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                                                      PRINTER'S NO. 2926

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2078 Session of 2007


        INTRODUCED BY DePASQUALE, GEORGE, SURRA, BASTIAN, BELFANTI,
           BENNINGTON, CALTAGIRONE, CAPPELLI, CAUSER, EVERETT, FRANKEL,
           GEIST, HUTCHINSON, JOSEPHS, W. KELLER, LONGIETTI, McCALL,
           R. MILLER, M. O'BRIEN, REICHLEY, SAYLOR, SIPTROTH, K. SMITH,
           YOUNGBLOOD AND HORNAMAN, DECEMBER 4, 2007

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           DECEMBER 4, 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 defining "alternative energy sources" and "Tier II
     9     alternative energy source."

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  The definitions of "alternative energy sources"
    13  and "Tier II alternative energy source" in section 2 of the act
    14  of November 30, 2004 (P.L.1672, No.213), known as the
    15  Alternative Energy Portfolio Standards Act, amended July 17,
    16  2007 (P.L.114, No.35), are amended to read:
    17  Section 2.  Definitions.
    18     The following words and phrases when used in this act shall
    19  have the meanings given to them in this section unless the


     1  context clearly indicates otherwise:
     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 such incremental hydroelectric development:
    18             (i)  does not adversely change existing impacts to
    19         aquatic systems;
    20             (ii)  meets the certification standards established
    21         by the Low Impact Hydropower Institute and American
    22         Rivers, Inc., or their successors;
    23             (iii)  provides an adequate water flow for protection
    24         of aquatic life and for safe and effective fish passage;
    25             (iv)  protects against erosion; and
    26             (v)  protects cultural and historic resources.
    27         (6)  Geothermal energy, which shall mean electricity
    28     produced by extracting hot water or steam from geothermal
    29     reserves in the earth's crust and supplied to steam turbines
    30     that drive generators to produce electricity.
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     1         (7)  Biomass energy, which shall mean the generation of
     2     electricity utilizing the following:
     3             (i)  organic material from a plant that is grown for
     4         the purpose of being used to produce electricity or is
     5         protected by the Federal Conservation Reserve Program
     6         (CRP) and provided further that crop production on CRP
     7         lands does not prevent achievement of the water quality
     8         protection, soil erosion prevention or wildlife
     9         enhancement purposes for which the land was primarily set
    10         aside; or
    11             (ii)  any solid nonhazardous, cellulosic waste
    12         material that is segregated from other waste materials,
    13         such as waste pallets, crates and landscape or right-of-
    14         way tree trimmings or agricultural sources, including
    15         orchard tree crops, vineyards, grain, legumes, [sugar]
    16         sugars, lignins and other crop by-products or residues.
    17         (8)  Biologically derived methane gas, which shall
    18     include methane from the anaerobic digestion of organic
    19     materials from yard waste, such as grass clippings and
    20     leaves, food waste, animal waste and sewage sludge. The term
    21     also includes landfill methane gas.
    22         (9)  Fuel cells, which shall mean any electrochemical
    23     device that converts chemical energy in a hydrogen-rich fuel
    24     directly into electricity, heat and water without combustion.
    25         (10)  Waste coal, which shall include the combustion of
    26     waste coal in facilities in which the waste coal was disposed
    27     or abandoned prior to July 31, 1982, or disposed of
    28     thereafter in a permitted coal refuse disposal site
    29     regardless of when disposed of, and used to generate
    30     electricity, or such other waste coal combustion meeting
    20070H2078B2926                  - 3 -     

     1     alternate eligibility requirements established by regulation.
     2     Facilities combusting waste coal shall use at a minimum a
     3     combined fluidized bed boiler and be outfitted with a
     4     limestone injection system and a fabric filter particulate
     5     removal system. Alternative energy credits shall be
     6     calculated based upon the proportion of waste coal utilized
     7     to produce electricity at the facility.
     8         (11)  Coal mine methane, which shall mean methane gas
     9     emitting from abandoned or working coal mines.
    10         (12)  Demand-side management consisting of the management
    11     of customer consumption of electricity or the demand for
    12     electricity through the implementation of:
    13             (i)  energy efficiency technologies, management
    14         practices or other strategies in residential, commercial,
    15         institutional or government customers that reduce
    16         electricity consumption by those customers;
    17             (ii)  load management or demand response
    18         technologies, management practices or other strategies in
    19         residential, commercial, industrial, institutional and
    20         government customers that shift electric load from
    21         periods of higher demand to periods of lower demand; or
    22             (iii)  industrial by-product technologies consisting
    23         of the use of a by-product from an industrial process,
    24         including the reuse of energy from exhaust gases or other
    25         manufacturing by-products that are used in the direct
    26         production of electricity at the facility of a customer.
    27         (13)  Distributed generation system, which shall mean the
    28     small-scale power generation of electricity and useful
    29     thermal energy.
    30     * * *
    20070H2078B2926                  - 4 -     

     1     "Tier II alternative energy source."  Energy derived from:
     2         (1)  Waste coal.
     3         (2)  Distributed generation systems.
     4         (3)  Demand-side management.
     5         (4)  Large-scale hydropower.
     6         (5)  Municipal solid waste.
     7         [(6)  Generation of electricity utilizing by-products of
     8     the pulping process and wood manufacturing process, including
     9     bark, wood chips, sawdust and lignin in spent pulping
    10     liquors.]
    11         (7)  Integrated combined coal gasification technology.
    12     * * *
    13     Section 2.  This act shall take effect in 60 days.












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