Regular Session 2023-2024 House Bill 1842 P.N. 2789

PRIOR PRINTER'S NOS. 2281, 2745

PRINTER'S NO. 2789

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1842

Session of

2023

INTRODUCED BY SCHWEYER, MATZIE, MADDEN, GUENST, SMITH-WADE-EL,

HOHENSTEIN, McNEILL, SANCHEZ, SCHLOSSBERG, BRENNAN, VITALI,

KHAN, ROZZI, HILL-EVANS, CEPEDA-FREYTIZ, STEELE, HADDOCK,

CIRESI, NEILSON, GREEN, MEHAFFIE, TOMLINSON, RYNCAVAGE,

KAUFER, ADAMS, KIM, STURLA, FIEDLER, FREEMAN, WAXMAN,

BOROWSKI, TAKAC, BOYD, MENTZER, ISAACSON, DALEY, PARKER,

D. WILLIAMS, CONKLIN, PIELLI, WARREN, FRIEL, FRANKEL, OTTEN,

BRIGGS, WEBSTER, GUZMAN AND T. DAVIS, NOVEMBER 13, 2023

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,

MARCH 25, 2024

AN ACT

Providing for community solar facilities; imposing duties on the

Pennsylvania Public Utility Commission, electric distribution

companies and subscriber organizations; and providing for

prevailing wage for construction of community solar

facilities AND LABOR REQUIREMENTS.

TABLE OF CONTENTS

Section 1. Short title.

Section 2. Findings and declarations.

Section 3. Definitions.

Section 4. Authorization to own or operate community solar

facilities.

Section 5. Bill credit for subscribers to community solar

facilities.

Section 6. Protection for customers.

Section 7. Duties of electric distribution companies.

Section 8. Compensation and cost recovery for electric

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distribution companies.

Section 9. Interconnection standards for community solar

facilities.

Section 10. Unsubscribed energy.

Section 11. Customer participation in community solar programs.

Section 12. Location of multiple community solar facilities.

Section 13. Prevailing wage for construction of community solar

facilities AND LABOR REQUIREMENTS.

Section 14. Construction.

Section 15. Effective date.

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 Community

Solar Act.

Section 2. Findings and declarations.

The General Assembly finds and declares as follows:

(1) Growth in solar generation will provide family-

sustaining jobs and investments in this Commonwealth.

(2) Programs for community solar generation provide

customers with additional energy choices and access to

affordable energy options.

(3) Community solar programs provide customers,

including homeowners, renters and businesses, access to the

benefits of Pennsylvania community solar energy generation

that is unconstrained by the physical attributes of their

home or business, including roof space, shading or ownership

status.

(4) In addition to its provision of standard electricity

market commodities and services, local solar energy

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generation can contribute to a more resilient grid and defer

the need for costly new transmission and distribution system

investment.

(5) The intent of this act is to:

(i) Allow electric distribution customers of this

Commonwealth to subscribe to a portion of a community

solar facility and have the result of the subscription be

guaranteed savings.

(ii) Reasonably allow for the creation, financing,

accessibility and operation of third-party-owned

community solar generating facilities and enable robust

customer participation.

(iii) Encourage the development of community solar

programs that will facilitate participation by and for

accessibility and operation of third-party-owned

community solar generating facilities and enable robust

customer participation.

(iv) Encourage the development of community solar

programs that will facilitate participation by and for

the benefit of low-income and moderate-income customers

and the communities where they live, reduce barriers to

participation by renters and small businesses, promote

affordability and improve access to basic public utility

services.

(v) Maximize the use of Federal money to provide for

the development of community solar programs.

Section 3. 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:

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"Bill credit." The commission-approved monetary value of

each kilowatt hour of electricity generated by a community solar

facility and allocated to a subscriber's monthly bill to offset

any part of the subscriber's retail electric bill other than

volumetric or demand-based distribution charges.

"Brownfield." Real property, the expansion, redevelopment or

reuse of which may be complicated by the presence or potential

presence of a hazardous substance, pollutant or contaminant.

"Brownfield or rooftop community solar facility." A

community solar facility that is primarily located on rooftops

or land that is a brownfield.

"Commission." The Pennsylvania Public Utility Commission.

"Community solar facility." A facility that meets all of the

following criteria:

(1) Is located within this Commonwealth.

(2) Is connected to and delivers electricity to a

distribution system operated by an electric distribution

company operating in this Commonwealth and in compliance with

requirements under this act.

(3) Generates electricity by means of a solar

photovoltaic device with a nameplate capacity rating that

does not exceed:

(i) 5,000 kilowatts of alternating current for a

facility that is not a brownfield or rooftop community

solar facility; and

(ii) 20,000 kilowatts of alternating current for a

facility that is a brownfield or rooftop community solar

facility.

(4) Has no single subscriber who subscribes to more than

50% of the facility capacity in kilowatts or output in

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kilowatt hours, except for a master-metered multifamily

residential or commercial building.

(5) No less than 50% of the facility capacity is

subscribed by subscriptions of 25 kilowatts or less.

(6) Credits some or all of the facility-generated

electricity to the bills of subscribers.

(7) May be located remotely from a subscriber's premises

and is not required to provide energy to on-site load.

(8) Is owned or operated by a community solar

organization.

(9) Delivers the amount of energy and capacity that is

contracted by each customer.

"Community solar organization." As follows:

(1) An entity that owns or operates a community solar

facility and is not required to:

(i) be an existing retail electric customer;

(ii) purchase electricity directly from the electric

distribution company;

(iii) serve electric load independent of the

community solar facility; or

(iv) operate under an account held by the same

individual or legal entity of the subscribers to the

community solar facility.

(2) For the purpose of this definition, a community

solar organization shall not be deemed a public utility

solely as a result of the organization's ownership or

operation of a community solar facility.

"Department." The Department of Environmental Protection of

the Commonwealth.

"Electric distribution company." As defined in 66 Pa.C.S. §

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2803 (relating to definitions).

"Electric distribution customer." A customer that takes

electric distribution service from an electric distribution

company, regardless of whether the company is the customer's

supplier of electric generation or not.

"Guaranteed savings." Realized savings by a subscriber from

a community solar organization manifested as the difference

between the cost of a subscription paid to a community solar

facility and the credit received on the subscriber's electric

bill for the generation attributed to the subscription.

"Initial and replacement subscribers." Each subscriber to a

single community solar facility over the life of the facility.

"Low-income." A family income at or below 150% of the

poverty line as defined in 42 U.S.C. § 9902(2) (relating to

definitions) based on the size of the family.

"Pennsylvania Prevailing Wage Act." The act of August 15,

1961 (P.L.987, No.442), known as the Pennsylvania Prevailing

Wage Act.

"Public utility." As defined in 66 Pa.C.S. § 102 (relating

to definitions).

"Subscriber." An electric distribution customer of an

electric distribution company who contracts for a subscription

of a community solar facility interconnected with the customer's

electric distribution company. The term includes an electric

distribution customer who owns a portion of a community solar

facility.

"Subscriber administrator." An entity that recruits and

enrolls a subscriber, administers subscriber participation in a

community solar facility and manages the subscription

relationship between subscribers and an electric distribution

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company. The term includes a community solar organization. For

the purpose of this definition, a subscriber administrator shall

not be considered a public utility solely as a result of the

subscriber administrator's operation or ownership of a community

solar facility.

"Subscription." A contract between a subscriber and a

subscriber administrator of a community solar facility that

entitles the subscriber to a bill credit, measured in kilowatt

hours, and applied against the subscriber's retail electric

bill.

"Unsubscribed energy." The output of a community solar

facility, measured in kilowatt hours, that is not allocated to

subscribers.

Section 4. Authorization to own or operate community solar

facilities.

A community solar organization or subscriber administrator

may develop, build, own or operate a community solar facility. A

community solar organization may serve as a subscriber

administrator or may contract with a third party to serve as a

subscriber administrator on behalf of the community solar

organization. Renewable energy credits that are associated with

the generation of electricity by a community solar facility

shall be the property of the community solar organization and

may be retired or transferred by the community solar

organization or retired on behalf of the subscribers.

Section 5. Bill credit for subscribers to community solar

facilities.

(a) Credit.--A subscriber to a community solar facility

shall receive a monetary bill credit for every kilowatt hour

produced by the subscriber's subscription. A community solar

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facility that demonstrates all of the following to the

commission shall have the initial and replacement subscribers of

the community solar facility receive a bill credit from the date

the community solar facility is authorized by the commission to

operate:

(1) An executed interconnection agreement with an

electric distribution company obtained in accordance with 52

Pa. Code Ch. 75 (relating to alternative energy portfolio

standards).

(2) Proof of site control.

(3) The required nonministerial permits.

(4) Proof that the community solar facility will be at

least 50% subscribed on the date the community solar facility

receives permission to operate.

(5) A signed agreement for a commission-approved

workforce development requirement.

(6) Proof that the community solar facility is

constructed or, if not yet constructed, an attestation that

the community solar facility will be in compliance with

section 13.

(7) A community solar organization or subscriber

administrator will not bill a subscriber for services

provided by an electric distribution company. An electric

distribution company may not bill a subscriber for

subscription costs to a community solar organization.

(b) Establishment of credit.--Within 180 days of the

effective date of this subsection, the commission shall

establish a bill credit for a public utility that appropriately

values the energy, capacity and transmission values produced by

a community solar facility and is not less than the bill credit

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established under 52 Pa. Code § 75.13(e) (relating to general

provisions). The terms and conditions of receiving the bill

credit may not limit or inhibit participation of subscribers

from any rate class.

Section 6. Protection for customers.

(a) Customer protection provisons.--The commission shall

promulgate regulations providing for the protection of a

residential customer who has a subscription with a community

solar organization or subscriber administrator.

(b) Standardized customer disclosure form.--The commission

shall develop a standardized customer disclosure form in English

and Spanish for a residential customer that identifies key

information that is required to be provided by a subscriber

administrator to a potential residential subscriber, including

future costs and benefits of a subscription and the subscriber's

rights and obligations pertaining to a subscription.

subscriber may not exceed the value of the bill credit and may

not include any upfront or sign-on fees or credit checks. The

subscription costs shall be nonbasic public utility charges.

Failure to pay a subscription may result in the loss of a

subscription but shall not impact public utility services.

(d) Benefits and costs.--The commission shall maximize

benefits and minimize costs to each rate class, notwithstanding

participation in a community solar program.

(e) Fees prohibited.--A community solar organization may not

impose a termination or cancellation fee on a subscriber.

(f) Energy efficiency charges.--A community solar

organization shall bill a subscriber for universal services or

energy efficiency charges and remit the money collected to an

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electric distribution company to prevent the distribution of

charges to customers of the electric distribution company who do

not subscribe to the community solar organization.

Section 7. Duties of electric distribution companies.

(a) Report on bill credit.--On a monthly basis, an electric

distribution company shall provide to a community solar

organization or subscriber administrator a report in a

standardized electronic format indicating the total value of the

bill credit generated by the community solar facility in the

prior month, the calculation used to arrive at the total value

of the bill credit and the amount of the bill credit applied to

each subscriber.

(b) Application of bill credit.--An electric distribution

company shall apply a bill credit to a subscriber's next monthly

electric bill for the proportional output of a community solar

facility attributable to the subscriber. Excess credits on a

subscriber's bill shall roll over from month to month. An

electric distribution company shall automatically apply excess

credits to the final electric bill when a subscription is

terminated for any cause.

permit the transferability and portability of subscriptions if a

subscriber relocates within the same electric distribution

company territory.

Section 8. Compensation and cost recovery for electric

distribution companies.

(a) Compensation.--A community solar organization shall

compensate an electric distribution company for the electric

distribution company's reasonable costs of interconnection of a

community solar facility.

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(b) Cost recovery.--An electric distribution company may

recover reasonable costs from each subscriber organization,

subject to approval by the commission, to administer a community

solar program within the electric distribution company's service

territory of a community solar facility. The Commonwealth shall

maximize Federal and State funds for energy assistance, clean

energy deployment or any other applicable funding to minimize

the cost recovery impact on each subscriber.

Section 9. Interconnection standards for community solar

facilities.

(a) Applications.--Beginning on the effective date of this

subsection, an electric distribution company shall have the

following duties:

(1) Accept interconnection applications for community

solar facilities on a nondiscriminatory basis and study the

impact of interconnecting the facilities to the grid using

the current commission-approved interconnection rules and

tariffs and in accordance with best practices.

(2) Include, in an interconnection application for a

community solar facility, proof of site control by the

community solar facility for the purposes of the study under

paragraph (1).

(b) Interconnection working group.--Within 90 days of the

effective date of this subsection, the commission shall

establish an interconnection working group between electric

distribution companies and stakeholders with oversight from

commission staff. The interconnection working group shall review

and recommend changes to policies, processes, tariffs, rules or

standards associated with the interconnection of community solar

facilities with the goal of transparency, accuracy and

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efficiency to support the purposes of this act. The

interconnection working group shall submit a report to the

commission of the recommended changes within 270 days of the

effective date of this subsection. Based on the recommended

changes in the report, the commission shall adopt the changes in

the State jurisdictional interconnection rules as the commission

deems necessary or appropriate.

administrative fee on an initial interconnection application for

community solar facilities under subsection (a). The commission

may impose a fee equivalent to up to 5% of the electric

distribution company's initial interconnection application fee.

The commission may use fees collected under this subsection for

the administrative costs directly associated with this act.

Section 10. Unsubscribed energy.

An electric distribution company shall purchase unsubscribed

energy from a community solar facility at the electric

distribution company's wholesale energy cost as determined by

the commission. To offset real or perceived costs, an electric

distribution company shall sell unsubscribed energy to

PJM Interconnection, L.L.C., regional transmission organization

(PJM) or its successor service territory markets or otherwise

decrease energy purchases.

Section 11. Customer participation in community solar programs.

(a) Participation in programs.--The commission shall

promulgate permanent regulations to enable participation in

community solar programs by each customer class and economic

group in accordance with the laws of this Commonwealth.

(b) Temporary regulations.--In order to facilitate the

prompt implementation of this section, the commission and

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department may promulgate temporary regulations. The temporary

regulations shall expire following the date of publication of

the permanent regulations under subsection (a) in the

Pennsylvania Bulletin. The temporary regulations shall not be

subject to any of the following:

(1) Section 612 of the act of April 9, 1929 (P.L.177,

No.175), known as The Administrative Code of 1929.

(2) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(3) Sections 204(b) and 301(10) of the act of October

15, 1980 (P.L.950, No.164), known as the Commonwealth

Attorneys Act.

(4) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

department to promulgate temporary regulations under subsection

(b) shall not expire until the commission promulgates the

permanent regulations under subsection (a).

(d) Contents.--The temporary regulations under subsection

(b) shall meet all of the following criteria:

(1) Be based on consideration of formal and informal

input from all stakeholders.

(2) Establish requirements that ensure access to

programs and equitable opportunities for participation for

residential and small commercial customer classes.

(3) Establish a registration process for community solar

organizations.

(4) Address the reasonable enforcement of minimum

subscription requirements for a community solar facility.

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(e) Low-income customers.--The commission, in collaboration

with the Office of Consumer Advocate, electric distribution

companies, community solar organizations and low-income

stakeholders, may promulgate regulations adopting mechanisms to

increase participation by low-income customers in community

solar programs. The commission shall increase participation by

low-income customers in community solar programs in a manner

that allows the commission to use available Federal funds to do

all of the following:

(1) Deliver larger guaranteed savings to income

qualified households than those households that would receive

guaranteed savings without the Federal funds.

(2) Maximize State energy assistance programs.

Section 12. Location of multiple community solar facilities.

The commission shall promulgate regulations establishing

limitations on the location of multiple community solar

facilities in close proximity. The regulations shall meet all of

the following criteria:

(1) Prohibit an entity or affiliated entity under common

control from developing, owning or operating more than one

community solar facility on the same parcel or contiguous

parcels of land.

(2) Authorize a brownfield or rooftop community solar

facility to be sited on contiguous parcels if the total

brownfield or rooftop community solar facility capacity on

all contiguous parcels does not exceed the limits established

by the commission.

Section 13. Prevailing wage for construction of community solar

facilities AND LABOR REQUIREMENTS.

(a) Prevailing wage.--A community solar facility for which a

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bill credit is sought and awarded to a subscriber under this act

shall be deemed to meet each of the minimum requirements

necessary to apply the wage and benefit rates and related

certification of payroll records required under the

Pennsylvania Prevailing Wage Act. A community solar organization

and each of the organization's agents, contractors and

subcontractors shall comply with the Pennsylvania Prevailing

Wage Act as attested under section 5 for work undertaken at the

community solar facility in which a bill credit for a subscriber

is sought and awarded.

(b) Violations.--The Department of Labor and Industry shall

enforce this section and apply the same administration and

(B) SOLAR ENERGY PROJECTS.--ANY CONTRACTOR, SUBCONTRACTOR OR

WORKER PERFORMING CONSTRUCTION, RECONSTRUCTION, DEMOLITION,

REPAIR OR MAINTENANCE WORK ON A SOLAR ENERGY PROJECT FUNDED

UNDER THIS ACT SHALL MEET ALL OF THE FOLLOWING REQUIREMENTS:

(1) MAINTAIN ALL VALID LICENSES, REGISTRATIONS OR

CERTIFICATES REQUIRED BY THE FEDERAL GOVERNMENT, THE

COMMONWEALTH OR A LOCAL GOVERNMENT ENTITY THAT IS NECESSARY

TO DO BUSINESS OR PERFORM APPLICABLE WORK.

(2) MAINTAIN COMPLIANCE WITH THE ACT OF JUNE 2, 1915

(P.L.736, NO.338), KNOWN AS THE WORKERS' COMPENSATION ACT,

THE ACT OF DECEMBER 5, 1936 (2ND SP.SESS., 1937 P.L.2897,

NO.1), KNOWN AS THE UNEMPLOYMENT COMPENSATION LAW, AND

BONDING AND LIABILITY INSURANCE REQUIREMENTS AS SPECIFIED IN

THE CONTRACT FOR THE SOLAR ENERGY PROJECT.

(3) HAS NOT DEFAULTED ON A PROJECT, DECLARED BANKRUPTCY,

BEEN DEBARRED OR SUSPENDED ON A PROJECT BY THE FEDERAL

GOVERNMENT, THE COMMONWEALTH OR A LOCAL GOVERNMENT ENTITY

WITHIN THE PREVIOUS THREE YEARS.

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(4) HAS NOT BEEN CONVICTED OF A MISDEMEANOR OR FELONY

RELATING TO THE PERFORMANCE OR OPERATION OF THE BUSINESS OF

THE CONTRACTOR OR SUBCONTRACTOR WITHIN THE PREVIOUS 10 YEARS.

(5) HAS COMPLETED A MINIMUM OF THE UNITED STATES

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION'S 10-HOUR

SAFETY TRAINING COURSE OR SIMILAR TRAINING SUFFICIENT TO

PREPARE WORKERS FOR ANY HAZARDS THAT MAY BE ENCOUNTERED

DURING THEIR WORK.

ENFORCE THIS SECTION IN ACCORDANCE WITH THE LAWS OF THIS

COMMONWEALTH. THE DEPARTMENT OF LABOR AND INDUSTRY SHALL APPLY

THE SAME ADMINISTRATION AND enforcement applicable under the

requirements of the Pennsylvania Prevailing Wage Act to ensure

compliance WITH SUBSECTION (A). In addition to enforcement

authorized under the Pennsylvania Prevailing Wage Act, if the

Department of Labor and Industry determines that the community

solar organization intentionally failed to pay prevailing wage

rates or benefit rates in violation of section 11(h) of the

Pennsylvania Prevailing Wage Act for work specified under

subsection (a), the community solar organization or the

organization's agents, contractors and subcontractors shall pay

a fine equivalent to 10% of the value of the bill credit

multiplied by the estimated 25-year production of the community

solar facility.

Section 14. Construction.

Nothing in this act shall be construed to permit recovery of

direct or indirect costs related to community solar facilities

from ratepayers of an electric distribution company that are not

subscribers. The commission shall maximize benefits and minimize

costs to all rate classes, regardless of participation in a

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community solar program.

Section 15. Effective date.

This act shall take effect in 60 days.

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