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                                                       PRINTER'S NO. 387

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 352 Session of 1989


        INTRODUCED BY STAIRS, LETTERMAN, DEMPSEY, CAWLEY, DALEY, HERMAN,
           J. L. WRIGHT, ARGALL, BARLEY, TRELLO, MORRIS, J. TAYLOR,
           WOZNIAK, HALUSKA, SEMMEL, BELARDI AND BELFANTI,
           FEBRUARY 8, 1989

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, FEBRUARY 8, 1989

                                     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
    21  sufficient information or adequate authority to provide for and

     1  insure the wise and efficient production, distribution, use and
     2  conservation of energy.
     3     The General Assembly further finds that only an agency with
     4  comprehensive powers can collect, collate and analyze the
     5  information necessary to determine the amount of energy that is
     6  or may be available; develop mechanisms to insure a fair and
     7  equitable distribution of existing supplies; conduct the long-
     8  term planning and management necessary to eliminate or alleviate
     9  the potential adverse effects of a supply of energy insufficient
    10  to meet legitimate needs or, from practices of production,
    11  distribution and consumption, detrimental to the quality of life
    12  or the environment; coordinate Pennsylvania's energy policies
    13  and actions with Federal energy policies; and secure for
    14  Pennsylvania the maximum amount of Federal funding available for
    15  energy-related research, development and demonstration projects.
    16     The General Assembly further finds that shortages of energy
    17  have the potential at certain times and in certain places to so
    18  seriously affect the public interest that it is necessary for
    19  State government to possess emergency powers sufficient to
    20  prevent or minimize health disasters and grave economic
    21  disruptions which could occur during these times.
    22     The General Assembly therefore declares it to be in the best
    23  interest of the citizens of this Commonwealth to establish a
    24  principal agency to coordinate authority, regulation and
    25  planning by the Commonwealth in energy-related matters.
    26                         TABLE OF CONTENTS
    27  Chapter 1.  Preliminary Provisions
    28  Section 101.  Short title.
    29  Section 102.  Definitions.
    30  Chapter 3.  State Energy Commission
    19890H0352B0387                  - 2 -

     1  Section 301.  Establishment and composition.
     2  Section 302.  Meetings, quorum, etc.
     3  Section 303.  Secretary of Environmental Resources and Chairman
     4                 of Pennsylvania Public Utility Commission.
     5  Section 304.  Organization.
     6  Section 305.  Divisions.
     7  Section 306.  Transfer of certain functions, powers and duties.
     8  Section 307.  Executive administrator.
     9  Section 308.  Powers and duties of executive administrator.
    10  Section 309.  Powers and duties of commission.
    11  Section 310.  Energy master plan.
    12  Section 311.  Emergency allocation plan.
    13  Section 312.  Contingency plans.
    14  Chapter 5.  Administrative Hearings
    15  Section 501.  Division of Administrative Hearings.
    16  Section 502.  Appeals.
    17  Section 503.  Rules and regulations.
    18  Section 504.  Hearing examiners.
    19  Section 505.  Subpoenas.
    20  Chapter 7.  Enforcement
    21  Section 701.  Conflict of interest.
    22  Section 702.  Violations and penalties.
    23  Chapter 21.  Miscellaneous Provisions
    24  Section 2101.  Transfer provision.
    25  Section 2102.  Civil service.
    26  Section 2103.  Construction of act.
    27  Section 2104.  Initial appointments.
    28  Section 2105.  Staff availability.
    29  Section 2106.  Annual report.
    30  Section 2107.  Appropriation.
    19890H0352B0387                  - 3 -

     1  Section 2108.  Repeals.
     2  Section 2109.  Sunset.
     3  Section 2110.  Effective date.
     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6                             CHAPTER 1
     7                       PRELIMINARY PROVISIONS
     8  Section 101.  Short title.
     9     This act shall be known and may be cited as the State Energy
    10  Act.
    11  Section 102.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Chairman."  The chairman of the State Energy Commission.
    16     "Commission."  The State Energy Commission.
    17     "Electrical energy."  The energy produced as the result of
    18  the generation of electricity in any manner.
    19     "Energy."  The capacity to do work or to produce heat, this
    20  potential being transferred from any fuel or source whatsoever.
    21     "Energy emergency."  A condition of imminent danger to the
    22  economic well-being, health, safety or welfare of the people of
    23  this Commonwealth.
    24     "Energy resource."  Any substance or process used primarily
    25  for its energy content or capacity for producing energy,
    26  including, but not limited to, coal, crude oil, geothermal
    27  energy, natural gas, nuclear energy, petroleum, petroleum
    28  derivative, solar energy, synthetic natural gas or wind energy.
    29     "Executive administrator" or "administrator."  The executive
    30  administrator of the State Energy Commission.
    19890H0352B0387                  - 4 -

     1     "Liquid fuel."  Petroleum or any other liquid substance
     2  capable of providing energy.
     3     "Natural gas."  A naturally occurring mixture of hydrocarbon
     4  and hydrocarbon gases found in porous geological formations
     5  beneath the earth's surface, often in association with
     6  petroleum.
     7     "Nonrenewable energy resource."  Any substance the use of
     8  which diminishes its availability or abundance, including, but
     9  not limited to, coal, natural gas, petroleum or uranium.
    10     "Person."  Any individual, partnership, corporation, joint
    11  venture, association, governmental subdivision, or public or
    12  private organization of any character, including another entity,
    13  other than a Federal agency.
    14     "Renewable energy resource."  Any method, process or
    15  substance the use of which does not diminish its availability or
    16  abundance, including, but not limited to, biomass conversion,
    17  geothermal energy, solar energy, wind energy, wood or any type
    18  of nuclear energy whereby more fuel is produced than is used.
    19     "Utility."  Any person who distributes, transports or
    20  produces natural gas or electricity for use or consumption in
    21  this Commonwealth.
    22                             CHAPTER 3
    23                      STATE ENERGY COMMISSION
    24  Section 301.  Establishment and composition.
    25     (a)  Establishment.--There is hereby established an
    26  independent commission to be known as the State Energy
    27  Commission.
    28     (b)  Composition.--The commission shall be composed of seven
    29  members, as follows:
    30         (1)  Five members appointed by the Governor with the
    19890H0352B0387                  - 5 -

     1     advice and consent of two-thirds of the elected members of
     2     the Senate. Each of these appointed members shall have at
     3     least five years' experience in the areas of energy
     4     development, engineering, research, education, production,
     5     generation, distribution, regulation or similar energy areas
     6     or a combination of at least three years' experience in the
     7     aforementioned fields and at least two years' experience in
     8     management, public administration, finance, accounting, law
     9     or similar areas.
    10         (2)  One member appointed by the President pro tempore of
    11     the Senate.
    12         (3)  One member appointed by the Speaker of the House of
    13     Representatives.
    14     (c)  Terms.--Members shall serve a term of five years and
    15  until their successors are appointed and confirmed.
    16  Section 302.  Meetings, quorum, etc.
    17     (a)  Meetings.--The commission shall meet at least six times
    18  a year and shall also, from time to time, hold public hearings
    19  to receive the views of the public. The commission may meet at
    20  any time on call of the chairman or a majority of the members.
    21     (b)  Chairman.--Annually, at its first meeting, the
    22  commission shall select a chairman and a secretary from among
    23  its members.
    24     (c)  Quorum.--A quorum shall consist of a majority of the
    25  members of the commission, including at least one of the members
    26  appointed by either the President pro tempore of the Senate or
    27  the Speaker of the House of Representatives. Any action taken by
    28  the commission shall, however, require the affirmative votes of
    29  at least four members.
    30     (d)  Vacancies.--Vacancies shall be filled in the same manner
    19890H0352B0387                  - 6 -

     1  as the original appointment was made and for the remainder of
     2  the unexpired term. Vacancies occurring among members appointed
     3  by the Governor while the Senate is not in session shall be
     4  filled on an interim basis until the Senate next convenes, when
     5  such appointee shall be confirmed.
     6     (e)  Expenses.--Members shall receive no compensation but
     7  shall be entitled to reimbursement for all necessary and
     8  reasonable expenses, in accordance with the rules of the
     9  Executive Board.
    10  Section 303.  Secretary of Environmental Resources and Chairman
    11                 of Pennsylvania Public Utility Commission.
    12     The Secretary of Environmental Resources and the Chairman of
    13  the Pennsylvania Public Utility Commission, or their designees,
    14  shall serve as ex officio, nonvoting members of the commission,
    15  whose presence shall not be counted for a quorum or for voting
    16  requirements.
    17  Section 304.  Organization.
    18     Personnel of the commission shall be organized into an Office
    19  of the Executive Administrator and three divisions. The
    20  commission shall appoint as the head of each of the following
    21  divisions, upon recommendation of the executive administrator, a
    22  person knowledgeable and experienced in the area or areas for
    23  which that division is responsible:
    24         (1)  Office of Administration.
    25         (2)  Office of Energy Policy and Programs.
    26         (3)  Office of Energy Planning and Evaluation.
    27  Section 305.  Divisions.
    28     (a)  Office of Executive Administrator.--
    29         (1)  The Office of the Executive Administrator is
    30     responsible for the general administration and coordination
    19890H0352B0387                  - 7 -

     1     of the commission and its divisions.
     2         (2)  The commission shall appoint a Chief Counsel who
     3     shall supply legal services to the commission.
     4     (b)  Office of Administration.--
     5         (1)  The Office of Administration shall be headed by a
     6     Director of Administration, to be appointed by the commission
     7     upon recommendation of the executive administrator. The
     8     director shall report to and be directly responsible to the
     9     executive administrator.
    10         (2)  The Office of Administration shall have
    11     responsibility with regard to personnel and fiscal
    12     management, information systems, office systems and services,
    13     and other such responsibilities as may be assigned by the
    14     executive administrator.
    15     (c)  Office of Energy Policy and Programs.--
    16         (1)  The Office of Energy Policy and Programs shall be
    17     headed by a Director of Energy Policy and Programs, to be
    18     appointed by the commission upon recommendation of the
    19     executive administrator.
    20         (2)  The Office of Energy Policy and Programs shall have
    21     responsibility with regard to intergovernmental affairs,
    22     grants administration, nuclear issues and radiation
    23     protection, mines and mineral resources, oil and gas
    24     management, renewable and alternative technologies, energy
    25     conservation programs, and other such responsibilities as may
    26     be assigned by the executive administrator.
    27     (d)  Office of Energy Planning and Evaluation.--
    28         (1)  The Office of Energy Planning and Evaluation shall
    29     be headed by a Director of Energy Planning and Evaluation, to
    30     be appointed by the commission upon recommendation of the
    19890H0352B0387                  - 8 -

     1     executive administrator.
     2         (2)  The Office of Energy Planning and Evaluation shall
     3     have responsibility with regard to regulatory affairs,
     4     emergency preparedness, budget and program evaluation,
     5     utility affairs, community relations and public information,
     6     and other such responsibilities as may be assigned by the
     7     executive administrator.
     8  Section 306.  Transfer of certain functions, powers and duties.
     9     All functions, powers and duties now vested in the following
    10  organizational units are hereby transferred and vested in the
    11  commission:
    12         (1)  The Governor's Energy Council.
    13         (2)  The following bureaus of the Department of
    14     Environmental Resources:
    15             (i)  Bureau of Abandoned Mine Reclamation.
    16             (ii)  Bureau of Deep Mine Safety.
    17             (iii)  Bureau of Mining and Reclamation.
    18             (iv)  Bureau of Oil and Gas Management.
    19             (v)  Bureau of Radiation Protection.
    20         (3)  The following boards and commissions of the
    21     Department of Environmental Resources:
    22             (i)  Mining and Reclamation Advisory Board.
    23             (ii)  Anthracite Mine Inspectors' Examining Board.
    24             (iii)  Mine Inspectors' Examining Board for the
    25         Bituminous Coal Mines of Pennsylvania.
    26             (iv)  Oil and Gas Conservation Commission.
    27  Section 307.  Executive administrator.
    28     (a)  Appointment.--The commission shall be administered by an
    29  executive administrator who shall be appointed by the
    30  commission. The executive administrator shall have at least five
    19890H0352B0387                  - 9 -

     1  years' experience in the field of energy development,
     2  engineering, research, education, production, generation,
     3  regulation or distribution and shall have experience in
     4  management or administration. The executive administrator shall
     5  serve at the will and pleasure of the commission. He may be
     6  removed from office by a vote of not less than five members of
     7  the commission, including at least one member appointed by
     8  either the President pro tempore of the Senate or the Speaker of
     9  the House of Representatives.
    10     (b)  Deputy administrator.--The executive administrator shall
    11  appoint a deputy administrator. The deputy administrator shall
    12  assume all responsibility and authority vested in the executive
    13  administrator upon the absence of the executive administrator.
    14  The deputy administrator will have specific responsibilities as
    15  are assigned by the executive administrator.
    16  Section 308.  Powers and duties of executive administrator.
    17     The executive administrator shall have the power and duty to:
    18         (1)  Administer, monitor and review the programs and
    19     policies of the commission.
    20         (2)  Assure that all divisions of the commission fully
    21     execute the separate duties and responsibilities assigned to
    22     each and, with the approval of the commission, to reorganize
    23     divisions and duties of the commission as necessary.
    24         (3)  Submit to the commission for approval all of the
    25     major actions, programs and policies of the commission.
    26         (4)  Advise the commission, the Governor and the General
    27     Assembly on State and Federal energy policies, practices,
    28     programs and legislation.
    29         (5)  Make recommendations to the Governor and the General
    30     Assembly for appropriate actions to be taken in an energy
    19890H0352B0387                 - 10 -

     1     emergency.
     2         (6)  Recommend energy policy to the commission, including
     3     alternatives, for implementation in this Commonwealth.
     4         (7)  Maintain continuous liaison with energy suppliers,
     5     distributors and other State and Federal agencies concerned
     6     with energy-related matters.
     7         (8)  Assist other State agencies with specific energy
     8     problems.
     9         (9)  Coordinate the State's activities with respect to
    10     proposed energy projects by seeking to minimize economic and
    11     environmental costs associated with energy production and
    12     distribution.
    13         (10)  Recommend rules and regulations to the commission.
    14         (11)  Submit, with the approval of the commission,
    15     proposed legislation for consideration by the General
    16     Assembly.
    17         (12)  Enforce all contracts or agreements entered into by
    18     the commission.
    19         (13)  Contract for and accept any gifts, grants, loans or
    20     appropriations of funds or property, or financial or other
    21     aid in any form from Federal energy-related agencies,
    22     departments, or their successors or any other agency or
    23     instrumentality of the Federal Government, or from the
    24     Commonwealth or any agency, instrumentality or political
    25     subdivision thereof, or from any other source for the use of
    26     the commission; and to design and administer a grant program
    27     in accordance with Federal and State laws and regulations.
    28         (14)  Receive applications for and recommend to the
    29     commission grants from such other funds as are available,
    30     including funds from State sources, and to establish
    19890H0352B0387                 - 11 -

     1     administrative practices for the accounting and monitoring of
     2     the use of such funds according to State financial procedures
     3     or additional safeguards which in the judgment of the
     4     commission, may be advisable.
     5         (15)  Participate, in cooperation with the Attorney
     6     General of the Commonwealth and other appropriate State
     7     government entities, and in accordance with Federal law, in
     8     Federal agency decisionmaking.
     9         (16)  Employ, on a temporary basis, such persons as are
    10     necessary to effect the provisions of the commission.
    11         (17)  Issue orders to assure compliance with rules and
    12     regulations, as approved.
    13  Section 309.  Powers and duties of commission.
    14     The commission shall have the power and duty to:
    15         (1)  Serve as the central repository for collection of
    16     energy information.
    17         (2)  Collect and analyze data relating to present and
    18     future demands and resources for all forms of energy.
    19         (3)  Request all entities engaged in production,
    20     distribution, transmission and storage of energy in any form
    21     to submit pertinent energy data, not including certain
    22     information deemed by the executive administrator to be
    23     confidential in nature.
    24         (4)  Establish an energy information forecasting system.
    25         (5)  Design, implement and enforce a program for
    26     conservation of energy in commercial, industrial and
    27     residential facilities.
    28         (6)  Conduct and supervise a Statewide educational
    29     program on energy conservation.
    30         (7)  Monitor energy prices and evaluate rate and price
    19890H0352B0387                 - 12 -

     1     policies.
     2         (8)  Conduct and supervise energy projects and programs.
     3         (9)  Distribute and expend funds made available for
     4     research and programs.
     5         (10)  Enter into interstate compacts to carry out energy
     6     research and planning with other states or the Federal
     7     Government.
     8         (11)  Apply for, accept and expend grants-in-aid and
     9     assistance for energy programs from private and public
    10     sources.
    11         (12)  Require annual submission of energy utilization
    12     reports and conservation plans by all Commonwealth
    13     departments and agencies.
    14         (13)  Issue subpoenas and conduct hearings and
    15     investigations.
    16         (14)  Administer Federal regulations as are applicable.
    17         (15)  Acquire, purchase, grant and contract for eminent
    18     domain title to real property to demonstrate facilities for
    19     improved energy efficiency.
    20         (16)  Construct and operate facilities which improve
    21     energy efficiency.
    22         (17)  Contract with any other public agency or
    23     corporation.
    24         (18)  Determine the effect of energy and fuel shortages
    25     on consumers.
    26         (19)  Keep complete and accurate minutes of all hearings
    27     held before the commission or any division of the agency.
    28         (20)  Develop an energy master plan for submission to the
    29     Governor and the General Assembly.
    30         (21)  Develop an emergency allocation plan which
    19890H0352B0387                 - 13 -

     1     specifies actions to be taken in the event of an impending
     2     serious shortage of energy that poses grave threats to the
     3     public health, safety or welfare.
     4         (22)  Authorize the Governor to proclaim, if needed, a
     5     state of energy emergency through executive order, which
     6     shall remain in effect until the Governor declares through
     7     subsequent order that the state of energy emergency has
     8     terminated.
     9         (23)  Make and execute contracts or leases in the name of
    10     the Commonwealth, with the approval of the Governor, and
    11     enter into agreements with owners or lessees of property or
    12     property rights located in the same areas as lands owned or
    13     leased by the Commonwealth for the protection, preservation
    14     or recovery of metallic or nonmetallic ore, oil, natural gas
    15     or any other mineral deposits underlying these lands,
    16     provided that the deposits are owned by the Commonwealth,
    17     whenever it is determined by the commission that it would be
    18     in the best interests of the Commonwealth to make such
    19     disposition of the deposits. Any proposed contracts or leases
    20     for the extraction or recovery of metallic or nonmetallic
    21     ore, oil, natural gas or other minerals shall have been
    22     published once a week for three consecutive weeks, in at
    23     least two newspapers of general circulation in the locality
    24     where the extraction or recovery is to be located, prior to
    25     awarding such contract or lease. Such contract or lease shall
    26     be awarded to the highest and best bidder capable for the
    27     proper performance of the contract. However, where the
    28     Commonwealth owns a fractional interest in the oil, natural
    29     gas and other minerals, the requirement of competitive
    30     bidding may be waived, and the commission may enter into a
    19890H0352B0387                 - 14 -

     1     contract to lease that fractional interest, with the approval
     2     of the Governor and upon such terms and conditions as the
     3     commission deems to be in the best interest of the
     4     Commonwealth.
     5         (24)  Make and execute contracts or leases, in the name
     6     of the Commonwealth, for the mining or removal of any
     7     valuable minerals that may be found in State forests, or of
     8     oil and gas beneath those waters of Lake Erie owned by the
     9     Commonwealth, or of oil and gas beneath the land of Woodville
    10     State Hospital owned by the Commonwealth, whenever it appears
    11     to the satisfaction of the commission that it would be in the
    12     best interests of the Commonwealth to make such disposition
    13     of these materials. Any proposed contracts or leases of
    14     valuable minerals exceeding $1,000 in value shall be
    15     advertised once a week for three weeks, in at least two
    16     newspapers published nearest the locality indicated, in
    17     advance of awarding such contract or lease. Such contracts or
    18     leases may then be awarded to the highest and best bidder,
    19     who shall give bond for the proper performance of the
    20     contract as the commission designates. However, where the
    21     Commonwealth owns a fractional interest in the oil, natural
    22     gas and other minerals under State forest lands, the
    23     requirement of competitive bidding may be waived, and the
    24     commission may enter into a contract to lease that fractional
    25     interest, with the approval of the Governor and upon such
    26     terms and conditions as the commission deems to be in the
    27     best interests of the Commonwealth.
    28         (25)  Enter into agreements to sell, lease or otherwise
    29     dispose of any iron, coal, limestone, fire-clay, oil, gas and
    30     other minerals, except sand and gravel and minerals deposited
    19890H0352B0387                 - 15 -

     1     in pools created by dams, that may be found in or beneath the
     2     beds of navigable streams or bodies of water within this
     3     Commonwealth and nonnavigable streams or bodies of water
     4     where the beds thereof are owned by the Commonwealth, on such
     5     terms and conditions as the commission deems to be in the
     6     best interests of the Commonwealth. Nothing herein shall
     7     authorize the interference with free navigation of these
     8     streams or bodies of water or to undermine the bed thereof or
     9     to interfere with the rights of any person or persons holding
    10     property on the banks thereof.
    11         (26)  Enter into contracts:
    12             (i)  To implement the Abandoned Mine Reclamation
    13         Program under Title IV of the Surface Mining Control and
    14         Reclamation Act of 1977 (Public Law 95-87, 30 U.S.C.
    15         Section 1231 et seq.).
    16             (ii)  For the abatement and control work authorized
    17         under the act of January 19, 1968 (1967 P.L.996, No.443),
    18         known as The Land and Water Conservation and Reclamation
    19         Act.
    20             (iii)  To reclaim abandoned surface mines as provided
    21         for in the act of May 31, 1945 (P.L.1198, No.418), known
    22         as the Surface Mining Conservation and Reclamation Act,
    23         the act of September 24, 1968 (P.L.1040, No.318), known
    24         as the Coal Refuse Disposal Control Act, and the act of
    25         December 19, 1984 (P.L.1093, No.219), known as the
    26         Noncoal Surface Mining Conservation and Reclamation Act.
    27             (iv)  To restore, repair or mitigate damages as
    28         provided for in the act of April 27, 1966 (1st Sp.Sess.,
    29         P.L.31, No.1), known as The Bituminous Mine Subsidence
    30         and Land Conservation Act.
    19890H0352B0387                 - 16 -

     1             (v)  To plug abandoned oil and gas wells as provided
     2         for in the act of December 19, 1984 (P.L.1140, No.223),
     3         known as the Oil and Gas Act.
     4     In all cases in which the commission enters into a contract
     5     and the other party to the contract is required to post a
     6     bond or other acceptable security to be held to apply as a
     7     credit against any unpaid balances or to carry out any
     8     unfulfilled conditions, the moneys of these bonds or
     9     securities shall accrue to the benefit of the commission
    10     insofar as necessary to indemnify the commission and the
    11     Commonwealth from all losses caused by failure of the
    12     contracting party to fulfill any contract condition. Moneys
    13     not required by the commission to pay unpaid balances or to
    14     fulfill contract conditions shall accrue to the General Fund.
    15     Where the contract was awarded under paragraph (25), the
    16     excess moneys shall be deposited into the fund under which
    17     the contract was authorized.
    18         (27)  Assure that the mining laws of this Commonwealth
    19     are faithfully executed and, for that purpose, cause lawfully
    20     qualified mine inspectors to enter, inspect and examine any
    21     mine or colliery within this Commonwealth and the works and
    22     machinery connected therewith.
    23         (28)  Give such aid and instruction to the mine
    24     inspectors, from time to time, as may be calculated to
    25     protect the health and promote the safety of all persons
    26     employed in and about the mines. Subject to any inconsistent
    27     provisions contained in this act, anthracite mine inspectors
    28     and bituminous mine inspectors shall, respectively, under the
    29     direction of the executive administrator, continue to
    30     exercise the powers and perform the duties vested in and
    19890H0352B0387                 - 17 -

     1     imposed upon them by law.
     2         (29)  Make such examinations and investigations as may be
     3     necessary to enable it to make recommendations upon any
     4     matters pertaining to the general welfare of coal miners and
     5     others connected with mining and the interests of mine owners
     6     and operators in this Commonwealth.
     7         (30)  In those instances where such work is in the
     8     interest of the public welfare, seal, close or backfill
     9     abandoned deep or strip coal mines; plug abandoned oil and
    10     gas wells, other than those governed by the Oil and Gas Act;
    11     fill voids in abandoned coal mines; drill bore holes, dig
    12     ditches or construct flumes which would relieve flooding or
    13     hazardous conditions caused by mine water; and extinguish
    14     fires in abandoned coal mines and in culm banks.
    15         (31)  Administer the laws and regulations of this
    16     Commonwealth relating to the drilling and operation of oil
    17     and gas wells and gas storage reservoirs.
    18         (32)  Administer the laws and regulations of this
    19     Commonwealth which regulate:
    20             (i)  the construction, operation and maintenance of
    21         dams, water obstructions or encroachments for hydraulic
    22         and hydroelectric power;
    23             (ii)  stream-raising and steam condensation
    24         reservoirs; and
    25             (iii)  any dam, impoundment, embankment and other
    26         water obstruction and encroachment necessary for the
    27         extraction, recovery or processing of metallic and
    28         nonmetallic ore, oil, gas and other minerals.
    29         (33)  Formulate, adopt and promulgate such rules and
    30     regulations necessary for the proper performance of the work
    19890H0352B0387                 - 18 -

     1     of the commission, and continue to exercise any power to
     2     formulate, adopt and promulgate rules and regulations
     3     relating to any matter within the jurisdiction of the
     4     commission heretofore vested in the Environmental Quality
     5     Board or other departments and boards. Any such rules or
     6     regulations promulgated prior to the effective date of this
     7     act shall be the rules and regulations of the commission
     8     until such time as they are modified, repealed, suspended,
     9     superseded or otherwise changed by the commission. Any rule,
    10     regulation, policy or procedure pertaining to matters within
    11     the jurisdiction of the commission in effect on the effective
    12     date of this act shall be reviewed by the executive
    13     administrator on the written request of a person
    14     substantially affected by the rule, regulation, policy or
    15     procedure. The executive administrator shall initiate a
    16     review within 30 days of receipt of the request and issue a
    17     decision in writing within 90 days of receipt of the request
    18     to retain, modify or suspend, and the reasons therefor.
    19         (34)  Cooperate with all other Federal and State agencies
    20     in carrying out its responsibilities.
    21  Section 310.  Energy master plan.
    22     The commission shall prepare and, after public hearing,
    23  adopt, within one year from the effective date of this act, an
    24  energy master plan for a period of five years on the production,
    25  distribution, consumption and conservation of energy in this
    26  Commonwealth and shall submit the plan and any amendments
    27  thereto to the Governor and the General Assembly.
    28  Section 311.  Emergency allocation plan.
    29     The commission shall include, as part of the energy master
    30  plan and in conjunction with the Pennsylvania Public Utility
    19890H0352B0387                 - 19 -

     1  Commission and the Pennsylvania Emergency Management Agency, an
     2  emergency allocation plan. Such emergency plan shall include a
     3  schedule of emergency energy curtailment based on a uniform
     4  classification of energy consumers, specifying actions to be
     5  taken in the event of an energy emergency, as proclaimed by the
     6  Governor, and further specifying what actions an energy industry
     7  and its customers are to take in the event of such emergency.
     8  Section 312.  Contingency plans.
     9     The commission shall direct all Commonwealth agencies to
    10  develop, subject to approval by the commission, contingency
    11  plans for dealing with these emergencies. Those portions of such
    12  emergency allocation plans or contingency plans specifically
    13  pertaining to energy industries regulated by the Pennsylvania
    14  Public Utility Commission shall be made available to the
    15  commission in such time period as shall be directed.
    16                             CHAPTER 5
    17                      ADMINISTRATIVE HEARINGS
    18  Section 501.  Division of Administrative Hearings.
    19     (a)  Establishment.--There is hereby established the Division
    20  of Administrative Hearings in the Office of Attorney General.
    21     (b)  Powers and duties.--
    22         (1)  The division shall have the power and its duties
    23     shall be to hold hearings and issue adjudications under Title
    24     2 of the Pennsylvania Consolidated Statutes (relating to
    25     administrative law and procedure), on any decision or action
    26     of the energy commission, including, but not limited to,
    27     notice of violation, penalty assessment, order, permit,
    28     license, or the whole or part of a rule or equivalent. A
    29     decision or action shall be considered final when reduced to
    30     writing, whether affirmative, negative, injunctive or
    19890H0352B0387                 - 20 -

     1     declaratory in form.
     2         (2)  The division shall exercise any power to hold
     3     hearings and issue adjudications relating to any matter
     4     within the jurisdiction of the commission which may
     5     heretofore have been heard by the Environmental Hearing
     6     Board.
     7  Section 502.  Appeals.
     8     (a)  General rule.--Anything in any law to the contrary
     9  notwithstanding, any action of the commission may be taken
    10  initially without regard to the provisions of Title 2 of the
    11  Pennsylvania Consolidated Statutes (relating to administrative
    12  law and procedure), but no such action of the commission
    13  adversely affecting any person shall be final as to such person
    14  until such person has had the opportunity to appeal such action
    15  to the division. However, any such action shall be final as to
    16  any person who had not perfected his appeal in the manner
    17  hereinafter specified.
    18     (b)  Appeal not to act as supersedeas.--An appeal taken to
    19  the division from a decision of the commission shall not act as
    20  a supersedeas, but, upon cause shown and where the circumstances
    21  require it, the commission of the board shall have the power to
    22  grant a supersedeas.
    23  Section 503.  Rules and regulations.
    24     Hearings of the division shall be conducted in accordance
    25  with rules and regulations adopted by the Office of Attorney
    26  General, and such rules and regulations shall include time
    27  limits for the taking of appeals, procedures for the taking of
    28  appeals, locations at which hearings shall be held and such
    29  other rules and regulations as may be determined advisable.
    30  Section 504.  Hearing examiners.
    19890H0352B0387                 - 21 -

     1     The Attorney General shall employ hearing examiners who are
     2  knowledgeable about the laws of this Commonwealth and such other
     3  personnel as are necessary to perform the duties prescribed
     4  herein. The number of examiners employed shall be sufficient to
     5  provide timely and expeditious hearings at each office of the
     6  commission.
     7  Section 505.  Subpoenas.
     8     The division shall have the power to subpoena witnesses,
     9  records and papers; and, upon certification to it of failure to
    10  obey any such subpoena, the Commonwealth Court is empowered,
    11  after hearing, to enter, when proper, an adjudication of
    12  contempt and such other order as the circumstances require.
    13                             CHAPTER 7
    14                            ENFORCEMENT
    15  Section 701.  Conflict of interest.
    16     (a)  Surface mining.--No employee of the commission
    17  performing any function or duty within the scope of activities
    18  covered by the Surface Mining Control and Reclamation Act of
    19  1977 (Public Law 95-87, 30 U.S.C. § 1201 et seq.) shall have a
    20  direct or indirect financial interest in any underground or
    21  surface coal mining operation as defined by this act. Whoever
    22  knowingly violates the provisions of this subsection commits a
    23  misdemeanor of the third degree and shall, upon conviction, be
    24  sentenced to pay a fine of not more than $2,500 or to
    25  imprisonment for not more than one year, or both. Rules and
    26  regulations shall be promulgated hereunder to establish methods
    27  by which the provisions of this subsection will be monitored and
    28  enforced by the commission, including, but not limited to,
    29  appropriate provisions for the filing by such employees and the
    30  review of statements and supplements thereto concerning any
    19890H0352B0387                 - 22 -

     1  financial interest which may be affected by this subsection.
     2     (b)  Oil and gas.--No employee of the commission performing
     3  the function or duty of any oil or gas inspector shall act as a
     4  manager, employee or agent of any oil-drilling or gas-drilling
     5  operation or of any mining or mining operation, nor shall he be
     6  interested in any pecuniary way in such operations in this
     7  Commonwealth. Whoever knowingly violates the provisions of this
     8  subsection commits a misdemeanor of the third degree and shall,
     9  upon conviction, be sentenced to pay a fine of not more than
    10  $2,000 or to imprisonment for not more than one year, or both.
    11  Rules and regulations shall be promulgated hereunder to
    12  establish methods by which the provisions of this subsection
    13  will be monitored and enforced by the commission, including, but
    14  not limited to, appropriate provisions for the filing by such
    15  employees and the review of statements and supplements thereto
    16  concerning any financial interest which may be affected by this
    17  subsection.
    18  Section 702.  Violations and penalties.
    19     (a)  Civil penalties for failure to provide information.--Any
    20  person failing to provide energy information required by the
    21  commission, other than information deemed to be confidential in
    22  nature, shall be liable for a civil penalty of not more than
    23  $3,000 for each offense. If the violation is of a continuing
    24  nature, each day during which it continues shall constitute an
    25  additional and separate offense.
    26     (b)  Unlawful purchase.--Any person purchasing or attempting
    27  to purchase energy supplies in violation of any rules,
    28  regulations or orders issued hereunder constitutes a summary
    29  offense.
    30     (c)  Violation of rules.--Any retail dealer who violates any
    19890H0352B0387                 - 23 -

     1  rules, regulations or orders issued hereunder commits a summary
     2  offense.
     3     (d)  Violation by energy supplier.--Any distributor of any
     4  other supplier of energy who violates any rules, regulations or
     5  orders issued hereunder commits a misdemeanor of the first
     6  degree.
     7     (e)  Suspension or revocation of license.--In addition to any
     8  other penalties provided under this act or other statute, the
     9  commission may recommend to the appropriate agency the
    10  suspension or revocation of the license of any retail dealer,
    11  gasoline jobber, wholesale dealer, distributor or supplier of
    12  fuel who has violated this act or any rules, regulations or
    13  orders issued under this act.
    14                             CHAPTER 21
    15                      MISCELLANEOUS PROVISIONS
    16  Section 2101.  Transfer provisions.
    17     All personnel, allocations, appropriations, equipment, files,
    18  records, contracts, agreements, obligations and other materials
    19  which are used, employed or expended in connection with the
    20  powers, duties or functions of the Governor's Energy Council,
    21  the Bureau of Abandoned Mine Reclamation, the Bureau of Deep
    22  Mine Safety, the Bureau of Mining and Reclamation, the Bureau of
    23  Oil and Gas Management, the Bureau of Radiation Protection, the
    24  Coal Mining and Reclamation Advisory Board, the Anthracite Mine
    25  Inspectors' Examining Board, the Mine Inspectors' Examining
    26  Board for the Bituminous Coal Mines and the Oil and Gas
    27  Conservation Commission, are hereby transferred to the
    28  commission with the same force and effect as if the
    29  appropriations had been made to and said items had been the
    30  property of the commission in the first instance, and as if said
    19890H0352B0387                 - 24 -

     1  contracts, agreements and obligations had been incurred or
     2  entered into by the commission. The personnel, appropriations,
     3  equipment and other items and material transferred by this
     4  section shall include an appropriate portion of the general
     5  administrative, overhead and supporting personnel,
     6  appropriations, equipment and other material of the agencies and
     7  shall also include, where applicable, Federal grants and funds
     8  and other benefits from any Federal program. All personnel
     9  transferred pursuant to this act shall retain any civil service
    10  employment status assigned to the personnel.
    11  Section 2102.  Civil service.
    12     In addition to the retention of civil service employment
    13  status as pertaining to employees transferred to the commission,
    14  all new positions in the commission shall be deemed to be
    15  included in the list of positions set forth in section 3(d) of
    16  the act of August 5, 1941 (P.L.752, No.286), known as the Civil
    17  Service Act, and the provisions and benefits of that act shall
    18  be applicable to all employees of the commission.
    19  Section 2103.  Construction of act.
    20     (a)  Curtailment plans.--Nothing set forth in this act shall
    21  supersede any curtailment plans which are established and
    22  approved by any Federal regulatory commission, the Pennsylvania
    23  Public Utility Commission or any ordinance duly adopted by any
    24  municipality or public gas system.
    25     (b)  Actions by DER.--All orders, permits, regulations,
    26  decisions and other actions of the Department of Environmental
    27  Resources, the Governor's Energy Council or any department,
    28  board, commission or agency whose functions have been
    29  transferred by this act to the commission shall remain in full
    30  force and effect until modified, repealed, superseded or
    19890H0352B0387                 - 25 -

     1  otherwise changed by appropriate action of the commission.
     2     (c)  Jurisdiction of PUC and other agencies.--The commission
     3  shall not have any authority to take any action affecting the
     4  jurisdiction of the Pennsylvania Public Utility Commission or
     5  any Federal administrative or regulatory agency. The executive
     6  administrator, however, shall have the authority to appear
     7  before the commission or any Federal administrative or
     8  regulatory agency to provide information concerning State energy
     9  policies.
    10  Section 2104.  Initial appointments.
    11     The first members of the board appointed by the Governor
    12  shall be appointed as follows: one for a term of one year, one
    13  for a term of two years, one for a term of three years, one for
    14  a term of four years and one for a term of five years.
    15  Thereafter, all appointments, except the filling of vacancies,
    16  shall be for five years. The first members appointed by the
    17  President pro tempore of the Senate and the Speaker of the House
    18  of Representatives shall be named to full five-year terms. All
    19  initial appointments shall be made not later than January 1,
    20  1989, and confirmed when the General Assembly convenes.
    21  Section 2105.  Staff availability.
    22     At the direction of the administrator, the staff of the
    23  commission may assist the staff of the Pennsylvania Energy
    24  Development Authority and the Appalachian States Low-Level
    25  Radioactive Waste Commission in energy-related matters.
    26  Section 2106.  Annual report.
    27     The commission shall, promptly following the close of each
    28  fiscal year, submit an annual report of its activities for the
    29  preceding year to the Governor, to the appropriate committees or
    30  joint committees of the General Assembly as designated by the
    19890H0352B0387                 - 26 -

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






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