PRINTER'S NO. 1327
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1040
Session of
2024
INTRODUCED BY BOSCOLA, COMITTA, HAYWOOD AND KANE,
JANUARY 12, 2024
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
JANUARY 12, 2024
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, providing for requisite procurement.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 2816. Requisite procurement.
(a) Class I procurement.--In addition to existing Federal or
State obligations in existence on the effective date of this
subsection, an electric distribution company shall purchase
alternative energy credits to ensure that electricity provided
to all distribution customers is attributable to Class I sources
in the following amounts:
(1) For June 1, 2024, through May 31, 2025, 0.75%.
(2) For June 1, 2025, through May 31, 2026, 1.5%.
(3) For June 1, 2026, through May 31, 2027, 3%.
(4) For June 1, 2027, through May 31, 2028, 4.75%.
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(5) For June 1, 2028, through May 31, 2029, 6%.
(6) For June 1, 2029, through May 31, 2030, 6.25%.
(7) For June 1, 2030, through May 31, 2031, 6.45%.
(8) For June 1, 2031, through May 31, 2032, 6.7%.
(9) For June 1, 2032, and thereafter, 7%.
(b) Customer-generator solar photovoltaic procurement.--In
addition to Federal or State obligations in existence on the
effective date of this subsection, an electric distribution
company shall purchase alternative energy credits to ensure that
electricity provided to all distribution customers is
attributable to customer-generator solar photovoltaic
technologies in the following amounts:
(1) For June 1, 2024, through May 31, 2025, 0.15%.
(2) For June 1, 2025, through May 31, 2026, 0.34%.
(3) For June 1, 2026, through May 31, 2027, 0.525%.
(4) For June 1, 2027, through May 31, 2028, 0.75%.
(5) For June 1, 2028, through May 31, 2029, 1%.
(6) For June 1, 2029, through May 31, 2030, 1.25%.
(7) For June 1, 2030, through May 31, 2031, 1.5%.
(8) For June 1, 2031, through May 31, 2032, 1.75%.
(9) For June 1, 2032, and thereafter, 2%.
(c) Non-customer-generator solar photovoltaic procurement.--
In addition to Federal or State obligations in existence on the
effective date of this subsection, an electric distribution
company shall purchase alternative energy credits to ensure that
electricity provided to all distribution customers is
attributable to non-customer-generator solar photovoltaic
technologies in the following amounts:
(1) For June 1, 2024, through May 31, 2025, 0.4%.
(2) For June 1, 2025, through May 31, 2026, 0.7%.
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(3) For June 1, 2026, through May 31, 2027, 1%.
(4) For June 1, 2027, through May 31, 2028, 1.3%.
(5) For June 1, 2028, through May 31, 2029, 1.6%.
(6) For June 1, 2029, through May 31, 2030, 1.9%.
(7) For June 1, 2030, through May 31, 2031, 2.2%.
(8) For June 1, 2031, through May 31, 2032, 2.6%.
(9) For June 1, 2032, and thereafter, 3%.
(d) Grandfathering.--Notwithstanding section 3 of the act of
November 30, 2004 (P.L.1672, No.213), known as the Alternative
Energy Portfolio Standards Act, in order to qualify as an
alternative energy source eligible to meet the photovoltaic
share of this Commonwealth's compliance requirements under the
Alternative Energy Portfolio Standards Act and to qualify for
solar renewable alternative energy portfolio credits, each solar
photovoltaic system must be a customer-generator system or a
solar photovoltaic system that has provided a certificate of
completion to the electric distribution company in accordance
with 52 Pa. Code Ch. 75 Subch. C (relating to interconnection
standards) on or before the effective date of this subsection
and qualifies to generate solar alternative energy credits under
the Alternative Energy Portfolio Standards Act.
(e) Fulfillment.--The obligations under subsections (a), (b)
and (c) shall be fulfilled using systems and methods in
existence on the effective date of this subsection for
attributing credits for State-mandated alternative energy
requirements to facilitate implementation of this section.
Alternative energy credits generated under subsections (a), (b)
and (c) shall be eligible for use in compliance with State-
mandated alternative energy requirements in the energy year in
which they are generated, and for the following four energy
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years. The procurement under subsections (a), (b) and (c) shall
comply with the provisions of section 2804 of the act of April
9, 1929 (P.L.177, No.175), known as The Administrative Code of
1929.
(f) Alternative compliance payment.--
(1) Beginning with reporting year 2023, the alternative
compliance payment required for each megawatt hour of
shortfall of Class I procurement under subsection (a), non-
customer-generator solar procurement under subsection (c),
and Tier 1 alternative energy sources, with the exception of
solar photovoltaic shares, under section 3 of the Alternative
Energy Portfolio Standards Act, shall be $45 for reporting
years 2025 through 2037 and an annually decreasing amount
that is $5 less than the previous reporting year starting in
reporting year 2038 until the alternative compliance payment
is $25 and continues thereafter at $25.
(2) Beginning with reporting year 2025, the alternative
compliance payment required for each megawatt hour of
shortfall for the customer-generator solar photovoltaic
technologies specified under subsection (b) and the solar
photovoltaic shares under section 3 of the Alternative Energy
Portfolio Standards Act shall be the following in each
reporting year:
(i) For reporting years 2025 through 2029, $95.
(ii) For reporting years 2030 through 2034, $90.
(iii) For reporting years 2035 through 2039, $85.
(iv) For reporting year 2040, $80.
(v) An annually decreasing amount that is $5 less
than the previous reporting year starting in reporting
year 2041 and culminating in $25 for reporting year 2055
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and thereafter.
(g) Virtual meter aggregation.--Virtual meter aggregation
shall apply as follows:
(1) On properties owned or leased and operated by a
customer-generator and located within a single electric
distribution company's service territory shall be eligible
for net metering if the customer-generator's system is
designed to generate no more than 110% of the customer-
generator's requirements for electricity across the customer-
generator's designated electric accounts or no more than 200%
of the customer-generator's requirements for electricity if
the customer-generator's system includes electric vehicle
supply equipment. A customer-generator's system may not be
located on the same or adjacent parcel of land to an existing
or proposed alternative energy system if the total installed
capacity on the same or adjacent parcel would exceed three
megawatts, except if the project is constructed on:
(i) A warehouse or commercial rooftop.
(ii) A brownfield.
(iii) Abandoned mine land.
(iv) A capped landfill.
(v) A parking facility canopy.
(2) Parcels of land cannot be subdivided in the two
years prior to applying to an electric distribution company
for commission approval.
(3) Upon commission approval of 500 megawatts of virtual
meter aggregated projects not approved by the commission as
of December 31, 2023, the commission shall establish a wait
list until it determines whether to approve additional
capacity for virtual meter aggregated projects.
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(4) Net metered or virtual meter aggregated projects
approved by the commission or with an interconnection
application submitted to an electric distribution company on
or before December 31, 2023, shall be fulfilled using systems
and methods in existence under the Alternative Energy
Portfolio Standards Act on the effective date of this
paragraph.
(h) Required wages and employee benefits.--No less than the
prevailing minimum wages and employee benefits as would be
applicable to a project of public work under the act of August
15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing
Wage Act, shall be paid to each workman employed on an
alternative energy system project, after the effective date of
this subsection, with a maximum net output of greater than 1
megawatt. As used in this section, the terms "public work" and
"workman" shall be as defined in section 2(5) and (7) of the
Pennsylvania Prevailing Wage Act.
(i) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Abandoned mine land." An area of land that is no longer in
use and is placed upon, under or above the surface of another
area of land by a person, used in extracting a natural resource
from its natural deposits in the earth by any means or method.
"Alternative energy system." As defined in section 2 of the
Alternative Energy Portfolio Standards Act.
"Brownfield." A property, the expansion, redevelopment or
reuse of which may be complicated by the presence or potential
presence of a hazardous substance, pollutant or contaminant.
"Capped landfill." A capped facility of trash and garbage
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disposal in which the waste is buried between layers of earth.
"Class I sources." 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.
"Customer-generator." As defined in section 2 of the
Alternative Energy Portfolio Standards Act.
"Net metering." Notwithstanding section 2 of the Alternative
Energy Portfolio Standards Act, upon the effective date of this
subsection, the term shall mean the means of measuring the
difference between the electricity supplied by an electric
utility and the electricity generated by a customer-generator if
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.
"Non-customer-generator solar." A solar photovoltaic system
that does not meet the definition of customer-generator as
defined in section 2 of the Alternative Energy Portfolio
Standards Act.
"Parking facility canopy." A structure that is constructed
over the top of a public or private parking lot.
"Warehouse." The term includes a distribution facility,
storage facility, fulfillment center, logistics facility and
similar uses.
"Warehouse or commercial rooftop." A roof that is located on
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a building or group of buildings primarily used for indoor
storage, transfer and distribution of products and materials.
Section 2. This act shall take effect immediately.
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