PRINTER'S NO. 2586
No. 2058 Session of 1978
INTRODUCED BY STUBAN, BROWN, SHUMAN, GRIECO AND REED,
FEBRUARY 15, 1978
REFERRED TO COMMITTEE ON APPROPRIATIONS, FEBRUARY 15, 1978
AN ACT
1 Providing for the location of electric power plants, creating
2 the Power Plant Siting Commission, and making appropriations.
3 TABLE OF CONTENTS
4 Section 1. Short title.
5 Section 2. Declaration of policy.
6 Section 3. Definitions.
7 Section 4. Location of electric power plants.
8 Section 5. Plant output capacity.
9 Section 6. Plants per site.
10 Section 7. Emissions.
11 Section 8. Limitation on power export.
12 Section 9. Transmission lines.
13 Section 10. Power Plant Siting Commission.
14 Section 11. Powers and duties of commission.
15 Section 12. Long-range planning.
16 Section 13. Certification of power plants.
17 Section 14. Interagency cooperation.
18 Section 15. Judicial review.
1 Section 16. Actions to enjoin violations.
2 Section 17. Reimbursement of costs.
3 Section 18. Annual distributions to reduce tax burden.
4 Section 19. Limitation on payments to political
5 subdivisions.
6 Section 20. Appropriations.
7 Section 21. Effective date.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the "Power Plant
12 Siting Act."
13 Section 2. Declaration of policy.
14 Because the Commonwealth has vast reserves of coal, the
15 public interest and the economic well-being, health and safety
16 of our citizens warrant the safe, efficient and environmentally
17 responsible use of coal as fuel for all future electric power
18 operating plants within the Commonwealth.
19 Section 3. Definitions.
20 The following words and phrases when used in this act shall
21 have, unless the context clearly indicates otherwise, the
22 meanings given to them in this section:
23 "Certificate." A certificate of public need and
24 environmental compatibility issued by the commission.
25 "Commission." The Power Plant Siting Commission.
26 "Construction."
27 (1) Any disturbance or clearing of the land, erection
28 thereon of any structure, or other substantial action that
29 would affect the natural environment of the site or route.
30 (2) The term "construction does not include:
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1 (i) Preconstruction surveying, monitoring or testing
2 (including borings) to determine foundation conditions or
3 to establish background information related to the
4 suitability of the site or to the protection of
5 environmental values.
6 (ii) Changes desirable for the temporary use of the
7 land for public recreational uses.
8 "Utility." Any person, corporation, political subdivision or
9 other entity which owns or operates a power plant within this
10 Commonwealth, or which intends to construct such a plant,
11 however organized, whether investor owned, publicly owned or
12 cooperatively owned and whether or not subject to the
13 jurisdiction of the Pennsylvania Public Utility Commission.
14 Section 4. Location of electric power plants.
15 Electric power plants shall be located in the area where
16 power is needed, and shall be designed to permit the recycling
17 of waste heat to buildings in nearby communities.
18 Section 5. Plant fuel and output capacity.
19 Power plants shall be fueled by coal and plant capacity shall
20 not be less than 350 nor more than 800 megawatts.
21 Section 6. Plants per site.
22 There shall not be more than two plants located on an
23 individual site, and the combined output shall not exceed 1600
24 megawatts.
25 Section 7. Emissions.
26 The emission levels of all power plants shall conform to the
27 act of January 8, 1960 (P.L.1959 P.L.2119, No.787), known as the
28 "Air Pollution Control Act," and to all other State and Federal
29 pollution control laws.
30 Section 8. Limitation on power export.
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1 No more than 15% of the generating capacity of any power
2 plant within the Commonwealth shall be exported.
3 Section 9. Transmission lines.
4 Electric transmission lines shall not exceed 500 kilovolts,
5 and shall be installed and operated so as to prevent corona
6 discharge into the surrounding environment.
7 Section 10. Power Plant Siting Commission.
8 (a) Establishment and composition.--There is hereby
9 established the Power Plant Siting Commission which shall
10 consist of the following:
11 (1) The following officials or their designees:
12 Secretary of Agriculture
13 Secretary of Commerce
14 Secretary of Community Affairs
15 Secretary of Environmental Resources
16 Secretary of Labor and Industry
17 Secretary of Transportation
18 Chairman of the Public Utility Commission.
19 (2) Four citizens appointed by the Governor with the
20 advice and consent of the Senate. Each of the four citizen
21 members shall be a member of one of the following
22 organizations, respectively:
23 Common Cause
24 Friends of the Earth
25 Pennsylvania Chamber of Commerce
26 The Sierra Club
27 Each organization may submit a list of candidates to the
28 Governor for consideration.
29 (b) Special provisions for citizen members.--No citizen
30 member of the commission shall have any financial interest in
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1 any utility. Citizen members shall serve a term of four years
2 and may be reappointed. Every citizen member shall be entitled
3 to reimbursement for his actual expenses incurred in the
4 performance of his duties and compensation of $60 for each day
5 or part thereof in which he participates in the business of the
6 commission.
7 (c) Chairman.--The Governor shall appoint, with the advice
8 and consent of the Senate, a person who shall serve as the
9 chairman of the commission without a vote. The compensation of
10 the chairman shall be determined by the commission after
11 consultation with the Executive Board.
12 (d) Staff.--The commission shall employ an executive
13 director and such other clerical and professional employees as
14 shall be required to administer the provisions of this act.
15 Section 11. Powers and duties of commission.
16 The commission shall have the power and its duty shall be to:
17 (1) Review and compile the long-range power need reports
18 filed under this act and make the information contained in
19 the reports readily available to the public and interested
20 government agencies.
21 (2) Compile and publish each year a description of the
22 type and general location of each proposed power plant as
23 contained in the long-range plans of the utilities pursuant
24 to this act, identifying for each location the year when
25 construction is expected to commence and make such
26 information readily available to the general public, to each
27 newspaper of daily or weekly circulation within the area
28 affected by the proposed facility and to interested
29 government agencies.
30 (3) Conduct mandatory public hearings with respect to
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1 any proposed power plant identified five years in advance of
2 construction and decide whether or not the facility should be
3 approved for inclusion in the utility's five-year inventory
4 of sites and lines. The hearings shall be held promptly after
5 the locations are first identified and the decisions shall be
6 based upon the principles set forth in this act.
7 (4) Conduct public hearings prior to the issuance of any
8 certificate for a power plant as near as feasible to the
9 proposed site within one year from the submission of an
10 application for a certificate and conduct at least one public
11 hearing for transmission lines as near as possible to the
12 proposed transmission line. The commission shall hold as many
13 additional hearings along the proposed route of the
14 transmission line as may be necessary to give the public an
15 adequate opportunity to be heard.
16 (5) Require such information from utilities as the
17 commission deems necessary to accompany applications for
18 certificates and require the utilities to assist in the
19 conduct of hearings and any investigations or studies which
20 the commission may undertake.
21 (6) Conduct such inspections, surveys, monitoring or
22 testing, with or without notice to the utility, as it deems
23 necessary or appropriate to carry out the purposes of this
24 act.
25 (7) Approve, with or without conditions, or disapprove
26 applications for certification filed under section 13 within
27 two years of receipt of the application.
28 (8) Adopt such rules and regulations as are necessary to
29 implement this act.
30 Section 12. Long-range planning.
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1 The commission shall prepare and maintain a comprehensive,
2 integrated power plant plan for this Commonwealth. Every utility
3 shall prepare and submit annually to the commission a long-range
4 power plant report. The report shall contain a ten-year forecast
5 of loads, resources and prospective sites and shall describe the
6 power plants which will be required to supply system demands
7 during the forecast period. The report shall cover the ten-year
8 period next succeeding the date of the report and shall be in
9 such form as may be prescribed by the commission. Each utility
10 shall provide in its report the following information:
11 (1) A description of the general location, size and type
12 of all power plants to be constructed within this
13 Commonwealth during the ensuing ten years by the utility.
14 (2) An identification, description and location of all
15 existing power plants within this Commonwealth to be removed
16 from service upon the completion of the projects described or
17 within the time period provided in this act.
18 (3) Identification of the location of tentative sites
19 within this Commonwealth upon which construction of a power
20 plant is scheduled to commence within the ensuing five-year
21 period. For each tentative site identified, the utility shall
22 describe the type and size of power plant to be constructed,
23 analyze anticipated impact of the facility on the environment
24 and public safety and health and set forth the plan of the
25 utility for avoiding or minimizing any adverse effects on the
26 environment and public safety and health including, but not
27 limited to, those caused by waste products of any kind as
28 well as heated water.
29 (4) A description of plan of the utility to coordinate
30 its power plant plans with those of other utilities so as to
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1 provide an integrated regional and Commonwealth plan for
2 meeting the energy needs of the region and this Commonwealth.
3 (5) A description of its plan to involve Federal,
4 regional, Commonwealth and local government conservation and
5 land-use agencies, as well as public conservation and
6 environmental protection organizations, in their planning so
7 as to identify and minimize environmental problems at the
8 earliest possible stage in the planning process.
9 (6) A statement of the estimate of demand by the utility
10 for power in each year of the time period set under this act.
11 This estimate shall also state particularly:
12 (i) That portion of the demand for power which is to
13 be met by each power plant.
14 (ii) That portion of the demand which originates
15 outside this Commonwealth and that portion which
16 originates within this Commonwealth.
17 (iii) That portion of the power to be produced or
18 transmitted by any power plant which is to be allocated
19 to users within this Commonwealth.
20 (iv) That portion of the power to be produced or
21 transmitted by each power plant which will be allocated
22 to users outside this Commonwealth.
23 (7) Such additional information as the commission may
24 require to implement this act.
25 Section 13. Certification of power plants.
26 (a) General rule.--A utility shall not commence construction
27 or begin operation of a power plant without obtaining a
28 certificate of public need and environmental compatibility from
29 the commission. The facility shall be constructed, operated and
30 maintained in accordance with the terms and conditions required
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1 by the commission and set forth in the certificate.
2 (b) Application.--Application for a certificate shall be on
3 such forms and contain such information as required by the
4 commission, including statements that either the necessary
5 requirements have been met and approvals or consents have been
6 obtained or that the plant complies with the standards and
7 criteria applicable to it, or the reasons why such standards and
8 criteria should be varied for the site, and shall be filed with
9 the commission not less than two years prior to commencement of
10 construction. An application may be amended during the period of
11 review with the approval of the commission. All power plants,
12 the certification of which is applied for, shall be planned for
13 construction on sites in the five-year inventory of sites of the
14 applicant approved by the commission pursuant to this act unless
15 for good cause shown the commission waives this requirement.
16 (c) Fee.--Each application for a certificate filed shall be
17 accompanied by a fee of $2,500 which shall be paid into the
18 General Fund for use in defraying the administrative costs of
19 the commission.
20 (d) Issuance.--No certificate shall be issued until the
21 commission has determined that:
22 (1) The use of the site or routes for which a
23 certificate is sought is consonant with the protection of the
24 environment, public safety and health as provided in this
25 act.
26 (2) The plant for which a certificate is sought is
27 necessary to meet the energy needs of this Commonwealth.
28 (3) The plant is designed to operate in a safe and
29 healthful manner.
30 (4) The plant is consistent with the long-range planning
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1 objectives of this Commonwealth.
2 (5) The plant will have no substantial adverse
3 environmental effect upon parkland, wildlife protection
4 reserves and historic areas.
5 (6) All practical alternative sites and routes have been
6 considered.
7 (7) The provisions of this act have been satisfied and
8 all requirements met or waived and approvals obtained or
9 waived by the agency involved or the commission.
10 (e) Expiration or extension.--Any certificate granted by the
11 commission shall expire if the construction of the plant has not
12 been commenced within five years of the date of issuance. A
13 certificate shall be extended, without an additional fee, for
14 one five-year period upon written request by the utility to the
15 commission.
16 (f) Emergency certification.--Notwithstanding the other
17 provisions of this act, a utility may petition the commission
18 for an interim or emergency certificate based upon its showing
19 that the public interest imperatively requires a prompt decision
20 with respect to the plant. The commission shall adopt rules and
21 regulations for reviewing such petitions, giving due
22 consideration to the effect upon the public of adequate and
23 reliable energy supply and the effect of the lack of prompt
24 action, or of inconclusive action. The commission shall make a
25 decision on the petition within 90 days of the date of filing
26 thereof.
27 (g) Existing plants.--Utilities which have commenced or
28 completed construction of power plants which are not in
29 operation on the effective date of this act shall be issued a
30 certificate, without payment of fee, upon filing with the
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1 commission an application containing the following:
2 (1) A description of the location, type of plant and
3 date operation is scheduled to begin.
4 (2) Evidence that all licenses, permits and approvals
5 required by the Federal, regional, Commonwealth and local
6 governments for the protection of the environment and public
7 welfare, safety and health have been obtained.
8 (3) A statement of the quantity of power to be produced
9 or transmitted, the geographic area to be serviced by the
10 plant and the quantity of power to be generated or
11 transmitted for use within this Commonwealth.
12 Section 14. Interagency cooperation.
13 The Pennsylvania Public Utility Commission, Department of
14 Environmental Resources and other Commonwealth agencies are
15 authorized and required to cooperate with the commission so as
16 to fully coordinate and effectuate the purposes of this act. All
17 Commonwealth agencies shall make available to the commission
18 such information, staff expertise and technical assistance as
19 may be necessary.
20 Section 15. Judicial review.
21 Within 30 days of the grant, denial, revocation or suspension
22 of a certificate by the commission, any aggrieved party to the
23 proceeding may appeal the action of the commission to the
24 Commonwealth Court. The findings of fact on which such decision
25 is based shall be conclusive if supported by substantial
26 evidence on the record considered as a whole.
27 Section 16. Actions to enjoin violations.
28 When the commission determines that a utility has begun to
29 construct, operate or maintain a power plant as provided in this
30 act without having first obtained a certificate, or has begun to
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1 construct, operate or maintain a power plant other than in
2 compliance with the certificate issued to it, or has caused any
3 of these acts to occur, it shall so notify the Attorney General
4 who shall bring an action for injunctive and other appropriate
5 relief on behalf of the Commonwealth.
6 Section 17. Reimbursement of costs.
7 (a) Planning costs.--Any political subdivision, referred to
8 in this act as "local taxing authority," which would be directly
9 affected by the location of a proposed power plant owned by a
10 public utility for which certification under section 13(a) is
11 sought shall be eligible for reimbursement for legal and expert
12 consultant fees, planning costs and other expenses incurred in
13 determining the impact of the proposed plant and costs incurred
14 in preparing testimony incident thereto. The reimbursement shall
15 be in an amount determined by the commission but shall not
16 exceed 75% of the actual expenditures of the local taxing
17 authority or $25,000 for any local taxing authority or $100,000
18 for any proposed site.
19 (b) Impact costs.--Each local taxing authority which is
20 directly affected by the location of a power plant owned by a
21 public utility certified pursuant to the provisions of section
22 13 shall be eligible for reimbursement for the actual costs or
23 portion thereof incurred or to be incurred by the local taxing
24 authority on account of expenditures directly related to the
25 construction of a power plant as determined by the commission.
26 Reimbursable items of expenditure shall include, but are not
27 limited to, public service costs for fire, police, roads, solid
28 waste, sewage, education, health, welfare, recreation and
29 related administration. The total amount distributed on account
30 of any one certified site shall not exceed $850,000 and the
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1 total amount distributed in any fiscal year by the commission
2 for impact costs shall not exceed $2,000,000.
3 (c) Revolving fund for financing capital projects.--Any
4 municipality that is required to construct or expand a major
5 public capital facility including, but not limited to, streets
6 or highways, bridges, sewage disposal and sewage treatment
7 facilities, solely by virtue of the direct or indirect effects
8 attributable to the location and construction of a power plant
9 owned by a public utility shall be eligible for an advance from
10 a revolving fund hereby established to finance part or all of
11 such capital facility. Any advance from the fund shall be repaid
12 in annual installments and shall not bear interest. The
13 commission shall establish a repayment schedule for each
14 advance, not to exceed ten years, taking into account the amount
15 thereof and the fiscal capacity of the municipality.
16 (d) Administration of payments.--The distributions provided
17 for in subsections (a), (b) and (c) shall be made by the
18 commission from funds appropriated to it for such purposes. In
19 all cases the commission shall insure that:
20 (1) All costs and expenditures reimbursed are
21 attributable to the location or construction of the power
22 plant.
23 (2) The costs and expenditures are necessary to the
24 welfare and well-being of the residents of the local taxing
25 authority and do not finance a level of public services
26 higher than would exist absent the power plant.
27 (3) No payment shall exceed actual costs incurred or to
28 be incurred by a local taxing authority.
29 The commission shall have the authority to allocate funds in the
30 event requests for distributions exceed applicable limits.
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1 Section 18. Annual distributions to reduce tax burden.
2 (a) General rule.--The local taxing authorities in which is
3 located every electric generating plant owned by a public
4 utility subject to the jurisdiction of the Pennsylvania Public
5 Utility Commission or the corresponding regulatory agency of any
6 other state or of the United States, but not including a
7 municipality or municipal authority, shall be entitled to an
8 annual subvention calculated by reference to the net annual
9 generation of electricity by the plant.
10 (b) Calculation of gross amount.--The gross subvention
11 attributable to any generating plant shall be the sum of:
12 $300 per million kilowatt-hours for each of the first 500
13 million kilowatt-hours generated.
14 $150 per million kilowatt-hours for each of the next
15 1,000 million kilowatt-hours generated.
16 $20 per million kilowatt-hours for all kilowatt-hours
17 generated in excess of 1,500 million kilowatt-hours.
18 (c) Distributions among local taxing authorities.--
19 (1) Plant located in only one county.--If an electric
20 generating plant, including such surrounding real property as
21 is necessary for its operation, is located in only one county
22 the gross amount calculated under subsection (b) shall be
23 allocated to local taxing authorities under the following
24 formula:
25 65% to the school district or school districts of
26 location (notwithstanding that a portion of a school
27 district lies in another county).
28 15% to the municipal corporation or corporations of
29 location.
30 20% to the county.
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1 If the plant is located in more than one school district or
2 more than one municipal corporation within the county, the
3 amounts so allocated shall be divided among the individual
4 school districts or among the individual municipal
5 corporations on the basis of the proportion of the total
6 assessed value of the real property of the plant which lies
7 in each school district or in each municipal corporation.
8 (2) Plant located in more than one county.--In the event
9 an electric generating plant is located in more than one
10 county, the gross amount calculated under subsection (b)
11 shall be allocated among the counties on the basis of the
12 proportion of the total equalized assessed value of the real
13 property of the plant which lies in each county. The
14 assessed-market value ratios, as ascertained by the State Tax
15 Equalization Board for each county for school subsidy
16 purposes, shall be utilized to equalize the county-assessed
17 values of the real property of the plant. The amounts so
18 allocated shall be divided among the local taxing authorities
19 in each county in accordance with the provisions of paragraph
20 (1).
21 (d) Reports.--Annually, on or before April 1, every public
22 utility shall report to the commission the following information
23 for each electric generating plant which it operates:
24 (1) The location by local taxing authority.
25 (2) The assessed value for county tax purposes of the
26 plant (including such surrounding real property as is
27 necessary for its operation) and the assessed values of the
28 portions of the plant, if any, which are not located within
29 coincident local taxing authorities.
30 (3) The net kilowatt-hours of electricity generated
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1 during the preceding calendar year. In the case of pumped
2 storage generating plants, net electricity generated shall be
3 generation exclusive of plant use.
4 (4) Such additional information as may be required by
5 the commission to administer this act.
6 (e) Payments.--The annual subvention authorized by this
7 section shall be calculated by the commission on the basis of
8 the information furnished pursuant to subsection (d) and payment
9 shall be made to each eligible local taxing authority on or
10 before June 30 of each year. No payment shall be made on account
11 of any plant for which the gross subvention calculated under
12 subsection (b) is less than $1,000.
13 (f) Use of payments.--Every local taxing authority shall use
14 the annual payments received under this section to permanently
15 reduce real property and other local taxes. The relief from
16 taxes granted under this act shall not be eroded by any local
17 taxing authority so as to defeat the purpose of this act. Any
18 person objecting to an increase in the rate of local taxes on
19 the ground that the increase erodes the tax relief made
20 available under this act may petition the court of common pleas
21 for equitable relief.
22 Section 19. Limitation on payments to political subdivisions.
23 If the Commonwealth is sued by a party seeking to prohibit
24 the collection of the tax provided for in section 1101(b) of the
25 act of March 4, 1971 (P.L.6, No.2), known as the "Tax Reform
26 Code of 1971," no payments to local taxing authorities shall be
27 made under the provisions of Subchapter C of Chapter 51 of Title
28 66 of the Pennsylvania Consolidated Statutes (relating to
29 payments to political subdivisions) during the pendency of the
30 suit or if the tax is ultimately determined by a court to be
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1 invalid.
2 Section 20. Appropriations.
3 (a) Appropriation.--The following sums are hereby
4 specifically appropriated for the fiscal year July 1, 1978 to
5 June 30, 1979 for the following purposes and in the following
6 amounts:
7 (1) For reimbursement to local governments for planning
8 and impact costs as provided in section 17(a) and (b),
9 $1,600,000.
10 (2) For the revolving fund for capital projects as
11 provided in section 17(c), $1,500,000.
12 (3) For annual subventions to eligible local taxing
13 authorities as provided in section 18, $11,500,000.
14 (4) For administrative purposes for the Power Plant
15 Siting Commission, $140,000.
16 (b) Revolving fund.--The General Assembly hereby declares
17 its intent to annually appropriate $1,500,000 for the revolving
18 fund for capital projects as provided in section 17(c) until the
19 total amount appropriated has reached $7,000,000 and that
20 thereafter the fund shall be self-sustaining.
21 Section 21. Effective date.
22 This act shall take effect July 1, 1978 or in 30 days,
23 whichever is later.
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