2019D04315 04315PWK:EJH 04/0249 #66 AN ACT I 2 3 4 5 6 7 B 9 10 n 12 13 14 15 16 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, for alternative energy portfolio standards, for portfolio requirements in other states, for health and safety standards and for interagency responsibilities; and providing for Tier III alternative energy sources credit program and for capacity payments to alternative energy sources. The General Assembly of the Commonwealth of Pennsylvania. hereby enacts as follows: Section 1. The definitions of “alternative energy credit,” 17 “alternative energy sources” and “reporting period” in section 2 18 of the act of November 30, 19 Alternative Energy Portfolio Standards Act, 20 section is amended by adding definitions to read: 21 Section 2. 22 23 2004 (P.L.1672, No.213), known as the are amended and the Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the 2019D04315 — 1 — 1 2 context clearly indicates otherwise: “Alternative energy credit.” 3 4 (1) As follows: A tradable instrument that is used to establish, verify and monitor compliance with this act. 5 ±21. A unit of credit shall equal one megawatt hour of 6 electricity from an alternative energy source[.] 7 only be used to satisfy the requirement to purchase one of S the following: 9 Ci) 10 (ii) 11 (iii) 12 ±2J and shall Tier I; Tier II; or Tier III alternative energy credits. The alternative energy credit shall remain the 13 property of the alternative energy system until the 14 alternative energy credit is voluntarily transferred by the 15 alternative energy system. 16 17 * * * “Alternative energy sources.” The term shall include the 18 following existing and new sources for the production of 19 electricity: 20 (1) Solar photovoltaic or other solar electric energy. 21 (2) Solar thermal energy. 22 (3) Wind power. 23 (4) Large—scale hydropower, which shall mean the 24 production of electric power by harnessing the hydroelectric 25 potential of moving water impoundments, including pumped 26 storage that does not meet the requirements of low—impact 27 hydropower under paragraph 28 (5) (5) Low-impact hydropower consisting of any technology 29 that produces electric power and that harnesses the 30 hydroelectric potential of moving water impoundments, 2019D04315 — 2 — 1 provided such incremental hydroelectric development: 2 3 does not adversely change existing impacts to (i) aquatic systems; 4 (ii) meets the certification standards established S by the Low Impact Hydropower Institute and American 6 Rivers, 7 8 (iii) or their successors; provides an adequate water flow for protection of aquatic life and for safe and effective fish passage; 9 (iv) 10 11 Inc., (v) (6) protects against erosion; and protects cultural and historic resources. Geothermal energy, which shall mean electricity 12 produced by extracting hot water or steam from geothermal 13 reserves in the earth’s crust and supplied to steam turbines 14 that drive generators to produce electricity. 15 16 (7) Biomass energy, which shall mean the generation of electricity utilizing the following: 17 (i) organic material from a plant that is grown for 18 the purpose of being used to produce electricity or is 19 protected by the Federal Conservation Reserve Program 20 (CRP) 21 lands does not prevent achievement of the water quality 22 protection, 23 enhancement purpcses for which the land was primarily set 24 aside; or 25 and provided further that crop production on CRP (ii) soil erosion prevention or wildlife any solid nonhazardous, cellulosic waste 26 material that is segregated from other waste materials, 27 such as waste pallets, 28 way tree trirmnings or agricultural sources, 29 orchard tree crops, vineyards, 30 other crop by-products or residues. 2019004315 crates and landscape or right—of— — 3 — grain, including legumes, sugar and 1 (8) Biologically derived methane gas, which shall 2 include methane from the anaerobic digestion of organic 3 materials from yard waste, 4 leaves, S also includes landfill methane gas. 6 (9) food waste, such as grass clippings and animal waste and sewage sludge. The term Fuel cells, which shall mean any electrochemical 7 device that converts chemical energy in a hydrogen—rich fuel 8 directly into electricity, 9 (10) heat and water without combustion. Waste coal, which shall include the combustion of 10 waste coal in facilities in which the waste coal was disposed 11 or abandoned prior to July 31, 12 thereafter in a permitted coal refuse disposal site 13 regardless of when disposed of, 14 electricity, 15 alternate eligibility requirements established by regulation. 16 Facilities combusting waste coal shall use at a minimum a 17 combined fluidized bed boiler and be outfitted with a 18 limestone injection system and a fabric filter particulate 19 removal system. Alternative energy credits shall be 20 calculated based upon the proportion of waste coal utilized 21 to produce electricity at the facility. 22 23 24 (11) 1982, or disposed of and used to generate or such other waste coal combustion meeting Coal mine methane, which shall mean methane gas emitting from abandoned or working coal mines. (12) Demand—side management consisting of the management 25 of customer consumption of electricity or the demand for 26 electricity through the implementation of: 27 (U energy efficiency technologies, management 28 practices or other strategies in residential, 29 institutional or government customers that reduce 30 electricity consumption by those customers; 20l9D04315 — 4 — commercial, 1 (ii) load management or demand response 2 technologies, management practices or other strategies in 3 residential, 4 government customers that shift electric load from 5 periods of higher demand to periods of lower demand; or 6 (iii) commercial, industrial, institutional and industrial by—product technologies consisting 7 of the use of a by—product from an industrial process, 8 including the reuse of energy from exhaust gases or other 9 manufacturing by—products that are used in the direct 10 production of electricity at the facility of a customer. 11 (13) Distributed generation system, which shall mean the 12 small—scale power generation of electricity and useful 13 thermal energy. 14 (14) 15 electricity. 16 17 * Energy from nuclear fission used to generate * “Load serving entity.” An entity or the duly designated 18 agent of an entity, 19 marketer, 20 obligation pursuant to State or local law, 21 franchise to sell electric energy to end—users within the area 22 of the regional transmission organization and is currently 23 serving end-users within that area with electric energy. The 24 term shall include any end—use customer that aualifies under 25 State regulatory rules or a utility retail tariff to manage 26 directly its own supply of electric energy and use of 27 transmission and ancillary services. 28 29 30 * * including a load aggregator or power that has been granted the authority or has an regulation or * “Reporting period or reporting year.” The 12-month period from June 1 through May 31. A reporting year shall be numbered 2019D04315 — 5 — Fl H 1 Di it a- U) H 01 • 0 o N) Hi o 0 it CD a Di Fl a it Di U) o H H- o H it F-h o Z 0 F-h o H it o Cl Xi CD Z Z C Di H H Ui Di Z HZ 0. CD Fl Di CD Z 0 Fl it H Fl CD Z —J C H N) CD - HCD CD H0 CD it 0 5 S Hi 0 Fl (3 CD Z H HDi S it T CD H- ‘1) 0. 0 it CD CD Fl CD H- a F-h 0 it CD it HFl CD C 0 a Fl 0 CD it it 0 C Di H CD C Fl CD H- F-h CD Z S - Di n Fl H0 CD H H H CD H Fl CD Fl CD Di it it Hit CD a 0 Fl CD 0 F-h 0 CD H CD CD H Di ci Di a it CD H- CD E (3 0 F-h H C’] Z it a CD H CD H H- Z CD Fl CD Di S Di H- ON N) ‘—3 oW C CD ci H- Fl o o CD CD —J 0 C it ON F-h N) > H —J to F-1 o N) N) N) (3) N) U) 0 - U) H0 C I-h 0 Fl F-h HCo CD H0 Z 0 H CD Di Fl C Z tfl N) • CD Z CD Fl Di H 5 CD I-I tr 0 it CD Q Ui N) • CD Fl 0 Fl 0 a Z’ Di 0 it S 0 E i H- U) N) CD H E 0 a Z H- U) N) N) • CD Z CD H Di H 5 CD Fl Z’ it U) 0 H Di H N) H N) N) ci Di it S Fl 0 - Hi ci CD a CD Fl H- a CD H C’] - CD 0 C Fl 0 CD CD Z CD H CD Di H it CD Fl Z Di it H- H • 0 Di Fl H0 CD H H H Fl CD S H- it 5CD it 5 Di S H CD CD CD 0 it HCD E 5H0 5- CD H CD Di I-h it CD H it Fl CD Di a ON C a S Di 5 Fl Di Fl 0 H H H Fl CD it CD Di C 5 CD Fl it Z CD F-h 0 Fl CD Di Fl 0 Fl it H- Fl CD H- 0 H it HZ Fl CD CD Di 0 0 i-h CD it Di Fl it HDi H it HZ H- CD rt . F-1 S H- Fl H0 CD a - CD 0 it CD H 0 H ‘--3 HCD Fl it Z CD it 0 Fl H0 Fl fr-1 CM CT it Z CD it J Di Z Fl CD Di it CD Fl 0 H H 0 0 Fl CD 3 Hi it it 0 H Di C CD iON H Fl H0 CD F-I H F—I I—J H S HCD Fl iCO Fl F-h 0 H H 0 E H3 CD it F-h 0 0 Z CD it U) CD Di H H CD CD CD 5 CD H CD 0 it Fl H0 0 H Di Fl CD CD Fl 0 it 0 H 0 H it Di H(3 ci 3 0 it 0 U) 0 H Di H H 0 0 Hi CD it Di Fl it it 3 CD it CD Fl F-h Di W Di a C ON HU) Di H0 Z 5 S 0 0 it 3. CD CT a HZ CD S CD it CD H a C Fl CD H- H U) F-1 CD 5 - Fl H0 CD 0 Fl it HZ Fl CD it H- a 0 Fl CD CD H CD Di it Hci CD Di H it CD Fl H H H Fl S HCD N) F-1 * * * I-’ I-’ • CD Di H it Z 0 S 5 C) 0 CD H- it HZ it CD S C HFl CD Fl CD CD Fl CD CD 5 S HCD Fl it S. CD CD CD it 5 it 0 H CD CT H- H- H CD Di H CD it 3 Di it CD Hit a 0 Fl CD CD Z CD Fl <1 CD H- ci it H- Di Fl CD Di H it CD it Di Fl CD it H Di C F-1 0 H F-h CD Di Fl 0 Fl it HS Fl CD 0 C Fl Fl CD Z it CD it 0 F-h 0 H 0 Di H5 it 5CD 0 Hi CD CD Fl Di ci Di it Z CD Di Di CD Di H CD it a a- it Di CT H HCD 3 CD CD CD CD Di Fl CD a Di S CD Di H 0 Fl it H- H CD it 0 C Fl Fl CD CD it ci CD CD Fl Di Di CD it it 0 C Di H CD C Fl CD F-h H- ‘--3 T CD CD CD Z F-h 0 H CD 0 H- H- - CD 0 it CD 0. Fl 0 H S HCD Fl U) Fl H0 Hi C it C Fl CD U) H Fl CD 5 H- CD it I-h 0 . H Hit Di Fl it CD it Fl CD it E 0 CD Fl CD CD Di 0 F-h 0 Fl C CD Z it CD CD H- 0 CD C CT CD it (P HU) CD 5 5 (3 0 ON 0 Fl it —J 0 Fl - it: it 0 Fl H0 Fl H CD it Q HDi CD 5 5 H- cx, * * * N) a CD CD S a Di CT CD ‘0 HZ CD Hit H0 H- CD Di Fl Di Fl a 0 Di H CD CD it it 0 tO H- 0. Fl 0 (3 (3 Di I- 1 “Tier III price floor.” The figure, equal to the oroduct of 2 50% and the weighted average once of credits that were retired 3 for Tier I compliance for the reoorting year ending May 31, 4 2017, 5 Alternative Energy Portfolio Standards Act of 2004. 6 as reflected in the commission’s 2017 Annual Report of “Tier III program period.” The period commencing at the 7 beginning of the 14th reporting year of the alternative energy B credit prooram established under this act or June 1, 9 whichever is sooner, and each year thereafter. 10 11 * * 2019, * Section 2. Section 3(a), (b) (3), (f), (g) and (h) of the act 12 are amended and the section is amended by adding a subsection to 13 read: 14 Section 3. 15 (a) 16 Mternative energy portfolio standards. General compliance and cost recovery.-— (1) From the effective date of this act through and 17 including the 15th year after enactment of this act and each 18 year thereafter, 19 distribution company or electric generation supplier to 20 retail electric customers in this Commonwealth shall be 21 comprised of electricity generated from alternative energy 22 sources and in the percentage amounts as described under 23 subsections 24 (2) (b) the electric energy sold by an electric and (c) Electric distribution companies and electric 25 generation suppliers shall satisfy both requirements set 26 forth in subsections 27 electric distribution company or an electric generation 28 supplier shall be excused from its obligations under this 29 section to the extent that the commission determines that 30 force majeure exists. 2019D04315 (b) and (c), provided, however, — 7 — that an 1 (2.1) Beainning June 1, 2019, and each year thereafter, 2 Tier III alternative eneroy credits shall be purchased by 3 electric distribution companies under subsection 4 except that an electric distribution company or an electric 5 generation supplier shall be excused from its obliqation 6 under this section to the extent that the commission 7 determines that force ma-eure exists. 8 (3) 9 (c.1), All costs for: (i) the purchase of electricity generated from Tier 10 I and Tier II alternative energy sources, 11 costs of the regional transmission organization, 12 excess of the regional transmission organization real— 13 time locational marginal pricing, 14 the delivery point of the alternative energy source for 15 the electrical production of the alternative energy 16 sources; 17 (ii) including the in or its successor, at [and] payments for Tier I and Tier II alternative 18 energy credits[, 19 acquired by an electric distribution company during the 20 cost recovery period on behalf of its customers shall be 21 deferred as a regulatory asset by the electric 22 distribution company and fully recovered, with a return 23 on the unamortized balance, 24 energy adjustment clause under 66 Pa.C.S. § 1307 25 (relating to sliding scale of rates; adjustments) 26 cost of generation supply under 66 Pa.C.S. § 2807 27 (relating to duties of electric distribution companies) 28 in the first year after the expiration of its cost— 29 recovery period. After the cost—recovery period, 30 direct or indirect costs for the purchase by electric 2019D04315 in both cases] — 8 that are voluntarily pursuant to an automatic — as a any 1 distribution companies of resources to conoly with this 2 section, 3 electricity generated from Tier I and Tier II alternative 4 energy sources, payments for alternative energy credits, 5 cost of credits banked, payments to any third party 6 administrators for performance under this act and costs 7 levied by a regional transmission organization to ensure S that Tier I and Tier II alternative energy sources are 9 reliable, including, but not limited to, the purchase of shall be recovered on a full and current basis 10 pursuant to an automatic energy adjustment clause under 11 66 Pa.C.S. § 1307 as a cost of generation supply under 66 12 Pa.C.S. § 2807[.]; and 13 (iii) any direct and indirect costs incurred by 14 electric distribution companies to comply with subsection 15 (c.l) 16 limited to, 17 credits shall be recovered on a full and current basis 18 pursuant to an automatic energy adjustment clause under 19 66 Pa.C.S. § 1307. 20 21 22 and sections 8.1 and 8.2, including. but not the ourchase of Tier III alternative energy Tier I and solar photovoltaic shares.—— (b) * * (3) * Upon commencement of the beginning of the 6th 23 reporting year, 24 the compliance by electric distribution companies and 25 electric generation suppliers with the requirements of this 26 act. The review shall also include the status of alternative 27 energy technologies within this Commonwealth and the capacity 28 to add additional alternative energy resources. 29 commission shall use the results of this review to recommend 30 to the General Assembly additional compliance goals beyond 2019004315 the commission shall undertake a review of — 9 — The 1 year 15 for Tier I and Tier IT shares. The commission shall 2 work with the department in evaluating the future alternative 3 energy resource potential. 4 5 * * * Tier III share.——Subect to section 8.1(g) (2), during (c.1) 6 the Tier III program period, each electric distribution company 7 shall purchase Tier III alternative energy credits egual to the 8 amount of credits available as determined by the commission 9 under section 8.1(d) (1). The obligations of an electric 10 distribution company under this subsection shall not be subiect 11 to the provisions of 66 Pa.C.S. § 2807(e) (3.5) 12 13 * * or (3.7). * Alternative compliance payment.—— (f) 14 (1) At the end of each program renortino year, the 15 program administrator shall provide a report to the 16 commission and to each covered electric distribution company 17 showing their status level of alternative energy acquisition. 18 (2) The commission shall conduct a review of each 19 determination made under subsections 20 (c.1) 21 determines that an electric distribution company or electric 22 generation supplier has failed to comply with subsections 23 [and 24 8.1(g) (2), the commission shall impose an alternative 25 compliance payment on that electric distribution 26 electric generation supplier. 27 . If, (c)j, (3) after notice and hearing, (c) and (c.1), (b) [and (c)], and the commission (b) exceot as set forth in section company or The alternative compliance payment, with the 28 exception of the solar photovoltaic share compliance 29 requirement set forth in subsection 30 share reguirement set forth in subsection (c.1), 2019D04315 (c) — 10 — (b) (2) and the Tier III shall be $45 1 times the number of additional alternative energy credits 2 needed in order to comply with subsection (4) -I (b) or Cc) The alternative compliance payment for the solar 4 photovoltaic share shall be 200% of the average market value 5 of solar renewable energy credits sold during the reporting 6 period within the service region of the regional transmission 7 organization, 8 front rebates received by sellers of solar renewable energy 9 credits in other jurisdictions in the PJM Interconnection, 10 L.L.C. 11 including, where applicable, the levelized up— transmission organization (4.1) (PJM) or its successor. The alternative compliance payment for the Tier 12 III share shall be equal to twice the Tier III alternative 13 energy credit reporting period price for the applicable reportino period times the number of additional alternative 15 energy credits needed to comply with subsection 16 (5) (c.1) The commission shall establish a process to provide 17 for, 18 market within this Commonwealth and the service territories 19 of the regional transmission organizations that manage the 20 transmission system in any part of this Commonwealth. The 21 commission will use the results of this study to identify any 22 needed changes to the cost associated with the alternative 23 compliance payment program. 24 costs associated with the alternative compliance payment 25 program must be changed, 26 findings to the Genera! Assembly for legislative enactment. 27 (g) 28 at least annually, a review of the alternative energy If the commission finds chat the the commission shall present these Transfer to sustainable development funds.—— (1) Notwithstanding the provisions of 66 Pa.C.S. § 511 29 (relating to disposition, 30 assessments and fees) 2019D04315 appropriation and disbursement of and 3315 — 11 (relating to disposition of — 1 fines and penalties) 2 pursuant to this act for failure to comoly with subsections 3 (b) 4 Energy Funds created under the commission’s restructuring 5 orders under 66 Pa.C.S. Ch. 28 6 electric utility industry) 7 shall be paid into a special fund of the Pennsylvania B Sustainable Energy Board, 9 Docket M—00031715, and made available to the Regional and (c) , alternative compliance payments imposed shall be paid into Pennsylvania’s Sustainable . (relating to restructuring of Alternative compliance payments established by the commission under 10 sustainable Energy Funds under procedures and guidelines 11 approved by the Pennsylvania Energy Board. 12 (2) The alternative compliance payments for failure to 13 comply with subsections 14 for projects that will increase the amount of electric energy 15 generated from alternative energy resources for purposes of 16 compliance with subsections 17 (3) (b) and (c) and (b) shall be utilized solely (c) Alternative compliance payments imposed under this 18 act for failure to comply with subsection 19 as follows: 20 (i) 21 (2); and 22 (ii) (c.1) shall be paid fifty percent consistent with paragraphs (1) and fifty percent to the commission to distribute 23 to Tier III alternative energy sources that qualify as a 24 Tier III alternative energy source under section 8.1 for 25 Tier III alternative energy credits that were otherwise 26 not purchased due to the failure to comply with 27 subsection (c.1) 29 pronortional amount of credits that were not purchased 29 durina that reporting year. 30 (h) in an amount egual to each source’s Nonseverability.—-The provisions of subsection 20l9D04315 — 12 — [(a)] jj 1 (1) 2 any provision of subsection 3 (ii) 4 shall be void. 5 6 7 , (2) (3) (i) , and (ii) are held invalid, Section 3. Section 4. are declared to be nonseverable. [(a) is] (a) (1) , (2) , (3) (i) If and the remaining provisions of this act Sections 4 and 6 of the act are amended to read: Portfolio requirements in other states. If an electric distribution [supplier] 8 generation 9 other state and is subject to [renewable] [company] company or electric supplier provider sells electricity in any alternative energy 10 portfolio requirements in that state, 11 requirement and shall indicate how it satisfied those 12 [renewable] 13 prevent double—counting, the electric distribution [supplier] 14 company or electric generation 15 satisfy Pennsylvania’s alternative energy portfolio requirements 16 using alternative energy used to satisfy another state’s 17 portfolio requirements or alternative energy credits already 18 purchased by individuals, businesses or government bodies that 19 do not have a compliance obligation under this act unless the 20 individual, 21 the electric distribution company or electric generation 22 supplier. 23 the geographical boundaries of this Commonwealth shall be 24 eligible to meet the compliance requirements under this act. 25 Energy derived from alternative energy sources located outside 26 the geographical boundaries of this Commonwealth but within the 27 service territory of a regional transmission organization that 28 manages the transmission system in any part of this Commonwealth 29 shall only be eligible to meet the compliance requirements of 30 electric distribution companies or electric generation suppliers 2019004315 they shall list any such alternative energy portfolio requirements. To [company] supølier shall not business or government body sells those credits to Energy derived from alternative energy sources inside — 13 — 1 located within the service territory of the same regional 2 transmission organization. 3 act, 4 Interconnection, S or its successor service territory shall be eligible to fulfill 6 compliance obligations of all Pennsylvania electric distribution 7 companies and electric generation suppliers. Energy derived from 8 alternative energy sources located outside the service territory 9 of a regional transmission organization that manages the For purposes of compliance with this alternative energy sources located in the PJM L.L.C. regional transmission organization (PJN) 10 transmission system in any part of this Coronwealth shall not 11 be eligible to meet the compliance requirements of this act. 12 Electric distribution companies and electric generation 13 suppliers shall document that this energy was not used to 14 satisfy another state’s 15 standards. 16 Section 6. 17 [renewable] alternative energy portfolio Health and safety standards. The department shall cooperate with the Department of Labor 18 and Industry as necessary in developing health and safety 19 standards, 20 from alternative energy sources. The department shall establish 21 appropriate and reasonable health and safety standards to ensure 22 uniform and proper compliance with this act by owners and 23 operators of facilities generating energy from alternative 24 energy sources as defined in this act. Alternative energy 25 sources fueled by nuclear fission shall continue to comply with 26 health and safety standards established by Federal regulatory 27 aaencies. 28 as needed, Section 4. Section 7 of the act is amended by adding a 29 subsection to read: 30 Section 7. 2019D04315 regarding facilities generating energy Interagency responsibilities. — 14 — Di B 0’ Di H 0. 01 C B CD 0. -- H H’ 0 H CD 0 Hi CD B o H H CD < CD H CD CD 0 Hi ft C CD H CD 0 C H 0 CD CD CD B CD H Di F-’ ft CD H B Di ft H<4 CD ft BCD Hi I—I NJ NJ 0 CD Di -- CD H <4 H0 CD CD HB CD B 0 0 ft 0 Hi Di HF-’ 0 H CD H Di ft H0 B 0 NJ 01 B CD HC H CD CD ft HB 0 H F-’ <4 Di B HDi CD ‘U CD B B 0 Hi Di CT HF-’ Hft ft BCD H- NJ ON CD )< H- Di CD CD CD 0’ CD 0 H 0 H Di HB ft Di HB B ft 0 F-’ < Di B HDi CD CD B B —i NJ CD B C B H Di C E Hft B- H o TI o B 0 0 o ft 0 H CD C B 0- o B 0 0 Di B H0 0 H < 0 F-’ Di ft HH CD NJ B ft H o o ft H0 o C 0 F-’ H H CD 0- CD CD H- CD ft Di ft CD 0 H CD 0. CD H Di H ‘ Di HH Di H o H o CD CD ft tO 0 Ui H o O NJ o F-1 tO NJ Ui • Di B HN Di ft H0 B 0 H NJ Ui H0 B CD CD H- B CD ft H Di B H0 B Di H H CD ft BCD E Hft BHB Bft Ca H H- CD 0 ft H0 B - HB Di 0 F’ft Di 0 NJ NJ [- BCD B- 1 Hft a HB ft CD H 0 C B B CD 0 ft CD ft BCD 0 Hi Di H H Hi CD Di ft H- CD I—’ CD CD 0 C H 0 CD CD CD B CD H Di H ft CD H B Di ft H<4 CD fr-I fr-I F-I H- -- HB F-’ 0 -3 HCD H ft F-’ Hi to 0 NJ 0 BDi F-’ 0 C H 0 CD CD CD B CD H Di H’ ft CD H B Di ft H<1 CD F-3 BCD F-’ NJ H CD Hft a 0 H CD fr-I fr-I HI 5 HCD H <4 HB H- H CD 0 CD 0 Hi CD 0 CD C H ft BCD Hi 0 H CT CD 0 ft H0 B CD C O CD 0) H C B Q. CD H CD 0 C H 0 CD CD B CD H Di H ft CD H B Di ft H<4 CD fr-I HI frI 5 HCD H Di CD Di C Di F-’ HF-b ft 0 CD H a 0 H —J H I I F—I B - CD C Di H HF-b HC) Di ft H0 B CD 0 C H 0 CD CD B CD H CD Di H’ ft CD H B Di ft H<4 f—I fr-I HI fr3 HCD H Di ON H - B Di H [C IH 0 [0 to H 0 H CD a Hft -- H CD Di a 0 C B CD H- CD ON ON C B a CD H CD H0 B CD CD 0 ft B 0 0 ft BCD ft 0 H- - CD C ft HF-’ Hft HCD H0 F-’ H Di B ft CD 0. Di C ft B0 H Hft Di B 0 F-’ C 0. CD CD H H CD tO HB a a Di CT < a CD a CD B B Di C CT ft 0 H CD F-’ Di ft HB - 0) - C) • ‘0 Di H NJ C C H 0 CD CD CD B CD H H- Di F-’ ft CD H B Di ft H<4 CD CD Di 0 ft S BCD • to CD CD fl ft H0 B W H F-I f--I H S HCD H H • CO ft H0 B CD CD b H ft C a ft H C CD CD 0 0 B CT CD F-’ F-’ BDi CD CD C ft H0 B CD C CT CD CD ft BH- HB Z 0 ft BHB H 0 • CD 0 ft H0 B CD C CT CD CD ft BH- 0 F-b 0Di ft CD CD F-b Hi CD 0 ft H<4 CD ft BCD ft 0 H H0 H 0 H 0. CD H tO 0 H C H Di ft H0 B H CD ft BCD Di ft CD 0 C F-’ H 0 H0 B CD CD H- B B 0 0 ft BCD B 0 ft 0 H BCD ft BCD H 0) Di 0 ft CD ft BH- CD B Hi 0 H 0 CD ft 0 H0 B CD CD H- B B 0 0 ft BCD CT Di ft CD 0. C F-’ B H 0 0 H 0. CD H 0 H —J C H Di ft H0 B H CD Di B 0 HB a CD H CD 0 H HHi B 0 0. Di B H0 B CD CD H- B B 0 0 .-3 BCD F—’ ON -- H Di BDi H H CD Hi 0 F-’ F-’ 0 E HB ft BCD Di B 0, CD H0 B CD HCD 0 C ft BCD E Hft B- Di 0 0 0 H 0. Di B 0 CD HB Di 0 ft CD CD CD H ft BH- 0 F-b CD H0 B CD H 0 < H- ft BCD . 0- 0 H Di B 0- CD C F-’ Di ft H0 B H CD 01 CD B Hi 0 H 0 CD H H BDi CD CD H0 B CD H- B 0 0 ft BCD Di 0 ft CD ft BH- C B 0CD H H Di B ft CD 0. F-’ CD CD H CD CD X Ui B CD CD H 0 Di B ft 0 Hft H0 B a a Di I I [-I B - CD H0 B CD H 0 <4 H- F-ti 0 CD B ft C’] B Hi 0 H fl CD a NJ * * * H 1 the carbon dioxide emissions would increase as (ii) 2 a result of electricity consumed in this Commonwealth; 3 and 4 (iii) the ability of Pennsylvania to maintain or 5 decrease existing levels of carbon monoxide, 6 ground—level ozone, particulate matter, nitrogen oxide or 7 sulfur dioxide is reduced. 8 (3) 9 source: 10 lead, On or after January 1, 2017, the alternative energy (i) regardless of the Tier III alternative energy 11 source’s location, did not receive tax exemptions, 12 deferrals, 13 deductions or reimbursements from any other state 14 calculated in whole or in part using a metric that 15 provides value for emissions not produced by the 16 alternative energy source; 17 (ii) exclusions, allowances, payments, credits, is not wholly owned by a municipal or 18 cooperative corporation or a group, association or 19 consortium of those corporations; and 20 (iii) did not at any point during the Tier III 21 program recover some or all of the capital or operating 22 costs of the resource through cost—based rates regulated 23 by a state. 24 (b) Qualification process.——The commission shall establish a 25 Tier III alternative energy source gualification process within 26 180 days of the effective date of this section. An alternative 27 energy source seeking to participate in the Tier III program 28 shall file written notice of at least all of the following: 29 30 (1) The source’s gualifications as a Tier III alternative energy source. 2019004315 — 16 — 15 ía 43 ía ‘H Z o ‘H ía o U) ía U 5-1 0 U) s-I ía C ía ía > -H C -H P ía -ii o s-i ía C 54 ía 15 ía ‘H ‘H ía ‘H 42 4-4 0 41 -H U ía ía U ía 42 ía ‘H ía 5 ía C $1 C U) -H 0 ía C -H 4-’ 4) -H 5 A) 3 U) U) -H U) 43 -H -H ‘H ía U) -H ía U s-i -- C -H 0 s-I ía ía ‘H U C 5 0 s-i 4-I 15 ía > -H 5-4 ía 15 U) ‘H U) F—I ‘H 0 43 ‘H ía ía ía 43 (N 15 ía C 43 A) -d 42 -H ‘H 15 ía -H U ía C 0 C ía U U) ía 43 C s-I 5 :5 0 ía t ía > -H 5-1 5-4 ía C -H s-I ía ía ía ‘H ‘H U) • ía -H C H 15 C ía s- s-I ía s-I ía I—I F-I F-I s-i H ía U ía C C 0 0 4-4 U) ía U U) -H ía 43 ía 5-I 43 15 0 -H ía 0 15 43 s-I 0 4-i ‘H ía 0 -d ía fl s-i C -H 43 ía s-i 0 •C ía s-I ‘H ‘H ía C U) -H -H In C ía 54 ía 5--i ía 0 15 •H 5-4 ía U C -H 42 S-I 0 U ía S-I C 0 U) 43 ía ía ‘H 43 4-4 ía 5-I 41 1 C ía 33 42 5--I U) ía ía ‘H C 0 -H 43 U) X -H ía 15 C Z 1 ía 1 ía ía C 0 S-I ía -H 32 0 S -H S 5 0 U ía ía -H ON (N ía 5-4 -H 0 (N s-I -H (3 s-I 0 ía 4-1 54 ía 15 C U) 5 43 -H 5 5 0 U ía N (N 5-1 ía C ía 41 LI) C 5-1 ía (N ía 0 ‘H ‘H 0 4-4 U) ía ‘ to (N C ía CD 33 C ía 5 42 -H S 5 0 U U) - ía U S--i 0 U) ía .C H s-I -H ía s-i ía C ía U) C ía U -H ‘H ía U) -H U) 42 -d 32 - 43 C ía U -H ‘H ía .C 33 43 15 ía U) 43 -H 5-1 U 5-4 ía H ía 43 C ía U -H ‘H ía . U ía ía .C p 4-4 U) 42 -H 15 ía s-i U 41 U) 42 3 ‘H (N U 5--i ía 15 -H In (N 0 (N (N ‘H ‘H 5-4 ía 15 C i U -H C 43 -H ‘H (N 5-4 0 4-1 0 ía U) 15 U) ‘H ‘H ía C U) 0 • ía U 0 ía C 43 C 0 -H U) U) C 0 -H 43 5-4 -H 4-4 5-4 43 C 0 -H ía ‘H C (N 41 U) ía 15 - -- 0 C C ía .C -ii ía U S-I s-I ía .C 0 U) 0 U) ía 54 0 Cu 5-4 ía -H H F-I ‘H ‘H U) -H U ía 33 4-I 0 5-4 0 to N 0 .C C 43 S-i ía 5-4 ía ía E ‘H ía 43 ía -C 0 A) ía U ‘H ía ía -H 15 ía ía ía ‘H U 5-I 15 ía C -H 5 5 ía C 0 ‘H 0 U ía ‘H ía 43 5 N ‘H Z ía 15 to ‘H 0 54 4-4 31 ON ‘H 5 5 5 A) 43 0 U -H U) U) -H C 0 54 ía 15 C Z A) Z U) P 43 C ía -H U) ‘H ía -C P s-I 15 0 U 42 0 4-4 ía .C 43 54 ía -H H F-I F-I F-I ía U H U ía 5 S 0 U U) ‘H ‘H ía C 43 ‘H C ía U -H 5-1 ía 5-4 43 ía .C ía -H H ‘H U) 0 1 ía U 54 0 4-I 0 U ía U) 0 Cu C 0 -H U) U) ‘H n’ 4-1 ‘H (N ‘H H ía 5-1 -H In ‘H H ‘H ía s-i U 15 43 -H U) A) - 33 32 ía C 0 ‘H 42 C 0 -H ía 54 ía C ía ía .C H ‘H ‘H 43 ía C C U -H .C 43 ía 54 U 54 15 C 0 4-4 -H S-I ía U 54 0 U) F-i ‘H ía C ‘H s-i 0 4-I C 0 -H 43 ía U -H ‘H ía 0 ‘H 0 tH C U C 54 0 4-1 s-i ía ía C -H P 54 0 ía 5-4 ON S-i ía -H H -H 43 • C 3J ía C P C 0 -H C -H 43 43 ía 42 -H ía C ía ía U) ía 5 ía t ía 5--i ía C ía 4-i 0 C U) ía U S-I 0 U) S-i ía C ía ía > ía C 43 -H 43 ía C 43 C 0 43 -H 15 ía 43 ía ía C 54 ía -H 5 C 0 P I-I -d 5-I U) U) U) U) ía ‘H ía 4-I ía 4-I HI ‘H — U) ía U 54 5 0 C 0 ía ‘H ía 0 32 43 5 > N -H 54 ía 15 15 ía 0 54 4-I ía C ía ía 54 ‘H ‘H U 5--I ‘H C U) 54 ía -H H -H -H U :5 C 54 0 E’ -H -H to U) -H - U) ía C p U) 0 5-4 ía U ía ía ía n’ 15 ía > -H 54 ía t 4-4 5 0 54 cn -H 5-1 0 Eu 43 U) U) -H -H 5 ía 33 ía C ía -- o (N ía U) o ‘H ‘H U) ía -H H ‘H ía 43 O 43 U) - ía U 54 o U) ía H (N ‘H I I ía U -H 43 0 C C ía 43 43 -H 5-1 C In N ‘H LI) ‘H In 0 0 ON ‘H 0 (N 1 (1) The written notice required under subsection (b) 2 shall be filed with the commission no later than 270 days 3 after the start of either of the following: 4 (j) 5 The first Tier III program period for Tier III sources derived from nuclear fission. 6 (ii) Each Tier III reporting period after the first 7 Tier III program year for Tier III sources other than 8 Tier III sources derived from nuclear fission. 9 (2) The written notice shall be transmitted to the 10 Legislative Reference Bureau for publication in the 11 Pennsylvania Bulletin in the first available issue following 12 the filing of the written notice. 13 (3) Comments in response to the notice shall be filed 14 with the commission no later than 20 days after the 15 publication of the notice. 16 17 18 19 (4) Reply comments shall be filed with the commission within 10 days of the close of the initial comment period. (d) Availability of Tier III credits.—— (1) The commission shall determine the number of Tier III 20 credits available at the beginning of the first Tier III 21 program period as being equal to approximately 50% of the 22 total number of megawatt hours of electricity distributed by 23 electric distribution companies in this Commonwealth, net of 24 system losses, 25 Electric Power Outlook edition published on the effective 26 date of this paragraph. 27 (2) for the latest calendar year reported in the The commission shall then determine, at the beginning 28 of each Tier III reporting year, the amount of Tier III 29 credits available to Tier III alternative energy sources 30 derived from nuclear fission by setting the Tier III capacity 2019004315 — 18 — C) 0 U) H is it HCD CD CD H 0 H 0 CD CD is a- H o CD CD C) it H- a- CD C H a a C H o it a Hit it CD H H 0 a H- H a o o H to o N) U) 0 a a it 0 aa it H- a H a it HCD Ft 0 H C) 0 H it HH C CD HCD H H CD 0 C H C) a 0 C H C) a CD H a I I 0 H C) - H CD it H0 H H- CD CD a CD 0 C H C) CD H CD H a H a a < H H CD it H- H it CD H H CD it H- CD a H H it H H H a H- ‘-3 N) —3 CD CD H a it CD w z CD H- a a N) w H CD H a a CD H it CD H H CD it H< H H H ‘-3 HCD H CD a H CD a a H CD H- o C) N) to < - a a H H- CD CD CD H a aa CD HCD H a H 0 H- it CD C) CD a- c CD H a a H C N) o’ a aH CD < CD HH CD CD Hit a a C) H H H H ‘-3 HCD H 0 Ft H aa H H C it HCD C H it HH H H CD H 0 F—I i-i H N) 01 ‘-3 HCD H a it H- HH CD it CD CD H it HC) H- it 0 H HC) CD H it CD HH CD H CD H H CD H CD C) it a CD F—1 CD F-1 H- CD N) CD H0 H CD H- H H o C) a it H- CD HH HH H H CD it CD a a H- C) H H H H H a -3 H- CD HCD N) H- H CD CD H CD N) U) H a a C H CD H HC) CD H it CD it HCD CD CD H CD 0 it HH a CD H H H- H CD CD H CD H a a H C N) N) H HC) CD H it CD CD it HCD HH H CD H CD Ft it CD H HCD CD H0 H H H C) 0 a it H- i-i Ft U) N) H • CD a 0 C H C) CD H a a H a - CD H it CD H H CD it H- i—i H H N) 0 H ‘-3 HCD H it 0 a H CD H- CD CD CD CD CD H a- CD < HCD a H H0 a 0 H it HH H CD a it H- 0 H F-fl- H CD a- < CD HH CD CD to CD Hit a a C) H 0 Ft CD H a- H H C it 0 it CD H a it H- C H it HH CD H a 0 H H CD H HH HH C 0 H it HH 0 H 0- CD H H HC) CD H it CD a CD ?s I H CD H it 0 a it H- Hit H- H HH H H- CD a- CD H H0 CD H it CD it HCD 0 Ft —3 H HH c’ H CD H it HCD it 0 HH a CD C) 0 0 H H H CD H 0 H H H H a -3 H- a it H- HH a CD it CD -i it H0 H- F1 a HH H it HCD it CD H HC) CD H it CD it HCD C) it a CD H CD HCD H H CD H0 H CD CD H- H H C) 0 a it H- Ftn H . U) H3 0. CD H CD CD CD C) it H0 H CD a- C CD CD H a H a c 0 C it H HH CD 0 H Hit CD H HCD it HCD CD CD CD it HCD Ft HCD N) H 0 C H C) CD CD CD H CD H a CD H it CD H H CD it H- a it H- CD H H E H0 0 H a a CD CD a- F-1 HC) CD it H0 H CD H H H CD CD C) H- H CD H a CD H CD H it CD C) 0 CD H H a CD H CD C CD H HFt HC) CD it H0 H 0 Ft H 0 it HC) CD 0 a it H- HCD < H CD CD HCD H H CD H0 H CD H- C) 0 it H- a ‘is C) CD 0 it H0 H CD a- CD C CD H a C H to a CD H H0 H it a H H I 0 0 H a H a it H- 0 Ft a C) F-1 0 CD a it H- HH E 0 H H 0 “ H W • I I H H CD H 0 H H H H a H- F-3 Ft 0 H H CD 0 it H0 H a CD a —J - H CD H it a it H- F-fl H H- CD C) Hit a it H- a- a H HCD I-i- C H it H CD CD H H a H0 C H CD 0 m —j a- a a C H it H- H a F-I H0 a 01 C) CD a H CD it aH H CD o H 0 H it H- H CD H- a CD C) HH Hit CD a a 0 H H H H ‘-3 HCD H a < H CD C) CD H- it 0 aH a H- CD F-1 H- a CD H H CD a- CD HH CD < CD CD a- it 0 a a it CD H it H- CD CD a CD H it HCD it F-fl HCD CD H0 H FCD CD H n H C U) < H Ft H 0 a CD < CD H H a H 0 it CD a n 0 C H CD CD H a z CD CD H it CD H H CD it H- H H H H a H- - 0 Ft N) H it HH 0’ CD HH CD < CD it HCD 0 C a a CD CD a- oW U) CO a CD D OW —3 —3 CD CD H it a a a- it CD a z H C) a H1 U) H U’ o to O o N) HCD H H H H CD 0 F-fl 0 F-fl 5 ft 51 HCD HS CD t Di 5 HCD 5 o o CD 5 CD Fl CD 51 Di Fl CD CD CD < Di H ft CD H S Di ft H- H H H S HCD Fl ft 5 CD 5 C s Di H H Fl 0 S o Di S ft CD 5 CD H Di H ft CD Fl S Di ft H< CD H H H H 5 HCD C S F-fl CD CD ft F-fl H- H Di CT H CD H HH- Di < Di Hft CD a —J 0) C) Fl CD N) N) ft 51 CD Fl CD Di ft CD Fl CD H- CD CD 0 C Fl 0 CD N) tO HCD ft H HCT C ft H- a o ft H H- o CD H CD Di H H 0 Fl F-fl U) 0 N) • 0 S E CD Di H ft 51 0 0 CD ft 51 H- CD H CD 0 ft Fl H0 a Di 5 Di S HCD CD 5 C) 0 ft Fl HCT C ft H0 5 CD H- a CD HS C) H HCD H H H Di CT a CD 0 H 01 N) CD H CD 0 ft Fl H- CD C CD Z CD Fl Di ft H0 Z Jj CD 5 CD Fl CD H CD 0 ft Fl H0 ft 0 ft Di H ft 51 CD CT a CD a H< H- a H HCD Fl CD C CD CD Z CD Fl Di ft H0 . N) ft CD CD H CD 0 ft Fl H0 a Di S Di S 5 0 0 z C ft H0 CT ft Fl H- CD H- a ft CD Fl H Hft 0 Fl H0 CD <1 Di H C CD CD ft H HCT C ft H0 S CD Fl H- a CD H CD 0 ft Fl H0 I 5 - H - . F-fl U) H0 Z ft CD CD 0 CD Fl C Z CD CD Fl 0 CD 5 ft Di Di N) 0 CD Di CT CD 51 Di H H H5 CD 0 H 0. CD 5 Di Fl CD 0 Fl ft H0 Z Di H Fl 0 CD - Di 5 0 0 H N) CD CD S CD Fl ft Fl H0 a CD H CD Di H ft 0 CD H 0 ft Fl H0 ft Z CD ft 0 N) N) ft Z CD CT N) U) H a CD CD CD CD CD CD Di CT CD CD 51 Di H H CD CD 5 ft 5 Di H HDi S 0 CD 5 0 0 ft H< CD Di Di H ft CD Fl 0 tO H a Di S • CD Hft a 0 Fl CD H H H 5 HCD Fl F-fl 0 Di Ii CD 51 CD 0 Fl ft H0 5 Di H Fl 0 CD - Di 0 0 CD ft 0) CT CD Di H H 51 CD CD Di H 0 H ft H5 F-I CD ft 51 Di ft F-fl 0 H CD 3 Di H CD H H H S HCD Fl CD - Di 5 0 0 —i H ft H0 S CT C ft H H- CD H- a CD H CD 0 ft Fl H0 CD Di 0 51 5 ft 7 CD CD Di H ft 0 S 5 C 0 CD H- ft O H 5 H5 Di 5 HCD CD 0 0 ft H0 S C a HCD ft Fl HCT CD H CD 0 ft Fl H0 Di H H 0 Fl F-fl Di H CD CD CD H H H 01 F-1 < S HCD Fl ft 51 CD 0 F-fl 5 CD C ft 5 CD ft 51 Di 5 CD CD H CD CD H- Di HH Di CT H CD Di CD Hft a 0 Fl CD CD Di H ft CD Fl S Di ft H- H H H 5 HCD H 0 F-fl C Di S ft Hft ft 0 ft Di H CD ft H F-ti •- S H- E F-fl 0 H H 0 ft 51 CD ft 0 CD 0 ft - C CT CD 0 C Fl 0 CD CD CD Z CD Fl CD < ft H- Fl Fl CD ft H Di N) H Di H- U) H CD CD Z H H H H S HCD F-I 51 CD Di 0 ft 0 a C Fl 0 51 Di CD CD Hft CD a 0 Fl CD CD ft F-fl 0 Fl CD Z ft 5 Di Hft S Fl CD H H a Di S H 51 Fl Di Di Fl Di CD H a C 5 a CD H Fl CD F-fl ft H Di S CD CD Hft a 0 H CD H H H S HCD Fl Z CD ft H C C Fl 0 51 Di CD CD 51 Di H H CD Di S S 0 a H0 5 ft HCD ft Fl HCT C a CD H CD 0 ft Fl H0 0 LXI Di N) to • H0 S CD CD H- 5 5 0 0 CD ft a CT CD H- 5 a CD ft CD Fl CD Di 0) F-fl Di S 0 Fl CD Hft a 0 Fl CD CD S CD Fl CD Di H ft CD Fl S Di ft H- H H H s HCD Fl CD - CD 0 C Fl C) CD CD ft F-fl 0 Di H H 0 5 0 0 ft Fl HCT C ft H0 S CD H- a CD H CD 0 ft Fl H0 CD Di 0 51 ft 0 a CD Fl H0 z ft H- Fl 0 Fl CD ft Z Di ft —1 CD F-I F-fl CD ft Fl Di S 51 Di H H CD CD 0 C Fl 0 CD CD S CD Fl CD < Di H ft CD Fl 5 Di ft H- H H H S HCD Fl H 01 • I I Hft CD a w F-fl CD CD 5 CD Fl CD Di H ft CD Fl S Di ft H- H H H S HCD Fl F-fl 0 H ft 5 CD Di a Di CD Fl - o CD CD 0 ft H- CD Fl a C S 0 F-I Hft CD Fl HDi ft 51 CD 5 CD CD ft ft 0 0 5 ft H S C CD CD a CD o 0 C H CD H CD w Fl Z Di ft H<1 CD ft H H- CD CD Di H T N) ft 5 Fl U) 0 Fl . 1 Commonwealth, then each Tier III alternative energy 2 source shall be paid for the source’s prorated share of 3 Tier III credits. Tier III alternative energy credits 4 available that exceed the sum of the Tier III shares for 5 all electric distribution companies in this Commonwealth 6 shall be retired. A Tier III alternative energy source’s 7 prorated share shall be a percentage egual to the sum of 8 the Tier III shares for all electric distribution 9 companies in this Commonwealth divided by the sum of Tier 10 III alternative energy credits available from all Tier 11 III alternative energy sources. 12 (3) Credits purchased by an electric distribution 13 company may not be transferred, 14 entity and may not be utilized to fulfill future obligations 15 under this act. 16 (h) sold or assigned to any other Suspension of generation of a Tier III alternative 17 energy source.—-A designated Tier III alternative energy source 18 shall be excused from the source’s commitment to generate 19 electricity for the time period committed to under subsection 20 (b) (4) 21 credits if one of the following occurs: 22 and shall no longer receive Tier III alternative energy (1) The designated Tier III alternative energy source 23 suspends or ceases generation, 24 III alternative energy source’s reasonable efforts to 25 continue generation, due to an event beyond its control. The 26 designated Tier III alternative energy source shall no longer 27 be excused from performance, and payment of Tier III 28 alternative credits shall resume, after conclusion of such an 29 event. 30 (2) 2019D04315 despite the designated Tier The Commonwealth enacts a new law imposing a — 21 — N) H 01 U) o o H to N) 0 CD H, o oW 0 o H 03 o H H- a. CD Ci Ci 0 CD Ci CO 0 C H 0 CD H CD CD B CD H C B 0. CD H a C B H, H H < CD o H it HB Ci CT Ci a Ci it H- -- H 0 Ci 0 C H Z CD H a CD < it H- w H a Ci H it F-I F—I H ‘-3 HCD H —i N) H CD Ci 0 H H 0 H, Ci Ci CT CD Ci H H Ci z- H H Ci Ci H Ci a) N) a Ci H it F-I H Hi HH Ci it F-I H a S H- a it Z it HZ E o H H o H, i o H Ci it H- a F-I H, LO 0 CD N) U) N) a Ci 0 Hi H a B 0 Ci B 0 C B it B Ci it CT CD 01 T H Ci Ci H Ci it 0 0 it - C CT ran N) ai N) • N) CT H Ci Ci H Ci CD H a it CT a HH CD 0 it CD a Ci Ci C B 0. z a Ci C H, H CD CD < I-a0 H 0 Ci H H Ci z T Ci C CT Ci CD 0 it H0 N) a a 0 Ci H 0 C H Ci it 0 C D it Ci a it H- HCi Ci H0 Z B B 1) 0 01 N) a B H- a H HCi it B 0 it 0 B Ci a it H0 B n a it a Ci CD B CD H Ci o it B it a B Hit B B 0 0 Ci Hit Ft C H H, HH H it 0 Ci HH Ci H, Ci it it CD H Ci it 0 H 0 H N) Ci C CT CD H C B it 0 a Hit it CD z H CD Ci B Ci a CD H H0 CD B it H- CD it 33 Hi 0 H 0 it H H0 Hit a H CD N) N) 0 0 H o H, CD Z CD H Ci it H0 i H- Ci 0 CD Ci CT . CT U) < CD Ci 0 C H 0 CD B CD H CD Ci H it CD H Z Ci it H- H H H 5 HCD H a a Z Ci it CD Ci H- a > H 0 N) a a - I I Ci H H0 - a Ci Z Ci - CD Ci 0 C H 0 H a) CD Z Ci H it H- ‘t H- H kD a B CD H a <1 Ci H it CD H B Ci it H- H H H S HCD H 03 Ci it CD Ci H- a a Ci Ci CD Ci it H- B H it a 0 CD Ci -J z z CD Hi Hit Ci B a H Ci 0 H Ci a CT CD a a CT it Ci 0 0 0 C B it it 0 H- HZ r it Ci Z C CD a < a H a C it C H H, a a Ci it it H0 H- Ci F-1 U) a Ci H it CD H B Ci it H- H H H H a 5 H- a 1 Ci it CD a CD Ci H- Ci it 0 a a a < H- o H CT CD it 0 H C 0 0 - B H Ci H 0 H F-I H H a S H- it 3CD CD H a C i CD Ci 0 C H 0 F-1 01 Ci Ci Hit 0 H HCi Ci H0 B $ B C) 0 C H Ci it 0 H t a Z C 0 H CD Ci H a S 01 H Ji Ci - Ci 0 C H 0 CD CD B CD H H B Ci it H< CD a Ci H it H H H S HCD H a a Z Ci it H- Ci CD a Ci it CD H HCi H B Ci B HB Ci it H- B CD H H- H, 0 CD 0 it H, CD Hi CD it w Ci it Z Ci it Ci Hit a a H, Ci 0 H CD Z CD i H H C 0 H it H0 H N) a Ci H it CD H B Ci it H< H H H S HCD H 0 Ft H 0 <1 HCi H0 B a it o it a H Ci it CD a H Z o Ci 0 it H- Hi HZ Ci H H C CD Ci ‘r it Ci CD Ci H it CT 0 B B B C) 0 it CT CD 0 H CD Z it B H o <1 a C) CD H Ci H a CD x] a S ‘a • H H0 CD o a CD H H- 0 H it HZ H CD Hit a 0 H CD co CD B CD H CD Ci H it CD H B Ci it H- H H H 5 HCD H CD it Ci CD a a C n H H H w H H- a Ci it B it Z Ci it H Ci —J Ci Ci B Ci 0 it a CD Ci H it CT 0 B B B C) 0 it CT CD 0 H CD Z it B C) 0 < CD H Z CD H Ci H a “1 CD a S Z m • a Ci 0 C H 0 CD H a CD < H Z Ci it H- a Ci H it H H F-I S HCD H 01 a a B Ci it Ci H- a a Ci CT Ci C B Hit CD i CD H Ci it H0 H, 0 a H CD Ci Ci CD Z 0 H 0 H H- Ci H a 0 E Z . < CD B CD H Ci it H0 B a it CT 0 Ft Ci it H0 Z 0 0 0 C 0 H CD HH CD H H- CD it H o C Z Hit U) H Ci it HB a B a Ci H, 0 a H CD Ci Ci CD CT 0 H 0 H H- 0 E Z CD H Ci CD it Hit n it H H- 0 a H a 0 F-h N) H Ci it H0 B a B a it B3 CD 0 B a a H, 0 H it CD B CO CD CD Ci Ci Ci CD 0 HCi H Ci it Ci a Z i- Ci H H- a Ci it H 1 the amount received under subsection 2 3(g) (3) (ii). 3 (ii) (g) (2) and section If the Tier III alternative energy source 4 ceases generation following the second reporting period, 5 80% of the amount received under subsection 6 section 3(g) (3) (ii). 7 (iii) (g) (2) and If the Tier III alternative energy source 8 ceases generation following the third reporting period, 9 60% of the amount received under subsection (g) (2) and section 3(g) (3) (ii). 10 11 (iv) If the Tier III alternative energy source 12 ceases generation following the fourth reporting period, 13 40% of the amount received under subsection 14 section 3(g) (3) (ii) 15 (v) (g) (2) and If the Tier III alternative energy source ceases 16 generation following the fifth reporting period, 20% of 17 the amount received under subsection 18 3(g) (3) (ii). 19 (3) (g) (2) and section Nothing in this subsection shall be construed to 20 reguire an entity, other than the malority owner, that has an 21 ownership interest that is less than 15% in a Tier III 22 alternative energy source to refund payments received under 23 subsection 24 (4) (g) (2) or section 3(g) (3) (ii). For purposes of this subsection, if the ownership of 25 a Tier III alternative energy source changes during the term 26 of a six—year comitment to participate in the Tier III 27 program, 28 payments received under subsection 29 (ii) 30 the obligation of the former owner to refund (g) (2) and section 3(g) (3) shall be transferred by covenant to the new owner. (5) 2019D043l5 For the purposes of the calculation of the refund — 23 — 1 under paragraph 2 alternative energy source owner shall be calculated based 3 solely on the amount of credits produced by each Tier III 4 alternative energy source and may not apply to additional 5 Tier III alternative energy sources owned by the same entity 6 and participating in the Tier III program. 7 (6) 8 9 10 (2) the amount owed by a Tier III The commission has the following powers: Issue an order requiring the Tier III (i) alternative energy source to refund the amount it owes under this subsection. This subparagraph includes: 11 (A) 12 stating the exact amount to be refunded as directed by the commission; 13 (B) 14 setting the reasonable time within which payments shall be made; and 15 (C) 16 fact. 17 (ii) making findings upon pertinent questions of Provide a mechanism for a return of the refund 18 from the Tier III alternative energy source to each 19 electric distribution company for purposes of 20 distribution to its customers. This subparagraph 21 includes: 22 (A) determining the amount to be returned to an 23 electric distribution company’s proportional share of 24 the total payments made by all electric distribution 25 companies for the purchase of Tier III credits for 26 the reporting periods during its most recent time 27 period committed to under subsection 28 (B) (b) (4) ; and determining the amount to be refunded to the 29 electric distribution company’s customers as a result 30 of the cost recovery under section 3(a) (3) (iii) 2019004315 — 24 — for 1 the customer costs associated with the reporting 2 periods during the Tier III alternative energy 3 source’s most recent time period committed to under 4 subsection 5 6 Li) (b) (4) Tier III alternative energy source audits.—— (1) The commission shall, annually or on a periodic 7 basis as determined by the commission, 8 each Tier III alternative energy source participating in the 9 Tier III program. Any audit directed by the commission shall conduct an audit of 10 commence 180 days following any payments to a Tier III 11 alternative energy source under subsection 12 commission shall solicit input from the Department of 13 Environmental Protection as needed in the conduct of the 14 audit. The commission audit shall confirm through the audit 15 process whether each alternative energy source meets all of 16 the qualifying reguirements under subsections 17 The subject areas of the audit shall include all of the 18 following: 19 (i) (q) (2) (a) . The and (b) Whether the alternative energy source is 20 interconnected with the regional transmission 21 organization. 22 (ii) The effect of cessation of generation of 23 electricity or failure to operate on air emissions 24 standards as contained in subsection 25 (iii) (a) (2) Confirmation that the alternative energy 26 source did not, 27 source’s location, 28 exclusions, allowances, payments, 29 reimbursements from any other state calculated in whole 30 or in part using a metric that provides value for 2019D04315 regardless of the alternative energy receive tax exemptions, — 25 — deferrals, credits, deductions or NJ Lii H 01 o o to H NJ C S CD H 3 0 Hi it 3 CD o CD H Di Di HH o H3 0 H Hit 5 a a it CT CD 0 Hi Hit it CD CD 0 C) CD it 0 Hi CD H Di 0 3 tT Di HH 0 it H3 0 H H- Di 3 0 3 C’] a Di Di 3 Di CD H 0 Z Di HH - H o C) 0 ci CD H CD 3 CD it Z H- Lii NJ it HH- NJ ON Di 3 CD CD 0 C ii 0 CD it Di H CD 5 HH 0 NJ —J CD H Di 0 3 0 3 Di Hi- CD it Hi o Hit it CD CD o S S o -ci 1’] 3 CD H z a Di H 0 CD Di C o Di ZI CD CD Z it Di H 5 3 o 1’] Z ci HH CD U] CD Cr NJ Di it HCD H-H- to o it NJ W it 0 Hit a Di C it Z CD 0 Hi Di HZ a H- Hi it Z CD I-iH H- 2 CD it Di NJ H0 Di C H it o H CD CD H a C 3 Hit a Di 3 Di Di C 0 Hi Hit S 3 CT Di 0 H C 0 0 it 3 CD 0 Hi Di Di a o to HZ J E Hit NJ NJ NJ Di Z Di H H H0 3 Di Di H- 5 0 0 it Z CD CD 0 it H0 Z Di C CT Di H Di it Lii NJ - NJ Di 3 0 C CT Di CD 0 it H- Di CD H a C 3 Di a Di H a Di it Di ti it J CD HCD ‘1 CD 0 Di NJ H it 0 Di 0 C H 0 CD CD 3 CD H CD -1 Di H it CD H 3 Di it H- CD z it 0 Hi Di CT HH Hit H- ci a CD C H- it C 0 Z NJ C it CT CD H CD C CD 3 Di it 0 H 0 CD 3 CD H Di it it 3 CD CT it Di CD Di CD Di 0 z it Hi 0 C Di CD to H1 it CT CD a Di 3 it i-’- a Di C it CT CD CT a CD H CD 0 ci 0 CD Di H S H Di II 0 CD it I-h 0 H 0 CD H CD 3 CD H CD ci Di H it CD H 3 Di it H- it 3 CD CT a H CD 0 CD Hci CD Di CD Z it S Di tt x H- -J Cr Di 0 C H H1 - Hit a Di C it Z CD ON I1 CT a CD H CD ci 0 0 CD Di H 5 H Di H 0 CD it T I-fl 0 H Di 0 C H 0 CD CD H CD H Z Di it Hci CD CD Di H it H 01 CT CD it CT a H CD 0 CD Hci CD Hit Di a 0 H CD 0 Hi CT CD H 5 C CD ‘-3 < HHH- H1 3 - CT CD 0 it H0 3 Di CT Di C CD H a C it 0 a Hit it CD S S 0 0 a CD H H0 Lii [1 H CD S H- it it CT CD Hi 0 H CD 3 CD H Di it H0 3 CD 3 CD H CD ci Di H it CD H Z Di it H- a Z Di it CD CD Di H- a NJ Di CD H H it 0 CD 3 it S Hit 0 0 it 3 CD Hit 3 H HDi Z 0 CD C) 0 < HH- H H1 - Lii CT Di CD 0 it H0 3 CT C Di CD H a C Z Di Hit a C H CD H i—i i— ‘-3 HCD H Hi 0 H C H H3 H Di HDi 0 C H 0 CD Di CD it 3 H0 3 H o Hi z CD H Di it H0 z CD CD ‘-3 <1 H- to CD C CT Di CD 0 it H0 3 - NJ CT CD 3 CD H Di it H0 3 a Di it CD 5 CD Di it H- it 0 it Di H Di - 0 Di CD H Di 0 C H CD ‘-3 ci —I a C D a C Di H 0 C H Di it CD w C 0 - 0 HDi it H0 3 Di Di Di CD H Di it Hci CD 0 0 0 0 H Di H H0 H- 5 ON Di 0 Hi 5 0 0 3 Di 0 H it HC 0 H 0 0 HDi it H0 3 Di Di Di H 0 C Di U) 0 H - Di Di Di 0 0 HDi it H0 3 CD <1 CD H Di it H- 0 0 0 0 H Di H C i H0 H- S Di -- CT a Z CD 0 0 H H E 0 it HDi Lii 5 H 0 CD C Di 0 CD 3 CD H CD ci Di H it CD H 3 Di it H- CD it Di it it Di it H0 C) 0 Z Hi HH NJ Di 0 C H 0 CD CD 3 CD H CD ci Di H it CD H 3 Di it H- CD it CT a C 0 CD a H 0 0 it Di H0 Di Di H- CD H 1 House of Representatives; 2 (iv) the chairperson and minority chairperson of the 3 Consumer Protection and Professional Licensure Committee 4 of the Senate; and 5 (v) the chairperson and minority chairperson of the 6 Consumer Affairs Committee of the House of 7 Representatives. 8 (k) 9 Administrative expenses.—— (1) In addition to any assessments authorized by 66 10 Pa.C.S. § 510 11 upon public utilities) 12 assessment on the payments to Tier III alternative energy 13 sources. 14 (2) (relating to assessment for regulatory expenses . the commission may impose an The assessment under paragraph (1) may not exceed 1% 15 of the value of all credits sold for each Tier III reporting 16 period for costs associated with the administration of the 17 Tier III program. 18 19 Section 8.2. (a) Capacity payments to alternative energy sources. Election to participate in fixed resource reguirement 20 program.——If permitted by the Federal Energy Regulatory 21 Commission, the commission shall create and administer a program 22 in which alternative energy systems may opt to supply and be 23 paid for capacity through a means other than the centralized 24 base residual auction for capacity operated by the regional 25 transmission organization. As permitted by the Federal Energy 26 Regulatory Commission, the program shall include: 27 (1) establishing a process through which an alternative 28 energy system is permitted to notify the regional 29 transmission organization, 30 approved by the Federal Energy Regulatory Commission, of the 20l9D04315 consistent with reguirements — 27 — 1 decision to opt out of the centralized base residual auction 2 for capacity and sell its capacity through other mechanisms; 3 (2) providing any determinations reguired by the 4 regional transmission organization with respect to such 5 alternative energy systems, 6 commensurate amount of customer load that will not 7 participate in the centralized base residual auction for B capacity as a result of the alternative energy system’s 9 decision to sell its capacity though other mechanisms, including a calculation of the which, 10 if consistent with reguirements approved by the Federal 11 Energy Regulatory Commission, shall be calculated pro rata 12 across all load serving entities in this Commonwealth; and 13 (3) 14 Commission, 15 alternative energy system that opts out of the regional 16 transmission organization centralized base residual auction 17 for capacity for each applicable reporting period shall be 18 egual to the generation capacity of the system as determined 19 in accordance with regional transmission organization 20 reguirements multiplied by the locational delivery area price 21 established by the regional transmission organization in the 22 base residual auction for capacity, or as determined in 23 accordance with a successor mechanism approved by the Federal 24 Energy Regulatory Commission, 25 system is located. 26 (b) subiect to approval by the Federal Energy Regulatory the amount paid for the capacity of each such for the location in which the Payments.——If the regional transmission organization 27 does not operate a settlement mechanism under which alternative 28 energy systems that make elections under subsection 29 receive payments from regional transmission organization load 30 serving entities, 2019D04315 (a) can the commission shall calculate the total — 28 — 1 amount due to each system under subsection 2 each electric distribution company of its share of that amount 3 based upon the electric distribution company’s pro rata share of 4 the electric energy sold to retail electric customers in this 5 Commonwealth during the applicable reporting period. Each 6 electric distribution company shall pay the amount to each 7 alternative energy system under subsection 8 by the commission. 9 (c) (a) (3) (a) (3) and notify , as determined Timing.——The commission shall create the program under 10 subsections 11 of: (a) and (b) within 180 days after the later to occur 12 (1) the effective date of this subsection; or 13 (2) the date on which the regional transmission 14 organization rules that allow alternative energy systems to 15 opt out of the centralized base residual auction are accepted 16 or approved by the Federal Energy Regulatory Commission. 17 Section 6. 18 This act shall take effect June 1, immediately, whichever is sooner. 2019D04315 — 29 — 2019, or