Bill Text: PA HB2342 | 2009-2010 | Regular Session | Amended

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Bill Title: Authorizing the Department of General Services, with the concurrence of the Department of Environmental Protection, to lease submerged lands in excess of 25 acres within Erie County, for the assessment, development, construction and operation of utility scale offshore wind, solar or kinetic energy generation facilities.

Spectrum: Slight Partisan Bill (Democrat 4-2)

Status: (Engrossed - Dead) 2010-06-08 - Referred to STATE GOVERNMENT [HB2342 Detail]

Download: Pennsylvania-2009-HB2342-Amended.html

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PRIOR PRINTER'S NO. 3396 PRINTER'S NO. 3702
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2342 Session of2010
INTRODUCED BY HORNAMAN, FABRIZIO, SONNEY, HARKINS AND J. EVANS, MARCH 18, 2010
AS REPORTED FROM COMMITTEE ON STATE GOVERNMENT, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 3, 2010
AN ACT
Authorizing the Department of General Services to lease <--
submerged lands in excess of 25 acres within Erie County, for
the development, construction and operation of utility scale
offshore wind generation facilities.
The General Assembly finds and declares as follows:
(1) That the potential for generation of electricity
through development of wind energy conversion systems in Lake
Erie would provide significant benefits to the Commonwealth.
(2) That legislation should be enacted to permit the
development, construction and operation of wind energy
conversion facilities in Lake Erie.
Authorizing the Department of General Services, with the <--
concurrence of the Department of Environmental Protection, to
lease submerged lands in excess of 25 acres within Erie
County, for the assessment, development, construction and
operation of utility scale offshore wind, solar or kinetic
energy generation facilities.
The General Assembly finds and declares as follows:
(1) That the potential for generation of electricity
through development of wind, solar or kinetic energy
generation systems in Lake Erie would provide significant
benefits to the Commonwealth.
(2) That legislation should be enacted to authorize the
Department of General Services, with the concurrence of the
Department of Environmental Protection, to lease submerged
lands of the Commonwealth in Lake Erie for the assessment,
development, construction, operation and removal of wind,
solar or kinetic energy generation systems in Lake Erie.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Lands within the Lake Erie Basin. <--
(a) Authorization.--The Commonwealth owns lands within the
bed of Lake Erie, all of which lands are located in Erie County.
(b) The Department of General Services, with the concurrence
of the Department of Environmental Protection, acting on behalf
of the Commonwealth, is hereby authorized to lease submerged
lands in excess of 25 acres within the bed of Lake Erie in Erie
County for the development of utility scale systems to convert
wind energy to electricity. This development may include
electrical collection and transmission facilities and other
related structures.
Section 2. Lease conditions.
(a) Qualifications of lessees.--A lease approved under
section 1 shall be restricted to lessees who can demonstrate the
expertise and capability to develop wind energy conversion
projects and who have a high likelihood of community and public
acceptance in Erie County.
(b) Waters of the Commonwealth.--A lease approved under
section 1 shall insure reasonable accommodation for fishing,
maritime commerce and other current and future commercial and
recreational uses of the waters of the Commonwealth now held in
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the public trust.
(c) Term of lease.--A lease approved under section 1 shall
be for a term of up to 49 years and may be extended, at the
option of the lessee, for all or any portion of the leased
premises for an additional term of up to 49 years. Any such
lease shall contain a provision for termination after ten years
if the lessee has not initiated construction of wind energy
conversion systems.
(d) Improvements.--Development of the parcels authorized to
be leased in this section shall be for utility scale systems to
convert wind energy to electricity, including electrical
collection and transmission facilities and other related
structures. No construction, installation or operation of wind
energy conversion facilities or other related structures on the
lands subject to lease shall commence without adherence to
Federal and State laws and prior receipt of all applicable
Federal and State permits.
(e) Covenants.--These conditions shall be covenants that run
with the land and shall be binding upon the lessee, any
sublessee and their respective successors and assigns. Should
the lessee, any sublessee or any of their respective successors
or assigns permit the parcels authorized to be leased under this
section, or any portion thereof, to be used in a manner
inconsistent with the conditions contained in this subsection,
all rights and interests in the lease authorized by this act
shall terminate immediately.
(f) Lease agreement.--Any such lease and any other documents
hereby contemplated shall be approved as to form and legality by
the Attorney General and the Office of General Counsel and shall
be executed by the Department of General Services, with the
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concurrence of the Department of Environmental Protection, which
approvals shall not be unreasonably withheld, in the name of the
Commonwealth. The lease shall grant the lessee, and all
successors, assigns and sublessees, the right to use the above-
described premises, or to assign the lease or sublease or permit
the sublease of the above-described premises for the purposes of
development of utility scale systems to convert wind energy to
electricity. The lease shall also grant the lessee, and all
successors, assigns and sublessees, the right to develop,
construct and operate one or more submarine electrical
transmission cables from the above-described premises to the
shoreline in Erie County.
(g) Sublease.--The Department of General Services, with the
concurrence of the Department of Environmental Protection,
acting on behalf of the Commonwealth, is also specifically
authorized to enter into one or more nondisturbance agreements
with any sublessee of the premises described in this section
pursuant to which the Commonwealth will agree that, if the
Commonwealth succeeds to the interest of the sublessor under a
sublease, it will not terminate the sublease unless the
sublessee is in default.
(h) Consideration.--The Department of General Services shall
lease the land within the bed of Lake Erie as described in
subsection (b) upon such terms and conditions and for such
consideration as it shall, with the concurrence of the
Department of Environmental Protection, establish through the
lease agreements.
(i) Costs and fees.--Costs and fees incidental to the lease
authorized by this section shall be borne by the lessee,
including the costs incurred by the Department of General
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Services and the Department of Environmental Protection, in the
preparation, execution and review of the lease, nondisturbance
agreements and related documents.
Section 3. Other applicable legislation.
Nothing herein shall affect or otherwise limit the
requirements of the provisions of the act of November 26, 1978
(P.L.1375, No.325), known as the Dam Safety and Encroachments
Act, which may require further measures to provide for public
access and use of the land and adjacent water.
Section 4. Sunset provision.
In the event that a lease authorized by this act does not
occur within 24 months following the effective date of this act,
the authority contained in this act shall be void.
Section 5. Effective date.
This act shall take effect immediately.
Section 1. Lands within the Lake Erie Basin. <--
(a) Background.--The Commonwealth owns lands within the bed
of Lake Erie, all of which lands are located in Erie County.
(b) Authorization.--The Department of General Services, with
the concurrence of the Department of Environmental Protection,
acting on behalf of the Commonwealth, is hereby authorized to
grant exclusive options to lease and to lease submerged lands in
excess of 25 acres within the bed of Lake Erie in Erie County
through a competitive process to be established and administered
by the Department of Environmental Protection for the assessment
and development of utility scale systems to convert wind, solar
or kinetic energy to electricity. The competitive process shall
include, at a minimum, a demonstration by the bidders of their
expertise, experience and financial capacity. This development
may include electrical collection and transmission facilities,
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submarine electrical transmission cables and other related
structures.
Section 2. Exclusive option to lease and lease conditions.
(a) Qualifications of lessees.--An exclusive option to lease
and subsequent long-term lease approved under section 1 shall be
restricted to lessees who can demonstrate the expertise and
capability to develop wind, solar or kinetic energy generation
systems in a marine environment and who have a high likelihood
of community and public acceptance in Erie County. The lease
approved under section 1 shall also include the requirement to
file with the Department of Environmental Protection a bond
payable to the Commonwealth for removal of facilities developed
pursuant to this act and located in submerged lands of Lake
Erie.
(b) Waters of the Commonwealth.--An exclusive option to
lease and subsequent long-term lease approved under section 1
shall ensure reasonable accommodation for fishing, maritime
commerce, energy transmission rights-of-way and other current
and future commercial and recreational uses of the waters of the
Commonwealth held in the public trust.
(c) Term of exclusive option to lease.--An exclusive option
to lease a parcel or contiguous parcels of submerged lands of
this Commonwealth not to exceed 10,000 contiguous acres per
parcel, through a competitive process under section 1 for
purposes of assessment, shall be for a term of up to five years
for reasonable consideration, which option may be renewed or
transferred to a person meeting the qualifying criteria
established under section 1, with the approval of the Department
of Environmental Protection, for additional five-year terms.
(d) Term of long-term lease.--A person awarded an exclusive
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option to lease under subsection (c) shall be eligible to enter
into a long-term lease approved under section 1 for the areal
extent of the facilities to be constructed for an initial term
of up to 35 years for construction, operation, maintenance and
removal of wind, solar or kinetic energy generation systems and
transmission facilities in Lake Erie and which may be extended
for all or any portion of the leased premises for additional
terms of up to 35 years. Any such lease shall contain a
provision for termination if the lessee has not initiated
construction of wind, solar or kinetic energy generation systems
within a reasonable period of time to be established in the
terms of the lease.
(e) Improvements.--Development of the parcels authorized to
be optioned or leased in this section shall be for utility scale
systems to convert wind, solar or kinetic energy to electricity,
including electrical collection and transmission facilities,
submarine electrical transmission cables and other related
structures. No assessment, construction, installation or
operation of wind, solar or kinetic energy conversion facilities
or other related structures on the lands subject to lease shall
commence without adherence to Federal and State laws and prior
receipt of all applicable Federal and State permits.
(f) Covenants.--These conditions shall be covenants that run
with the land and shall be binding upon the lessee, any
sublessee and their respective successors and assigns. Should
the lessee, any sublessee or any of their respective successors
or assigns permit the parcels authorized to be optioned or
leased under this section, or any portion thereof, to be used in
a manner inconsistent with the conditions contained in this
subsection, all rights and interests in the option or lease
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authorized by this act shall terminate immediately.
(g) Option and lease agreements.--Any such option, lease and
any other documents hereby contemplated shall be approved as to
form and legality by the Attorney General and the Office of
General Counsel and shall be executed by the Department of
General Services, with the concurrence of the Department of
Environmental Protection, which approvals shall not be
unreasonably withheld, in the name of the Commonwealth. The
option and lease shall grant the lessee, and all successors,
assigns and sublessees, the right to use the above-described
premises, or to assign the lease or sublease or permit the
sublease of the submerged lands of the Commonwealth in
accordance with this act for the purposes of assessment and
development of utility scale systems to convert wind, solar or
kinetic energy to electricity. The lease shall also grant the
lessee, and all successors, assigns and sublessees, the lease or
sublease or permit the sublease of the submerged lands of the
Commonwealth in accordance with this act for the purpose of
assessment, development, construction and operation of one or
more collection facilities and associated submarine electrical
transmission cables.
(h) Sublease.--The Department of General Services, with the
concurrence of the Department of Environmental Protection,
acting on behalf of the Commonwealth, is also specifically
authorized to enter into one or more nondisturbance agreements
with any sublessee of the submerged lands of the Commonwealth in
accordance with this act pursuant to which the Commonwealth will
agree that, if the Commonwealth succeeds to the interest of the
sublessor under a sublease, it will not terminate the sublease
unless the sublessee is in default.
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(i) Consideration.--The Department of General Services shall
grant exclusive options to lease and lease the land within the
bed of Lake Erie as described in subsection (b) upon such terms
and conditions and for such consideration as it shall, with the
concurrence of the Department of Environmental Protection,
establish.
(j) Costs and fees.--Costs and fees incidental to the lease
authorized by this section shall be borne by the lessee,
including the costs incurred by the Department of General
Services and the Department of Environmental Protection, in the
preparation, execution and review of the lease, nondisturbance
agreements and related documents.
(k) Transfer of interest prohibited.--Except as provided in
section 1, this act does not authorize or otherwise allow for or
include any transfer of any mineral or other surface or
subsurface interest associated with Lake Erie submerged lands of
the Commonwealth.
Section 3. Other applicable legislation.
Except as provided in section 1, nothing herein shall affect
or otherwise limit the requirements of the provisions of the act
of November 26, 1978 (P.L.1375, No.325), known as the Dam Safety
and Encroachments Act, which may require further measures to
provide for public access and use of the land and adjacent
water.
Section 4. Expiration.
In the event that either an exclusive option to lease or a
long-term lease authorized by this act does not occur within 60
months following the effective date of this act, the authority
contained in this act shall be void.
Section 5. Effective date.
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This act shall take effect immediately.
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