PRIOR PRINTER'S NO. 1668 PRINTER'S NO. 1995
No. 1203 Session of 2007
INTRODUCED BY HORNAMAN, GEORGE, DePASQUALE, GERBER, McCALL, CALTAGIRONE, CONKLIN, DeWEESE, EACHUS, GIBBONS, HARHAI, HARKINS, JAMES, JOSEPHS, KORTZ, MAHONEY, MANDERINO, McGEEHAN, MUNDY, M. O'BRIEN, PRESTON, SAINATO, SHIMKUS, STABACK, SURRA, TANGRETTI, THOMAS, VITALI, YUDICHAK, CURRY, FREEMAN, K. SMITH, GOODMAN, BENNINGTON, M. SMITH, PETRONE, LENTZ, GRUCELA, FABRIZIO AND WALKO, MAY 24, 2007
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 20, 2007
AN ACT 1 Amending the act of November 30, 2004 (P.L.1672, No.213), 2 entitled, "An act providing for the sale of electric energy 3 generated from renewable and environmentally beneficial 4 sources, for the acquisition of electric energy generated 5 from renewable and environmentally beneficial sources by 6 electric distribution and supply companies and for the powers 7 and duties of the Pennsylvania Public Utility Commission," 8 further providing for the definition of "force majeure," <-- 9 DEFINITIONS, for alternative energy portfolio standards, for <-- 10 portfolio requirements in other states and for 11 interconnection standards for customer-generator facilities. 12 The General Assembly of the Commonwealth of Pennsylvania 13 hereby enacts as follows: 14 Section 1. The definition of "force majeure" in section 2 of <-- 15 the act of November 30, 2004 (P.L.1672, No.213), known as the 16 Alternative Energy Portfolio Standards Act, is amended to read: 17 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY CREDIT," <-- 18 "CUSTOMER-GENERATOR," "FORCE MAJEURE" AND "TIER I ALTERNATIVE 19 ENERGY SOURCE" IN SECTION 2 OF THE ACT OF NOVEMBER 30, 2004
1 (P.L.1672, NO.213), KNOWN AS THE ALTERNATIVE ENERGY PORTFOLIO 2 STANDARDS ACT, ARE AMENDED TO READ: 3 Section 2. Definitions. 4 The following words and phrases when used in this act shall 5 have the meanings given to them in this section unless the 6 context clearly indicates otherwise: 7 "ALTERNATIVE ENERGY CREDIT." A TRADABLE INSTRUMENT THAT IS <-- 8 USED TO ESTABLISH, VERIFY AND MONITOR COMPLIANCE WITH THIS ACT. 9 A UNIT OF CREDIT SHALL EQUAL ONE MEGAWATT HOUR OF ELECTRICITY 10 FROM AN ALTERNATIVE ENERGY SOURCE. THE ALTERNATIVE ENERGY CREDIT 11 SHALL REMAIN THE PROPERTY OF THE ALTERNATIVE ENERGY SYSTEM UNTIL 12 THE ALTERNATIVE ENERGY CREDIT IS VOLUNTARILY TRANSFERRED BY THE 13 ALTERNATIVE ENERGY SYSTEM. 14 * * * 15 "CUSTOMER-GENERATOR." A NONUTILITY OWNER OR OPERATOR OF A <-- 16 NET METERED DISTRIBUTED GENERATION SYSTEM WITH A NAMEPLATE 17 CAPACITY OF NOT GREATER THAN 50 KILOWATTS IF INSTALLED AT A 18 RESIDENTIAL SERVICE OR NOT LARGER THAN [1,000] 3,000 KILOWATTS 19 AT OTHER CUSTOMER SERVICE LOCATIONS, EXCEPT FOR CUSTOMERS WHOSE 20 SYSTEMS ARE ABOVE [ONE MEGAWATT] THREE MEGAWATTS AND UP TO [TWO] 21 FIVE MEGAWATTS WHO MAKE THEIR SYSTEMS AVAILABLE TO OPERATE IN 22 PARALLEL WITH THE ELECTRIC UTILITY DURING GRID EMERGENCIES AS 23 DEFINED BY THE REGIONAL TRANSMISSION ORGANIZATION OR WHERE A 24 MICROGRID IS IN PLACE FOR THE PRIMARY OR SECONDARY PURPOSE OF 25 MAINTAINING CRITICAL INFRASTRUCTURE, SUCH AS HOMELAND SECURITY 26 ASSIGNMENTS, EMERGENCY SERVICES FACILITIES, HOSPITALS, TRAFFIC 27 SIGNALS, WASTEWATER TREATMENT PLANTS OR TELECOMMUNICATIONS 28 FACILITIES, PROVIDED THAT TECHNICAL RULES FOR OPERATING 29 GENERATORS INTERCONNECTED WITH FACILITIES OF AN ELECTRIC 30 DISTRIBUTION COMPANY, ELECTRIC COOPERATIVE OR MUNICIPAL ELECTRIC 20070H1203B1995 - 2 -
1 SYSTEM HAVE BEEN PROMULGATED BY THE INSTITUTE OF ELECTRICAL AND 2 ELECTRONIC ENGINEERS AND THE PENNSYLVANIA PUBLIC UTILITY 3 COMMISSION. 4 * * * 5 "Force majeure." Upon its own initiative or upon a request 6 of an electric distribution company or an electric generator 7 supplier, the Pennsylvania Public Utility Commission, within 60 8 days, shall determine if alternative energy resources are 9 reasonably available in the marketplace in sufficient quantities 10 for the electric distribution companies and electric generation 11 suppliers to meet their obligations for that reporting period 12 under this act. In making this determination the commission 13 shall consider whether electric distribution companies or 14 electric generation suppliers have made a good faith effort to 15 acquire sufficient alternative energy to comply with their 16 obligations. Such good faith efforts shall include, but are not 17 limited to, banking alternative energy credits during their 18 transition periods, seeking alternative energy credits through 19 competitive solicitations and seeking to procure alternative 20 energy credits or alternative energy through long-term 21 contracts. In further making its determination the commission 22 shall assess the availability of alternative energy credits in 23 the Generation Attributes Tracking System (GATS) or its 24 successor, and the availability of alternative energy credits 25 generally in Pennsylvania and other jurisdictions in the PJM 26 Interconnection, L.L.C. regional transmission organization (PJM) 27 or its successor. The commission may also require solicitations 28 for alternative energy credits as part of default service before 29 requests of force majeure can be made. If the commission further 30 determines that alternative energy resources are not reasonably 20070H1203B1995 - 3 -
1 available in sufficient quantities in the marketplace for the 2 electric distribution companies and electric generation 3 suppliers to meet their obligations under this act, then the 4 commission shall modify the underlying obligation of the 5 electric distribution company or electric generation supplier or 6 recommend to the General Assembly that the underlying obligation 7 be eliminated. COMMISSION MODIFICATION OF THE ELECTRIC <-- 8 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OBLIGATIONS 9 UNDER THIS ACT SHALL BE FOR THAT COMPLIANCE PERIOD ONLY. 10 COMMISSION MODIFICATION SHALL NOT AUTOMATICALLY REDUCE THE 11 OBLIGATION FOR SUBSEQUENT COMPLIANCE YEARS. IF THE COMMISSION 12 MODIFIES THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 13 GENERATION SUPPLIER OBLIGATIONS UNDER THIS ACT, THE COMMISSION 14 MAY REQUIRE THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 15 GENERATION SUPPLIER TO ACQUIRE ADDITIONAL ALTERNATIVE ENERGY 16 CREDITS IN SUBSEQUENT YEARS EQUIVALENT TO THE OBLIGATION REDUCED 17 DUE TO A FORCE MAJEURE DECLARATION IF THE COMMISSION DETERMINES 18 THAT SUFFICIENT ALTERNATIVE ENERGY CREDITS EXIST IN THE 19 MARKETPLACE. 20 * * * 21 "TIER I ALTERNATIVE ENERGY SOURCE." ENERGY DERIVED FROM: <-- 22 (1) SOLAR PHOTOVOLTAIC AND SOLAR THERMAL ENERGY. 23 (2) WIND POWER. 24 (3) LOW-IMPACT HYDROPOWER. 25 (4) GEOTHERMAL ENERGY. 26 (5) BIOLOGICALLY DERIVED METHANE GAS. 27 (6) FUEL CELLS. 28 (7) BIOMASS ENERGY. 29 (8) COAL MINE METHANE. 30 * * * 20070H1203B1995 - 4 -
1 Section 2. Sections 3(b), (E) and (f), 4 and 5 of the act <-- 2 are amended to read: 3 Section 3. Alternative energy portfolio standards. 4 * * * 5 (b) Tier I and solar photovoltaic shares.-- 6 (1) Two years after the effective date of this act, at 7 least 1.5% of the electric energy sold by an electric 8 distribution company or electric generation supplier to 9 retail electric customers in this Commonwealth shall be 10 generated from Tier I alternative energy sources. Except as 11 provided in this section, the minimum percentage of electric 12 energy required to be sold to retail electric customers from 13 alternative energy sources shall increase to 2% three years 14 after the effective date of this act. The minimum percentage 15 of electric energy required to be sold to retail electric 16 customers from alternative energy sources shall increase by 17 at least 0.5% each year so that at least 8% of the electric 18 energy sold by an electric distribution company or electric 19 generation supplier to retail electric customers in that 20 certificated territory in the 15th year after the effective 21 date of this subsection is sold from Tier I alternative 22 energy resources. 23 (2) [Of the electric energy required to be sold from <-- 24 Tier I sources, the total percentage that must be sold from 25 solar photovoltaic technologies is [for]: FOR:] THE TOTAL <-- 26 PERCENTAGE OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC 27 DISTRIBUTION COMPANY OR AN ELECTRIC GENERATION SUPPLIER TO 28 RETAIL ELECTRIC CUSTOMERS IN THIS COMMONWEALTH THAT MUST BE 29 SOLD FROM SOLAR PHOTOVOLTAIC TECHNOLOGIES IS: 30 [(i) Years 1 through 4 - 0.0013%. 20070H1203B1995 - 5 -
1 (ii) Years 5 through 9 - 0.0203%. 2 (iii) Years 10 through 14 - 0.2500%. 3 (iv) Years 15 and thereafter - 0.5000%.] 4 (i) 0.0013% for June 1, 2006, through May 31, 2007. 5 (ii) 0.0030% for June 1, 2007, through May 31, 2008. 6 (iii) 0.0063% for June 1, 2008, through May 31, 7 2009. 8 (iv) 0.0120% for June 1, 2009, through May 31, 2010. 9 (v) 0.0203% for June 1, 2010, through May 31, 2011. 10 (vi) 0.0325% for June 1, 2011, through May 31, 2012. 11 (vii) 0.0510% for June 1, 2012, through May 31, 12 2013. 13 (viii) 0.0840% for June 1, 2013, through May 31, 14 2014. 15 (ix) 0.1440% for June 1, 2014, through May 31, 2015. 16 (x) 0.2500% for June 1, 2015, through May 31, 2016. 17 (xi) 0.2933% for June 1, 2016, through May 31, 2017. 18 (xii) 0.3400% for June 1, 2017, through May 31, 19 2018. 20 (xiii) 0.3900% for June 1, 2018, through May 31, 21 2019. 22 (xiv) 0.4433% for June 1, 2019, through May 31, <-- 23 2020. 24 (xv) 0.5000% for June 1, 2020, through May 31, 2021. 25 The percentages in this paragraph shall apply to all retail 26 electricity sales in this Commonwealth. AND THEREAFTER. <-- 27 (3) Upon commencement of the beginning of the 6th 28 reporting year, the commission shall undertake a review of 29 the compliance by electric distribution companies and 30 electric generation suppliers with the requirements of this 20070H1203B1995 - 6 -
1 act. The review shall also include the status of alternative 2 energy technologies within this Commonwealth and the capacity 3 to add additional alternative energy resources. The 4 commission shall use the results of this review to recommend 5 to the General Assembly additional compliance goals beyond 6 year 15. The commission shall work with the department in 7 evaluating the future alternative energy resource potential. 8 * * * 9 (E) ALTERNATIVE ENERGY CREDITS.-- <-- 10 (1) THE COMMISSION SHALL ESTABLISH AN ALTERNATIVE ENERGY 11 CREDITS PROGRAM AS NEEDED TO IMPLEMENT THIS ACT. THE 12 PROVISION OF SERVICES PURSUANT TO THIS SECTION SHALL BE 13 EXEMPT FROM THE COMPETITIVE PROCUREMENT PROCEDURES OF 62 14 PA.C.S. (RELATING TO PROCUREMENT). 15 (2) THE COMMISSION SHALL APPROVE AN INDEPENDENT ENTITY 16 TO SERVE AS THE ALTERNATIVE ENERGY CREDITS PROGRAM 17 ADMINISTRATOR. THE ADMINISTRATOR SHALL HAVE THOSE POWERS AND 18 DUTIES ASSIGNED BY COMMISSION REGULATIONS. SUCH POWERS AND 19 DUTIES SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING: 20 (I) TO CREATE AND ADMINISTER AN ALTERNATIVE ENERGY 21 CREDITS CERTIFICATION, TRACKING AND REPORTING PROGRAM. 22 THIS PROGRAM SHOULD INCLUDE, AT A MINIMUM, A PROCESS FOR 23 QUALIFYING ALTERNATIVE ENERGY SYSTEMS AND DETERMINING THE 24 MANNER CREDITS CAN BE CREATED, ACCOUNTED FOR, TRANSFERRED 25 AND RETIRED. 26 (II) TO SUBMIT REPORTS TO THE COMMISSION AT SUCH 27 TIMES AND IN SUCH MANNER AS THE COMMISSION SHALL DIRECT. 28 (3) ALL QUALIFYING ALTERNATIVE ENERGY SYSTEMS MUST 29 INCLUDE A QUALIFYING METER TO RECORD THE CUMULATIVE ELECTRIC 30 PRODUCTION TO VERIFY THE ADVANCED ENERGY CREDIT VALUE. 20070H1203B1995 - 7 -
1 QUALIFYING METERS WILL BE APPROVED BY THE COMMISSION AS 2 DEFINED IN PARAGRAPH (4). 3 (4) (I) AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC 4 GENERATION SUPPLIER SHALL COMPLY WITH THE APPLICABLE 5 REQUIREMENTS OF THIS SECTION BY PURCHASING SUFFICIENT 6 ALTERNATIVE ENERGY CREDITS AND SUBMITTING DOCUMENTATION 7 OF COMPLIANCE TO THE PROGRAM ADMINISTRATOR. 8 (II) FOR PURPOSES OF THIS SUBSECTION, ONE 9 ALTERNATIVE ENERGY CREDIT SHALL REPRESENT ONE MEGAWATT 10 HOUR OF QUALIFIED ALTERNATIVE ELECTRIC GENERATION, 11 WHETHER SELF-GENERATED, PURCHASED ALONG WITH THE ELECTRIC 12 COMMODITY OR SEPARATELY THROUGH A TRADABLE INSTRUMENT AND 13 OTHERWISE MEETING THE REQUIREMENTS OF COMMISSION 14 REGULATIONS AND THE PROGRAM ADMINISTRATOR. 15 (5) THE ALTERNATIVE ENERGY CREDITS PROGRAM SHALL INCLUDE 16 PROVISIONS REQUIRING A REPORTING PERIOD AS DEFINED IN SECTION 17 2 FOR ALL COVERED ENTITIES UNDER THIS ACT. THE ALTERNATIVE 18 ENERGY CREDITS PROGRAM SHALL ALSO INCLUDE A TRUE-UP PERIOD AS 19 DEFINED IN SECTION 2. THE TRUE-UP PERIOD SHALL PROVIDE 20 ENTITIES COVERED UNDER THIS ACT THE ABILITY TO OBTAIN THE 21 REQUIRED NUMBER OF ALTERNATIVE ENERGY CREDITS OR TO MAKE UP 22 ANY SHORTFALL OF THE ALTERNATIVE ENERGY CREDITS THEY MAY BE 23 REQUIRED TO OBTAIN TO COMPLY WITH THIS ACT. A FORCE MAJEURE 24 PROVISION SHALL ALSO BE PROVIDED FOR UNDER THE TRUE-UP PERIOD 25 PROVISIONS. 26 (6) AN ELECTRIC DISTRIBUTION COMPANY AND ELECTRIC 27 GENERATION SUPPLIER MAY BANK OR PLACE IN RESERVE ALTERNATIVE 28 ENERGY CREDITS PRODUCED IN ONE REPORTING YEAR FOR COMPLIANCE 29 IN EITHER OR BOTH OF THE TWO SUBSEQUENT REPORTING YEARS, 30 SUBJECT TO THE LIMITATIONS SET FORTH IN THIS SUBSECTION AND 20070H1203B1995 - 8 -
1 PROVIDED THAT THE ELECTRIC DISTRIBUTION COMPANY AND ELECTRIC 2 GENERATION SUPPLIER ARE IN COMPLIANCE FOR ALL PREVIOUS 3 REPORTING YEARS. IN ADDITION, THE ELECTRIC DISTRIBUTION 4 COMPANY AND ELECTRIC GENERATION SUPPLIER SHALL DEMONSTRATE TO 5 THE SATISFACTION OF THE COMMISSION THAT SUCH CREDITS: 6 (I) WERE IN EXCESS OF THE ALTERNATIVE ENERGY CREDITS 7 NEEDED FOR COMPLIANCE IN THE YEAR IN WHICH THEY WERE 8 GENERATED AND THAT SUCH EXCESS CREDITS HAVE NOT 9 PREVIOUSLY BEEN USED FOR COMPLIANCE UNDER THIS ACT; 10 (II) WERE PRODUCED BY THE GENERATION OF ELECTRICAL 11 ENERGY BY ALTERNATIVE ENERGY SOURCES AND SOLD TO RETAIL 12 CUSTOMERS DURING THE YEAR IN WHICH THEY WERE GENERATED; 13 AND 14 (III) HAVE NOT OTHERWISE BEEN NOR WILL BE SOLD, 15 RETIRED, CLAIMED OR REPRESENTED AS PART OF SATISFYING 16 COMPLIANCE WITH ALTERNATIVE OR RENEWABLE ENERGY PORTFOLIO 17 STANDARDS IN OTHER STATES. 18 (7) AN ELECTRIC DISTRIBUTION COMPANY OR AN ELECTRIC 19 GENERATION SUPPLIER WITH SALES THAT ARE EXEMPTED UNDER 20 SUBSECTION (D) MAY BANK CREDITS FOR RETAIL SALES OF 21 ELECTRICITY GENERATED FROM TIER I AND TIER II SOURCES MADE 22 PRIOR TO THE END OF THE COST-RECOVERY PERIOD AND AFTER THE 23 EFFECTIVE DATE OF THIS ACT. BANKABLE CREDITS SHALL BE LIMITED 24 TO CREDITS ASSOCIATED WITH ELECTRICITY SOLD FROM TIER I AND 25 TIER II SOURCES DURING A REPORTING YEAR WHICH EXCEEDS THE 26 VOLUME OF SALES FROM SUCH SOURCES BY AN ELECTRIC DISTRIBUTION 27 COMPANY OR ELECTRIC GENERATION SUPPLIER DURING THE 12-MONTH 28 PERIOD IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS ACT. 29 ALL CREDITS BANKED UNDER THIS SUBSECTION SHALL BE AVAILABLE 30 FOR COMPLIANCE WITH SUBSECTIONS (B) AND (C) FOR NO MORE THAN 20070H1203B1995 - 9 -
1 TWO REPORTING YEARS FOLLOWING THE CONCLUSION OF THE COST- 2 RECOVERY PERIOD. 3 (8) THE COMMISSION OR ITS DESIGNEE SHALL DEVELOP A 4 REGISTRY OF PERTINENT INFORMATION REGARDING ALL AVAILABLE 5 ALTERNATIVE ENERGY CREDITS, CREDIT TRANSACTIONS AMONG 6 ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION 7 SUPPLIERS, THE NUMBER OF ALTERNATIVE ENERGY CREDITS SOLD OR 8 TRANSFERRED AND THE PRICE PAID FOR THE SALE OR TRANSFER OF 9 THE CREDITS. THE REGISTRY SHALL PROVIDE CURRENT INFORMATION 10 TO ELECTRIC DISTRIBUTION COMPANIES, ELECTRIC GENERATION 11 SUPPLIERS AND THE GENERAL PUBLIC ON THE STATUS OF ALTERNATIVE 12 ENERGY CREDITS CREATED, SOLD OR TRANSFERRED WITHIN THIS 13 COMMONWEALTH. 14 (9) THE COMMISSION MAY IMPOSE AN ADMINISTRATIVE FEE ON 15 AN ALTERNATIVE ENERGY CREDIT TRANSACTION. THE AMOUNT OF THIS 16 FEE MAY NOT EXCEED THE ACTUAL DIRECT COST OF PROCESSING THE 17 TRANSACTION BY THE ALTERNATIVE ENERGY CREDITS ADMINISTRATOR. 18 THE COMMISSION IS AUTHORIZED TO UTILIZE UP TO 5% OF THE 19 ALTERNATIVE COMPLIANCE FEES GENERATED UNDER SUBSECTION (F) 20 FOR ADMINISTRATIVE EXPENSES DIRECTLY ASSOCIATED WITH THIS 21 ACT. 22 (10) THE COMMISSION SHALL ESTABLISH REGULATIONS 23 GOVERNING THE VERIFICATION AND TRACKING OF ENERGY EFFICIENCY 24 AND DEMAND-SIDE MANAGEMENT MEASURES PURSUANT TO THIS ACT, 25 WHICH SHALL INCLUDE BENEFITS TO ALL UTILITY CUSTOMER CLASSES. 26 WHEN DEVELOPING REGULATIONS, THE COMMISSION MUST GIVE 27 REASONABLE CONSIDERATION TO EXISTING AND PROPOSED REGULATIONS 28 AND RULES IN EXISTENCE IN THE REGIONAL TRANSMISSION 29 ORGANIZATIONS THAT MANAGE THE TRANSMISSION SYSTEM IN ANY PART 30 OF THIS COMMONWEALTH. ALL VERIFIED REDUCTIONS SHALL ACCRUE 20070H1203B1995 - 10 -
1 CREDITS STARTING WITH THE PASSAGE OF THIS ACT. 2 (11) THE COMMISSION SHALL WITHIN 120 DAYS OF THE 3 EFFECTIVE DATE OF THIS ACT DEVELOP A DEPRECIATION SCHEDULE 4 FOR ALTERNATIVE ENERGY CREDITS CREATED THROUGH DEMAND-SIDE 5 MANAGEMENT, ENERGY EFFICIENCY AND LOAD MANAGEMENT 6 TECHNOLOGIES AND SHALL DEVELOP STANDARDS FOR TRACKING AND 7 VERIFYING SAVINGS FROM ENERGY EFFICIENCY, LOAD MANAGEMENT AND 8 DEMAND-SIDE MANAGEMENT MEASURES. THE COMMISSION SHALL ALLOW 9 FOR A 60-DAY PUBLIC COMMENT PERIOD AND SHALL ISSUE FINAL 10 STANDARDS WITHIN 30 DAYS OF THE CLOSE OF THE PUBLIC COMMENT 11 PERIOD. 12 (12) (I) UNLESS A CONTRACTUAL PROVISION EXPLICITLY 13 ASSIGNS ALTERNATIVE ENERGY CREDITS IN A DIFFERENT MANNER, 14 THE OWNER OF THE ALTERNATIVE ENERGY SYSTEM OR A CUSTOMER- 15 GENERATOR OWNS ANY AND ALL ALTERNATIVE ENERGY CREDITS 16 ASSOCIATED WITH OR CREATED BY THE PRODUCTION OF ELECTRIC 17 ENERGY BY SUCH FACILITY OR CUSTOMER, AND THE OWNER OR 18 CUSTOMER SHALL BE ENTITLED TO SELL, TRANSFER OR TAKE ANY 19 OTHER ACTION TO WHICH A LEGAL OWNER OF PROPERTY IS 20 ENTITLED TO TAKE WITH RESPECT TO THE CREDITS. 21 (II) THIS PARAGRAPH SHALL APPLY TO ALL ALTERNATIVE 22 ENERGY CREDITS WHICH WERE CREATED PURSUANT TO THIS ACT 23 PRIOR TO THE EFFECTIVE DATE OF THIS PARAGRAPH AND WHICH 24 WILL BE CREATED AFTER THE EFFECTIVE DATE OF THIS 25 PARAGRAPH, REGARDLESS OF WHEN ANY UNDERLYING CONTRACT FOR 26 THE PURCHASE OF ELECTRIC ENERGY OR OTHER PRODUCTS FROM 27 THE GENERATOR THAT QUALIFIES AS AN ALTERNATIVE ENERGY 28 SYSTEM WAS EXECUTED. 29 (f) Alternative compliance payment.-- 30 (1) At the end of each program year, the program 20070H1203B1995 - 11 -
1 administrator shall provide a report to the commission and to 2 each covered electric distribution company showing their 3 status level of alternative energy acquisition. 4 (2) The commission shall conduct a review of each 5 determination made under subsections (b) and (c). If, after 6 notice and hearing, the commission determines that an 7 electric distribution company or electric generation supplier 8 has failed to comply with subsections (b) and (c), the 9 commission shall impose an alternative compliance payment on 10 that company or supplier. 11 (3) The alternative compliance payment, with the 12 exception of the solar photovoltaic share compliance 13 requirement set forth in subsection (b)(2), shall be $45 14 times the number of additional alternative energy credits 15 needed in order to comply with subsection (b) or (c). 16 (4) The alternative compliance payment for the solar 17 photovoltaic share shall be 200% of the average market value 18 of solar renewable energy credits sold during the reporting 19 period within the service region of the regional transmission 20 organization, including, where applicable, the levelized up- 21 front rebates received by sellers of solar renewable energy 22 credits in other jurisdictions in the PJM Interconnection, 23 L.L.C. transmission organization (PJM) or its successor. 24 (5) The commission shall establish a process to provide 25 for, at least annually, a review of the alternative energy 26 market within this Commonwealth and the service territories 27 of the regional transmission organizations that manage the 28 transmission system in any part of this Commonwealth. The 29 commission will use the results of this study to identify any 30 needed changes to the cost associated with the alternative 20070H1203B1995 - 12 -
1 compliance payment program. If the commission finds that the 2 costs associated with the alternative compliance payment 3 program must be changed, the commission shall present these 4 findings to the General Assembly for legislative enactment. 5 * * * 6 Section 4. Portfolio requirements in other states. 7 If an electric distribution supplier or electric generation 8 company provider sells electricity in any other state and is 9 subject to renewable energy portfolio requirements in that 10 state, they shall list any such requirement and shall indicate 11 how it satisfied those renewable energy portfolio requirements. 12 To prevent double-counting, the electric distribution supplier 13 or electric generation company shall not satisfy Pennsylvania's 14 alternative energy portfolio requirements using alternative 15 energy used to satisfy another state's portfolio requirements[. 16 Energy derived only from alternative energy sources inside the 17 geographical boundaries of this Commonwealth or within the 18 service territory of any regional transmission organization that 19 manages the transmission system in any part of this Commonwealth 20 shall be eligible to meet the compliance requirements under this 21 act.] or alternative energy credits already purchased by 22 individuals, businesses, or government bodies that do not have a 23 compliance obligation under this act unless the individual, 24 business or government body sells those credits to the electric 25 distribution company or electric generation supplier. Energy 26 derived from alternative energy sources inside the geographical 27 boundaries of this Commonwealth shall be eligible to meet the 28 compliance requirements under this act. Energy derived from 29 alternative energy sources located outside the geographical 30 boundaries of this Commonwealth but within the service territory 20070H1203B1995 - 13 -
1 of a regional transmission organization that manages the 2 transmission system in any part of this Commonwealth shall only 3 be eligible to meet the compliance requirements of electric 4 distribution companies or electric generation suppliers located 5 within the service territory of the same regional transmission 6 organization. For purposes of compliance with this act, 7 alternative energy sources located in the PJM Interconnection, 8 L.L.C. regional transmission organization (PJM) or its successor 9 service territory shall be eligible to fulfill compliance 10 obligations of Pike County Light and Power Company and <-- 11 Pennsylvania Power Company. ALL PENNSYLVANIA ELECTRIC <-- 12 DISTRIBUTION COMPANIES AND ELECTRIC GENERATION SUPPLIERS. Energy 13 derived from alternative energy sources located outside the 14 service territory of a regional transmission organization that 15 manages the transmission system in any part of this Commonwealth 16 shall not be eligible to meet the compliance requirements of 17 this act. Electric distribution companies and electric 18 generation suppliers shall document that this energy was not 19 used to satisfy another state's renewable energy portfolio 20 standards. 21 Section 5. Interconnection standards for customer-generator 22 facilities. 23 Excess generation from net-metered customer-generators shall 24 be "trued-up" RECEIVE FULL RETAIL VALUE FOR ALL ENERGY PRODUCED <-- 25 on an annual basis. The commission shall develop technical and 26 net metering interconnection rules for customer-generators 27 intending to operate renewable onsite generators in parallel 28 with the electric utility grid, consistent with rules defined in 29 other states within the service region of the regional 30 transmission organization that manages the transmission system 20070H1203B1995 - 14 -
1 in any part of this Commonwealth. The commission shall convene a
2 stakeholder process to develop Statewide technical and net
3 metering rules for customer-generators. The commission shall
4 develop these rules within nine months of the effective date of
5 this act.
6 SECTION 3. THE ADDITION OF SECTION 3(E)(12) OF THE ACT SHALL <--
7 APPLY TO ALL ALTERNATIVE ENERGY CREDITS CREATED UNDER THE ACT
8 BEFORE, ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION,
9 REGARDLESS OF WHEN ANY UNDERLYING CONTRACT FOR THE PURCHASE OF
10 ELECTRIC ENERGY OR OTHER PRODUCTS FROM THE GENERATOR THAT
11 QUALIFIES AS AN ALTERNATIVE ENERGY SYSTEM WAS EXECUTED.
12 Section 3 4. This act shall take effect immediately. <--
B22L66RLE/20070H1203B1995 - 15 -