AN ACT

 

1Requiring the Department of Environmental Protection to receive
2approval from the General Assembly for a State plan to
3regulate carbon dioxide emissions for existing stationary
4sources prior to submitting the State plan to the United
5States Environmental Protection Agency for approval.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1.  Short title.

9This act shall be known and may be cited as the Pennsylvania
10Greenhouse Gas Regulation Implementation Act.

11Section 2.  Declaration of policy.

12The General Assembly finds and declares as follows:

13(1) Reasonably priced reliable sources of electric power
14generated in this Commonwealth are vital to the health,
15safety and welfare of the residents and to the prosperity of
16this Commonwealth's economy.

17(2)  It is the responsibility of the Commonwealth to
18ensure that a reliable supply of electric power is generated

1at a level consistent with the need for such electric power
2for the protection of public health, safety and the
3environment.

4(3)  Coal-fired electric generation power plants are
5developed primarily through the free enterprise system and
6require a significant commitment of funds and resources from
7shareholders, and the potential decision to deactivate or
8retire coal-fired electric generation power plants will have
9a long-term impact on this Commonwealth's economy.

10(4) Commonwealth coal-fired electric generation power
11plants that sell into the wholesale power markets strengthen
12competition and enhance the reliability of the bulk power and
13transmission systems and are vital to public interest.

14(5)  The premature deactivation or retirement of coal-
15fired electric generation facilities significantly affects
16this Commonwealth's economy, environment, electric
17reliability and the general health, safety and welfare of
18this Commonwealth's residents, businesses and industries.

19(6)  All electric power generators, but primarily coal-
20fired electric generation facilities, have been subjected to
21ongoing and unmitigated negative market conditions that have
22resulted in the premature deactivation and retirement of high
23capacity resources in this Commonwealth.

24(7)  Over the past seven years, the Federal Environmental
25Protection Agency, the Ozone Transportation Commission and
26the Department of Environmental Protection have promulgated a
27myriad of environmental rules that have significantly
28increased costs to coal-fired electric generation facilities,
29making them less competitive in the wholesale power markets.

30(8)  The United States Environmental Protection Agency

1recently announced another rule governing carbon dioxide
2emissions from coal-fired electric generation facilities.

3(9)  Since this Commonwealth is the second largest
4electricity producing state in the nation, the top net
5exporter of electricity and the fourth largest coal producing
6state, the United States Environmental Protection Agency's
7new greenhouse gas rule will have a significant, profound and
8long-lasting impact on the economy of this Commonwealth.

9(10)  The United States Environmental Protection Agency's
10greenhouse gas rule will also affect those communities that
11host coal-fired power plants, the employees at those
12facilities and residential, commercial and industrial
13consumers in this Commonwealth who depend upon the reliable
14provisioning of electricity at an economic price.

15(11)  Under the preliminary United States Environmental
16Protection Agency greenhouse gas rule, the Commonwealth has
17the authority to develop and submit to the United States
18Environmental Protection Agency a plan for how the
19Commonwealth will meet the United States Environmental
20Protection Agency's goals of reducing carbon dioxide
21emissions.

22(12)  Due to the extraordinary impact that the United
23States Environmental Protection Agency's greenhouse gas rule
24will have on this Commonwealth, it is the responsibility of
25the General Assembly, working together with the Department of
26Environmental Protection, the Pennsylvania Public Utility
27Commission and other important stakeholders, to be directly
28involved in the development of the Commonwealth's plan.

29Section 3.  Definitions.

30The following words and phrases when used in this act shall

1have the meanings given to them in this section unless the
2context clearly indicates otherwise:

3"Department." The Department of Environmental Protection of
4the Commonwealth.

5"Environmental Protection Agency" or "EPA." The United
6States Environmental Protection Agency or the Administrator of
7the United States Environmental Protection Agency.

8"State plan." The state plan authorized by the Environmental
9Protection Agency under docket EPA-HQ-OAR-2013-0602.

10Section 4. State plan development.

11(a) Development of State plan.--In accordance with the
12requirements of the EPA's regulation of carbon dioxide emissions
13for existing stationary sources, as published under docket EPA-
14HQ-OAR-2013-0602, the department shall develop and submit to the
15EPA a State plan for compliance with the regulation of carbon
16dioxide from existing power plants. In developing the State
17plan, the department shall do all of the following:

18(1)  Summon and examine witnesses and compel the
19production and examination of documents and other evidence
20that may be necessary for the discharging of duties imposed
21under this act.

22(2)  Conduct at least four public hearings in
23geographically dispersed locations in this Commonwealth,
24including locations that would be directly economically
25affected by the EPA's carbon dioxide regulation.

26(3)  Accept written testimony and consider, as part of
27the deliberations on the State plan, all written and oral
28testimony provided.

29(4)  Consider all of the following in the development of
30the State plan:

1(i)  Whether to rely on measures the EPA used to
2calculate the carbon dioxide reduction goal, as well as
3other measures that were not part of the EPA goal-setting
4process.

5(ii)  Whether the Commonwealth should participate in
6multistate programs that already exist, or whether a new
7multistate carbon dioxide reduction program should be
8created.

9(iii)  Whether the Commonwealth should invest in
10energy efficiency programs during the compliance period
11to assist in meeting the EPA's goal.

12(iv)  Whether the Commonwealth should work in
13partnership with other states.

14(v)  When individual power plants must make
15reductions.

16(vi)  The extent to which any of the following should
17be included in the State plan:

18(A) Demand-side energy efficiency programs.

19(B) Renewable energy standards.

20(C) Efficiency improvements at existing affected
21power plants.

22(D) Cofiring or switching to natural gas.

23(E) Transmission efficiency improvements.

24(F) Energy storage technologies.

25(G) The retirement or deactivation of existing
26affected generation units or facilities.

27(H) The expansion of nonemitting sources, such
28as nuclear power.

29(I) Market-based trading programs.

30(J) Other energy conservation programs.

1(vii)  How best to avoid stranded investments in
2existing affected power plants.

3(5)  Prioritize the components of the State plan based on
4a least-cost compliance approach to benefit consumers of
5electricity.

6(6) Take into consideration the necessity and value to
7having a diverse generation fleet to ensure electric
8reliability in this Commonwealth.

9Section 5.  Submission of the State plan.

10(a)  Submission for approval to the General Assembly.--No
11less than 100 days prior to the department submitting the State
12plan to the EPA for approval, the department shall transmit the
13plan to the General Assembly for approval. <-No State plan may be 
14submitted to the EPA without approval of the General Assembly 
15under subsection (c).

16(b)  General Assembly duties.--The General Assembly shall
17expeditiously consider the State plan developed by the
18department under this section as a special order of business. No
<-19less more than 20 days after receiving the State plan from
20department, the President Pro Tempore pro tempore<- of the Senate
21and the <-Speaker Majority Leader of the House of Representatives
22shall place a concurrent resolution on the calendar summarizing
23the State plan and the members of each chamber of the General
24Assembly shall vote upon the concurrent resolution.

25(c)  Approval.--If both chambers of the General Assembly
26adopt the concurrent resolution under subsection (b), the
27department may submit the State plan to the EPA for
28consideration.

29(d)  Disapproval.--If either chamber of the General Assembly
30disapproves the concurrent resolution under subsection (b), the

1department may not submit the State plan to the EPA for
2consideration. The department shall do all of the following:

3(1)  Determine the reasons for disapproval and modify the
4State plan.

5(2)  Cause the State plan to be resubmitted to the
6General Assembly utilizing the process delineated under
7subsection (b) <-within 60 days of the disapproval.

8(3)  If necessary, request an extension of time from the
9EPA<-. by submitting an initial State plan by June 30, 2016, 
10that meets the minimum requirements for an initial State 
11plan, as specified in the plan guidelines published by the 
12EPA. The department shall transmit the following message with 
13its submittal under this paragraph:

14Be advised that the State plan submitted by the
15Pennsylvania Department of Environmental Protection has
16not yet met the requirements of the Pennsylvania
17Greenhouse Gas Regulation Implementation Act requiring
18affirmative approval of the General Assembly. It is the
19intention of the Commonwealth of Pennsylvania to submit a
20State plan which conforms to this rulemaking. Under
21section 111(d) of the Clean Air Act, states must be given
22an opportunity to meet Federal environmental standards
23set forth by the Environmental Protection Agency. The
24Commonwealth of Pennsylvania hereby invokes the authority
25provided to it under section 111(d) of the Clean Air Act,
26and, in accordance with the Pennsylvania Greenhouse Gas
27Implementation Act, will be making a further filing with
28the agency.

29(e) Default approval.--If no vote is taken by either chamber
30of the General Assembly to approve or disapprove the concurrent

1resolution before 15 days of the June 30, 2016, deadline, the
2State plan shall be deemed approved and shall be submitted to
3the EPA immediately.

4(f) Default approval after time to cure.--If either chamber
5of the General Assembly fails to approve a resubmitted plan
6under subsection (d)(2), within 60 days of the extension
7deadline, the resubmitted plan shall be deemed approved.

8Section 6.  Effective date.

9This act shall take effect immediately.