SENATE AMENDED
PRIOR PRINTER'S NOS. 1668, 1995, 2057, PRINTER'S NO. 2297
2291
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, WALKO AND GEIST, MAY 24, 2007
SENATOR M. WHITE, ENVIRONMENTAL RESOURCES AND ENERGY, IN SENATE,
RE-REPORTED AS AMENDED, JULY 12, 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 definitions, for alternative energy <--
9 portfolio standards, for portfolio requirements in other
10 states and for interconnection standards for customer-
11 generator facilities. FURTHER PROVIDING FOR THE DEFINITIONS <--
12 OF "ALTERNATIVE ENERGY SOURCES," CREDIT," "CUSTOMER- <--
13 GENERATOR," "FORCE MAJEURE," AND "NET METERING," AND "TIER I <--
14 ALTERNATIVE ENERGY SOURCE," FOR ALTERNATIVE ENERGY PORTFOLIO
15 STANDARDS, FOR PORTFOLIO REQUIREMENTS IN OTHER STATES AND FOR
16 INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR FACILITIES.
17 The General Assembly of the Commonwealth of Pennsylvania
18 hereby enacts as follows:
19 Section 1. The definitions of "alternative energy credit," <--
20 "customer-generator," "force majeure" and "Tier I alternative
21 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
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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
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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 * * *
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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:] The total percentage
26 of the electric energy sold by an electric distribution
27 company or an electric generation supplier to retail electric
28 customers in this Commonwealth that must be sold from solar
29 photovoltaic technologies is:
30 [(i) Years 1 through 4 - 0.0013%.
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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, and thereafter.
23 (xiv) 0.4433% for June 1, 2019, through May 31,
24 2020.
25 (xv) 0.5000% for June 1, 2020, and thereafter.
26 The percentages in this paragraph shall apply to all
27 retail electricity sales in this Commonwealth.
28 (3) Upon commencement of the beginning of the 6th
29 reporting year, the commission shall undertake a review of
30 the compliance by electric distribution companies and
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1 electric generation suppliers with the requirements of this
2 act. The review shall also include the status of alternative
3 energy technologies within this Commonwealth and the capacity
4 to add additional alternative energy resources. The
5 commission shall use the results of this review to recommend
6 to the General Assembly additional compliance goals beyond
7 year 15. The commission shall work with the department in
8 evaluating the future alternative energy resource potential.
9 * * *
10 (e) Alternative energy credits.--
11 (1) The commission shall establish an alternative energy
12 credits program as needed to implement this act. The
13 provision of services pursuant to this section shall be
14 exempt from the competitive procurement procedures of 62
15 Pa.C.S. (relating to procurement).
16 (2) The commission shall approve an independent entity
17 to serve as the alternative energy credits program
18 administrator. The administrator shall have those powers and
19 duties assigned by commission regulations. Such powers and
20 duties shall include, but not be limited to, the following:
21 (i) To create and administer an alternative energy
22 credits certification, tracking and reporting program.
23 This program should include, at a minimum, a process for
24 qualifying alternative energy systems and determining the
25 manner credits can be created, accounted for, transferred
26 and retired.
27 (ii) To submit reports to the commission at such
28 times and in such manner as the commission shall direct.
29 (3) All qualifying alternative energy systems must
30 include a qualifying meter to record the cumulative electric
20070H1203B2297 - 7 -
1 production to verify the advanced energy credit value.
2 Qualifying meters will be approved by the commission as
3 defined in paragraph (4).
4 (4) (i) An electric distribution company or electric
5 generation supplier shall comply with the applicable
6 requirements of this section by purchasing sufficient
7 alternative energy credits and submitting documentation
8 of compliance to the program administrator.
9 (ii) For purposes of this subsection, one
10 alternative energy credit shall represent one megawatt
11 hour of qualified alternative electric generation,
12 whether self-generated, purchased along with the electric
13 commodity or separately through a tradable instrument and
14 otherwise meeting the requirements of commission
15 regulations and the program administrator.
16 (5) The alternative energy credits program shall include
17 provisions requiring a reporting period as defined in section
18 2 for all covered entities under this act. The alternative
19 energy credits program shall also include a true-up period as
20 defined in section 2. The true-up period shall provide
21 entities covered under this act the ability to obtain the
22 required number of alternative energy credits or to make up
23 any shortfall of the alternative energy credits they may be
24 required to obtain to comply with this act. A force majeure
25 provision shall also be provided for under the true-up period
26 provisions.
27 (6) An electric distribution company and electric
28 generation supplier may bank or place in reserve alternative
29 energy credits produced in one reporting year for compliance
30 in either or both of the two subsequent reporting years,
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1 subject to the limitations set forth in this subsection and
2 provided that the electric distribution company and electric
3 generation supplier are in compliance for all previous
4 reporting years. In addition, the electric distribution
5 company and electric generation supplier shall demonstrate to
6 the satisfaction of the commission that such credits:
7 (i) were in excess of the alternative energy credits
8 needed for compliance in the year in which they were
9 generated and that such excess credits have not
10 previously been used for compliance under this act;
11 (ii) were produced by the generation of electrical
12 energy by alternative energy sources and sold to retail
13 customers during the year in which they were generated;
14 and
15 (iii) have not otherwise been nor will be sold,
16 retired, claimed or represented as part of satisfying
17 compliance with alternative or renewable energy portfolio
18 standards in other states.
19 (7) An electric distribution company or an electric
20 generation supplier with sales that are exempted under
21 subsection (d) may bank credits for retail sales of
22 electricity generated from Tier I and Tier II sources made
23 prior to the end of the cost-recovery period and after the
24 effective date of this act. Bankable credits shall be limited
25 to credits associated with electricity sold from Tier I and
26 Tier II sources during a reporting year which exceeds the
27 volume of sales from such sources by an electric distribution
28 company or electric generation supplier during the 12-month
29 period immediately preceding the effective date of this act.
30 All credits banked under this subsection shall be available
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1 for compliance with subsections (b) and (c) for no more than
2 two reporting years following the conclusion of the cost-
3 recovery period.
4 (8) The commission or its designee shall develop a
5 registry of pertinent information regarding all available
6 alternative energy credits, credit transactions among
7 electric distribution companies and electric generation
8 suppliers, the number of alternative energy credits sold or
9 transferred and the price paid for the sale or transfer of
10 the credits. The registry shall provide current information
11 to electric distribution companies, electric generation
12 suppliers and the general public on the status of alternative
13 energy credits created, sold or transferred within this
14 Commonwealth.
15 (9) The commission may impose an administrative fee on
16 an alternative energy credit transaction. The amount of this
17 fee may not exceed the actual direct cost of processing the
18 transaction by the alternative energy credits administrator.
19 The commission is authorized to utilize up to 5% of the
20 alternative compliance fees generated under subsection (f)
21 for administrative expenses directly associated with this
22 act.
23 (10) The commission shall establish regulations
24 governing the verification and tracking of energy efficiency
25 and demand-side management measures pursuant to this act,
26 which shall include benefits to all utility customer classes.
27 When developing regulations, the commission must give
28 reasonable consideration to existing and proposed regulations
29 and rules in existence in the regional transmission
30 organizations that manage the transmission system in any part
20070H1203B2297 - 10 -
1 of this Commonwealth. All verified reductions shall accrue
2 credits starting with the passage of this act.
3 (11) The commission shall within 120 days of the
4 effective date of this act develop a depreciation schedule
5 for alternative energy credits created through demand-side
6 management, energy efficiency and load management
7 technologies and shall develop standards for tracking and
8 verifying savings from energy efficiency, load management and
9 demand-side management measures. The commission shall allow
10 for a 60-day public comment period and shall issue final
11 standards within 30 days of the close of the public comment
12 period.
13 (12) (i) Unless a contractual provision explicitly
14 assigns alternative energy credits in a different manner,
15 the owner of the alternative energy system or a customer-
16 generator owns any and all alternative energy credits
17 associated with or created by the production of electric
18 energy by such facility or customer, and the owner or
19 customer shall be entitled to sell, transfer or take any
20 other action to which a legal owner of property is
21 entitled to take with respect to the credits.
22 (ii) This paragraph shall apply to all alternative
23 energy credits which were created pursuant to this act
24 prior to the effective date of this paragraph and which
25 will be created after the effective date of this
26 paragraph, regardless of when any underlying contract for
27 the purchase of electric energy or other products from
28 the generator that qualifies as an alternative energy
29 system was executed.
30 (f) Alternative compliance payment.--
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1 (1) At the end of each program year, the program
2 administrator shall provide a report to the commission and to
3 each covered electric distribution company showing their
4 status level of alternative energy acquisition.
5 (2) The commission shall conduct a review of each
6 determination made under subsections (b) and (c). If, after
7 notice and hearing, the commission determines that an
8 electric distribution company or electric generation supplier
9 has failed to comply with subsections (b) and (c), the
10 commission shall impose an alternative compliance payment on
11 that company or supplier.
12 (3) The alternative compliance payment, with the
13 exception of the solar photovoltaic share compliance
14 requirement set forth in subsection (b)(2), shall be $45
15 times the number of additional alternative energy credits
16 needed in order to comply with subsection (b) or (c).
17 (4) The alternative compliance payment for the solar
18 photovoltaic share shall be 200% of the average market value
19 of solar renewable energy credits sold during the reporting
20 period within the service region of the regional transmission
21 organization, including, where applicable, the levelized up-
22 front rebates received by sellers of solar renewable energy
23 credits in other jurisdictions in the PJM Interconnection,
24 L.L.C. transmission organization (PJM) or its successor.
25 (5) The commission shall establish a process to provide
26 for, at least annually, a review of the alternative energy
27 market within this Commonwealth and the service territories
28 of the regional transmission organizations that manage the
29 transmission system in any part of this Commonwealth. The
30 commission will use the results of this study to identify any
20070H1203B2297 - 12 -
1 needed changes to the cost associated with the alternative
2 compliance payment program. If the commission finds that the
3 costs associated with the alternative compliance payment
4 program must be changed, the commission shall present these
5 findings to the General Assembly for legislative enactment.
6 * * *
7 Section 4. Portfolio requirements in other states.
8 If an electric distribution supplier or electric generation
9 company provider sells electricity in any other state and is
10 subject to renewable energy portfolio requirements in that
11 state, they shall list any such requirement and shall indicate
12 how it satisfied those renewable energy portfolio requirements.
13 To prevent double-counting, the electric distribution supplier
14 or electric generation company shall not satisfy Pennsylvania's
15 alternative energy portfolio requirements using alternative
16 energy used to satisfy another state's portfolio requirements[.
17 Energy derived only from alternative energy sources inside the
18 geographical boundaries of this Commonwealth or within the
19 service territory of any regional transmission organization that
20 manages the transmission system in any part of this Commonwealth
21 shall be eligible to meet the compliance requirements under this
22 act.] or alternative energy credits already purchased by
23 individuals, businesses, or government bodies that do not have a
24 compliance obligation under this act unless the individual,
25 business or government body sells those credits to the electric
26 distribution company or electric generation supplier. Energy
27 derived from alternative energy sources inside the geographical
28 boundaries of this Commonwealth shall be eligible to meet the
29 compliance requirements under this act. Energy derived from
30 alternative energy sources located outside the geographical
20070H1203B2297 - 13 -
1 boundaries of this Commonwealth but within the service territory
2 of a regional transmission organization that manages the
3 transmission system in any part of this Commonwealth shall only
4 be eligible to meet the compliance requirements of electric
5 distribution companies or electric generation suppliers located
6 within the service territory of the same regional transmission
7 organization. For purposes of compliance with this act,
8 alternative energy sources located in the PJM Interconnection,
9 L.L.C. regional transmission organization (PJM) or its successor
10 service territory shall be eligible to fulfill compliance
11 obligations of all Pennsylvania electric distribution companies
12 and electric generation suppliers. Energy derived from
13 alternative energy sources located outside the service territory
14 of a regional transmission organization that manages the
15 transmission system in any part of this Commonwealth shall not
16 be eligible to meet the compliance requirements of this act.
17 Electric distribution companies and electric generation
18 suppliers shall document that this energy was not used to
19 satisfy another state's renewable energy portfolio standards.
20 Section 5. Interconnection standards for customer-generator
21 facilities.
22 Excess generation from net-metered customer-generators shall
23 receive full retail value for all energy produced on an annual
24 basis. The commission shall develop technical and net metering
25 interconnection rules for customer-generators intending to
26 operate renewable onsite generators in parallel with the
27 electric utility grid, consistent with rules defined in other
28 states within the service region of the regional transmission
29 organization that manages the transmission system in any part of
30 this Commonwealth. The commission shall convene a stakeholder
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1 process to develop Statewide technical and net metering rules
2 for customer-generators. The commission shall develop these
3 rules within nine months of the effective date of this act.
4 Section 3. The addition of section 3(e)(12) of the act shall
5 apply to all alternative energy credits created under the act
6 before, on or after the effective date of this section,
7 regardless of when any underlying contract for the purchase of
8 electric energy or other products from the generator that
9 qualifies as an alternative energy system was executed.
10 Section 4. This act shall take effect immediately.
11 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY SOURCES," <--
12 "CUSTOMER-GENERATOR," "FORCE MAJEURE" AND "NET METERING" IN
13 SECTION 2 OF THE ACT OF NOVEMBER 30, 2004 (P.L.1672, NO.213),
14 KNOWN AS THE ALTERNATIVE ENERGY PORTFOLIO STANDARDS ACT, ARE
15 AMENDED TO READ:
16 SECTION 1. THE DEFINITIONS OF "ALTERNATIVE ENERGY CREDIT," <--
17 "CUSTOMER-GENERATOR," "FORCE MAJEURE," "NET METERING" AND "TIER
18 I ALTERNATIVE ENERGY SOURCE" IN SECTION 2 OF THE ACT OF NOVEMBER
19 30, 2004 (P.L.1672, NO.213), KNOWN AS THE ALTERNATIVE ENERGY
20 PORTFOLIO STANDARDS ACT, ARE AMENDED TO READ:
21 SECTION 2. DEFINITIONS.
22 THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
23 HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
24 CONTEXT CLEARLY INDICATES OTHERWISE:
25 "ALTERNATIVE ENERGY CREDIT." A TRADABLE INSTRUMENT THAT IS <--
26 USED TO ESTABLISH, VERIFY AND MONITOR COMPLIANCE WITH THIS ACT.
27 A UNIT OF CREDIT SHALL EQUAL ONE MEGAWATT HOUR OF ELECTRICITY
28 FROM AN ALTERNATIVE ENERGY SOURCE. THE ALTERNATIVE ENERGY CREDIT
29 SHALL REMAIN THE PROPERTY OF THE ALTERNATIVE ENERGY SYSTEM UNTIL
30 THE ALTERNATIVE ENERGY CREDIT IS VOLUNTARILY TRANSFERRED BY THE
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1 ALTERNATIVE ENERGY SYSTEM.
2 * * *
3 "ALTERNATIVE ENERGY SOURCES." THE TERM SHALL INCLUDE THE <--
4 FOLLOWING EXISTING AND NEW SOURCES FOR THE PRODUCTION OF
5 ELECTRICITY:
6 (1) SOLAR PHOTOVOLTAIC OR OTHER SOLAR ELECTRIC ENERGY.
7 (2) SOLAR THERMAL ENERGY.
8 (3) WIND POWER.
9 (4) LARGE-SCALE HYDROPOWER, WHICH SHALL MEAN THE
10 PRODUCTION OF ELECTRIC POWER BY HARNESSING THE HYDROELECTRIC
11 POTENTIAL OF MOVING WATER IMPOUNDMENTS, INCLUDING PUMPED
12 STORAGE THAT DOES NOT MEET THE REQUIREMENTS OF LOW-IMPACT
13 HYDROPOWER UNDER PARAGRAPH (5).
14 (5) LOW-IMPACT HYDROPOWER CONSISTING OF ANY TECHNOLOGY
15 THAT PRODUCES ELECTRIC POWER AND THAT HARNESSES THE
16 HYDROELECTRIC POTENTIAL OF MOVING WATER IMPOUNDMENTS,
17 PROVIDED THE HYDROPOWER SOURCE HAS A NAMEPLATE CAPACITY OF 21
18 MEGAWATTS OR LESS AND A LICENSE ISSUED BY THE FEDERAL ENERGY
19 REGULATORY COMMISSION FOR THE HYDROPOWER SOURCE WAS HELD IN
20 WHOLE OR IN PART BY A MUNICIPALITY OR ELECTRIC COOPERATIVE ON
21 JULY 1, 2007, OR SUCH INCREMENTAL HYDROELECTRIC DEVELOPMENT:
22 (I) DOES NOT ADVERSELY CHANGE EXISTING IMPACTS TO
23 AQUATIC SYSTEMS;
24 (II) MEETS THE CERTIFICATION STANDARDS ESTABLISHED
25 BY THE LOW IMPACT HYDROPOWER INSTITUTE AND AMERICAN
26 RIVERS, INC., OR THEIR SUCCESSORS;
27 (III) PROVIDES AN ADEQUATE WATER FLOW FOR PROTECTION
28 OF AQUATIC LIFE AND FOR SAFE AND EFFECTIVE FISH PASSAGE;
29 (IV) PROTECTS AGAINST EROSION; AND
30 (V) PROTECTS CULTURAL AND HISTORIC RESOURCES.
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1 (6) GEOTHERMAL ENERGY, WHICH SHALL MEAN ELECTRICITY
2 PRODUCED BY EXTRACTING HOT WATER OR STEAM FROM GEOTHERMAL
3 RESERVES IN THE EARTH'S CRUST AND SUPPLIED TO STEAM TURBINES
4 THAT DRIVE GENERATORS TO PRODUCE ELECTRICITY.
5 (7) BIOMASS ENERGY, WHICH SHALL MEAN THE GENERATION OF
6 ELECTRICITY UTILIZING THE FOLLOWING:
7 (I) ORGANIC MATERIAL FROM A PLANT THAT IS GROWN FOR
8 THE PURPOSE OF BEING USED TO PRODUCE ELECTRICITY OR IS
9 PROTECTED BY THE FEDERAL CONSERVATION RESERVE PROGRAM
10 (CRP) AND PROVIDED FURTHER THAT CROP PRODUCTION ON CRP
11 LANDS DOES NOT PREVENT ACHIEVEMENT OF THE WATER QUALITY
12 PROTECTION, SOIL EROSION PREVENTION OR WILDLIFE
13 ENHANCEMENT PURPOSES FOR WHICH THE LAND WAS PRIMARILY SET
14 ASIDE; OR
15 (II) ANY SOLID NONHAZARDOUS, CELLULOSIC WASTE
16 MATERIAL THAT IS SEGREGATED FROM OTHER WASTE MATERIALS,
17 SUCH AS WASTE PALLETS, CRATES AND LANDSCAPE OR RIGHT-OF-
18 WAY TREE TRIMMINGS OR AGRICULTURAL SOURCES, INCLUDING
19 ORCHARD TREE CROPS, VINEYARDS, GRAIN, LEGUMES, SUGAR AND
20 OTHER CROP BY-PRODUCTS OR RESIDUES.
21 (8) BIOLOGICALLY DERIVED METHANE GAS, WHICH SHALL
22 INCLUDE METHANE FROM THE ANAEROBIC DIGESTION OF ORGANIC
23 MATERIALS FROM YARD WASTE, SUCH AS GRASS CLIPPINGS AND
24 LEAVES, FOOD WASTE, ANIMAL WASTE AND SEWAGE SLUDGE. THE TERM
25 ALSO INCLUDES LANDFILL METHANE GAS.
26 (9) FUEL CELLS, WHICH SHALL MEAN ANY ELECTROCHEMICAL
27 DEVICE THAT CONVERTS CHEMICAL ENERGY IN A HYDROGEN-RICH FUEL
28 DIRECTLY INTO ELECTRICITY, HEAT AND WATER WITHOUT COMBUSTION.
29 (10) WASTE COAL, WHICH SHALL INCLUDE THE COMBUSTION OF
30 WASTE COAL IN FACILITIES IN WHICH THE WASTE COAL WAS DISPOSED
20070H1203B2297 - 17 -
1 OR ABANDONED PRIOR TO JULY 31, 1982, OR DISPOSED OF
2 THEREAFTER IN A PERMITTED COAL REFUSE DISPOSAL SITE
3 REGARDLESS OF WHEN DISPOSED OF, AND USED TO GENERATE
4 ELECTRICITY, OR SUCH OTHER WASTE COAL COMBUSTION MEETING
5 ALTERNATE ELIGIBILITY REQUIREMENTS ESTABLISHED BY REGULATION.
6 FACILITIES COMBUSTING WASTE COAL SHALL USE AT A MINIMUM A
7 COMBINED FLUIDIZED BED BOILER AND BE OUTFITTED WITH A
8 LIMESTONE INJECTION SYSTEM AND A FABRIC FILTER PARTICULATE
9 REMOVAL SYSTEM. ALTERNATIVE ENERGY CREDITS SHALL BE
10 CALCULATED BASED UPON THE PROPORTION OF WASTE COAL UTILIZED
11 TO PRODUCE ELECTRICITY AT THE FACILITY.
12 (11) COAL MINE METHANE, WHICH SHALL MEAN METHANE GAS
13 EMITTING FROM ABANDONED OR WORKING COAL MINES.
14 (12) DEMAND-SIDE MANAGEMENT CONSISTING OF THE MANAGEMENT
15 OF CUSTOMER CONSUMPTION OF ELECTRICITY OR THE DEMAND FOR
16 ELECTRICITY THROUGH THE IMPLEMENTATION OF:
17 (I) ENERGY EFFICIENCY TECHNOLOGIES, MANAGEMENT
18 PRACTICES OR OTHER STRATEGIES IN RESIDENTIAL, COMMERCIAL,
19 INSTITUTIONAL OR GOVERNMENT CUSTOMERS THAT REDUCE
20 ELECTRICITY CONSUMPTION BY THOSE CUSTOMERS;
21 (II) LOAD MANAGEMENT OR DEMAND RESPONSE
22 TECHNOLOGIES, MANAGEMENT PRACTICES OR OTHER STRATEGIES IN
23 RESIDENTIAL, COMMERCIAL, INDUSTRIAL, INSTITUTIONAL AND
24 GOVERNMENT CUSTOMERS THAT SHIFT ELECTRIC LOAD FROM
25 PERIODS OF HIGHER DEMAND TO PERIODS OF LOWER DEMAND; OR
26 (III) INDUSTRIAL BY-PRODUCT TECHNOLOGIES CONSISTING
27 OF THE USE OF A BY-PRODUCT FROM AN INDUSTRIAL PROCESS,
28 INCLUDING THE REUSE OF ENERGY FROM EXHAUST GASES OR OTHER
29 MANUFACTURING BY-PRODUCTS THAT ARE USED IN THE DIRECT
30 PRODUCTION OF ELECTRICITY AT THE FACILITY OF A CUSTOMER.
20070H1203B2297 - 18 -
1 (13) DISTRIBUTED GENERATION SYSTEM, WHICH SHALL MEAN THE
2 SMALL-SCALE POWER GENERATION OF ELECTRICITY AND USEFUL
3 THERMAL ENERGY.
4 * * *
5 "CUSTOMER-GENERATOR." A NONUTILITY OWNER OR OPERATOR OF A
6 NET METERED DISTRIBUTED GENERATION SYSTEM WITH A NAMEPLATE
7 CAPACITY OF NOT GREATER THAN 50 KILOWATTS IF INSTALLED AT A
8 RESIDENTIAL SERVICE OR NOT LARGER THAN [1,000] 3,000 KILOWATTS
9 AT OTHER CUSTOMER SERVICE LOCATIONS, EXCEPT FOR CUSTOMERS WHOSE
10 SYSTEMS ARE ABOVE [ONE MEGAWATT] THREE MEGAWATTS AND UP TO [TWO]
11 FIVE MEGAWATTS WHO MAKE THEIR SYSTEMS AVAILABLE TO OPERATE IN
12 PARALLEL WITH THE ELECTRIC UTILITY DURING GRID EMERGENCIES AS
13 DEFINED BY THE REGIONAL TRANSMISSION ORGANIZATION OR [WHERE A <--
14 MICROGRID IS IN PLACE] WHO MAKE THEIR SYSTEMS AVAILABLE FOR THE <--
15 PRIMARY OR SECONDARY PURPOSE OF MAINTAINING CRITICAL
16 INFRASTRUCTURE, SUCH AS HOMELAND SECURITY ASSIGNMENTS, EMERGENCY
17 SERVICES FACILITIES, HOSPITALS, TRAFFIC SIGNALS, WASTEWATER
18 TREATMENT PLANTS OR TELECOMMUNICATIONS FACILITIES, PROVIDED THAT
19 TECHNICAL RULES FOR OPERATING GENERATORS INTERCONNECTED WITH
20 FACILITIES OF AN ELECTRIC DISTRIBUTION COMPANY, ELECTRIC
21 COOPERATIVE OR MUNICIPAL ELECTRIC SYSTEM HAVE BEEN PROMULGATED
22 BY THE INSTITUTE OF ELECTRICAL AND ELECTRONIC ENGINEERS AND THE
23 PENNSYLVANIA PUBLIC UTILITY COMMISSION. A NET METERED <--
24 DISTRIBUTED GENERATION SYSTEM CAPABLE OF PROVIDING MORE THAN ONE
25 MEGAWATT THROUGH ITS INTERCONNECTION SHALL COMPLY WITH ALL
26 TECHNICAL RULES NECESSARY TO ENSURE THAT SIGNIFICANT
27 FLUCTUATIONS IN THE ELECTRICAL SUPPLY TO THE ELECTRIC
28 DISTRIBUTION COMPANY, ELECTRIC COOPERATIVE OR MUNICIPAL ELECTRIC
29 SYSTEM WILL NOT INTERFERE WITH ITS OPERATIONS.
30 * * *
20070H1203B2297 - 19 -
1 "FORCE MAJEURE." UPON ITS OWN INITIATIVE OR UPON A REQUEST
2 OF AN ELECTRIC DISTRIBUTION COMPANY OR AN ELECTRIC GENERATOR
3 SUPPLIER, THE PENNSYLVANIA PUBLIC UTILITY COMMISSION, WITHIN 60
4 DAYS, SHALL DETERMINE IF ALTERNATIVE ENERGY RESOURCES ARE
5 REASONABLY AVAILABLE IN THE MARKETPLACE IN SUFFICIENT QUANTITIES
6 FOR THE ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION
7 SUPPLIERS TO MEET THEIR OBLIGATIONS FOR THAT REPORTING PERIOD
8 UNDER THIS ACT. IN MAKING THIS DETERMINATION THE COMMISSION
9 SHALL CONSIDER WHETHER ELECTRIC DISTRIBUTION COMPANIES OR
10 ELECTRIC GENERATION SUPPLIERS HAVE MADE A GOOD FAITH EFFORT TO
11 ACQUIRE SUFFICIENT ALTERNATIVE ENERGY TO COMPLY WITH THEIR
12 OBLIGATIONS. SUCH GOOD FAITH EFFORTS SHALL INCLUDE, BUT ARE NOT
13 LIMITED TO, BANKING ALTERNATIVE ENERGY CREDITS DURING THEIR
14 TRANSITION PERIODS, SEEKING ALTERNATIVE ENERGY CREDITS THROUGH
15 COMPETITIVE SOLICITATIONS AND SEEKING TO PROCURE ALTERNATIVE
16 ENERGY CREDITS OR ALTERNATIVE ENERGY THROUGH LONG-TERM
17 CONTRACTS. IN FURTHER MAKING ITS DETERMINATION THE COMMISSION
18 SHALL ASSESS THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS IN
19 THE GENERATION ATTRIBUTES TRACKING SYSTEM (GATS) OR ITS
20 SUCCESSOR, AND THE AVAILABILITY OF ALTERNATIVE ENERGY CREDITS
21 GENERALLY IN PENNSYLVANIA AND OTHER JURISDICTIONS IN THE PJM
22 INTERCONNECTION, L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM)
23 OR ITS SUCCESSOR. THE COMMISSION MAY ALSO REQUIRE SOLICITATIONS
24 FOR ALTERNATIVE ENERGY CREDITS AS PART OF DEFAULT SERVICE BEFORE
25 REQUESTS OF FORCE MAJEURE CAN BE MADE. IF THE COMMISSION FURTHER
26 DETERMINES THAT ALTERNATIVE ENERGY RESOURCES ARE NOT REASONABLY
27 AVAILABLE IN SUFFICIENT QUANTITIES IN THE MARKETPLACE FOR THE
28 ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC GENERATION
29 SUPPLIERS TO MEET THEIR OBLIGATIONS UNDER THIS ACT, THEN THE
30 COMMISSION SHALL MODIFY THE UNDERLYING OBLIGATION OF THE
20070H1203B2297 - 20 -
1 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OR
2 RECOMMEND TO THE GENERAL ASSEMBLY THAT THE UNDERLYING OBLIGATION
3 BE ELIMINATED. COMMISSION MODIFICATION OF THE ELECTRIC <--
4 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER OBLIGATIONS
5 UNDER THIS ACT SHALL BE FOR THAT COMPLIANCE PERIOD ONLY.
6 COMMISSION MODIFICATION SHALL NOT AUTOMATICALLY REDUCE THE
7 OBLIGATION FOR SUBSEQUENT COMPLIANCE YEARS. IF THE COMMISSION
8 MODIFIES THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC
9 GENERATION SUPPLIER OBLIGATIONS UNDER THIS ACT, THE COMMISSION
10 MAY REQUIRE THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC
11 GENERATION SUPPLIER TO ACQUIRE ADDITIONAL ALTERNATIVE ENERGY
12 CREDITS IN SUBSEQUENT YEARS EQUIVALENT TO THE OBLIGATION REDUCED
13 DUE TO A FORCE MAJEURE DECLARATION IF THE COMMISSION DETERMINES
14 THAT SUFFICIENT ALTERNATIVE ENERGY CREDITS EXIST IN THE
15 MARKETPLACE.
16 * * *
17 "NET METERING." THE MEANS OF MEASURING THE DIFFERENCE
18 BETWEEN THE ELECTRICITY SUPPLIED BY AN ELECTRIC UTILITY AND THE
19 ELECTRICITY GENERATED BY A CUSTOMER-GENERATOR [WHEN THE
20 RENEWABLE ENERGY GENERATING SYSTEM IS INTENDED PRIMARILY], WHEN
21 ANY PORTION OF THE ELECTRICITY GENERATED BY THE ALTERNATIVE
22 ENERGY GENERATING SYSTEM IS USED TO OFFSET PART OR ALL OF THE
23 CUSTOMER-GENERATOR'S REQUIREMENTS FOR ELECTRICITY. VIRTUAL METER
24 AGGREGATION ON PROPERTIES OWNED OR LEASED AND OPERATED BY A
25 CUSTOMER-GENERATOR AND LOCATED WITHIN TWO MILES OF THE
26 BOUNDARIES OF THE CUSTOMER-GENERATOR'S PROPERTY AND WITHIN A
27 SINGLE ELECTRIC DISTRIBUTION COMPANY'S SERVICE TERRITORY SHALL
28 BE ELIGIBLE FOR NET METERING. AT THE END OF EACH MONTHLY BILLING <--
29 PERIOD, THE ELECTRIC DISTRIBUTION COMPANY SHALL COMPENSATE THE
30 CUSTOMER-GENERATOR FOR KILOWATT-HOURS GENERATED BY THE CUSTOMER-
20070H1203B2297 - 21 -
1 GENERATOR OVER THE AMOUNT OF KILOWATT HOURS DELIVERED BY THE
2 ELECTRIC DISTRIBUTION COMPANY DURING THE BILLING PERIOD AT THE
3 ELECTRIC DISTRIBUTION COMPANY'S AVOIDED COST OF WHOLESALE POWER.
4 NO CONTRACT SHALL ABROGATE THE CUSTOMER-GENERATOR'S RIGHT TO
5 RECEIVE THESE PAYMENTS. NO CUSTOMER GENERATOR SHALL OPERATE MORE
6 THAN ONE ALTERNATIVE ENERGY PROJECT THAT IS ENGAGED IN VIRTUAL
7 METER AGGREGATION WITHIN EACH OF THE ELECTRIC DISTRIBUTION
8 COMPANY'S SERVICE TERRITORIES.
9 * * *
10 "TIER I ALTERNATIVE ENERGY SOURCE." ENERGY DERIVED FROM: <--
11 (1) SOLAR PHOTOVOLTAIC AND SOLAR THERMAL ENERGY.
12 (2) WIND POWER.
13 (3) LOW-IMPACT HYDROPOWER.
14 (4) GEOTHERMAL ENERGY.
15 (5) BIOLOGICALLY DERIVED METHANE GAS.
16 (6) FUEL CELLS.
17 (7) BIOMASS ENERGY.
18 (8) COAL MINE METHANE.
19 * * *
20 SECTION 2. SECTION 3(B) AND (F) OF THE ACT ARE AMENDED AND
21 SUBSECTION (E) IS AMENDED BY ADDING A PARAGRAPH TO READ:
22 SECTION 3. ALTERNATIVE ENERGY PORTFOLIO STANDARDS.
23 * * *
24 (B) TIER I AND SOLAR PHOTOVOLTAIC SHARES.--
25 (1) TWO YEARS AFTER THE EFFECTIVE DATE OF THIS ACT, AT
26 LEAST 1.5% OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC
27 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER TO
28 RETAIL ELECTRIC CUSTOMERS IN THIS COMMONWEALTH SHALL BE
29 GENERATED FROM TIER I ALTERNATIVE ENERGY SOURCES. EXCEPT AS
30 PROVIDED IN THIS SECTION, THE MINIMUM PERCENTAGE OF ELECTRIC
20070H1203B2297 - 22 -
1 ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC CUSTOMERS FROM
2 ALTERNATIVE ENERGY SOURCES SHALL INCREASE TO 2% THREE YEARS
3 AFTER THE EFFECTIVE DATE OF THIS ACT. THE MINIMUM PERCENTAGE
4 OF ELECTRIC ENERGY REQUIRED TO BE SOLD TO RETAIL ELECTRIC
5 CUSTOMERS FROM ALTERNATIVE ENERGY SOURCES SHALL INCREASE BY
6 AT LEAST 0.5% EACH YEAR SO THAT AT LEAST 8% OF THE ELECTRIC
7 ENERGY SOLD BY AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC
8 GENERATION SUPPLIER TO RETAIL ELECTRIC CUSTOMERS IN THAT
9 CERTIFICATED TERRITORY IN THE 15TH YEAR AFTER THE EFFECTIVE
10 DATE OF THIS SUBSECTION IS SOLD FROM TIER I ALTERNATIVE
11 ENERGY RESOURCES.
12 (2) [OF THE ELECTRIC ENERGY REQUIRED TO BE SOLD FROM
13 TIER I SOURCES, THE TOTAL PERCENTAGE THAT MUST BE SOLD FROM
14 SOLAR PHOTOVOLTAIC TECHNOLOGIES IS FOR:] THE TOTAL PERCENTAGE
15 OF THE ELECTRIC ENERGY SOLD BY AN ELECTRIC DISTRIBUTION
16 COMPANY OR ELECTRIC GENERATION SUPPLIER TO RETAIL ELECTRIC
17 CUSTOMERS IN THIS COMMONWEALTH THAT MUST BE SOLD FROM SOLAR
18 PHOTOVOLTAIC TECHNOLOGIES IS:
19 [(I) YEARS 1 THROUGH 4 - 0.0013%.
20 (II) YEARS 5 THROUGH 9 - 0.0203%.
21 (III) YEARS 10 THROUGH 14 - 0.2500%.
22 (IV) YEARS 15 AND THEREAFTER - 0.5000%.]
23 (I) 0.0013% FOR JUNE 1, 2006, THROUGH MAY 31, 2007.
24 (II) 0.0030% FOR JUNE 1, 2007, THROUGH MAY 31, 2008.
25 (III) 0.0063% FOR JUNE 1, 2008, THROUGH MAY 31,
26 2009.
27 (IV) 0.0120% FOR JUNE 1, 2009, THROUGH MAY 31, 2010.
28 (V) 0.0203% FOR JUNE 1, 2010, THROUGH MAY 31, 2011.
29 (VI) 0.0325% FOR JUNE 1, 2011, THROUGH MAY 31, 2012.
30 (VII) 0.0510% FOR JUNE 1, 2012, THROUGH MAY 31,
20070H1203B2297 - 23 -
1 2013.
2 (VIII) 0.0840% FOR JUNE 1, 2013, THROUGH MAY 31,
3 2014.
4 (IX) 0.1440% FOR JUNE 1, 2014, THROUGH MAY 31, 2015.
5 (X) 0.2500% FOR JUNE 1, 2015, THROUGH MAY 31, 2016.
6 (XI) 0.2933% FOR JUNE 1, 2016, THROUGH MAY 31, 2017.
7 (XII) 0.3400% FOR JUNE 1, 2017, THROUGH MAY 31,
8 2018.
9 (XIII) 0.3900% FOR JUNE 1, 2018, THROUGH MAY 31,
10 2019.
11 (XIV) 0.4433% FOR JUNE 1, 2019, THROUGH MAY 31,
12 2020.
13 (XV) 0.5000% FOR JUNE 1, 2020, AND THEREAFTER.
14 (3) UPON COMMENCEMENT OF THE BEGINNING OF THE 6TH
15 REPORTING YEAR, THE COMMISSION SHALL UNDERTAKE A REVIEW OF
16 THE COMPLIANCE BY ELECTRIC DISTRIBUTION COMPANIES AND
17 ELECTRIC GENERATION SUPPLIERS WITH THE REQUIREMENTS OF THIS
18 ACT. THE REVIEW SHALL ALSO INCLUDE THE STATUS OF ALTERNATIVE
19 ENERGY TECHNOLOGIES WITHIN THIS COMMONWEALTH AND THE CAPACITY
20 TO ADD ADDITIONAL ALTERNATIVE ENERGY RESOURCES. THE
21 COMMISSION SHALL USE THE RESULTS OF THIS REVIEW TO RECOMMEND
22 TO THE GENERAL ASSEMBLY ADDITIONAL COMPLIANCE GOALS BEYOND
23 YEAR 15. THE COMMISSION SHALL WORK WITH THE DEPARTMENT IN
24 EVALUATING THE FUTURE ALTERNATIVE ENERGY RESOURCE POTENTIAL.
25 * * *
26 (E) ALTERNATIVE ENERGY CREDITS.--
27 * * *
28 (12) (I) UNLESS A CONTRACTUAL PROVISION EXPLICITLY <--
29 ASSIGNS ALTERNATIVE ENERGY CREDITS IN A DIFFERENT MANNER, THE
30 OWNER OF THE ALTERNATIVE ENERGY SYSTEM OR A CUSTOMER-
20070H1203B2297 - 24 -
1 GENERATOR OWNS ANY AND ALL ALTERNATIVE ENERGY CREDITS
2 ASSOCIATED WITH OR CREATED BY THE PRODUCTION OF ELECTRIC
3 ENERGY BY SUCH FACILITY OR CUSTOMER, AND THE OWNER OR
4 CUSTOMER SHALL BE ENTITLED TO SELL, TRANSFER OR TAKE ANY
5 OTHER ACTION TO WHICH A LEGAL OWNER OF PROPERTY IS ENTITLED
6 TO TAKE WITH RESPECT TO THE CREDITS.
7 (II) THIS PARAGRAPH SHALL APPLY TO ALL ALTERNATIVE <--
8 ENERGY CREDITS CREATED PURSUANT TO THIS ACT EXCEPT THOSE
9 CREATED UNDER CONTRACTS WHICH WERE EXECUTED PRIOR TO THE
10 EFFECTIVE DATE OF THIS PARAGRAPH BETWEEN AN ELECTRIC
11 DISTRIBUTION COMPANY AND A COGENERATION FACILITY OR A
12 SMALL POWER PRODUCTION FACILITY AS THOSE TERMS ARE
13 DEFINED UNDER THE FEDERAL PUBLIC UTILITY REGULATORY
14 POLICIES ACT OF 1978 (16 U.S.C. § 824A-3).
15 (F) ALTERNATIVE COMPLIANCE PAYMENT.--
16 (1) AT THE END OF EACH PROGRAM YEAR, THE PROGRAM
17 ADMINISTRATOR SHALL PROVIDE A REPORT TO THE COMMISSION AND TO
18 EACH COVERED ELECTRIC DISTRIBUTION COMPANY SHOWING THEIR
19 STATUS LEVEL OF ALTERNATIVE ENERGY ACQUISITION.
20 (2) THE COMMISSION SHALL CONDUCT A REVIEW OF EACH
21 DETERMINATION MADE UNDER SUBSECTIONS (B) AND (C). IF, AFTER
22 NOTICE AND HEARING, THE COMMISSION DETERMINES THAT AN
23 ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER
24 HAS FAILED TO COMPLY WITH SUBSECTIONS (B) AND (C), THE
25 COMMISSION SHALL IMPOSE AN ALTERNATIVE COMPLIANCE PAYMENT ON
26 THAT COMPANY OR SUPPLIER.
27 (3) THE ALTERNATIVE COMPLIANCE PAYMENT, WITH THE
28 EXCEPTION OF THE SOLAR PHOTOVOLTAIC SHARE COMPLIANCE
29 REQUIREMENT SET FORTH IN SUBSECTION (B)(2), SHALL BE $45
30 TIMES THE NUMBER OF ADDITIONAL ALTERNATIVE ENERGY CREDITS
20070H1203B2297 - 25 -
1 NEEDED IN ORDER TO COMPLY WITH SUBSECTION (B) OR (C).
2 (4) THE ALTERNATIVE COMPLIANCE PAYMENT FOR THE SOLAR
3 PHOTOVOLTAIC SHARE SHALL BE 200% OF THE AVERAGE MARKET VALUE
4 OF SOLAR RENEWABLE ENERGY CREDITS SOLD DURING THE REPORTING
5 PERIOD WITHIN THE SERVICE REGION OF THE REGIONAL TRANSMISSION
6 ORGANIZATION, INCLUDING, WHERE APPLICABLE, THE LEVELIZED UP-
7 FRONT REBATES RECEIVED BY SELLERS OF SOLAR RENEWABLE ENERGY
8 CREDITS IN OTHER JURISDICTIONS IN THE PJM INTERCONNECTION,
9 L.L.C. TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR.
10 (5) THE COMMISSION SHALL ESTABLISH A PROCESS TO PROVIDE
11 FOR, AT LEAST ANNUALLY, A REVIEW OF THE ALTERNATIVE ENERGY
12 MARKET WITHIN THIS COMMONWEALTH AND THE SERVICE TERRITORIES
13 OF THE REGIONAL TRANSMISSION ORGANIZATIONS THAT MANAGE THE
14 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH. THE
15 COMMISSION WILL USE THE RESULTS OF THIS STUDY TO IDENTIFY ANY
16 NEEDED CHANGES TO THE COST ASSOCIATED WITH THE ALTERNATIVE
17 COMPLIANCE PAYMENT PROGRAM. IF THE COMMISSION FINDS THAT THE
18 COSTS ASSOCIATED WITH THE ALTERNATIVE COMPLIANCE PAYMENT
19 PROGRAM MUST BE CHANGED, THE COMMISSION SHALL PRESENT THESE
20 FINDINGS TO THE GENERAL ASSEMBLY FOR LEGISLATIVE ENACTMENT.
21 * * *
22 SECTION 3. SECTIONS 4 AND 5 OF THE ACT ARE AMENDED TO READ:
23 SECTION 4. PORTFOLIO REQUIREMENTS IN OTHER STATES.
24 IF AN ELECTRIC DISTRIBUTION SUPPLIER OR ELECTRIC GENERATION
25 COMPANY PROVIDER SELLS ELECTRICITY IN ANY OTHER STATE AND IS
26 SUBJECT TO RENEWABLE ENERGY PORTFOLIO REQUIREMENTS IN THAT
27 STATE, THEY SHALL LIST ANY SUCH REQUIREMENT AND SHALL INDICATE
28 HOW IT SATISFIED THOSE RENEWABLE ENERGY PORTFOLIO REQUIREMENTS.
29 TO PREVENT DOUBLE-COUNTING, THE ELECTRIC DISTRIBUTION SUPPLIER
30 OR ELECTRIC GENERATION COMPANY SHALL NOT SATISFY PENNSYLVANIA'S
20070H1203B2297 - 26 -
1 ALTERNATIVE ENERGY PORTFOLIO REQUIREMENTS USING ALTERNATIVE
2 ENERGY USED TO SATISFY ANOTHER STATE'S PORTFOLIO REQUIREMENTS[.
3 ENERGY DERIVED ONLY FROM ALTERNATIVE ENERGY SOURCES INSIDE THE
4 GEOGRAPHICAL BOUNDARIES OF THIS COMMONWEALTH OR WITHIN THE
5 SERVICE TERRITORY OF ANY REGIONAL TRANSMISSION ORGANIZATION THAT
6 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH
7 SHALL BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS UNDER THIS
8 ACT.] OR ALTERNATIVE ENERGY CREDITS ALREADY PURCHASED BY
9 INDIVIDUALS, BUSINESSES, OR GOVERNMENT BODIES THAT DO NOT HAVE A
10 COMPLIANCE OBLIGATION UNDER THIS ACT UNLESS THE INDIVIDUAL,
11 BUSINESS OR GOVERNMENT BODY SELLS THOSE CREDITS TO THE ELECTRIC
12 DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER. ENERGY
13 DERIVED FROM ALTERNATIVE ENERGY SOURCES INSIDE THE GEOGRAPHICAL
14 BOUNDARIES OF THIS COMMONWEALTH SHALL BE ELIGIBLE TO MEET THE
15 COMPLIANCE REQUIREMENTS UNDER THIS ACT. ENERGY DERIVED FROM
16 ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE GEOGRAPHICAL
17 BOUNDARIES OF THIS COMMONWEALTH BUT WITHIN THE SERVICE TERRITORY
18 OF A REGIONAL TRANSMISSION ORGANIZATION THAT MANAGES THE
19 TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH SHALL ONLY
20 BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF ELECTRIC
21 DISTRIBUTION COMPANIES OR ELECTRIC GENERATION SUPPLIERS LOCATED
22 WITHIN THE SERVICE TERRITORY OF THE SAME REGIONAL TRANSMISSION
23 ORGANIZATION. FOR PURPOSES OF COMPLIANCE WITH THIS ACT,
24 ALTERNATIVE ENERGY SOURCES LOCATED IN THE PJM INTERCONNECTION,
25 L.L.C. REGIONAL TRANSMISSION ORGANIZATION (PJM) OR ITS SUCCESSOR
26 SERVICE TERRITORY SHALL BE ELIGIBLE TO FULFILL COMPLIANCE
27 OBLIGATIONS OF PIKE COUNTY LIGHT AND POWER COMPANY AND <--
28 PENNSYLVANIA POWER COMPANY ALL PENNSYLVANIA ELECTRIC <--
29 DISTRIBUTION COMPANIES AND ELECTRIC GENERATION SUPPLIERS. ENERGY
30 DERIVED FROM ALTERNATIVE ENERGY SOURCES LOCATED OUTSIDE THE
20070H1203B2297 - 27 -
1 SERVICE TERRITORY OF A REGIONAL TRANSMISSION ORGANIZATION THAT
2 MANAGES THE TRANSMISSION SYSTEM IN ANY PART OF THIS COMMONWEALTH
3 SHALL NOT BE ELIGIBLE TO MEET THE COMPLIANCE REQUIREMENTS OF
4 THIS ACT. ELECTRIC DISTRIBUTION COMPANIES AND ELECTRIC
5 GENERATION SUPPLIERS SHALL DOCUMENT THAT THIS ENERGY WAS NOT
6 USED TO SATISFY ANOTHER STATE'S RENEWABLE ENERGY PORTFOLIO
7 STANDARDS.
8 SECTION 5. INTERCONNECTION STANDARDS FOR CUSTOMER-GENERATOR
9 FACILITIES.
10 EXCESS GENERATION FROM NET-METERED CUSTOMER-GENERATORS SHALL
11 BE "TRUED-UP" RECEIVE FULL RETAIL VALUE FOR ALL ENERGY PRODUCED <--
12 ON AN ANNUAL BASIS. THE COMMISSION SHALL DEVELOP TECHNICAL AND
13 NET METERING INTERCONNECTION RULES FOR CUSTOMER-GENERATORS
14 INTENDING TO OPERATE RENEWABLE ONSITE GENERATORS IN PARALLEL
15 WITH THE ELECTRIC UTILITY GRID, CONSISTENT WITH RULES DEFINED IN
16 OTHER STATES WITHIN THE SERVICE REGION OF THE REGIONAL
17 TRANSMISSION ORGANIZATION THAT MANAGES THE TRANSMISSION SYSTEM
18 IN ANY PART OF THIS COMMONWEALTH. THE COMMISSION SHALL CONVENE A
19 STAKEHOLDER PROCESS TO DEVELOP STATEWIDE TECHNICAL AND NET
20 METERING RULES FOR CUSTOMER-GENERATORS. THE COMMISSION SHALL
21 DEVELOP THESE RULES WITHIN NINE MONTHS OF THE EFFECTIVE DATE OF
22 THIS ACT.
23 SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
B22L66RLE/20070H1203B2297 - 28 -