PRINTER'S NO. 1269

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1121 Session of 1987


        INTRODUCED BY STAIRS, PETRARCA, HERMAN, GRUPPO, J. L. WRIGHT,
           ARTY, COLAFELLA, F. TAYLOR, HALUSKA, VAN HORNE, NAHILL,
           SCHEETZ, FISCHER, SEMMEL, PETRONE, D. W. SNYDER, HECKLER AND
           BLACK, APRIL 27, 1987

        REFERRED TO COMMITTEE ON MINES AND ENERGY MANAGEMENT,
           APRIL 27, 1987

                                     AN ACT

     1  Providing for the production, distribution, conservation and
     2     consumption of energy in the Commonwealth of Pennsylvania;
     3     establishing the State Energy Commission and providing for
     4     its powers and duties; transferring powers and duties of the
     5     Governor's Energy Council and certain powers, duties and
     6     agencies of the Department of Environmental Resources to the
     7     State Energy Commission; providing for an energy master plan;
     8     establishing the Division of Administrative Hearings within
     9     the Office of Attorney General; providing penalties; and
    10     making an appropriation.

    11     The General Assembly hereby finds and declares that a secure,
    12  stable and adequate supply of energy at reasonable prices is
    13  vital to the economy of this Commonwealth and to the public
    14  health, safety and welfare; that this Commonwealth is threatened
    15  by the prospect of both short-term and long-term energy
    16  shortages; that the existing dispersion of responsibilities with
    17  respect to energy and energy-related matters among various State
    18  departments, divisions, agencies and commissions inhibits
    19  comprehensive and effective planning for our future energy
    20  needs; and that the State government does not now possess either


     1  sufficient information or adequate authority to provide for and
     2  insure the wise and efficient production, distribution, use and
     3  conservation of energy.
     4     The General Assembly further finds that only an agency with
     5  comprehensive powers can collect, collate and analyze the
     6  information necessary to determine the amount of energy that is
     7  or may be available; develop mechanisms to insure a fair and
     8  equitable distribution of existing supplies; conduct the long-
     9  term planning and management necessary to eliminate or alleviate
    10  the potential adverse effects of a supply of energy insufficient
    11  to meet legitimate needs or, from practices of production,
    12  distribution and consumption, detrimental to the quality of life
    13  or the environment; coordinate Pennsylvania's energy policies
    14  and actions with Federal energy policies; and secure for
    15  Pennsylvania the maximum amount of Federal funding available for
    16  energy-related research, development and demonstration projects.
    17     The General Assembly further finds that shortages of energy
    18  have the potential at certain times and in certain places to so
    19  seriously affect the public interest that it is necessary for
    20  State government to possess emergency powers sufficient to
    21  prevent or minimize health disasters and grave economic
    22  disruptions which could occur during these times.
    23     The General Assembly therefore declares it to be in the best
    24  interest of the citizens of this Commonwealth to establish a
    25  principal agency to coordinate authority, regulation and
    26  planning by the Commonwealth in energy-related matters.
    27                         TABLE OF CONTENTS
    28  Chapter 1.  Preliminary Provisions
    29  Section 101.  Short title.
    30  Section 102.  Definitions.
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     1  Chapter 3.  State Energy Commission
     2  Section 301.  Establishment and composition.
     3  Section 302.  Meetings, quorum, etc.
     4  Section 303.  Secretary of Environmental Resources and Chairman
     5                 of Pennsylvania Public Utility Commission.
     6  Section 304.  Organization.
     7  Section 305.  Divisions.
     8  Section 306.  Transfer of certain functions, powers and duties.
     9  Section 307.  Executive administrator.
    10  Section 308.  Powers and duties of executive administrator.
    11  Section 309.  Powers and duties of commission.
    12  Section 310.  Energy master plan.
    13  Section 311.  Emergency allocation plan.
    14  Section 312.  Contingency plans.
    15  Chapter 5.  Administrative Hearings
    16  Section 501.  Division of Administrative Hearings.
    17  Section 502.  Appeals.
    18  Section 503.  Rules and regulations.
    19  Section 504.  Hearing examiners.
    20  Section 505.  Subpoenas.
    21  Chapter 7.  Enforcement
    22  Section 701.  Conflict of interest.
    23  Section 702.  Violations and penalties.
    24  Chapter 21.  Miscellaneous Provisions
    25  Section 2101.  Transfer provision.
    26  Section 2102.  Civil service.
    27  Section 2103.  Construction of act.
    28  Section 2104.  Initial appointments.
    29  Section 2105.  Staff availability.
    30  Section 2106.  Annual report.
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     1  Section 2107.  Appropriation.
     2  Section 2108.  Repeals.
     3  Section 2109.  Sunset.
     4  Section 2110.  Effective date.
     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7                             CHAPTER 1
     8                       PRELIMINARY PROVISIONS
     9  Section 101.  Short title.
    10     This act shall be known and may be cited as the State Energy
    11  Act.
    12  Section 102.  Definitions.
    13     The following words and phrases when used in this act shall
    14  have the meanings given to them in this section unless the
    15  context clearly indicates otherwise:
    16     "Chairman."  The chairman of the commission.
    17     "Commission."  The State Energy Commission.
    18     "Electrical energy."  The energy produced as the result of
    19  the generation of electricity in any manner.
    20     "Energy."  The capacity to do work or to produce heat, this
    21  potential being transferred from any fuel or source whatsoever.
    22     "Energy emergency."  A condition of imminent danger to the
    23  economic well-being, health, safety or welfare of the people of
    24  this Commonwealth.
    25     "Energy resource."  Any substance or process used primarily
    26  for its energy content or capacity for producing energy,
    27  including, but not limited to, coal, crude oil, geothermal
    28  energy, natural gas, nuclear energy, petroleum, petroleum
    29  derivative, solar energy, synthetic natural gas or wind energy.
    30     "Executive administrator" or "administrator."  The executive
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     1  administrator of the commission.
     2     "Liquid fuel."  Petroleum or any other liquid substance
     3  capable of providing energy.
     4     "Natural gas."  A naturally occurring mixture of hydrocarbon
     5  and hydrocarbon gases found in porous geological formations
     6  beneath the earth's surface, often in association with
     7  petroleum.
     8     "Nonrenewable energy resource."  Any substance the use of
     9  which diminishes its availability or abundance, including, but
    10  not limited to, coal, natural gas, petroleum or uranium.
    11     "Person."  Any individual, partnership, corporation, joint
    12  venture, association, governmental subdivision, or public or
    13  private organization of any character, including another entity,
    14  other than a Federal agency.
    15     "Renewable energy resource."  Any method, process or
    16  substance the use of which does not diminish its availability or
    17  abundance, including, but not limited to, biomass conversion,
    18  geothermal energy, solar energy, wind energy, wood or any type
    19  of nuclear energy whereby more fuel is produced than is used.
    20     "Utility."  Any person who distributes, transports or
    21  produces natural gas or electricity for use or consumption in
    22  this Commonwealth.
    23                             CHAPTER 3
    24                      STATE ENERGY COMMISSION
    25  Section 301.  Establishment and composition.
    26     (a)  Establishment.--There is hereby established an
    27  independent commission to be known as the State Energy
    28  Commission.
    29     (b)  Composition.--The commission shall be composed of seven
    30  members, as follows:
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     1         (1)  Five members appointed by the Governor with the
     2     advice and consent of two-thirds of the elected members of
     3     the Senate. Each of these appointed members shall have at
     4     least five years' experience in the areas of energy
     5     development, engineering, research, education, production,
     6     generation, distribution, regulation or similar energy areas
     7     or a combination of at least three years' experience in the
     8     aforementioned fields and at least two years' experience in
     9     management, public administration, finance, accounting, law
    10     or similar areas.
    11         (2)  One member appointed by the President pro tempore of
    12     the Senate.
    13         (3)  One member appointed by the Speaker of the House of
    14     Representatives.
    15     (c)  Terms.--Members shall serve a term of five years and
    16  until their successors are appointed and confirmed.
    17  Section 302.  Meetings, quorum, etc.
    18     (a)  Meetings.--The commission shall meet at least six times
    19  a year and shall also, from time to time, hold public hearings
    20  to receive the views of the public. The commission may meet at
    21  any time on call of the chairman or a majority of the members.
    22     (b)  Chairman.--Annually, at its first meeting, the
    23  commission shall select a chairman and a secretary from among
    24  its members.
    25     (c)  Quorum.--A quorum shall consist of a majority of the
    26  members of the commission, including at least one of the members
    27  appointed by either the President pro tempore of the Senate or
    28  the Speaker of the House of Representatives. Any action taken by
    29  the commission shall, however, require the affirmative votes of
    30  at least four members.
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     1     (d)  Vacancies.--Vacancies shall be filled in the same manner
     2  as the original appointment was made and for the remainder of
     3  the unexpired term. Vacancies occurring among members appointed
     4  by the Governor while the Senate is not in session shall be
     5  filled on an interim basis until the Senate next convenes, when
     6  such appointee shall be confirmed.
     7     (e)  Expenses.--Members shall receive no compensation but
     8  shall be entitled to reimbursement for all necessary and
     9  reasonable expenses, in accordance with the rules of the
    10  Executive Board.
    11  Section 303.  Secretary of Environmental Resources and Chairman
    12                 of Pennsylvania Public Utility Commission.
    13     The Secretary of Environmental Resources and the Chairman of
    14  the Pennsylvania Public Utility Commission, or their designees,
    15  shall serve as ex officio, nonvoting members of the commission,
    16  whose presence shall not be counted for a quorum or for voting
    17  requirements.
    18  Section 304.  Organization.
    19     Personnel of the commission shall be organized into an Office
    20  of the Executive Administrator and three divisions. The
    21  commission shall appoint as the head of each of the following
    22  divisions, upon recommendation of the executive administrator, a
    23  person knowledgeable and experienced in the area or areas for
    24  which that division is responsible:
    25         (1)  Office of Administration.
    26         (2)  Office of Energy Policy and Programs.
    27         (3)  Office of Energy Planning and Evaluation.
    28  Section 305.  Divisions.
    29     (a)  Office of Executive Administrator.--
    30         (1)  The Office of the Executive Administrator is
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     1     responsible for the general administration and coordination
     2     of the commission and its divisions.
     3         (2)  The commission shall appoint a Chief Counsel who
     4     shall supply legal services to the commission.
     5     (b)  Office of Administration.--
     6         (1)  The Office of Administration shall be headed by a
     7     Director of Administration, to be appointed by the commission
     8     upon recommendation of the executive administrator. The
     9     director shall report to and be directly responsible to the
    10     executive administrator.
    11         (2)  The Office of Administration shall have
    12     responsibility with regard to personnel and fiscal
    13     management, information systems, office systems and services,
    14     and other such responsibilities as may be assigned by the
    15     executive administrator.
    16     (c)  Office of Energy Policy and Programs.--
    17         (1)  The Office of Energy Policy and Programs shall be
    18     headed by a Director of Energy Policy and Programs, to be
    19     appointed by the commission upon recommendation of the
    20     executive administrator.
    21         (2)  The Office of Energy Policy and Programs shall have
    22     responsibility with regard to intergovernmental affairs,
    23     grants administration, nuclear issues and radiation
    24     protection, mines and mineral resources, oil and gas
    25     management, renewable and alternative technologies, energy
    26     conservation programs, and other such responsibilities as may
    27     be assigned by the executive administrator.
    28     (d)  Office of Energy Planning and Evaluation.--
    29         (1)  The Office of Energy Planning and Evaluation shall
    30     be headed by a Director of Energy Planning and Evaluation, to
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     1     be appointed by the commission upon recommendation of the
     2     executive administrator.
     3         (2)  The Office of Energy Planning and Evaluation shall
     4     have responsibility with regard to regulatory affairs,
     5     emergency preparedness, budget and program evaluation,
     6     utility affairs, community relations and public information,
     7     and other such responsibilities as may be assigned by the
     8     executive administrator.
     9  Section 306.  Transfer of certain functions, powers and duties.
    10     All functions, powers and duties now vested in the following
    11  organizational units are hereby transferred and vested in the
    12  commission:
    13         (1)  The Governor's Energy Council.
    14         (2)  The following bureaus of the Department of
    15     Environmental Resources:
    16             (i)  Bureau of Abandoned Mine Reclamation.
    17             (ii)  Bureau of Deep Mine Safety.
    18             (iii)  Bureau of Mining and Reclamation.
    19             (iv)  Bureau of Oil and Gas Management.
    20             (v)  Bureau of Radiation Protection.
    21         (3)  The following boards and commissions of the
    22     Department of Environmental Resources:
    23             (i)  Coal Mining and Reclamation Advisory Board.
    24             (ii)  Anthracite Mine Inspectors' Examining Board.
    25             (iii)  Mine Inspectors' Examining Board for the
    26         Bituminous Coal Mines.
    27             (iv)  Oil and Gas Conservation Commission.
    28  Section 307.  Executive administrator.
    29     (a)  Appointment.--The commission shall be administered by an
    30  executive administrator who shall be appointed by the
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     1  commission. The executive administrator shall have at least five
     2  years' experience in the field of energy development,
     3  engineering, research, education, production, generation,
     4  regulation or distribution and shall have experience in
     5  management or administration. The executive administrator shall
     6  serve at the will and pleasure of the commission. He may be
     7  removed from office by a vote of not less than five members of
     8  the commission, including at least one member appointed by
     9  either the President pro tempore of the Senate or the Speaker of
    10  the House of Representatives.
    11     (b)  Deputy administrator.--The executive administrator shall
    12  appoint a deputy administrator. The deputy administrator shall
    13  assume all responsibility and authority vested in the executive
    14  administrator upon the absence of the executive administrator.
    15  The deputy administrator will have specific responsibilities as
    16  are assigned by the executive administrator.
    17  Section 308.  Powers and duties of executive administrator.
    18     The executive administrator shall have the power and duty to:
    19         (1)  Administer, monitor and review the programs and
    20     policies of the commission.
    21         (2)  Assure that all divisions of the commission fully
    22     execute the separate duties and responsibilities assigned to
    23     each and, with the approval of the commission, to reorganize
    24     divisions and duties of the commission as necessary.
    25         (3)  Submit to the commission for approval all of the
    26     major actions, programs and policies of the commission.
    27         (4)  Advise the commission, the Governor and the General
    28     Assembly on State and Federal energy policies, practices,
    29     programs and legislation.
    30         (5)  Make recommendations to the Governor and the General
    19870H1121B1269                 - 10 -

     1     Assembly for appropriate actions to be taken in an energy
     2     emergency.
     3         (6)  Recommend energy policy to the commission, including
     4     alternatives, for implementation in this Commonwealth.
     5         (7)  Maintain continuous liaison with energy suppliers,
     6     distributors and other State and Federal agencies concerned
     7     with energy-related matters.
     8         (8)  Assist other State agencies with specific energy
     9     problems.
    10         (9)  Coordinate the State's activities with respect to
    11     proposed energy projects by seeking to minimize economic and
    12     environmental costs associated with energy production and
    13     distribution.
    14         (10)  Recommend rules and regulations to the commission.
    15         (11)  Submit, with the approval of the commission,
    16     proposed legislation for consideration by the General
    17     Assembly.
    18         (12)  Enforce all contracts or agreements entered into by
    19     the commission.
    20         (13)  Contract for and accept any gifts, grants, loans or
    21     appropriations of funds or property, or financial or other
    22     aid in any form from Federal energy-related agencies,
    23     departments, or their successors or any other agency or
    24     instrumentality of the Federal Government, or from the
    25     Commonwealth or any agency, instrumentality or political
    26     subdivision thereof, or from any other source for the use of
    27     the commission; and to design and administer a grant program
    28     in accordance with Federal and State laws and regulations.
    29         (14)  Receive applications for and recommend to the
    30     commission grants from such other funds as are available,
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     1     including funds from State sources, and to establish
     2     administrative practices for the accounting and monitoring of
     3     the use of such funds according to State financial procedures
     4     or additional safeguards which in the judgment of the
     5     commission, may be advisable.
     6         (15)  Participate, in cooperation with the Attorney
     7     General of the Commonwealth and other appropriate State
     8     government entities, and in accordance with Federal law, in
     9     Federal agency decisionmaking.
    10         (16)  Employ, on a temporary basis, such persons as are
    11     necessary to effect the provisions of the commission.
    12         (17)  Issue orders to assure compliance with rules and
    13     regulations, as approved.
    14  Section 309.  Powers and duties of commission.
    15     The commission shall have the power and duty to:
    16         (1)  Serve as the central repository for collection of
    17     energy information.
    18         (2)  Collect and analyze data relating to present and
    19     future demands and resources for all forms of energy.
    20         (3)  Request all entities engaged in production,
    21     distribution, transmission and storage of energy in any form
    22     to submit pertinent energy data, not including certain
    23     information deemed by the executive administrator to be
    24     confidential in nature.
    25         (4)  Establish an energy information forecasting system.
    26         (5)  Design, implement and enforce a program for
    27     conservation of energy in commercial, industrial and
    28     residential facilities.
    29         (6)  Conduct and supervise a Statewide educational
    30     program on energy conservation.
    19870H1121B1269                 - 12 -

     1         (7)  Monitor energy prices and evaluate rate and price
     2     policies.
     3         (8)  Conduct and supervise energy projects and programs.
     4         (9)  Distribute and expend funds made available for
     5     research and programs.
     6         (10)  Enter into interstate compacts to carry out energy
     7     research and planning with other states or the Federal
     8     Government.
     9         (11)  Apply for, accept and expend grants-in-aid and
    10     assistance for energy programs from private and public
    11     sources.
    12         (12)  Require annual submission of energy utilization
    13     reports and conservation plans by all Commonwealth
    14     departments and agencies.
    15         (13)  Issue subpoenas and conduct hearings and
    16     investigations.
    17         (14)  Administer Federal regulations as are applicable.
    18         (15)  Acquire, purchase, grant and contract for eminent
    19     domain title to real property to demonstrate facilities for
    20     improved energy efficiency.
    21         (16)  Construct and operate facilities which improve
    22     energy efficiency.
    23         (17)  Contract with any other public agency or
    24     corporation.
    25         (18)  Determine the effect of energy and fuel shortages
    26     on consumers.
    27         (19)  Keep complete and accurate minutes of all hearings
    28     held before the commission or any division of the agency.
    29         (20)  Develop an energy master plan for submission to the
    30     Governor and the General Assembly.
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     1         (21)  Develop an emergency allocation plan which
     2     specifies actions to be taken in the event of an impending
     3     serious shortage of energy that poses grave threats to the
     4     public health, safety or welfare.
     5         (22)  Authorize the Governor to proclaim, if needed, a
     6     state of energy emergency through executive order, which
     7     shall remain in effect until the Governor declares through
     8     subsequent order that the state of energy emergency has
     9     terminated.
    10         (23)  Make and execute contracts or leases in the name of
    11     the Commonwealth, with the approval of the Governor, and
    12     enter into agreements with owners or lessees of property or
    13     property rights located in the same areas as lands owned or
    14     leased by the Commonwealth for the protection, preservation
    15     or recovery of metallic or nonmetallic ore, oil, natural gas
    16     or any other mineral deposits underlying these lands,
    17     provided that the deposits are owned by the Commonwealth,
    18     whenever it is determined by the commission that it would be
    19     for the best interests of the Commonwealth to make such
    20     disposition of the deposits. Any proposed contracts or leases
    21     for the extraction or recovery of metallic or nonmetallic
    22     ore, oil, natural gas or other minerals shall have been
    23     published once a week for three consecutive weeks, in at
    24     least two newspapers of general circulation in the locality
    25     where the extraction or recovery is to be located, prior to
    26     awarding such contract or lease. Such contract or lease shall
    27     be awarded to the highest and best bidder capable for the
    28     proper performance of the contract. However, where the
    29     Commonwealth owns a fractional interest in the oil, natural
    30     gas and other minerals, the requirement of competitive
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     1     bidding may be waived, and the commission may enter into a
     2     contract to lease that fractional interest, with the approval
     3     of the Governor and upon such terms and conditions as the
     4     commission deems to be in the best interest of the
     5     Commonwealth.
     6         (24)  Make and execute contracts or leases, in the name
     7     of the Commonwealth, for the mining or removal of any
     8     valuable minerals that may be found in State forests, or of
     9     oil and gas beneath those waters of Lake Erie owned by the
    10     Commonwealth, or of oil and gas beneath the land of Woodville
    11     State Hospital owned by the Commonwealth, whenever it appears
    12     to the satisfaction of the commission that it would be for
    13     the best interests of the Commonwealth to make such
    14     disposition of these materials. Any proposed contracts or
    15     leases of valuable minerals exceeding $1,000 in value shall
    16     be advertised once a week for three weeks, in at least two
    17     newspapers published nearest the locality indicated, in
    18     advance of awarding such contract or lease. Such contracts or
    19     leases may then be awarded to the highest and best bidder,
    20     who shall give bond for the proper performance of the
    21     contract as the commission designates. However, where the
    22     Commonwealth owns a fractional interest in the oil, natural
    23     gas and other minerals under State forest lands, the
    24     requirement of competitive bidding may be waived, and the
    25     commission may enter into a contract to lease that fractional
    26     interest, with the approval of the Governor and upon such
    27     terms and conditions as the commission deems to be in the
    28     best interest of the Commonwealth.
    29         (25)  Enter into agreements to sell, lease or otherwise
    30     dispose of any iron, coal, limestone, fire-clay, oil, gas and
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     1     other minerals, except sand and gravel and minerals deposited
     2     in pools created by dams, that may be found in or beneath the
     3     beds of navigable streams or bodies of water within this
     4     Commonwealth and nonnavigable streams or bodies of water
     5     where the beds thereof are owned by the Commonwealth, on such
     6     terms and conditions as the commission deems to be in the
     7     best interest of the Commonwealth. Nothing herein shall
     8     authorize the interference with free navigation of these
     9     streams or bodies of water or to undermine the bed thereof or
    10     to interfere with the rights of any person or persons holding
    11     property on the banks thereof.
    12         (26)  Enter into contracts:
    13             (i)  To implement the Abandoned Mine Reclamation
    14         Program under Title IV of the Surface Mining Control and
    15         Reclamation Act of 1977 (Public Law 95-87, 30 U.S.C.
    16         Section 1231 et seq.).
    17             (ii)  For the abatement and control work authorized
    18         under the act of January 19, 1968 (1967 P.L.996, No.443),
    19         known as The Land and Water Conservation and Reclamation
    20         Act.
    21             (iii)  To reclaim abandoned surface mines as provided
    22         for in the act of May 31, 1945 (P.L.1198, No.418), known
    23         as the Surface Mining Conservation and Reclamation Act,
    24         the act of September 24, 1968 (P.L.1040, No.318), known
    25         as the Coal Refuse Disposal Control Act, and the act of
    26         December 19, 1984 (P.L.1093, No.219), known as the
    27         Noncoal Surface Mining Conservation and Reclamation Act.
    28             (iv)  To restore, repair or mitigate damages as
    29         provided for in the act of April 27, 1966 (1st Sp.Sess.,
    30         P.L.31, No.1), known as The Bituminous Mine Subsidence
    19870H1121B1269                 - 16 -

     1         and Land Conservation Act.
     2             (v)  To plug abandoned oil and gas wells as provided
     3         for in the act of December 19, 1984 (P.L.1140, No.223),
     4         known as the Oil and Gas Act.
     5     In all cases in which the commission enters into a contract
     6     and the other party to the contract is required to post a
     7     bond or other acceptable security to be held to apply as a
     8     credit against any unpaid balances or to carry out any
     9     unfulfilled conditions, the moneys of these bonds or
    10     securities shall accrue to the benefit of the commission
    11     insofar as necessary to indemnify the commission and the
    12     Commonwealth from all losses caused by failure of the
    13     contracting party to fulfill any contract condition. Moneys
    14     not required by the commission to pay unpaid balances or to
    15     fulfill contract conditions shall accrue to the General Fund.
    16     Where the contract was awarded under paragraph (25), the
    17     excess moneys shall be deposited into the fund under which
    18     the contract was authorized.
    19         (27)  Assure that the mining laws of this Commonwealth
    20     are faithfully executed and, for that purpose, cause lawfully
    21     qualified mine inspectors to enter, inspect and examine any
    22     mine or colliery within this Commonwealth and the works and
    23     machinery connected therewith.
    24         (28)  Give such aid and instruction to the mine
    25     inspectors, from time to time, as may be calculated to
    26     protect the health and promote the safety of all persons
    27     employed in and about the mines. Subject to any inconsistent
    28     provisions contained in this act, anthracite mine inspectors
    29     and bituminous mine inspectors shall, respectively, under the
    30     direction of the executive administrator, continue to
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     1     exercise the powers and perform the duties vested in and
     2     imposed upon them by law.
     3         (29)  Make such examinations and investigations as may be
     4     necessary to enable it to make recommendations upon any
     5     matters pertaining to the general welfare of coal miners and
     6     others connected with mining and the interests of mine owners
     7     and operators in this Commonwealth.
     8         (30)  In those instances where such work is in the
     9     interest of the public welfare, seal, close or backfill
    10     abandoned deep or strip coal mines; plug abandoned oil and
    11     gas wells, other than those governed by the Oil and Gas Act;
    12     fill voids in abandoned coal mines; drill bore holes, dig
    13     ditches or construct flumes which would relieve flooding or
    14     hazardous conditions caused by mine water; and extinguish
    15     fires in abandoned coal mines and in culm banks.
    16         (31)  Administer the laws and regulations of this
    17     Commonwealth relating to the drilling and operation of oil
    18     and gas wells and gas storage reservoirs.
    19         (32)  Administer the laws and regulations of this
    20     Commonwealth which regulate:
    21             (i)  the construction, operation and maintenance of
    22         dams, water obstructions or encroachments for hydraulic
    23         and hydroelectric power;
    24             (ii)  stream-raising and steam condensation
    25         reservoirs; and
    26             (iii)  any dam, impoundment, embankment and other
    27         water obstruction and encroachment necessary for the
    28         extraction, recovery or processing of metallic and
    29         nonmetallic ore, oil, gas and other minerals.
    30         (33)  Formulate, adopt and promulgate such rules and
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     1     regulations necessary for the proper performance of the work
     2     of the commission, and continue to exercise any power to
     3     formulate, adopt and promulgate rules and regulations
     4     relating to any matter within the jurisdiction of the
     5     commission heretofore vested in the Environmental Quality
     6     Board or other departments and boards. Any such rules or
     7     regulations promulgated prior to the effective date of this
     8     act shall be the rules and regulations of the commission
     9     until such time as they are modified, repealed, suspended,
    10     superseded or otherwise changed by the commission. Any rule,
    11     regulation, policy or procedure pertaining to matters within
    12     the jurisdiction of the commission in effect on the effective
    13     date of this act shall be reviewed by the executive
    14     administrator on the written request of a person
    15     substantially affected by the rule, regulation, policy or
    16     procedure. The executive administrator shall initiate a
    17     review within 30 days of receipt of the request and issue a
    18     decision in writing within 90 days of receipt of the request
    19     to retain, modify or suspend, and the reasons therefor.
    20         (34)  Cooperate with all other Federal and State agencies
    21     in carrying out its responsibilities.
    22  Section 310.  Energy master plan.
    23     The commission shall prepare and, after public hearing,
    24  adopt, within one year from the effective date of this act, an
    25  energy master plan for a period of five years on the production,
    26  distribution, consumption and conservation of energy in this
    27  Commonwealth and shall submit the plan and any amendments
    28  thereto to the Governor and the General Assembly.
    29  Section 311.  Emergency allocation plan.
    30     The commission shall include, as part of the energy master
    19870H1121B1269                 - 19 -

     1  plan and in conjunction with the Pennsylvania Public Utility
     2  Commission and the Pennsylvania Emergency Management Agency, an
     3  emergency allocation plan. Such emergency plan shall include a
     4  schedule of emergency energy curtailment based on a uniform
     5  classification of energy consumers, specifying actions to be
     6  taken in event of an energy emergency, as proclaimed by the
     7  Governor, and further specifying what actions an energy industry
     8  and its customers are to take in the event of such emergency.
     9  Section 312.  Contingency plans.
    10     The commission shall direct all Commonwealth agencies to
    11  develop, subject to approval by the commission, contingency
    12  plans for dealing with these emergencies. Those portions of such
    13  emergency allocation plans or contingency plans specifically
    14  pertaining to energy industries regulated by the Pennsylvania
    15  Public Utility Commission shall be made available to the
    16  commission in such time period as shall be directed.
    17                             CHAPTER 5
    18                      ADMINISTRATIVE HEARINGS
    19  Section 501.  Division of Administrative Hearings.
    20     (a)  Establishment.--There is hereby established the Division
    21  of Administrative Hearings in the Office of Attorney General.
    22     (b)  Powers and duties.--
    23         (1)  The division shall have the power and its duties
    24     shall be to hold hearings and issue adjudications under Title
    25     2 of the Pennsylvania Consolidated Statutes (relating to
    26     administrative law and procedure), on any decision or action
    27     of the energy commission, including, but not limited to,
    28     notice of violation, penalty assessment, order, permit,
    29     license, or the whole or part of a rule or equivalent. A
    30     decision or action shall be considered final when reduced to
    19870H1121B1269                 - 20 -

     1     writing, whether affirmative, negative, injunctive or
     2     declaratory in form.
     3         (2)  The division shall exercise any power to hold
     4     hearings and issue adjudications relating to any matter
     5     within the jurisdiction of the commission which may
     6     heretofore have been heard by the Environmental Hearing
     7     Board.
     8  Section 502.  Appeals.
     9     (a)  General rule.--Anything in any law to the contrary
    10  notwithstanding, any action of the commission may be taken
    11  initially without regard to the provisions of Title 2 of the
    12  Pennsylvania Consolidated Statutes (relating to administrative
    13  law and procedure), but no such action of the commission
    14  adversely affecting any person shall be final as to such person
    15  until such person has had the opportunity to appeal such action
    16  to the division. However, any such action shall be final as to
    17  any person who had not perfected his appeal in the manner
    18  hereinafter specified.
    19     (b)  Appeal not to act as supersedeas.--An appeal taken to
    20  the division from a decision of the commission shall not act as
    21  a supersedeas, but, upon cause shown and where the circumstances
    22  require it, the commission of the board shall have the power to
    23  grant a supersedeas.
    24  Section 503.  Rules and regulations.
    25     Hearings of the division shall be conducted in accordance
    26  with rules and regulations adopted by the Office of Attorney
    27  General, and such rules and regulations shall include time
    28  limits for the taking of appeals, procedures for the taking of
    29  appeals, locations at which hearings shall be held and such
    30  other rules and regulations as may be determined advisable.
    19870H1121B1269                 - 21 -

     1  Section 504.  Hearing examiners.
     2     The Attorney General shall employ hearing examiners who are
     3  knowledgeable about the laws of this Commonwealth and such other
     4  personnel as are necessary to perform the duties prescribed
     5  herein. The number of examiners employed shall be sufficient to
     6  provide timely and expeditious hearings at each office of the
     7  commission.
     8  Section 505.  Subpoenas.
     9     The division shall have the power to subpoena witnesses,
    10  records and papers; and, upon certification to it of failure to
    11  obey any such subpoena, the Commonwealth Court is empowered,
    12  after hearing, to enter, when proper, an adjudication of
    13  contempt and such other order as the circumstances require.
    14                             CHAPTER 7
    15                            ENFORCEMENT
    16  Section 701.  Conflict of interest.
    17     (a)  Surface mining.--No employee of the commission
    18  performing any function or duty within the scope of activities
    19  covered by the Surface Mining Control and Reclamation Act of
    20  1977 (Public Law 95-87, 30 U.S.C. § 1201 et seq.) shall have a
    21  direct or indirect financial interest in any underground or
    22  surface coal mining operation as defined by this act. Whoever
    23  knowingly violates the provisions of this subsection commits a
    24  misdemeanor of the third degree and shall, upon conviction, be
    25  sentenced to pay a fine of not more than $2,500 or to
    26  imprisonment for not more than one year, or both. Rules and
    27  regulations shall be promulgated hereunder to establish methods
    28  by which the provisions of this subsection will be monitored and
    29  enforced by the commission, including, but not limited to,
    30  appropriate provisions for the filing by such employees and the
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     1  review of statements and supplements thereto concerning any
     2  financial interest which may be affected by this subsection.
     3     (b)  Oil and gas.--No employee of the commission performing
     4  the function or duty of any oil or gas inspector shall act as a
     5  manager, employee or agent of any oil-drilling or gas-drilling
     6  operation or of any mining or mining operation, nor shall he be
     7  interested in any pecuniary way in such operations in this
     8  Commonwealth. Whoever knowingly violates the provisions of this
     9  subsection commits a misdemeanor of the third degree and shall,
    10  upon conviction, be sentenced to pay a fine of not more than
    11  $2,000 or to imprisonment for not more than one year, or both.
    12  Rules and regulations shall be promulgated hereunder to
    13  establish methods by which the provisions of this subsection
    14  will be monitored and enforced by the commission, including, but
    15  not limited to, appropriate provisions for the filing by such
    16  employees and the review of statements and supplements thereto
    17  concerning any financial interest which may be affected by this
    18  subsection.
    19  Section 702.  Violations and penalties.
    20     (a)  Civil penalties for failure to provide information.--Any
    21  person failing to provide energy information required by the
    22  commission, other than information deemed to be confidential in
    23  nature, shall be liable for a civil penalty of not more than
    24  $3,000 for each offense. If the violation is of a continuing
    25  nature, each day during which it continues shall constitute an
    26  additional and separate offense.
    27     (b)  Unlawful purchase.--Any person purchasing or attempting
    28  to purchase energy supplies in violation of any rules,
    29  regulations or orders issued hereunder constitutes a summary
    30  offense.
    19870H1121B1269                 - 23 -

     1     (c)  Violation of rules.--Any retail dealer who violates any
     2  rules, regulations or orders issued hereunder commits a summary
     3  offense.
     4     (d)  Violation by energy supplier.--Any distributor of any
     5  other supplier of energy who violates any rules, regulations or
     6  orders issued hereunder commits a misdemeanor of the first
     7  degree.
     8     (e)  Suspension or revocation of license.--In addition to any
     9  other penalties provided under this act or other statute, the
    10  commission may recommend to the appropriate agency the
    11  suspension or revocation of the license of any retail dealer,
    12  gasoline jobber, wholesale dealer, distributor or supplier of
    13  fuel who has violated this act or any rules, regulations or
    14  orders issued under this act.
    15                             CHAPTER 21
    16                      MISCELLANEOUS PROVISIONS
    17  Section 2101.  Transfer provisions.
    18     All personnel, allocations, appropriations, equipment, files,
    19  records, contracts, agreements, obligations and other material
    20  which are used, employed or expended in connection with the
    21  powers, duties or functions of the Governor's Energy Council,
    22  the Bureau of Abandoned Mine Reclamation, the Bureau of Deep
    23  Mine Safety, the Bureau of Mining and Reclamation, the Bureau of
    24  Oil and Gas Management, the Bureau of Radiation Protection, the
    25  Coal Mining and Reclamation Advisory Board, the Anthracite Mine
    26  Inspectors' Examining Board, the Mine Inspectors' Examining
    27  Board for the Bituminous Coal Mines and the Oil and Gas
    28  Conservation Commission, are hereby transferred to the
    29  commission with the same force and effect as if the
    30  appropriations had been made to and said items had been the
    19870H1121B1269                 - 24 -

     1  property of the commission in the first instance, and as if said
     2  contracts, agreements and obligations had been incurred or
     3  entered into by the commission. The personnel, appropriations,
     4  equipment and other items and material transferred by this
     5  section shall include an appropriate portion of the general
     6  administrative, overhead and supporting personnel,
     7  appropriations, equipment and other material of the agencies and
     8  shall also include, where applicable, Federal grants and funds
     9  and other benefits from any Federal program. All personnel
    10  transferred pursuant to this act shall retain any civil service
    11  employment status assigned to the personnel.
    12  Section 2102.  Civil service.
    13     In addition to the retention of civil service employment
    14  status as pertaining to employees transferred to the commission,
    15  all new positions in the commission shall be deemed to be
    16  included in the list of positions set forth in section 3(d) of
    17  the act of August 5, 1941 (P.L.752, No.286), known as the Civil
    18  Service Act, and the provisions and benefits of that act shall
    19  be applicable to all employees of the commission.
    20  Section 2103.  Construction of act.
    21     (a)  Curtailment plans.--Nothing set forth in this act shall
    22  supersede any curtailment plans which are established and
    23  approved by any Federal regulatory commission, the Pennsylvania
    24  Public Utility Commission or any ordinance duly adopted by any
    25  municipality or public gas system.
    26     (b)  Actions by DER.--All orders, permits, regulations,
    27  decisions and other actions of the Department of Environmental
    28  Resources, the Governor's Energy Council or any department,
    29  board, commission or agency whose functions have been
    30  transferred by this act to the commission shall remain in full
    19870H1121B1269                 - 25 -

     1  force and effect until modified, repealed, superseded or
     2  otherwise changed by appropriate action of the commission.
     3     (c)  Jurisdiction of PUC and other agencies.--The commission
     4  shall not have any authority to take any action affecting the
     5  jurisdiction of the Pennsylvania Public Utility Commission or
     6  any Federal administrative or regulatory agency. The executive
     7  administrator, however, shall have the authority to appear
     8  before the commission or any Federal administrative or
     9  regulatory agency to provide information concerning State energy
    10  policies.
    11  Section 2104.  Initial appointments.
    12     The first members of the board appointed by the Governor
    13  shall be appointed as follows: one for a term of one year, one
    14  for a term of two years, one for a term of three years, one for
    15  a term of four years and one for a term of five years.
    16  Thereafter, all appointments, except the filling of vacancies,
    17  shall be for five years. The first members appointed by the
    18  President pro tempore of the Senate and the Speaker of the House
    19  of Representatives shall be named to full five-year terms. All
    20  initial appointments shall be made not later than January 1,
    21  1989, and confirmed when the General Assembly convenes.
    22  Section 2105.  Staff availability.
    23     At the direction of the administrator, the staff of the
    24  commission may assist the staff of the Pennsylvania Energy
    25  Development Authority and the Appalachian States Low-Level
    26  Radioactive Waste Commission in energy-related matters.
    27  Section 2106.  Annual report.
    28     The commission shall, promptly following the close of each
    29  fiscal year, submit an annual report of its activities for the
    30  preceding year to the Governor, to the appropriate committees or
    19870H1121B1269                 - 26 -

     1  joint committees of the General Assembly as designated by the
     2  President pro tempore of the Senate and the Speaker of the House
     3  of Representatives, and, upon request, to members of the General
     4  Assembly. Each such report shall set forth a complete operating
     5  and financial statement of the commission during each year. An
     6  audit of the books and accounts of the commission shall be made
     7  by the Auditor General, in accordance with the same methods and
     8  schedule as apply to State departments.
     9  Section 2107.  Appropriation.
    10     The sum of $40,000,000, or as much thereof as may be
    11  necessary, is hereby appropriated to the State Energy Commission
    12  for the current fiscal period to carry out the provisions of
    13  this act.
    14  Section 2108.  Repeals.
    15     All acts and parts of acts are repealed insofar as they are
    16  inconsistent with this act.
    17  Section 2109.  Sunset.
    18     The State Energy Commission shall expire June 30, 1992, and
    19  at the end of each ten-year period thereafter, unless extended
    20  pursuant to the act of December 22, 1981 (P.L.508, No.142),
    21  known as the Sunset Act.
    22  Section 2110.  Effective date.
    23     This act shall take effect in 180 days.





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