PRINTER'S NO. 1602
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1086
Session of
2020
INTRODUCED BY BLAKE, TARTAGLIONE AND COSTA, MARCH 25, 2020
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 25, 2020
AN ACT
Providing for power plant host community benefit agreements
between municipalities and owners of certain electric
generating facilities, for power plant host community impact
fees paid by affected facilities and fee uses; establishing
public participation requirements; and providing for
administrative fees and for duties of the Department of
Environmental Protection.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Power Plant
Host Community Benefit Agreement and Fee 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:
"Affected facility." An electric generating facility with a
capacity of at least 10 megawatts. The term shall not include
the portion of an electric generating facility that uses
alternative energy sources.
"Alternative energy sources." Energy derived from:
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(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.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Governing body." A board of county commissioners, city
council, borough or incorporated town council, commissioners of
a township of the first class, supervisors of a township of the
second class, board of school directors of a school district or
their successor forms of government.
Section 3. Plan approvals and permits.
The department shall not grant to the owner of an affected
facility a final plan approval or final operating permit
required under section 6.1 of the act of January 8, 1960 (1959
P.L.2119, No.787), known as the Air Pollution Control Act, for a
stationary air contamination source that is an electric
generating facility with a capacity of at least 10 megawatts
unless the owner of the affected facility is in full compliance
with section 4.
Section 4. Power plant host community benefit agreements.
(a) Consultation required.--The owner of an affected
facility and the governing body of the municipality, the county
and the school district in which the affected facility is
proposed to be located, expanded or subject to the renewal of an
existing permit shall enter into discussions to evaluate the
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need for and potential terms of a power plant host community
benefit agreement.
(b) Public hearing.--Prior to negotiating the final terms of
a power plant host community benefit agreement, an affected
facility and the municipality, county and school district in
which the affected facility is located shall, in compliance with
section 8, provide a public opportunity for residents of the
municipality, county and school district to be heard regarding
the need for and potential terms of a power plant host community
benefit agreement.
(c) Notice of agreement.--If the owner of an affected
facility and the municipality in which the affected facility is
located enter into a power plant host community benefit
agreement, a signed and notarized copy of the agreement shall be
transmitted to the department. The department shall transmit the
agreement to the Legislative Reference Bureau for publication in
the Pennsylvania Bulletin.
(d) Agreement not reached.--If a municipality has approved
all necessary zoning and building permits for an affected
facility and the owner of the affected facility and the
municipality in which the affected facility is located fails to
enter into a power plant host community benefit agreement, the
following shall apply:
(1) The owner of the affected facility and the
municipality shall notify the department of the failure to
enter into the agreement.
(2) The owner of the affected facility remains subject
to the provisions of this act, including payment of the
required power plant host community impact fees under section
5.
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(e) Municipal permits not approved.--If a municipality has
not approved all necessary zoning and building permits for an
affected facility, the provisions of subsection (d) do not
apply.
(f) Construction.--Nothing in this act shall be construed to
limit the authority of a municipality in which the affected
facility is located to withhold approval of any applicable
zoning, building or other local permits or approvals required to
construct or operate the affected facility in the absence of a
power plant host community benefit agreement.
Section 5. Power plant host community impact fees.
(a) General rule.--The owner of an affected facility that
begins operation under a new or expanded permit after the
effective date of this act shall, at a minimum, pay the amount
of up-front and annual power plant host community impact fees
specified in this section in order to operate in this
Commonwealth. Nothing in this act shall preclude an affected
facility and municipality, county and school district from
entering into an agreement that establishes up-front and annual
fees in greater amounts and provides for other financial and
nonfinancial terms and considerations.
(b) Minimum standards for power plant host community impact
fees.--
(1) The owner of each affected facility shall make an
up-front payment of $1,000 per megawatt of electric
generating capacity to the municipality in which the affected
facility is located. The payment shall be made prior to the
generation of any electricity to be supplied to an electric
transmission and distribution system. The municipality shall
use the funds in accordance with section 6.
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(2) The owner of each affected facility shall make an
up-front payment of $200 per megawatt of electric generating
capacity to the county in which the affected facility is
located. The payment shall be made prior to the generation of
any electricity to be supplied to an electric transmission
and distribution system. Subject to section 6, the county
shall use the money to set up an air quality monitoring
program and a water quality monitoring program for the area
in the vicinity of the affected facility in conjunction with
the municipality and in consultation with the department.
(3) The owner of each affected facility shall make an
annual payment of $700 per megawatt of electric generating
capacity to the municipality in which the affected facility
is located. The payment shall be made by December 31 of the
first year in which the generation of electricity commences
under the terms of a new or expanded permit. For each
succeeding year, the annual payment shall be increased by an
additional 2% or the percentage increase, if any, in the
Consumer Price Index for All Urban Consumers (CPI-U) as
calculated and published by the United States Department of
Labor for the most recent 12-month period for which figures
have been officially reported, whichever is greater. The
municipality shall use the funds in accordance with section
6.
(4) The owner of each affected facility shall make an
annual payment of $500 per megawatt of electric generating
capacity to the school district in which the affected
facility is located. The payment shall be made by December 31
of the first year in which the generation of electricity
commences under the terms of a new or expanded permit. For
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each succeeding year, the annual payment shall be increased
by an additional 2% or the percentage increase, if any, in
the Consumer Price Index for All Urban Consumers (CPI-U) as
calculated and published by the United States Department of
Labor for the most recent 12-month period for which figures
have been officially reported, whichever is greater. The
school district shall use the funds in accordance with
section 6.
(5) The owner of each affected facility shall make an
annual payment of $500 per megawatt of electric generating
capacity to the county in which the affected facility is
located. The payment shall be made by December 31 of the
first year in which the generation of electricity commences
under the terms of a new or expanded permit. For each
succeeding year, the annual payment shall be increased by an
additional 2% or the percentage increase, if any, in the
Consumer Price Index for All Urban Consumers (CPI-U) as
calculated and published by the United States Department of
Labor for the most recent 12-month period for which figures
have been officially reported, whichever is greater. The
county shall use the funds in accordance with section 6.
Section 6. Uses of power plant host community impact fees.
(a) Counties and municipalities.--A municipality or county
that receives funds under section 5 shall use the funds only for
the following purposes associated with hosting a power plant
facility within the municipality or county as follows:
(1) Construction, reconstruction, maintenance and repair
of roadways, bridges and public infrastructure.
(2) Water, storm water and sewer systems, including
construction, reconstruction, maintenance and repair, and the
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use of green infrastructure to diminish and control storm
water.
(3) Emergency preparedness and public safety, including
law enforcement and fire services, hazardous material
response, 911 service, equipment acquisition and other
services. At least 10% of the up-front funds received shall
be used for the purposes under this paragraph.
(4) Environmental programs, including trails, parks and
recreation, open space, flood plain management, conservation
districts and agricultural preservation.
(5) Preservation and reclamation of surface and
subsurface waters and water supplies. At least 10% of the up-
front and annual funds received shall be used for the
purposes under this paragraph.
(6) Tax reductions, including homestead exclusions.
(7) Projects to increase the availability of safe and
affordable housing to residents.
(8) Records management, geographic information systems
and information technology.
(9) The delivery of social services.
(10) Judicial services.
(11) For deposit into the municipality's or county's
capital reserve fund if the funds are used solely for a
purpose set forth in this subsection.
(12) Programs and projects to provide energy assistance
to low-income households.
(13) Energy conservation programs.
(14) Air and water quality monitoring. At least 10% of
the up-front and annual funds received shall be used for the
purposes under this paragraph.
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(15) Local or regional planning initiatives under the
act of July 31, 1968 (P.L.805, No.247), known as the
Pennsylvania Municipalities Planning Code.
(b) School districts.--A school district that receives funds
under section 5 shall use the funds received for general
operating expenses to offset expected reductions in property tax
revenue associated with hosting a power plant facility within
the school district. The school district may also use its funds
for the construction or maintenance of parks, trails or other
recreational facilities that may be located on school district
property or elsewhere in the county hosting the affected
facility and for student participation in air and water quality
monitoring.
(c) Multiple counties.--Payment of up-front and annual power
plant host community impact funds to a municipality or school
district which is situate in two or more counties shall be
allocated based on the ratio which the population of the
municipality or school district within each county bears to the
total population of the municipality or school district as last
officially certified.
Section 7. Administrative fees.
The owner of an affected facility that begins operation under
a new or expanded permit after the effective date of this
section shall pay an annual administrative fee of $300 per
megawatt of electric generating capacity to the department. The
first payment shall be made within one month of the commencement
of generating electricity under the terms of a new or expanded
permit. Payments for the following year and each successive year
shall be made by June 30. The department shall use the
administrative fee to cover its expenses in administering this
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act and for developing air and water quality monitoring programs
in consultation with the municipality and county hosting the
affected facility.
Section 8. Power plant host community public participation
requirements.
(a) Requirements for owners of affected facilities.--An
owner of an affected facility seeking a final plan approval or
final permit approval from the department as described in
section 3 shall submit a public participation plan to the
department on a form prescribed by the department. The
department shall either approve the plan or request changes in
the plan.
(b) Contents of public participation plan.--The public
participation plan shall provide for the following:
(1) The opportunity for residents of the municipality,
county and school district in which the affected facility is
located to participate in the process by which the department
approves a plan or permit, including the opportunity to ask
questions in a public meeting or forum.
(2) Identification of proposed dates for at least one
public meeting or forum.
(3) The means by which the public meeting or forum shall
be advertised and publicized.
(c) Requirements for host municipalities, counties and
school districts.--
(1) The municipality, county and school district in
which the affected facility is proposed to be located,
expanded or subject to the renewal of an existing permit,
shall each hold at least one separate public meeting or forum
to evaluate the need for and potential terms of a power plant
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host community benefit agreement. The public meeting or forum
shall provide members of the public the opportunity to ask
questions.
(2) The municipality, county and school district
holding the public meeting or forum shall advertise the
meeting in public newspapers and online and take reasonable
steps to publicize and make residents of the municipality,
county and school district aware of the meeting.
Section 9. Effective date.
This act shall take effect in 60 days.
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