AN ACT

 

1Amending the act of November 30, 2004 (P.L.1672, No.213),
2entitled, "An act providing for the sale of electric energy
3generated from renewable and environmentally beneficial
4sources, for the acquisition of electric energy generated
5from renewable and environmentally beneficial sources by
6electric distribution and supply companies and for the powers
7and duties of the Pennsylvania Public Utility Commission,"
8further providing for alternative energy portfolio standards
9and for portfolio requirements in other states.

10The General Assembly of the Commonwealth of Pennsylvania
11hereby enacts as follows:

12Section 1. Sections 3(b) and (f) and 4 of the act of
13November 30, 2004 (P.L.1672, No.213), known as the Alternative
14Energy Portfolio Standards Act, amended July 17, 2007 (P.L.114,
15No.35), are amended to read:

16Section 3. Alternative energy portfolio standards.

17* * *

18(b) Tier I and solar photovoltaic shares.--

19(1) Two years after the effective date of this act, at
20least 1.5% of the electric energy sold by an electric
21distribution company or electric generation supplier to

1retail electric customers in this Commonwealth shall be
2generated from Tier I alternative energy sources. [Except as
3provided in this section, the minimum percentage of electric
4energy required to be sold to retail electric customers from
5alternative energy sources shall increase to 2% three years
6after the effective date of this act. The minimum percentage
7of electric energy required to be sold to retail electric
8customers from alternative energy sources shall increase by
9at least 0.5% each year so that at least 8% of the electric
10energy sold by an electric distribution company or electric
11generation supplier to retail electric customers in that
12certificated territory in the 15th year after the effective
13date of this subsection is sold from Tier I alternative
14energy resources.] The minimum percentage of electric energy 
15required to be sold to retail electric customers from 
16alternative energy sources shall be:

17(i) 4.5% for June 1, 2013, through May 31, 2014.

18(ii) 5% for June 1, 2014, through May 31, 2015.

19(iii) 5.5% for June 1, 2015, through May 31, 2016.

20(iv) 6% for June 1, 2016, through May 31, 2017.

21(v) 7.5% for June 1, 2017, through May 31, 2018.

22(vi) 9% for June 1, 2018, through May 31, 2019.

23(vii) 10.5% for June 1, 2019, through May 31, 2020.

24(viii) 12% for June 1, 2020, through May 31, 2021.

25(ix) 13.5% for June 1, 2021, through May 31, 2022.

26(x) 15% for June 1, 2022, and thereafter.

27(2) The total percentage of the electric energy sold by
28an electric distribution company or electric generation
29supplier to retail electric customers in this Commonwealth
30that must be sold from solar photovoltaic technologies is:

1(i) 0.0013% for June 1, 2006, through May 31, 2007.

2(ii) 0.0030% for June 1, 2007, through May 31, 2008.

3(iii) 0.0063% for June 1, 2008, through May 31,
42009.

5(iv) 0.0120% for June 1, 2009, through May 31, 2010.

6(v) 0.0203% for June 1, 2010, through May 31, 2011.

7(vi) 0.0325% for June 1, 2011, through May 31, 2012.

8(vii) 0.0510% for June 1, 2012, through May 31,
92013.

10(viii) [0.0840%] 0.1959% for June 1, 2013, through
11May 31, 2014.

12(ix) [0.1440%] 0.3408% for June 1, 2014, through May
1331, 2015.

14(x) [0.2500%] 0.4857% for June 1, 2015, through May
1531, 2016.

16(xi) [0.2933%] 0.6306% for June 1, 2016, through May
1731, 2017.

18(xii) [0.3400%] 0.7755% for June 1, 2017, through
19May 31, 2018.

20(xiii) [0.3900%] 0.9204% for June 1, 2018, through
21May 31, 2019.

22(xiv) [0.4433%] 1.0653% for June 1, 2019, through
23May 31, 2020.

24(xv) [0.5000%] 1.2102% for June 1, 2020, [and
25thereafter] through June 1, 2021.

26(xvi) 1.3551% for June 1, 2021, through May 31,
272022.

28(xvii) 1.5000% for June 1, 2022, and thereafter.

29(3) Upon commencement of the beginning of the 6th
30reporting year, the commission shall undertake a review of

1the compliance by electric distribution companies and
2electric generation suppliers with the requirements of this
3act. The review shall also include the status of alternative
4energy technologies within this Commonwealth and the capacity
5to add additional alternative energy resources. The
6commission shall use the results of this review to recommend
7to the General Assembly additional compliance goals beyond
8year 15. The commission shall work with the department in
9evaluating the future alternative energy resource potential.

10* * *

11(f) Alternative compliance payment.--

12(1) At the end of each program year, the program
13administrator shall provide a report to the commission and to
14each covered electric distribution company showing their
15status level of alternative energy acquisition.

16(2) The commission shall conduct a review of each
17determination made under subsections (b) and (c). If, after
18notice and hearing, the commission determines that an
19electric distribution company or electric generation supplier
20has failed to comply with subsections (b) and (c), the
21commission shall impose an alternative compliance payment on
22that company or supplier.

23(3) The alternative compliance payment, with the
24exception of the solar photovoltaic share compliance
25requirement set forth in subsection (b)(2), shall be $45
26times the number of additional alternative energy credits
27needed in order to comply with subsection (b) or (c).

28(4) The alternative compliance payment for the solar
29photovoltaic share shall be [200% of the average market value
30of solar renewable energy credits sold during the reporting

1period within the service region of the regional transmission
2organization, including, where applicable, the levelized up-
3front rebates received by sellers of solar renewable energy
4credits in other jurisdictions in the PJM Interconnection,
5L.L.C. transmission organization (PJM) or its successor.] as 
6follows:

7(i) For June 1, 2013, through May 31, 2014, $250 per
8megawatt hour.

9(ii) For June 1, 2014, through May 31, 2015, $225
10per megawatt hour.

11(iii) For June 1, 2015, through May 31, 2016, $200
12per megawatt hour.

13(iv) For June 1, 2016, through May 31, 2017, $175
14per megawatt hour.

15(v) For June 1, 2017, through May 31, 2018, $150 per
16megawatt hour.

17(vi) For June 1, 2018, through May 31, 2019, $125
18per megawatt hour.

19(vii) For June 1, 2019, through May 31, 2020, $100
20per megawatt hour.

21(viii) For June 1, 2020, through May 31, 2021, $75
22per megawatt hour.

23(ix) For June 1, 2021 and thereafter, $50 per
24megawatt hour.

25(5) The commission shall establish a process to provide
26for, at least annually, a review of the alternative energy
27market within this Commonwealth and the service territories
28of the regional transmission organizations that manage the
29transmission system in any part of this Commonwealth. The
30commission will use the results of this study to identify any

1needed changes to the cost associated with the alternative
2compliance payment program. If the commission finds that the
3costs associated with the alternative compliance payment
4program must be changed, the commission shall present these
5findings to the General Assembly for legislative enactment.

6* * *

7Section 4. Portfolio requirements in other states.

8(a) Requirements.--If an electric distribution supplier or
9electric generation company provider sells electricity in any
10other state and is subject to renewable energy portfolio
11requirements in that state, they shall list any such requirement
12and shall indicate how it satisfied those renewable energy
13portfolio requirements. To prevent double-counting, the electric
14distribution supplier or electric generation company shall not
15satisfy Pennsylvania's alternative energy portfolio requirements
16using alternative energy used to satisfy another state's
17portfolio requirements or alternative energy credits already
18purchased by individuals, businesses or government bodies that
19do not have a compliance obligation under this act unless the
20individual, business or government body sells those credits to
21the electric distribution company or electric generation
22supplier. Energy derived from alternative energy sources inside
23the geographical boundaries of this Commonwealth shall be
24eligible to meet the compliance requirements under this act.
25Energy derived from alternative energy sources located outside
26the geographical boundaries of this Commonwealth but within the
27service territory of a regional transmission organization that
28manages the transmission system in any part of this Commonwealth
29shall only be eligible to meet the compliance requirements of
30electric distribution companies or electric generation suppliers

1located within the service territory of the same regional
2transmission organization. For purposes of compliance with this
3act, alternative energy sources located in the PJM
4Interconnection, L.L.C. regional transmission organization (PJM)
5or its successor service territory shall be eligible to fulfill
6compliance obligations of all Pennsylvania electric distribution
7companies and electric generation suppliers. Energy derived from
8alternative energy sources located outside the service territory
9of a regional transmission organization that manages the
10transmission system in any part of this Commonwealth shall not
11be eligible to meet the compliance requirements of this act.
12Electric distribution companies and electric generation
13suppliers shall document that this energy was not used to
14satisfy another state's renewable energy portfolio standards.

15(b) Solar photovoltaic technology.--To meet the requirements
16of this section, all solar photovoltaic technology registered
17after the effective date of this subsection shall directly
18deliver the electricity it generates to the distribution system
19operated by an electric distribution company operating within
20this Commonwealth and currently obligated to meet the compliance
21requirements contained in this act.

22Section 2. The following provisions shall apply to contracts
23for the purchase of solar alternative energy entered into after
24May 31, 2013, by entities with a solar alternative energy
25portfolio standard compliance obligation:

26(1) The amendment of section 3(b) and (f) of the act.

27(2) The amendment of section 4 of the act.

28Section 3. This act shall take effect in 60 days.