PRINTER'S NO. 1047
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
770
Session of
2019
INTRODUCED BY FOLMER, PHILLIPS-HILL, MARTIN AND HUTCHINSON,
JUNE 21, 2019
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, JUNE 21, 2019
AN ACT
Repealing the act of November 30, 2004 (P.L.1672, No.213),
entitled, "An act providing for the sale of electric energy
generated from renewable and environmentally beneficial
sources, for the acquisition of electric energy generated
from renewable and environmentally beneficial sources by
electric distribution and supply companies and for the powers
and duties of the Pennsylvania Public Utility Commission."
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of November 30, 2004 (P.L.1672, No.213),
known as the Alternative Energy Portfolio Standards Act, is
repealed:
[AN ACT
Providing for the sale of electric energy generated from
renewable and environmentally beneficial sources, for the
acquisition of electric energy generated from renewable and
environmentally beneficial sources by electric distribution
and supply companies and for the powers and duties of the
Pennsylvania Public Utility Commission.
Section 1. Short title.
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This act shall be known and may be cited as the Alternative
Energy Portfolio Standards Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Alternative energy credit." A tradable instrument that is
used to establish, verify and monitor compliance with this act.
A unit of credit shall equal one megawatt hour of electricity
from an alternative energy source. The alternative energy credit
shall remain the property of the alternative energy system until
the alternative energy credit is voluntarily transferred by the
alternative energy system.
"Alternative energy portfolio standards." Standards
establishing that a certain amount of energy sold from
alternative energy sources is included as part of the sources of
electric generation by electric utilities within this
Commonwealth.
"Alternative energy sources." The term shall include the
following existing and new sources for the production of
electricity:
(1) Solar photovoltaic or other solar electric energy.
(2) Solar thermal energy.
(3) Wind power.
(4) Large-scale hydropower, which shall mean the
production of electric power by harnessing the hydroelectric
potential of moving water impoundments, including pumped
storage that does not meet the requirements of low-impact
hydropower under paragraph (5).
(5) Low-impact hydropower consisting of any technology
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that produces electric power and that harnesses the
hydroelectric potential of moving water impoundments,
provided such incremental hydroelectric development:
(i) does not adversely change existing impacts to
aquatic systems;
(ii) meets the certification standards established
by the Low Impact Hydropower Institute and American
Rivers, Inc., or their successors;
(iii) provides an adequate water flow for protection
of aquatic life and for safe and effective fish passage;
(iv) protects against erosion; and
(v) protects cultural and historic resources.
(6) Geothermal energy, which shall mean electricity
produced by extracting hot water or steam from geothermal
reserves in the earth's crust and supplied to steam turbines
that drive generators to produce electricity.
(7) Biomass energy, which shall mean the generation of
electricity utilizing the following:
(i) organic material from a plant that is grown for
the purpose of being used to produce electricity or is
protected by the Federal Conservation Reserve Program
(CRP) and provided further that crop production on CRP
lands does not prevent achievement of the water quality
protection, soil erosion prevention or wildlife
enhancement purposes for which the land was primarily set
aside; or
(ii) any solid nonhazardous, cellulosic waste
material that is segregated from other waste materials,
such as waste pallets, crates and landscape or right-of-
way tree trimmings or agricultural sources, including
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orchard tree crops, vineyards, grain, legumes, sugar and
other crop by-products or residues.
(8) Biologically derived methane gas, which shall
include methane from the anaerobic digestion of organic
materials from yard waste, such as grass clippings and
leaves, food waste, animal waste and sewage sludge. The term
also includes landfill methane gas.
(9) Fuel cells, which shall mean any electrochemical
device that converts chemical energy in a hydrogen-rich fuel
directly into electricity, heat and water without combustion.
(10) Waste coal, which shall include the combustion of
waste coal in facilities in which the waste coal was disposed
or abandoned prior to July 31, 1982, or disposed of
thereafter in a permitted coal refuse disposal site
regardless of when disposed of, and used to generate
electricity, or such other waste coal combustion meeting
alternate eligibility requirements established by regulation.
Facilities combusting waste coal shall use at a minimum a
combined fluidized bed boiler and be outfitted with a
limestone injection system and a fabric filter particulate
removal system. Alternative energy credits shall be
calculated based upon the proportion of waste coal utilized
to produce electricity at the facility.
(11) Coal mine methane, which shall mean methane gas
emitting from abandoned or working coal mines.
(12) Demand-side management consisting of the management
of customer consumption of electricity or the demand for
electricity through the implementation of:
(i) energy efficiency technologies, management
practices or other strategies in residential, commercial,
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institutional or government customers that reduce
electricity consumption by those customers;
(ii) load management or demand response
technologies, management practices or other strategies in
residential, commercial, industrial, institutional and
government customers that shift electric load from
periods of higher demand to periods of lower demand; or
(iii) industrial by-product technologies consisting
of the use of a by-product from an industrial process,
including the reuse of energy from exhaust gases or other
manufacturing by-products that are used in the direct
production of electricity at the facility of a customer.
(13) Distributed generation system, which shall mean the
small-scale power generation of electricity and useful
thermal energy.
"Alternative energy system." A facility or energy system
that uses a form of alternative energy source to generate
electricity and delivers the electricity it generates to the
distribution system of an electric distribution company or to
the transmission system operated by a regional transmission
organization.
"Commission." The Pennsylvania Public Utility Commission.
"Cost-recovery period." The longer of:
(1) the period during which competitive transition
charges under 66 Pa.C.S § 2808 (relating to competitive
transition charge) or intangible transition charges under 66
Pa.C.S. § 2812 (relating to approval of transition bonds) are
recovered; or
(2) the period during which an electric distribution
company operates under a Pennsylvania Public Utility
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Commission-approved generation rate plan that has been
approved prior to or within one year of the effective date of
this act, but in no case shall the cost-recovery period under
this act extend beyond December 31, 2010.
"Customer-generator." A nonutility owner or operator of a
net metered distributed generation system with a nameplate
capacity of not greater than 50 kilowatts if installed at a
residential service or not larger than 3,000 kilowatts at other
customer service locations, except for customers whose systems
are above three megawatts and up to five megawatts who make
their systems available to operate in parallel with the electric
utility during grid emergencies as defined by the regional
transmission organization or where a microgrid is in place for
the primary or secondary purpose of maintaining critical
infrastructure, such as homeland security assignments, emergency
services facilities, hospitals, traffic signals, wastewater
treatment plants or telecommunications facilities, provided that
technical rules for operating generators interconnected with
facilities of an electric distribution company, electric
cooperative or municipal electric system have been promulgated
by the Institute of Electrical and Electronic Engineers and the
Pennsylvania Public Utility Commission.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Electric distribution company." The term shall have the
same meaning given to it in 66 Pa.C.S. Ch. 28 (relating to
restructuring of electric utility industry).
"Electric generation supplier." The term shall have the same
meaning given to it in 66 Pa.C.S. Ch. 28 (relating to
restructuring of electric utility industry).
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"Force majeure." Upon its own initiative or upon a request
of an electric distribution company or an electric generator
supplier, the Pennsylvania Public Utility Commission, within 60
days, shall determine if alternative energy resources are
reasonably available in the marketplace in sufficient quantities
for the electric distribution companies and electric generation
suppliers to meet their obligations for that reporting period
under this act. In making this determination, the commission
shall consider whether electric distribution companies or
electric generation suppliers have made a good faith effort to
acquire sufficient alternative energy to comply with their
obligations. Such good faith efforts shall include, but are not
limited to, banking alternative energy credits during their
transition periods, seeking alternative energy credits through
competitive solicitations and seeking to procure alternative
energy credits or alternative energy through long-term
contracts. In further making its determination, the commission
shall assess the availability of alternative energy credits in
the Generation Attributes Tracking System (GATS) or its
successor and the availability of alternative energy credits
generally in Pennsylvania and other jurisdictions in the PJM
Interconnection, L.L.C. regional transmission organization (PJM)
or its successor. The commission may also require solicitations
for alternative energy credits as part of default service before
requests of force majeure can be made. If the commission further
determines that alternative energy resources are not reasonably
available in sufficient quantities in the marketplace for the
electric distribution companies and electric generation
suppliers to meet their obligations under this act, then the
commission shall modify the underlying obligation of the
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electric distribution company or electric generation supplier or
recommend to the General Assembly that the underlying obligation
be eliminated. Commission modification of the electric
distribution company or electric generation supplier obligations
under this act shall be for that compliance period only.
Commission modification shall not automatically reduce the
obligation for subsequent compliance years. If the commission
modifies the electric distribution company or electric
generation supplier obligations under this act, the commission
may require the electric distribution company or electric
generation supplier to acquire additional alternative energy
credits in subsequent years equivalent to the obligation reduced
due to a force majeure declaration if the commission determines
that sufficient alternative energy credits exist in the
marketplace.
"Municipal solid waste." This will include energy from
existing waste to energy facilities which the Department of
Environmental Protection has determined are in compliance with
current environmental standards, including, but not limited to,
all applicable requirements of the Clean Air Act (69 Stat. 322,
42 U.S.C. § 7401 et seq.) and associated permit restrictions and
all applicable requirements of the act of July 7, 1980 (P.L.380,
No.97), known as the Solid Waste Management Act.
"Net metering." The means of measuring the difference
between the electricity supplied by an electric utility and the
electricity generated by a customer-generator when any portion
of the electricity generated by the alternative energy
generating system is used to offset part or all of the customer-
generator's requirements for electricity. Virtual meter
aggregation on properties owned or leased and operated by a
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customer-generator and located within two miles of the
boundaries of the customer-generator's property and within a
single electric distribution company's service territory shall
be eligible for net metering.
"Regional transmission organization." An entity approved by
the Federal Energy Regulatory Commission (FERC) that is created
to operate and manage the electrical transmission grids of the
member electric transmission utilities as required under FERC
Order 2000, Docket No. RM99-2-000, FERC Chapter 31.089 (1999) or
any successor organization approved by the FERC.
"Reporting period." The 12-month period from June 1 through
May 31. A reporting year shall be numbered according to the
calendar year in which it begins and ends.
"Retail electric customer." The term shall have the same
meaning given to it in 66 Pa.C.S. Ch. 28 (relating to
restructuring of electric utility industry).
"Tier I alternative energy source." Energy derived from:
(1) Solar photovoltaic and solar thermal energy.
(2) Wind power.
(3) Low-impact hydropower.
(4) Geothermal energy.
(5) Biologically derived methane gas.
(6) Fuel cells.
(7) Biomass energy.
(8) Coal mine methane.
"Tier II alternative energy source." Energy derived from:
(1) Waste coal.
(2) Distributed generation systems.
(3) Demand-side management.
(4) Large-scale hydropower.
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(5) Municipal solid waste.
(6) Generation of electricity utilizing by-products of
the pulping process and wood manufacturing process, including
bark, wood chips, sawdust and lignin in spent pulping
liquors.
(7) Integrated combined coal gasification technology.
"True-up period." The period each year from the end of the
reporting year until September 1.
Section 3. Alternative energy portfolio standards.
(a) General compliance and cost recovery.--
(1) From the effective date of this act through and
including the 15th year after enactment of this act and each
year thereafter, the electric energy sold by an electric
distribution company or electric generation supplier to
retail electric customers in this Commonwealth shall be
comprised of electricity generated from alternative energy
sources and in the percentage amounts as described under
subsections (b) and (c).
(2) Electric distribution companies and electric
generation suppliers shall satisfy both requirements set
forth in subsections (b) and (c), provided, however, that an
electric distribution company or an electric generation
supplier shall be excused from its obligations under this
section to the extent that the commission determines that
force majeure exists.
(3) All costs for:
(i) the purchase of electricity generated from
alternative energy sources, including the costs of the
regional transmission organization, in excess of the
regional transmission organization real-time locational
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marginal pricing, or its successor, at the delivery point
of the alternative energy source for the electrical
production of the alternative energy sources; and
(ii) payments for alternative energy credits, in
both cases that are voluntarily acquired by an electric
distribution company during the cost recovery period on
behalf of its customers shall be deferred as a regulatory
asset by the electric distribution company and fully
recovered, with a return on the unamortized balance,
pursuant to an automatic energy adjustment clause under
66 Pa.C.S. § 1307 (relating to sliding scale of rates;
adjustments) as a cost of generation supply under 66
Pa.C.S. § 2807 (relating to duties of electric
distribution companies) in the first year after the
expiration of its cost-recovery period. After the cost-
recovery period, any direct or indirect costs for the
purchase by electric distribution of resources to comply
with this section, including, but not limited to, the
purchase of electricity generated from alternative energy
sources, payments for alternative energy credits, cost of
credits banked, payments to any third party
administrators for performance under this act and costs
levied by a regional transmission organization to ensure
that alternative energy sources are reliable, shall be
recovered on a full and current basis pursuant to an
automatic energy adjustment clause under 66 Pa.C.S. §
1307 as a cost of generation supply under 66 Pa.C.S. §
2807.
(b) Tier I and solar photovoltaic shares.--
(1) Two years after the effective date of this act, at
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least 1.5% of the electric energy sold by an electric
distribution company or electric generation supplier to
retail electric customers in this Commonwealth shall be
generated from Tier I alternative energy sources. Except as
provided in this section, the minimum percentage of electric
energy required to be sold to retail electric customers from
alternative energy sources shall increase to 2% three years
after the effective date of this act. The minimum percentage
of electric energy required to be sold to retail electric
customers from alternative energy sources shall increase by
at least 0.5% each year so that at least 8% of the electric
energy sold by an electric distribution company or electric
generation supplier to retail electric customers in that
certificated territory in the 15th year after the effective
date of this subsection is sold from Tier I alternative
energy resources.
(2) The total percentage of the electric energy sold by
an electric distribution company or electric generation
supplier to retail electric customers in this Commonwealth
that must be sold from solar photovoltaic technologies is:
(i) 0.0013% for June 1, 2006, through May 31, 2007.
(ii) 0.0030% for June 1, 2007, through May 31, 2008.
(iii) 0.0063% for June 1, 2008, through May 31,
2009.
(iv) 0.0120% for June 1, 2009, through May 31, 2010.
(v) 0.0203% for June 1, 2010, through May 31, 2011.
(vi) 0.0325% for June 1, 2011, through May 31, 2012.
(vii) 0.0510% for June 1, 2012, through May 31,
2013.
(viii) 0.0840% for June 1, 2013, through May 31,
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2014.
(ix) 0.1440% for June 1, 2014, through May 31, 2015.
(x) 0.2500% for June 1, 2015, through May 31, 2016.
(xi) 0.2933% for June 1, 2016, through May 31, 2017.
(xii) 0.3400% for June 1, 2017, through May 31,
2018.
(xiii) 0.3900% for June 1, 2018, through May 31,
2019.
(xiv) 0.4433% for June 1, 2019, through May 31,
2020.
(xv) 0.5000% for June 1, 2020, and thereafter.
(3) Upon commencement of the beginning of the 6th
reporting year, the commission shall undertake a review of
the compliance by electric distribution companies and
electric generation suppliers with the requirements of this
act. The review shall also include the status of alternative
energy technologies within this Commonwealth and the capacity
to add additional alternative energy resources. The
commission shall use the results of this review to recommend
to the General Assembly additional compliance goals beyond
year 15. The commission shall work with the department in
evaluating the future alternative energy resource potential.
(c) Tier II share.--Of the electrical energy required to be
sold from alternative energy sources identified in Tier II, the
percentage that must be from these technologies is for:
(1) Years 1 through 4 - 4.2%.
(2) Years 5 through 9 - 6.2%.
(3) Years 10 through 14 - 8.2%.
(4) Years 15 and thereafter - 10.0%.
(d) Exemption during cost-recovery period.--Compliance with
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subsections (a), (b) and (c) shall not be required for any
electric distribution company that has not reached the end of
its cost-recovery period or for electric generation supplier
sales in the service territory of an electric distribution
company that has not reached the end of its cost-recovery
period. At the conclusion of an electric distribution company's
cost-recovery period, this exception shall no longer apply, and
compliance shall be required at the percentages in effect at
that time. Electric distribution companies and electric
generation suppliers whose sales are exempted under this
subsection and who voluntarily sell electricity generated from
Tier I and Tier II sources during the cost-recovery period may
bank credits consistent with subsection (e)(7).
(e) Alternative energy credits.--
(1) The commission shall establish an alternative energy
credits program as needed to implement this act. The
provision of services pursuant to this section shall be
exempt from the competitive procurement procedures of 62
Pa.C.S. (relating to procurement).
(2) The commission shall approve an independent entity
to serve as the alternative energy credits program
administrator. The administrator shall have those powers and
duties assigned by commission regulations. Such powers and
duties shall include, but not be limited to, the following:
(i) To create and administer an alternative energy
credits certification, tracking and reporting program.
This program should include, at a minimum, a process for
qualifying alternative energy systems and determining the
manner credits can be created, accounted for, transferred
and retired.
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(ii) To submit reports to the commission at such
times and in such manner as the commission shall direct.
(3) All qualifying alternative energy systems must
include a qualifying meter to record the cumulative electric
production to verify the advanced energy credit value.
Qualifying meters will be approved by the commission as
defined in paragraph (4).
(4) (i) An electric distribution company or electric
generation supplier shall comply with the applicable
requirements of this section by purchasing sufficient
alternative energy credits and submitting documentation
of compliance to the program administrator.
(ii) For purposes of this subsection, one
alternative energy credit shall represent one megawatt
hour of qualified alternative electric generation,
whether self-generated, purchased along with the electric
commodity or separately through a tradable instrument and
otherwise meeting the requirements of commission
regulations and the program administrator.
(5) The alternative energy credits program shall include
provisions requiring a reporting period as defined in section
2 for all covered entities under this act. The alternative
energy credits program shall also include a true-up period as
defined in section 2. The true-up period shall provide
entities covered under this act the ability to obtain the
required number of alternative energy credits or to make up
any shortfall of the alternative energy credits they may be
required to obtain to comply with this act. A force majeure
provision shall also be provided for under the true-up period
provisions.
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(6) An electric distribution company and electric
generation supplier may bank or place in reserve alternative
energy credits produced in one reporting year for compliance
in either or both of the two subsequent reporting years,
subject to the limitations set forth in this subsection and
provided that the electric distribution company and electric
generation supplier are in compliance for all previous
reporting years. In addition, the electric distribution
company and electric generation supplier shall demonstrate to
the satisfaction of the commission that such credits:
(i) were in excess of the alternative energy credits
needed for compliance in the year in which they were
generated and that such excess credits have not
previously been used for compliance under this act;
(ii) were produced by the generation of electrical
energy by alternative energy sources and sold to retail
customers during the year in which they were generated;
and
(iii) have not otherwise been nor will be sold,
retired, claimed or represented as part of satisfying
compliance with alternative or renewable energy portfolio
standards in other states.
(7) An electric distribution company or an electric
generation supplier with sales that are exempted under
subsection (d) may bank credits for retail sales of
electricity generated from Tier I and Tier II sources made
prior to the end of the cost-recovery period and after the
effective date of this act. Bankable credits shall be limited
to credits associated with electricity sold from Tier I and
Tier II sources during a reporting year which exceeds the
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volume of sales from such sources by an electric distribution
company or electric generation supplier during the 12-month
period immediately preceding the effective date of this act.
All credits banked under this subsection shall be available
for compliance with subsections (b) and (c) for no more than
two reporting years following the conclusion of the cost-
recovery period.
(8) The commission or its designee shall develop a
registry of pertinent information regarding all available
alternative energy credits, credit transactions among
electric distribution companies and electric generation
suppliers, the number of alternative energy credits sold or
transferred and the price paid for the sale or transfer of
the credits. The registry shall provide current information
to electric distribution companies, electric generation
suppliers and the general public on the status of alternative
energy credits created, sold or transferred within this
Commonwealth.
(9) The commission may impose an administrative fee on
an alternative energy credit transaction. The amount of this
fee may not exceed the actual direct cost of processing the
transaction by the alternative energy credits administrator.
The commission is authorized to utilize up to 5% of the
alternative compliance fees generated under subsection (f)
for administrative expenses directly associated with this
act.
(10) The commission shall establish regulations
governing the verification and tracking of energy efficiency
and demand-side management measures pursuant to this act,
which shall include benefits to all utility customer classes.
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When developing regulations, the commission must give
reasonable consideration to existing and proposed regulations
and rules in existence in the regional transmission
organizations that manage the transmission system in any part
of this Commonwealth. All verified reductions shall accrue
credits starting with the passage of this act.
(11) The commission shall within 120 days of the
effective date of this act develop a depreciation schedule
for alternative energy credits created through demand-side
management, energy efficiency and load management
technologies and shall develop standards for tracking and
verifying savings from energy efficiency, load management and
demand-side management measures. The commission shall allow
for a 60-day public comment period and shall issue final
standards within 30 days of the close of the public comment
period.
(12) Unless a contractual provision explicitly assigns
alternative energy credits in a different manner, the owner
of the alternative energy system or a customer-generator owns
any and all alternative energy credits associated with or
created by the production of electric energy by such facility
or customer, and the owner or customer shall be entitled to
sell, transfer or take any other action to which a legal
owner of property is entitled to take with respect to the
credits.
(f) Alternative compliance payment.--
(1) At the end of each program year, the program
administrator shall provide a report to the commission and to
each covered electric distribution company showing their
status level of alternative energy acquisition.
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(2) The commission shall conduct a review of each
determination made under subsections (b) and (c). If, after
notice and hearing, the commission determines that an
electric distribution company or electric generation supplier
has failed to comply with subsections (b) and (c), the
commission shall impose an alternative compliance payment on
that company or supplier.
(3) The alternative compliance payment, with the
exception of the solar photovoltaic share compliance
requirement set forth in subsection (b)(2), shall be $45
times the number of additional alternative energy credits
needed in order to comply with subsection (b) or (c).
(4) The alternative compliance payment for the solar
photovoltaic share shall be 200% of the average market value
of solar renewable energy credits sold during the reporting
period within the service region of the regional transmission
organization, including, where applicable, the levelized up-
front rebates received by sellers of solar renewable energy
credits in other jurisdictions in the PJM Interconnection,
L.L.C. transmission organization (PJM) or its successor.
(5) The commission shall establish a process to provide
for, at least annually, a review of the alternative energy
market within this Commonwealth and the service territories
of the regional transmission organizations that manage the
transmission system in any part of this Commonwealth. The
commission will use the results of this study to identify any
needed changes to the cost associated with the alternative
compliance payment program. If the commission finds that the
costs associated with the alternative compliance payment
program must be changed, the commission shall present these
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findings to the General Assembly for legislative enactment.
(g) Transfer to sustainable development funds.--
(1) Notwithstanding the provisions of 66 Pa.C.S. §§ 511
(relating to disposition, appropriation and disbursement of
assessments and fees) and 3315 (relating to disposition of
fines and penalties), alternative compliance payments imposed
pursuant to this act shall be paid into Pennsylvania's
Sustainable Energy Funds created under the commission's
restructuring orders under 66 Pa.C.S. Ch. 28 (relating to
restructuring of electric utility industry). Alternative
compliance payments shall be paid into a special fund of the
Pennsylvania Sustainable Energy Board, established by the
commission under Docket M-00031715, and made available to the
Regional Sustainable Energy Funds under procedures and
guidelines approved by the Pennsylvania Energy Board.
(2) The alternative compliance payments shall be
utilized solely for projects that will increase the amount of
electric energy generated from alternative energy resources
for purposes of compliance with subsections (b) and (c).
(h) Nonseverability.--The provisions of subsection (a) are
declared to be nonseverable. If any provision of subsection (a)
is held invalid, the remaining provisions of this act shall be
void.
Section 4. Portfolio requirements in other states.
If an electric distribution supplier or electric generation
company provider sells electricity in any other state and is
subject to renewable energy portfolio requirements in that
state, they shall list any such requirement and shall indicate
how it satisfied those renewable energy portfolio requirements.
To prevent double-counting, the electric distribution supplier
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or electric generation company shall not satisfy Pennsylvania's
alternative energy portfolio requirements using alternative
energy used to satisfy another state's portfolio requirements or
alternative energy credits already purchased by individuals,
businesses or government bodies that do not have a compliance
obligation under this act unless the individual, business or
government body sells those credits to the electric distribution
company or electric generation supplier. Energy derived from
alternative energy sources inside the geographical boundaries of
this Commonwealth shall be eligible to meet the compliance
requirements under this act. Energy derived from alternative
energy sources located outside the geographical boundaries of
this Commonwealth but within the service territory of a regional
transmission organization that manages the transmission system
in any part of this Commonwealth shall only be eligible to meet
the compliance requirements of electric distribution companies
or electric generation suppliers located within the service
territory of the same regional transmission organization. For
purposes of compliance with this act, alternative energy sources
located in the PJM Interconnection, L.L.C. regional transmission
organization (PJM) or its successor service territory shall be
eligible to fulfill compliance obligations of all Pennsylvania
electric distribution companies and electric generation
suppliers. Energy derived from alternative energy sources
located outside the service territory of a regional transmission
organization that manages the transmission system in any part of
this Commonwealth shall not be eligible to meet the compliance
requirements of this act. Electric distribution companies and
electric generation suppliers shall document that this energy
was not used to satisfy another state's renewable energy
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portfolio standards.
Section 5. Interconnection standards for customer-generator
facilities.
Excess generation from net-metered customer-generators shall
receive full retail value for all energy produced on an annual
basis. The commission shall develop technical and net metering
interconnection rules for customer-generators intending to
operate renewable onsite generators in parallel with the
electric utility grid, consistent with rules defined in other
states within the service region of the regional transmission
organization that manages the transmission system in any part of
this Commonwealth. The commission shall convene a stakeholder
process to develop Statewide technical and net metering rules
for customer-generators. The commission shall develop these
rules within nine months of the effective date of this act.
Section 6. Health and safety standards.
The department shall cooperate with the Department of Labor
and Industry as necessary in developing health and safety
standards, as needed, regarding facilities generating energy
from alternative energy sources. The department shall establish
appropriate and reasonable health and safety standards to ensure
uniform and proper compliance with this act by owners and
operators of facilities generating energy from alternative
energy sources as defined in this act.
Section 7. Interagency responsibilities.
(a) Commission responsibilities.--The commission will carry
out the responsibilities delineated within this act. The
commission also shall, in cooperation with the department,
conduct an ongoing alternative energy resources planning
assessment for this Commonwealth. This assessment will, at a
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minimum, identify current and operating alternative energy
facilities, the potential to add future alternative energy
generating capacity and the conditions of the alternative energy
marketplace. The assessment will identify needed methods to
maintain or increase the relative competitiveness of the
alternative energy market within this Commonwealth.
(b) Department responsibilities.--The department shall
ensure that all qualified alternative energy sources meet all
applicable environmental standards and shall verify that an
alternative energy source meets the standards set forth in
section 2.
(c) Cooperation between commission and department.--The
commission and the department shall work cooperatively to
monitor the performance of all aspects of this act and will
provide an annual report to the chairman and minority chairman
of the Environmental Resources and Energy Committee of the
Senate and the chairman and minority chairman of the
Environmental Resources and Energy Committee of the House of
Representatives. The report shall include at a minimum:
(1) The status of the compliance with the provisions of
this act by electric distribution companies and electric
generation suppliers.
(2) Current costs of alternative energy on a per
kilowatt hour basis for all alternative energy technology
types.
(3) Costs associated with the alternative energy credits
program under this act, including the number of alternative
compliance payments.
(4) The status of the alternative energy marketplace
within this Commonwealth.
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(5) Recommendations for program improvements.
Section 8. Rural electric cooperatives.
Each rural electric cooperative operating within this
Commonwealth shall offer to its retail customers a voluntary
program of energy efficiency and demand-side management programs
as a means to satisfy compliance with the requirements of this
act.
Section 9. Effective date.
This act shall take effect in 90 days.]
Section 2. This act shall take effect in 60 days.
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