Bill Text: PA SB1350 | 2011-2012 | Regular Session | Introduced

---

Bill Title: Further providing for definitions and for alternative energy portfolio standards; and providing for sale and installation of customer-generator alternative energy systems.

Spectrum: Slight Partisan Bill (Democrat 12-7)

Status: (Introduced - Dead) 2012-08-14 - Referred to CONSUMER PROTECTION AND PROFESSIONAL LICENSURE [SB1350 Detail]

Download: Pennsylvania-2011-SB1350-Introduced.html

---

PRINTER'S NO. 2358
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1350 Session of2012
INTRODUCED BY ARGALL, ERICKSON, BLAKE, RAFFERTY, FONTANA, SCHWANK, LEACH, ALLOWAY, GREENLEAF, BREWSTER, DINNIMAN, FERLO, COSTA, TARTAGLIONE, STACK, FARNESE, McILHINNEY, HUGHES AND BROWNE, AUGUST 14, 2012
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE, AUGUST 14, 2012
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; and providing for sale and installation
of customer-generator alternative energy systems.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "alternative energy credit,"
"alternative energy sources," "alternative energy system,"
"force majeure" and "Tier 1 alternative energy source" in
section 2 of the act of November 30, 2004 (P.L.1672, No.213),
known as the Alternative Energy Portfolio Standards Act, amended
July 17, 2007 (P.L.114, No.35), are amended and the section is
amended by adding a definition 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
context clearly indicates otherwise:
"Alternative energy credit." A tradable instrument that is
used to establish, verify and monitor compliance with this act.
A unit of credit shall equal one megawatt hour of electricity or
3,413,000 British thermal units (3,413 MMBtu) of solar thermal
energy from an alternative energy source. The alternative energy
credit shall remain the property of the alternative energy
system until the alternative energy credit is voluntarily
transferred by the alternative energy system.
* * *
"Alternative energy sources." The term shall include the
following existing and new sources for the production of
electricity:
(1) Solar photovoltaic or other solar electric energy.
(2) Solar thermal energy[.] which shall mean solar
equipment that generates energy that is equivalent to the
generation of electricity and is eligible for solar renewable
energy credits by using solar radiation for the purpose of
heating, and shall exclude systems used for a hot tub or
swimming pool.
(3) Wind power.
(4) Large-scale hydropower, which shall mean the
production of electric power by harnessing the hydroelectric
potential of moving water impoundments, including pumped
storage that does not meet the requirements of low-impact
hydropower under paragraph (5).
(5) Low-impact hydropower consisting of any technology
that produces electric power and that harnesses the
20120SB1350PN2358 - 2 -
hydroelectric potential of moving water impoundments,
provided such incremental hydroelectric development:
(i) does not adversely change existing impacts to
aquatic systems;
(ii) meets the certification standards established
by the Low Impact Hydropower Institute and American
Rivers, Inc., or their successors;
(iii) provides an adequate water flow for protection
of aquatic life and for safe and effective fish passage;
(iv) protects against erosion; and
(v) protects cultural and historic resources.
(6) Geothermal energy, which shall mean electricity
produced by extracting hot water or steam from geothermal
reserves in the earth's crust and supplied to steam turbines
that drive generators to produce electricity.
(7) Biomass energy, which shall mean the generation of
electricity utilizing the following:
(i) organic material from a plant that is grown for
the purpose of being used to produce electricity or is
protected by the Federal Conservation Reserve Program
(CRP) and provided further that crop production on CRP
lands does not prevent achievement of the water quality
protection, soil erosion prevention or wildlife
enhancement purposes for which the land was primarily set
aside; or
(ii) any solid nonhazardous, cellulosic waste
material that is segregated from other waste materials,
such as waste pallets, crates and landscape or right-of-
way tree trimmings or agricultural sources, including
orchard tree crops, vineyards, grain, legumes, sugar and
20120SB1350PN2358 - 3 -
other crop by-products or residues.
(8) Biologically derived methane gas, which shall
include methane from the anaerobic digestion of organic
materials from yard waste, such as grass clippings and
leaves, food waste, animal waste and sewage sludge. The term
also includes landfill methane gas.
(9) Fuel cells, which shall mean any electrochemical
device that converts chemical energy in a hydrogen-rich fuel
directly into electricity, heat and water without combustion.
(10) Waste coal, which shall include the combustion of
waste coal in facilities in which the waste coal was disposed
or abandoned prior to July 31, 1982, or disposed of
thereafter in a permitted coal refuse disposal site
regardless of when disposed of, and used to generate
electricity, or such other waste coal combustion meeting
alternate eligibility requirements established by regulation.
Facilities combusting waste coal shall use at a minimum a
combined fluidized bed boiler and be outfitted with a
limestone injection system and a fabric filter particulate
removal system. Alternative energy credits shall be
calculated based upon the proportion of waste coal utilized
to produce electricity at the facility.
(11) Coal mine methane, which shall mean methane gas
emitting from abandoned or working coal mines.
(12) Demand-side management consisting of the management
of customer consumption of electricity or the demand for
electricity through the implementation of:
(i) energy efficiency technologies, management
practices or other strategies in residential, commercial,
institutional or government customers that reduce
20120SB1350PN2358 - 4 -
electricity consumption by those customers;
(ii) load management or demand response
technologies, management practices or other strategies in
residential, commercial, industrial, institutional and
government customers that shift electric load from
periods of higher demand to periods of lower demand; or
(iii) industrial by-product technologies consisting
of the use of a by-product from an industrial process,
including the reuse of energy from exhaust gases or other
manufacturing by-products that are used in the direct
production of electricity at the facility of a customer.
(13) Distributed generation system, which shall mean the
small-scale power generation of electricity and useful
thermal energy.
"Alternative energy system." A facility or energy system
that:
(1) uses a form of alternative energy source to generate
electricity and delivers the electricity it generates to the
distribution system of an electric distribution company or to
the transmission system operated by a regional transmission
organization[.]; or
(2) qualifies as a solar thermal energy system.
* * *
"Force majeure." Upon its own initiative or upon a request
of an electric distribution company or an electric generator
supplier, the Pennsylvania Public Utility Commission, within 60
days, shall determine if alternative energy resources are
reasonably available in the marketplace in sufficient quantities
for the electric distribution companies and electric generation
suppliers to meet their obligations for that reporting period
20120SB1350PN2358 - 5 -
under this act. The commission shall declare a force majeure for
any reporting period if the commission determines that the price
of available alternative energy credits exceeds the cost of the
alternative energy compliance payments established under this
act. In making this determination, the commission shall consider
whether electric distribution companies or electric generation
suppliers have made a good faith effort to acquire sufficient
alternative energy to comply with their obligations. Such good
faith efforts shall include, but are not limited to, banking
alternative energy credits during their transition periods,
seeking alternative energy credits through competitive
solicitations and seeking to procure alternative energy credits
or alternative energy through long-term contracts. In further
making its determination, the commission shall assess the
availability of alternative energy credits in the Generation
Attributes Tracking System (GATS) or its successor and the
availability of alternative energy credits generally in
Pennsylvania and other jurisdictions in the PJM Interconnection,
L.L.C. regional transmission organization (PJM) or its
successor. The commission may also require solicitations for
alternative energy credits as part of default service before
requests of force majeure can be made. If the commission further
determines that alternative energy resources are not reasonably
available in sufficient quantities in the marketplace for the
electric distribution companies and electric generation
suppliers to meet their obligations under this act, then the
commission shall modify the underlying obligation of the
electric distribution company or electric generation supplier or
recommend to the General Assembly that the underlying obligation
be eliminated. Commission modification of the electric
20120SB1350PN2358 - 6 -
distribution company or electric generation supplier obligations
under this act shall be for that compliance period only.
Commission modification shall not automatically reduce the
obligation for subsequent compliance years. If the commission
modifies the electric distribution company or electric
generation supplier obligations under this act, the commission
may require the electric distribution company or electric
generation supplier to acquire additional alternative energy
credits in subsequent years equivalent to the obligation reduced
due to a force majeure declaration if the commission determines
that sufficient alternative energy credits exist in the
marketplace.
* * *
"Solar technology." The term includes solar photovoltaic and
solar thermal energy technology.
"Tier I alternative energy source." 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.
(9) Solar thermal energy.
* * *
Section 2. Section 3(b)(2), (e)(3), (4), (7) and (12), (f)
(4) and (g)(2) of the act, amended or added July 17, 2007
(P.L.114, No.35), are amended and subsection (f) is amended by
adding a paragraph to read:
20120SB1350PN2358 - 7 -
Section 3. Alternative energy portfolio standards.
* * *
(b) Tier I and solar photovoltaic solar technology shares.--
* * *
(2) 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%] 0.1500% for June 1, 2012, through
May 31, 2013.
(viii) [0.0840%] 0.1700% for June 1, 2013, through
May 31, 2014.
(ix) [0.1440%] 0.2041% 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%] 0.4200% for June 1, 2019, through
May 31, 2020.
[(xv) 0.5000% for June 1, 2020, and thereafter.]
20120SB1350PN2358 - 8 -
(xv) 0.4323% for June 1, 2020, through May 31, 2021.
(xvi) 0.4458% for June 1, 2021, through May 31,
2022.
(xvii) 0.4594% for June 1, 2022, through May 31,
2023.
(xviii) 0.4729% for June 1, 2023, through May 31,
2024.
(xix) 0.4865% for June 1, 2024, through May 31,
2025.
(xx) 0.5000% for June 1, 2025, and thereafter.
* * *
(e) Alternative energy credits.--
* * *
(3) All qualifying alternative energy systems must
include a qualifying meter to record the cumulative electric
or solar thermal energy production to verify the advanced
energy credit value. Qualifying meters will be approved by
the commission as defined in paragraph (4).
(4) (i) An electric distribution company or electric
generation supplier shall comply with the applicable
requirements of this section by purchasing sufficient
alternative energy credits and submitting documentation of
compliance to the program administrator.
(ii) For purposes of this subsection, one
alternative energy credit shall represent one megawatt
hour of qualified alternative electric or 3,413,000
British thermal units (3,413 MMBtu) of solar thermal
energy generation, whether self-generated, purchased
along with the electric commodity or separately through a
tradable instrument and otherwise meeting the
20120SB1350PN2358 - 9 -
requirements of commission regulations and the program
administrator.
* * *
(7) An electric distribution company or an electric
generation supplier with sales that are exempted under
subsection (d) may bank credits for retail sales of
electricity generated from Tier I and Tier II sources made
prior to the end of the cost-recovery period and after the
effective date of this act. Bankable credits shall be limited
to credits associated with electricity or solar thermal
energy sold from Tier I and Tier II sources during a
reporting year which exceeds the volume of sales from such
sources by an electric distribution company or electric
generation supplier during the 12-month period immediately
preceding the effective date of this act. All credits banked
under this subsection shall be available for compliance with
subsections (b) and (c) for no more than two reporting years
following the conclusion of the cost-recovery period.
* * *
(12) Unless a contractual provision explicitly assigns
alternative energy credits in a different manner, the owner
of the alternative energy system or a customer-generator owns
any and all alternative energy credits associated with or
created by the production of electric or solar thermal energy
by such facility or customer, and the owner or customer shall
be entitled to sell, transfer or take any other action to
which a legal owner of property is entitled to take with
respect to the credits.
(f) Alternative compliance payment.--
* * *
20120SB1350PN2358 - 10 -
(4) [The] Except as otherwise provided in paragraph
(4.1), the alternative compliance payment for the solar
photovoltaic share 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 energy
credits in other jurisdictions in the PJM Interconnection,
L.L.C. transmission organization (PJM) or its successor.
(4.1) (i) The alternative compliance payment for the
solar technology share for the 2012-2013 through 2018-2019
reporting periods shall be $285. Thereafter, the amount of
the alternative compliance payment for the solar technology
share shall be reduced by two percent during each subsequent
reporting period and the commission shall publish the reduced
amount as a notice in the Pennsylvania Bulletin.
(ii) The alternative compliance payment under
subparagraph (i) shall not apply in any reporting period
that the commission declares a force majeure.
* * *
(g) Transfer to sustainable development funds.--
* * *
(2) The alternative compliance payments shall be
utilized solely for projects that will increase the amount of
electric energy or solar thermal energy generated from
alternative energy resources for purposes of compliance with
subsections (b) and (c).
* * *
Section 3. The act is amended by adding a section to read:
Section 5.1. Sale and installation of customer-generator
20120SB1350PN2358 - 11 -
alternative energy systems.
(a) Prohibited conduct.--A person may not:
(1) engage in unfair or deceptive acts, practices or
advertising in connection with the sale or installation of a
customer-generator alternative energy system; or
(2) engage in any conduct in connection with the sale or
installation of a customer-generator alternative energy
system which creates the likelihood of confusion or
misunderstanding by the purchaser of the financial risks or
benefits associated with alternative energy systems,
including the creation, price or sale of alternative energy
credits.
(b) Penalty.--A violation of this section shall be deemed a
violation of act of December 17, 1968 (P.L.1224, No.387), known
as the Unfair Trade Practices and Consumer Protection Law.
Section 4. This act shall apply only prospectively and may
not be applied or interpreted to have any effect on, or
application to, any contract or registration of solar technology
existing before the effective date of this section.
Section 5. This act shall take effect in 60 days.
20120SB1350PN2358 - 12 -