
9deactivate a facility shall enter into a contract with a
10Pennsylvania-based waste coal cogenerator facility.

11Section 505. Employee notification and severance benefits.

12(a) Notice.--Each operator of a facility that submits an
13application for certification to deactivate a facility must
14provide notice to its employees at least 30 days before the date
15of submission of an application to deactivate if the proposed
16deactivation will displace more than 25 employees.

17(b) Benefits.--Facility employees whose employment is
18terminated as a result of the deactivation of a facility shall
19be entitled to the following:

20(1) Counseling, placement, training and other services
21deemed necessary which will lead to the reemployment of the
22employees.

23(2) Severance pay:

24(i) Of two weeks' pay for every year of service for
25employees who have worked at the facility for at least
26one year.

27(ii) Equal to payment for one regular pay period for
28employees terminated within one year of beginning
29employment at the facility.

30(3) Health insurance as follows:

1(i) The owner or operator of a coal-fired electric
2generation facility must pay for existing group health
3insurance coverage for employees and their families
4displaced as a result of the deactivation of a facility.

5(ii) The coverage shall continue until the earlier
6of the following:

7(A) A minimum of 120 days upon approval of the
8commission to deactivate.

9(B) The employee becomes eligible for other
10health insurance coverage.

11CHAPTER 7

12FUNDING

13Section 701. Fund.

14(a) Establishment of fund.--The Pennsylvania Displaced Coal-
15Fired Electric Generation Facilities Employee Assistance and
16Environmental Remediation Fund is hereby established in the
17State Treasury and shall be administered by the commission to:

18(1) Provide unemployment, counseling, housing and job
19training assistance for displaced facility employees.

20(2) Provide grants to municipalities for the immediate
21cleanup of a facility and utilization of leftover waste coal.

22(b) Deposit of funding sources.--All fees and assessments
23imposed and collected and moneys appropriated under this act
24shall be deposited into the fund and are appropriated for the
25purposes of this act. The following shall apply:

26(1) The sum of $25,000,000 transferred by the
27Commonwealth Financing Authority to the department for
28pollution control technology projects under section 304 of
29the act of July 9, 2008 (1st Sp.Sess., P.L.1873, No.1), known
30as the Alternative Energy Investment Act, shall be

1transferred to the fund.

2(2) Beginning in fiscal year 2014 and ending in fiscal
3year 2019, an amount equal to 0.25 mills of the utilities
4gross receipts tax collected during each fiscal year under
5Article XI of the act of March 4, 1971 (P.L.6, No.2), known
6as the Tax Reform Code of 1971, shall be appropriated
7annually from the General Fund to the fund on a continuing
8basis for the purpose of carrying out this act.

9(3) An assessment shall be imposed on each electric
10generation service provider of 0.25% of the electric
11generator service provider's total gross intrastate operating
12revenues for the preceding calendar year and shall be
13deposited into the fund.

14(c) Fund guidelines.--Within 60 days of the effective date
15of this section, the department shall promulgate grant
16eligibility, application and other guidelines for the
17administration of the fund. No more than 2% of the assessments
18collected under this section shall be used by the commission for
19administrative expenses.

20CHAPTER 9

21VIOLATIONS

22Section 901. Penalties.

23(a) Criminal.--An operator commits an offense if the
24operator:

25(1) Deactivates a facility without first having obtained
26a certificate from the commission.

27(2) Violates a provision of this act.

28(b) Grading.--A person who violates subsection (a) commits a
29misdemeanor of the third degree and shall, upon conviction, be
30sentenced to pay a fine of not more than $500,000 or to

1imprisonment for not more than one year, or both.

2(c) Civil.--In addition to any other penalty that may be
3imposed by the commission, the commission may assess a civil
4penalty of up to $25,000 per day on an operator that:

5(1) Violates a provision of this act or the commission's
6regulations.

7(2) Deactivates a facility without first having obtained
8a certificate from the commission.

9(3) Fails to remit an assessment under section 702 prior
10to June 30 of each fiscal year.

11(d) Collection.--Money received from a civil penalty or fine
12imposed by the commission on an operator shall be paid into the
13State Treasury and shall be credited to the department for the
14administration of the fund.

15CHAPTER 21

16MISCELLANEOUS PROVISIONS

17Section 2101. Repeal.

18Repeals are as follows:

19(1) The General Assembly declares that the repeal under
20paragraph (2) is necessary to effectuate section 701(b)(1).

21(2) Section 304 of the act of July 9, 2008 (1st
22Sp.Sess., P.L.1873, No.1), known as the Alternative Energy
23Investment Act, is repealed.

24Section 2102. Effective date.

25This act shall take effect immediately.