PRINTER'S NO. 491
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 472
Session of
2021
INTRODUCED BY SCAVELLO, LAUGHLIN, BROWNE, KEARNEY, AUMENT,
ARGALL, FONTANA, BREWSTER, MENSCH, TARTAGLIONE, CAPPELLETTI,
COMITTA, MUTH, SCHWANK, BAKER, YAW, COLLETT, SANTARSIERO,
HAYWOOD AND PHILLIPS-HILL, MARCH 23, 2021
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MARCH 23, 2021
AN ACT
1 Amending Title 66 (Public Utilities) of the Pennsylvania
2 Consolidated Statutes, providing for community solar
3 facilities.
4 The General Assembly of the Commonwealth of Pennsylvania
5 hereby enacts as follows:
6 Section 1. Title 66 of the Pennsylvania Consolidated
7 Statutes is amended by adding a chapter to read:
8 CHAPTER 30A
9 COMMUNITY SOLAR FACILITIES
10 Sec.
11 30A01. Findings and declarations.
12 30A02. Definitions.
13 30A03. Community solar facilities, electric distribution
14 companies and subscriber administrators.
15 30A04. Interconnection standards for community solar
16 facilities.
17 30A05. Unsubscribed energy.
 1 30A06. Customer participation in community solar programs.
2 30A07. Location of multiple community solar facilities.
3 30A08. Land management and stewardship.
4 30A09. Grid services payment.
5 30A10. Prevailing wage for construction of community solar
6 facilities.
7 § 30A01. Findings and declarations.
8 The General Assembly finds and declares as follows:
9 (1) Community solar generation can foster economic
10 growth as well as opportunities for competition and
11 innovative business models.
12 (2) Growth in solar generation will provide family-
13 sustaining jobs and investments in Pennsylvania.
14 (3) Programs for community solar generation provide
15 customers with additional energy choices and access to
16 Pennsylvania-generated affordable energy options.
17 (4) Community solar programs provide customers,
18 including homeowners, renters and businesses, access to the
19 benefits of community solar energy generation that is
20 unconstrained by the physical attributes of their home or
21 business, including roof space, shading or ownership status.
22 (5) In addition to its provision of standard electricity
23 market commodities and services, local solar energy
24 generation can contribute to a more resilient grid and defer
25 the need for costly new transmission and distribution system
26 investment.
27 (6) The intent of this chapter is to:
28 (i) Allow electric distribution customers of this
29 Commonwealth to subscribe to a portion of a community
30 solar facility and have the result of the subscription be
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 1 guaranteed savings.
2 (ii) Reasonably allow for the creation, financing,
3 accessibility and operation of third-party owned
4 community solar generating facilities in a way that
5 ensures robust customer participation.
6 (iii) Encourage the development of community solar
7 programs that will facilitate participation by and for
8 the benefit of low-income and moderate-income customers
9 and the communities in which they live and reduce
10 barriers to participation by renters and small
11 businesses, promote affordability and improve access to
12 basic utility services.
13 (iv) Enable a community solar market through
14 innovative technologies without the need for full retail
15 rate net metering.
16 (v) Compensate the electric distribution companies
17 for efficient and reliable integration of these resources
18 into the distribution systems through cost recovery and
19 treatment of payments for grid services as regulatory
20 assets.
21 (vi) Enable a community solar marketplace in the
22 Commonwealth without requiring State or municipal tax
23 resources.
24 § 30A02. Definitions.
25 The following words and phrases when used in this chapter
26 shall have the meanings given to them in this section unless the
27 context clearly indicates otherwise:
28 "Alternative Energy Credit." As defined in the act of
29 November 30, 2004 (P.L.1672, No.213), known as the Alternative
30 Energy Portfolio Standards Act.
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 1 "Bill credit." The commission-approved monetary value of
2 each kilowatt hour of electricity generated by a community solar
3 facility and allocated to a subscriber's monthly bill to offset
4 any part of the subscriber's retail electric bill.
5 "Commission." The Pennsylvania Public Utility Commission.
6 "Community solar facility." A facility that:
7 (1) Generates electricity by means of a solar
8 photovoltaic device whereby subscribers receive a bill credit
9 for the electricity generated proportional to the size of the
10 subscriptions.
11 (2) Is located within this Commonwealth.
12 (3) Is connected to and delivers electricity to a
13 distribution system operated by an electric distribution
14 company operating in this Commonwealth and in compliance with
15 requirements under this chapter.
16 (4) Generates electricity by means of a solar
17 photovoltaic device with a nameplate capacity rating that
18 does not exceed 5,000 kilowatts of alternating current.
19 (5) Has at least two subscribers.
20 (6) Has no single subscriber who subscribes to more than
21 50% of the facility capacity in kilowatts or output in
22 kilowatt hours, except for master-metered multifamily
23 residential and commercial buildings. No less than 50% of the
24 facility capacity shall be subscribed by subscriptions of 25
25 kilowatts or less.
26 (7) Credits some or all of the community solar facility
27 generated electricity to the bills of subscribers.
28 (8) May be located remotely from a subscriber's premises
29 and may not be required to provide energy to on-site load.
30 (9) Must be connected to an existing or new retail
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 1 electric service at the service location.
2 (10) Must be owned or operated by a community solar
3 organization.
4 "Community solar organization." An entity that owns or
5 operates one or more community solar facilities that may not be
6 required to be an existing retail electric customer, purchase
7 electricity directly from the electric distribution company,
8 serve electric load independent of the community solar facility
9 or operate under an account held by the same individual or legal
10 entity of the subscribers to the community solar facility. A
11 community solar organization may not be deemed a utility solely
12 as a result of its ownership or operation of a community solar
13 facility.
14 "Electric distribution company." As defined in section 2803
15 (relating to definitions).
16 "Electric distribution customer." A customer that takes
17 electric distribution service from an electric distribution
18 company, regardless of whether the company is the customer's
19 supplier of electric generation or not.
20 "Grid services." Services provided by smart inverter
21 technology to support the grid and enhance reliability, and
22 other commission-approved functions.
23 "Guaranteed savings." Realized savings as the difference
24 between the cost of a subscription to a community solar facility
25 and the credit received for the generation attributed to the
26 subscription.
27 "Low-income customer." A retail residential end user of an
28 electric distribution company whose household income does not
29 exceed 200% of the Federal poverty level, adjusted for family
30 size, as published periodically in the Federal Register by the
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 1 United States Department of Health and Human Services under the
2 Community Services Block Grant Act (Public Law 97-1135, 42
3 U.S.C. § 9902(2)).
4 "New job." A full-time equivalent job created during the
5 initial construction of community solar facilities and paying
6 the prevailing minimum wage and benefit rates for each craft of
7 classification as determined by the Labor and Industry
8 Prevailing Wage Act.
9 "PJM." PJM Interconnection LLC is a regional wholesale
10 electric market and transmission organization, approved by the
11 Federal Energy Regulatory Commission, that operates an electric
12 transmission system in the Mid-Atlantic region that includes
13 Pennsylvania.
14 "PJM day ahead energy price." The price for a Pricing Date
15 that will be that day's Specified Price per MWh of electricity
16 for delivery on the Delivery Date, stated in US Dollars,
17 published by PJM under the headings "Daily Day-Ahead LMP" or any
18 successor headings that reports prices effective on that pricing
19 date.
20 "Prevailing Wage Act." The act of August 15, 1961 (P.L.987,
21 No.442), known as the Pennsylvania Prevailing Wage Act.
22 "Price to Compare." The price per kilowatt hour an electric
23 distribution company charges, developed based on what the
24 company pays for electricity during auctions held over a two-
25 year period on the PJM wholesale energy market, and includes:
26 (1) Charges for generation and transmission.
27 (2) The State's gross receipts tax.
28 (3) The utility's charges for implementation of the
29 alternative energy portfolio standards.
30 "Smart inverter." A device that converts direct current into
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 1 alternating current and can autonomously contribute to grid
2 support by providing each of the following:
3 (1) Dynamic reactive and real power support.
4 (2) Voltage and frequency ride-through.
5 (3) Ramp rate controls.
6 (4) Communication systems.
7 (5) Other functions approved by the commission and
8 published under 15 Pa.C.S. Ch. 74 (relating to the
9 electricity generation choice for customers of electric
10 cooperatives).
11 "Subscriber." An electric distribution customer of an
12 electric distribution company who contracts for one or more
13 subscriptions of a community solar facility interconnected with
14 the customer's electric distribution company. The term includes
15 an electric distribution customer who owns a portion of a
16 community solar facility.
17 "Subscriber administrator." An entity that recruits and
18 enrolls subscribers, administers subscriber participation in one
19 or more community solar facilities and manages the subscription
20 relationship between subscribers and an electric distribution
21 company. A subscriber administrator may also be a community
22 solar organization and may not be considered a utility solely as
23 a result of a subscriber administrator's operation or ownership
24 of a community solar facility.
25 "Subscription." A contract between a subscriber and a
26 subscriber administrator of a community solar facility that
27 entitles the subscriber to a bill credit against the
28 subscriber's retail electric bill.
29 "Threshold date." The date by which the commission has
30 approved a tariff filed by a utility under section 30A03(a)(3)
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 1 (v) (relating to community solar facilities, electric
2 distribution companies and subscriber administrators) and no
3 earlier than five years from the effective date.
4 "Unsubscribed energy." The output of a community solar
5 facility, measured in kilowatt hours, that is not allocated to
6 subscribers.
7 § 30A03. Community solar facilities, electric distribution
8 companies and subscriber administrators.
9 (a) Authorization.--The following shall apply:
10 (1) A community solar facility may be developed, built,
11 owned or operated by a third-party entity under contract with
12 a community solar organization or a subscriber administrator.
13 (2) A community solar organization may serve as a
14 subscriber administrator or may contract with a third party
15 to serve as a subscriber administrator on behalf of the
16 community solar organization.
17 (3) Subscribers to community solar facilities shall
18 receive a monetary bill credit for every kilowatt hour
19 produced by their subscription that may be used to offset any
20 part of the subscriber's electric bill. The following shall
21 apply:
22 (i) A community solar facility that demonstrates
23 before the threshold date an executed interconnection
24 agreement, proof of site control, all required
25 nonministerial permits and proof that the project is in
26 compliance with section 30A10 (relating to prevailing
27 wage for construction of community solar facilities)
28 shall, for 25 years from utility permission to operate,
29 have the initial and any replacement subscribers of that
30 facility receive a bill credit equivalent to the electric
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 1 distribution company's price to compare. Within 90 days
2 of the effective date of this chapter, the utilities
3 shall file a tariff making the bill credit described
4 herein available. The commission shall approve the tariff
5 within 180 days of the initial filing.
6 (ii) A community solar facility that demonstrates
7 after the threshold date an executed interconnection
8 agreement, proof of site control, all required non-
9 ministerial permits and proof that the project is in
10 compliance with section 30A10 shall, for 25 years from
11 utility permission to operate, have the initial and any
12 replacement subscribers of that facility receive a bill
13 credit as determined by the commission that considers the
14 electric distribution company's value stack as described
15 in subparagraph (iv), and ensures that community solar
16 facilities are created as intended under section 30A01
17 (6)(ii) (relating to findings and declarations).
18 (iii) Subscribers to a single community solar
19 facility may not be permitted to receive compensation
20 from a bill credit described in subparagraph (ii) if the
21 community solar facility receives a grid services payment
22 authorized by section 30A09 (relating to grid services
23 payment).
24 (iv) The value stack shall consist of at least the
25 following:
26 (A) The PJM day ahead energy price.
27 (B) A capacity value based on the PJM ELCC
28 method for solar, wind and storage, as applicable.
29 (C) The environmental value as set and made
30 available by subsection (b) of the AEPS or its
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 1 successor.
2 (D) An avoided distribution and transmission
3 value determined by the commission. The avoided
4 distribution and transmission value shall at least:
5 (I) Use a 25-year view of avoided grid
6 infrastructure costs.
7 (II) Use a load forecast that aligns with
8 State and regional trends and goals.
9 (III) Require utility data and calculation
10 transparency.
11 (IV) Not be overly narrow in the scope of
12 what is avoidable whether the community solar
13 facility is paired with or not.
14 (v) The commission shall solicit feedback on the
15 criteria for determining the value stack through an
16 informal workshop process and shall solicit formal
17 written comments from stakeholders. After the formal
18 written comments, the commission shall propose the
19 specific methodology for determining the value stack
20 based on the criteria through a docketed proceeding.
21 Within 60 days of the approval of the methodology, the
22 commission shall use the approved methodology to
23 calculate the value stack for each utility. Within 180
24 days of the commission determination of the value stack
25 for each utility, the commission shall approve a tariff
26 based on the value stack making the bill credit value
27 determined by the commission under subparagraph (ii)
28 available to subscribers. The commission shall approve
29 the tariffs within five years of the effective date of
30 this chapter.
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 1 (vi) Subscription costs for low-income subscribers
2