PRINTER'S NO. 620
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
300
Session of
2021
INTRODUCED BY SANTARSIERO, COMITTA, HAYWOOD, KEARNEY, STREET,
FONTANA, HUGHES, COSTA, MUTH AND COLLETT, APRIL 20, 2021
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
APRIL 20, 2021
AN ACT
Amending 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,"
further providing for definitions and for alternative energy
portfolio standards, providing for solar photovoltaic
technology requirements, for contract requirements for solar
photovoltaic energy system sources, for renewable energy
storage report, for energy storage deployment targets and for
contracts for solar photovoltaic technologies by Commonwealth
agencies and further providing for portfolio requirements in
other states; and making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "reporting period" in section 2
of the act of November 30, 2004 (P.L.1672, No.213), known as the
Alternative Energy Portfolio Standards Act, is amended and the
section is amended by adding definitions to read:
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
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context clearly indicates otherwise:
* * *
"Deploy" or "deployment." To install a renewable energy
storage system through a variety of mechanisms, including
utility procurement, customer installation methods or other
processes.
* * *
"Renewable energy storage system." A commercially available
technology, including, but not limited to, any electrochemical,
thermal and electromechanical technology, that is capable of
absorbing and storing electrical energy for a period of time for
use at a later time, with all of the following characteristics:
(1) The system is colocated behind the meter with a Tier
I alternative energy source or behind the point of
interconnection of a Tier I alternative energy source.
(2) The system is owned or operated by any of the
following:
(i) A customer-generator.
(ii) An electric generation supplier.
(iii) An electric distribution company.
(iv) A third party that is jointly owned by two or
more entities specified under subparagraphs (i), (ii) and
(iii).
(3) The system is able to demonstrate that the energy
the system discharges at all hours in a given reporting year
comes from the storage of electrical energy produced by the
colocated Tier I alternative energy source.
["Reporting period."] "Reporting period or reporting year."
The 12-month period from June 1 through May 31. A reporting year
shall be numbered according to the calendar year in which it
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begins and ends.
* * *
Section 2. Section 3(a)(3), (b), (f) and (g)(2) of the act
are amended and the section is amended by adding a subsection to
read:
Section 3. Alternative energy portfolio standards.
(a) General compliance and cost recovery.--
* * *
(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
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 companies of resources
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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 through the 15th
reporting year.--
(1) Two years after the effective date of this act, at
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 reporting year after the
effective date of this subsection is sold from Tier I
alternative energy resources.
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(2) [The] Through the 15th reporting year ending May 31,
2023, 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,
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.]
through May 31, 2023.
(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
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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.
(b.1) Tier I and solar photovoltaic shares beginning in the
16th reporting year.--
(1) Each electric distribution company and electric
generation supplier shall purchase, at a minimum, an amount
of Tier I alternative energy credits equal to the percentage
of electric energy required to be sold by an electric
distribution company or electric generation supplier to
retail electric customers from Tier I alternative energy
sources for that reporting year and as provided under this
subsection. Beginning in the 16th reporting year commencing
on June 1, 2023 , the minimum percentage of electric energy
required to be sold by an electric distribution company or
electric generation supplier to retail electric customers in
this Commonwealth from Tier I alternative energy sources for
each reporting year is:
(i) 12.888% for June 1, 2023 , through May 31, 2024.
(ii) 15.332% for June 1, 2024, through May 31, 2025.
(iii) 17.776% for June 1, 2025, through May 31,
2026.
(iv) 20.220% for June 1, 2026, through May 31, 2027.
(v) 22.664% for June 1, 2027, through May 31, 2028.
(vi) 25.108% for June 1, 2028, through May 31, 2029.
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(vii) 27.552% for June 1, 2029, through May 31,
2030.
(viii) 30% for June 1, 2030, through May 31, 2031.
(2) (i) Beginning in the 16th reporting year commencing
on June 1, 2023, the minimum 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 that are owned and operated by
customer-generators is:
(A) 0.82% for June 1, 2023, through May 31,
2024.
(B) 0.98% for June 1, 2024, through May 31,
2025.
(C) 1.13% for June 1, 2025, through May 31,
2026.
(D) 1.30% for June 1, 2026, through May 31,
2027.
(E) 1.5% for June 1, 2027, through May 31, 2028.
(F) 1.78% for June 1, 2028, through May 31,
2029.
(G) 2.11% for June 1, 2029, through May 31,
2030.
(H) 2.5% for June 1, 2030, through May 31, 2031.
(ii) For purposes of the requirements under
subparagraph (i), solar photovoltaic technologies that
are owned and operated by customer-generators shall
include any of the following:
(A) Solar photovoltaic technologies that were
certified before or on May 31, 2023, under subsection
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(b)(2) and qualify to generate solar alternative
energy credits in accordance with section 3.1.
(B) Solar photovoltaic technologies that qualify
as customer-generators certified under subsection (b)
(2).
(3) Beginning in the 16th reporting year commencing on
June 1, 2023, and each reporting year thereafter, a solar
photovoltaic system that is certified before or on May 31,
2023, provided the system meets the requirements under
section 3.1, shall be included in the percentage of the
required solar photovoltaic energy systems owned and operated
by customer-generators under paragraph (2).
(4) A solar photovoltaic energy system owned and
operated by a customer-generator in accordance with paragraph
(2) shall remain eligible to receive solar alternative energy
credits for no more than 15 years beginning on June 1, 2023,
or 15 years beginning on the date of the solar photovoltaic
energy system's certification if the certification occurs
after June 1, 2023. Upon expiration of the 15-year period
specified under this paragraph, the solar photovoltaic energy
system shall be eligible for alternative energy credits
provided for Tier I alternative energy sources under
paragraph (1).
(5) Beginning in the 16th reporting year commencing on
June 1, 2023, the minimum 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 from non-customer-generators is:
(i) 1.88% for June 1, 2023, through May 31, 2024.
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(ii) 2.81% for June 1, 2024, through May 31, 2025.
(iii) 3.75% for June 1, 2025, through May 31, 2026.
(iv) 4.50% for June 1, 2026, through May 31, 2027.
(v) 5.25% for June 1, 2027, through May 31, 2028.
(vi) 6.00% for June 1, 2028, through May 31, 2029.
(vii) 6.75% for June 1, 2029, through May 31, 2030.
(viii) 7.5% for June 1, 2030, through May 31, 2031.
(6) No later than one year after the effective date of
this subsection, the commission shall establish regulations
to ensure diversification across all customer-generators
under paragraph (2), including, but not limited to, solar
photovoltaic systems that are interconnected at residential
or commercial locations or customer-generators whose systems
are for virtual meter aggregation.
(7) This subsection shall not apply to the certification
of a solar photovoltaic energy system with a contract for the
sale and purchase of alternative energy credits derived from
solar photovoltaic energy sources entered into before or on
May 31, 2023, provided that the system meets the requirements
under section 3.1.
(8) This subsection shall apply to a contract for the
sale and purchase of alternative energy credits derived from
solar photovoltaic energy sources entered into or renewed for
reporting years commencing after May 31, 2023.
* * *
(f) Alternative compliance payment.--
(1) At the end of each program reporting 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), (b.1) 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), (b.1) and (c), the
commission shall impose an alternative compliance payment on
that electric distribution company or electric generation
supplier.
(3) [The] Through May 31, 2023, 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] Through May 31, 2023, the alternative
compliance payment for the solar photovoltaic share required
under subsection (b)(2) 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] alternative energy credits in other jurisdictions
in the PJM Interconnection, L.L.C. transmission organization
(PJM) or its successor.
(4.1) Beginning June 1, 2023, the alternative compliance
payment, with the exception of the customer-generator solar
photovoltaic share compliance requirement specified under
subsection (b.1)(2), shall be $45 multiplied by the number of
additional alternative energy credits needed in order to
comply with subsection (b.1) or (c).
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(4.2) Beginning June 1, 2023, the alternative compliance
payment for the customer-generator solar photovoltaic share
compliance requirement specified under subsection (b.1)(2)
shall be as follows:
(i) An amount equal to the product of $125
multiplied by the number of additional alternative energy
credits required to comply with subsection (b.1)(2) from
June 1, 2023, through May 31, 2028.
(ii) An amount equal to the product of $100
multiplied by the number of additional alternative energy
credits required to comply with subsection (b.1)(2) from
June 1, 2028, through May 31, 2032.
(iii) Beginning with the reporting year commencing
on June 1, 2032, and each reporting year thereafter, the
alternative compliance payment required for solar
photovoltaic energy systems under subsection (b.1)(2)
shall decrease by $5 from the previous reporting year
until the alternative compliance payment is
$45.
(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
findings to the General Assembly for legislative enactment.
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(g) Transfer [to sustainable development funds] of
alternative compliance payments.--
* * *
(2) The alternative compliance payments shall be
utilized solely for [projects] any of the following:
(i) Projects that will increase the amount of
electric energy generated from alternative energy
resources for purposes of compliance with subsections
(b), (b.1) and (c).
(ii) Workforce development programs to train workers
in renewable energy industries.
* * *
Section 3. The act is amended by adding sections to read:
Section 3.1. Solar photovoltaic technology requirements.
(a) System requirements.--Notwithstanding section 4, in
order to qualify as an alternative energy source eligible to
meet the solar photovoltaic share of the compliance requirements
under section 3, a solar photovoltaic system must do one of the
following:
(1) Directly deliver the electricity that the solar
photovoltaic system generates to a retail customer of an
electric distribution company or to the distribution system
operated by an electric distribution company operating in
this Commonwealth and currently obligated to meet the
compliance requirements specified under section 3.
(2) Directly connect to the electric system of an
electric cooperative or municipal electric system operating
in this Commonwealth.
(3) Directly connect to the electric transmission system
at a location within the service territory of an electric
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distribution company operating in this Commonwealth.
(b) Construction.--
(1) Nothing under this section or section 4 shall be
construed to affect any of the following:
(i) A certification originating in this Commonwealth
and granted before the effective date of this section of
a solar photovoltaic energy generator as a qualifying
alternative energy source eligible to meet the solar
photovoltaic share of this Commonwealth's alternative
energy portfolio compliance requirements under section 3.
(ii) A certification of a solar photovoltaic system
with a binding written contract for the sale and purchase
of alternative energy credits derived from solar
photovoltaic energy sources entered into before October
30, 2019.
(2) This section shall apply to contracts entered into
or renewed on or after October 30, 2019.
Section 3.2. Contract requirements for solar photovoltaic
energy system sources.
(a) Low-cost procurement for non-customer-generators.--
(1) To assure the lowest-cost procurement, two-thirds of
the annual total percentage requirement from solar
photovoltaic sources as specified under section 3(b.1)(5)
shall be procured through contracts of no less than 12 years
and no more than 20 years for both energy and alternative
energy credits required under this subsection. Energy
procured to satisfy the requirements of this subsection may
not be used to satisfy the procurement requirement under
subsection (b).
(2) An electric distribution company with more than one
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million annual megawatt hours of retail load shall:
(i) procure energy and alternative energy credits
based on the total electric energy sold to all customers
in the electric distribution company's service territory,
without regard to whether the supplier of the retail
sales is the electric distribution company or an electric
generation supplier;
(ii) issue annual requests for proposals for
competitive long-term procurement of solar energy and
alternative energy credits and enter into contracts in
compliance with this subsection in accordance with
regulations established by the commission; and
(iii) be entitled to a presumption of prudency and
full cost recovery in distribution rates of payments for
competitive procurements made under this subsection at a
levelized price over the term of the contract of less
than one-half of the applicable alternative compliance
payment.
(3) For purposes of any true-up required under this
subsection, the following apply:
(i) If contracts executed to meet the requirements
of this section fail to deliver the quantities required
in any given year, the electric distribution company
shall procure alternative energy credits during the true-
up period established under section 3(e)(5).
(ii) Electric generation suppliers in the territory
of the electric distribution company shall not have an
obligation to purchase alternative energy credits for the
share of the requirements under this section and shall
not be responsible for true-up or the payment of any
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penalty for failure to comply with this section.
(4) No later than December 1, 2022, the commission shall
establish regulations to implement the requirements under
this subsection and provide for the issuance and execution of
the first competitive procurement contracts for the supply of
alternative energy credits beginning with the reporting year
commencing on June 1, 2023. The regulations shall address,
but not be limited to, all of the following:
(i) Competitive contract procurement.
(ii) Alternative energy credit retirement.
(iii) Guidance on the prudency of proposed
purchases, including a presumption of prudence if the
annualized cost of alternative energy credits is less
than one-half of the applicable alternative compliance
payment.
(iv) Competitiveness review using standard industry
practices to ensure that each solicitation is competitive
and providing for the prompt reissuance of a solicitation
deemed to be uncompetitive.
(v) Cost recovery for electric distribution
companies for prudent and competitive contracts.
(vi) Alternative energy credit true-up of
procurement shortfalls in subsequent year contract
procurements.
(b) Low-cost procurement for Tier I resources.--
(1) No later than December 1, 2022, the commission shall
establish regulations providing for competitive procurement
of at least one-sixth of the Tier I alternative energy
required under section 3(b.1)(1), except for energy procured
under subsection (a), under contracts with a term of no less
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than 10 years and no more than 15 years beginning with the
reporting year commencing on June 1, 2023. The competitive
procurements under this subsection shall result in contracts
for both energy and alternative energy credits for Tier I
alternative energy resources for the purpose of satisfying
the requirements under section (3)(b.1)(1). The requirements
under this paragraph shall not apply to the solar
photovoltaic share requirements under section 3(b.1)(2) or
(5).
(2) In establishing regulations under paragraph (1), the
commission shall collaborate with stakeholders, including,
but not limited to, the department, energy generation
suppliers, renewable energy developers and electric
distribution companies, and determine the benefit to electric
customers in this Commonwealth based on the following
factors:
(i) The savings to electric customers resulting from
the procurement of alternative energy credits under this
section.
(ii) The preference for new generation resources
with reduced emissions as determined by the department.
(iii) The parties to the contracts.
(iv) The design of the competitive procurement
process.
(v) The terms to be included in the contracts based
on commercial reasonableness for the parties to the
contracts.
Section 3.3. Renewable energy storage report.
(a) Report.--No later than one year after the effective date
of this section, the commission, in consultation with the PJM
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Interconnection, L.L.C. transmission organization (PJM) or its
successor and stakeholders, including, but not limited to,
third-party electric generation suppliers and electric
utilities, shall conduct a renewable energy storage analysis and
submit a report to the Governor and General Assembly concerning
renewable energy storage needs and opportunities and costs and
benefits in this Commonwealth.
(b) Contract.--The commission shall contract with an
independent consultant selected through a competitive request
for proposal process to produce the report under this section.
(c) Report.--At a minimum, the commission shall compile the
report in the following manner:
(1) Use 2,000 megawatt hours of renewable energy storage
as a benchmark target goal.
(2) Identify and measure the potential costs and
benefits of deployment based on all of the following factors:
(i) Deferred investments in generation, transmission
and distribution facilities.
(ii) Reduced ancillary services costs.
(iii) Reduced transmission and distribution
congestion.
(iv) Reduced peak power costs and capacity costs.
(v) Reduced costs for emergency power supplies
during outages.
(vi) Curtailment of nonrenewable energy generators
to meet peak demand.
(vii) Reduced greenhouse gas emissions.
(3) Analyze and estimate all of the following:
(i) The ability to integrate renewable energy
resources with energy storage systems.
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(ii) The b enefits of coupling the storage to meet
peak demand.
(iii) The i mpact of renewable energy storage on grid
reliability and power quality.
(iv) The impact on retail electric rates over the
useful life of a renewable energy storage system compared
to the same services using other facilities or resources.
(4) Consider whether the implementation of renewable
electric energy storage systems would promote the use of
electric vehicles in this Commonwealth and the potential
impact on renewable energy production in this Commonwealth.
(5) Analyze the types of renewable energy storage
technologies currently being implemented in this Commonwealth
and other states.
(6) Consider the benefits and costs to retail electric
customers in this Commonwealth, political subdivisions and
electric public utilities associated with the development and
implementation of additional renewable energy storage
technologies.
(7) Determine the optimal amount of renewable energy
storage that should be added in this Commonwealth during the
next five years to provide the maximum benefit to retail
electric customers in this Commonwealth.
(8) Determine the optimum points of entry into the
electric distribution system for distributed energy
resources.
(9) Calculate the cost to retail electric customers in
this Commonwealth of adding the optimal amount of renewable
energy storage.
S ection 3.4. Energy storage deployment targets.
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(a) Determination.--No later than 90 days after completion
of the report under section 3.3, the commission shall determine
appropriate energy storage deployment targets that each electric
distribution company needs to achieve by December 31, 2027,
including any interim targets. In making the determination, the
commission shall consider all of the following:
(1) The contents of the report under section 3.3.
(2) Adopting specific subcategories of deployment by
point of interconnection.
(3) Adopting requirements or processes for all of the
following:
(i) The c ompetitive deployment of energy storage
services from third parties.
(ii) The direct purchase of storage devices.
(4) Appropriate accountability mechanisms, including
reporting requirements, for investor-owned electric utilities
to procure energy storage in sufficient quantities to meet
the targets established by the commission.
(5) If advised by the report under section 3.3, creating
a renewable peak standard that would set targets for meeting
peak demand with renewable energy colocated with storage,
including all of the following:
(i) Demand response technology or energy storage
that is paired solely with a Tier I alternative energy
source that generates, dispatches or discharges energy to
an electric distribution system during seasonal peak
periods as determined by the commission or reduce load on
the system.
(ii) Renewable energy storage systems that can be
colocated with the Tier I alternative energy sources or
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paired virtually, as long as the storage facility is
within the boundaries of the same electric distribution
company's service territory and specifically located to
reduce peak demand.
(b) Definitions.--As used in this section, the term
"procure" shall mean to acquire by ownership a renewable
energy storage system or a contractual right to use the energy
from, or the capacity of, a renewable energy storage system.
Section 3.5. Contracts for solar photovoltaic technologies by
Commonwealth agencies.
(a) Public works.--Except as provided under subsection (b),
a Commonwealth agency shall require that a contract for the
construction, reconstruction, alteration, repair, improvement or
maintenance of public works contain a provision that, if any
solar photovoltaic technologies are to be used or supplied in
the performance of the contract, only solar photovoltaic
technologies manufactured in the United States shall be used or
supplied in the performance of the contract or any subcontracts
under the contract.
(b) Exception.--The requirement under subsection (a) shall
not apply if the head of the Commonwealth agency, in writing,
determines that the solar photovoltaic technologies are not
manufactured in the United States in sufficient quantities to
meet the requirements of the contract.
(c) Definitions.--As used in this section, the term "public
work" shall have the same meaning given to it in section 2(5) of
the act of August 15, 1961 (P.L.987, No.442), known as the
Pennsylvania Prevailing Wage Act.
Section 4. Section 4 of the act is amended to read:
Section 4. Portfolio requirements in other states.
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If an electric distribution [supplier] company or electric
generation [company] supplier provider sells electricity in any
other state and is subject to [renewable] alternative energy
portfolio requirements in that state, they shall list any such
requirement and shall indicate how it satisfied those
[renewable] alternative energy portfolio requirements. To
prevent double-counting, the electric distribution [supplier]
company or electric generation [company] supplier 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
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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] alternative energy portfolio
standards.
Section 5. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of
section 3.1 of the act.
(2) Section 2804 of the act of April 9, 1929 (P.L.177,
No.175), known as The Administrative Code of 1929, is
repealed.
Section 6. This act shall take effect immediately.
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