Bill Summary – FastDemocracy

PRINTER'S NO.   1647
                     THE GENERAL ASSEMBLY OF PENNSYLVANIA
                         HOUSE BILL
                         No. 1467
                                               Session of
                                                 2023
     INTRODUCED BY OTTEN, MADDEN, SCHLOSSBERG, KHAN, VITALI, SANCHEZ,
        HILL-EVANS, GUENST, WARREN, FLEMING, BRENNAN, KRAJEWSKI,
        SCHWEYER, INNAMORATO, ISAACSON, N. NELSON, BRIGGS,
        SHUSTERMAN, DALEY, FREEMAN, GREEN, FRANKEL AND SALISBURY,
        JUNE 21, 2023
     REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
        JUNE 21, 2023
                                    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; providing for solar photovoltaic
    technology requirements, for community solar program
    standards and for contracts for solar photovoltaic
    technologies by Commonwealth agencies; further providing for
    portfolio requirements in other states; and making a repeal.
    The General Assembly of the Commonwealth of Pennsylvania
 hereby enacts as follows:
    Section 1.    The definition of "reporting period" in section 2
 of the act of November 30, 2004 (P.L.1672, No.213), known as the
 Alternative Energy Portfolio Standards Act, is amended and the
 section is amended by adding definitions 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:
    * * *
    "Community solar bill credit."     The number of kilowatt hours
 of electricity generated by a community solar facility and
 allocated to a subscriber's monthly bill to offset any part of
 the subscriber's retail electric bill other than volumetric or
 demand-based distribution charges.
    "Community solar facility."     A facility that meets all of the
 following criteria:
        (1)   Generates electricity by means of a solar
    photovoltaic device by which subscribers receive a community
    solar bill credit for the electricity generated proportional
    to the size of the subscriptions.
        (2)   Is located within this Commonwealth.
        (3)   Is connected to and delivers electricity to a
    distribution system operated by an electric distribution
    company operating in this Commonwealth and in compliance with
    the requirements of this act.
        (4)   Generates electricity by means of a solar
    photovoltaic device with a nameplate capacity rating that
    does not exceed 5,000 kilowatts of alternating current.
        (5)   Has at least two subscribers.
        (6)   If the facility has a nameplate capacity rating
    greater than 3,000 kilowatts of alternating current, the
    facility has with no single subscriber who subscribes to more
    than 50% of the facility capacity in kilowatts or output in
    kilowatt hours, except for a master-metered multifamily
    residential and commercial building.
        (7)   If the facility has a nameplate capacity rating
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    greater than 3,000 kilowatts of alternating current, no less
    than 50% of the facility capacity is subscribed by
    subscriptions of 25 kilowatts or less.
        (8)     Credits some or all of the facility-generated
    electricity to the bills of subscribers.
        (9)     May be located remotely from a subscriber's premises
    and may not be required to provide energy to on-site load.
        (10)     Is connected to existing or new retail electric
    distribution customer accounts within the same electric
    distribution company's service territory.
        (11)     Is owned or operated by a community solar
    organization.
    "Community solar organization."        As follows:
        (1)     An entity that owns or operates a community solar
    facility that may not be required to:
               (i)    be an existing retail electric customer;
               (ii)    purchase electricity directly from an electric
        distribution company; or
               (iii)    serve electric load independent of the
        community solar facility or operate under an account held
        by the same individual or legal entity of the subscribers
        to the community solar facility.
        (2)     For the purposes of this definition, a community
    solar organization may not be deemed a utility solely as a
    result of its ownership or operation of a community solar
    facility.
    * * *
    "Low-income customer."      A retail residential end user of an
 electric distribution company whose household income does not
 exceed 200% of the Federal poverty level, adjusted for family
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 size, as published periodically in the Federal Register by the
 United States Department of Health and Human Services as
 specified under 42 U.S.C. § 9902(2) (relating to definitions).
    * * *
    ["Reporting period."     The 12-month period from June 1 through
 May 31. A reporting year shall be numbered according to the
 calendar year in which it begins and ends.]
    "Reporting period" or "reporting year."     The 12-month period
 from June 1 through May 31. A reporting period or reporting year
 shall be numbered according to the calendar year in which it
 begins and ends.
    * * *
    "Subscriber."     An electric distribution customer of an
 electric distribution company who contracts for a subscription
 of a community solar facility interconnected with the customer's
 electric distribution company. The term includes an electric
 distribution customer who owns a portion of a community solar
 facility.
    "Subscriber administrator."     An entity that recruits and
 enrolls subscribers, administers subscriber participation in a
 community solar facility and manages the subscription
 relationship between subscribers and an electric distribution
 company. The term may include a community solar organization.
 For the purposes of this definition, a subscriber administrator
 may not be considered a utility solely as a result of the
 subscriber administrator's operation or ownership of a community
 solar facility.
    "Subscription."     A contract between a subscriber and a
 subscriber administrator of a community solar facility that
 entitles the subscriber to a community solar bill credit against
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 the subscriber's retail electric bill.
    * * *
    Section 2.     Section 3(a)(3)(ii), (b) heading, (1), (2)
 introductory paragraph and (xv) and (3), (f)(1), (2), (3) and
 (4) and (g) heading and (2) of the act are amended, subsection
 (f) is amended by adding paragraphs and the section is amended
 by adding a subsection to read:
 Section 3.     Alternative energy portfolio standards.
    (a)   General compliance and cost recovery.--
          * * *
          (3)   All costs for:
                * * *
                (ii)    payments for alternative energy credits, in
          both cases that are voluntarily acquired by an electric
          distribution company during the cost recovery period on
          behalf of its customers shall be deferred as a regulatory
          asset by the electric distribution company and fully
          recovered, with a return on the unamortized balance,
          pursuant to an automatic energy adjustment clause under
          66 Pa.C.S. § 1307 (relating to sliding scale of rates;
          adjustments) as a cost of generation supply under 66
          Pa.C.S. § 2807 (relating to duties of electric
          distribution companies) in the first year after the
          expiration of its cost-recovery period. After the cost-
          recovery period, any direct or indirect costs for the
          purchase by electric distribution companies of resources
          to comply with this section, including, but not limited
          to, the purchase of electricity generated from
          alternative energy sources, payments for alternative
          energy credits, cost of credits banked, payments to any
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          third party administrators for performance under this act
          and costs levied by a regional transmission organization
          to ensure that alternative energy sources are reliable,
          shall be recovered on a full and current basis pursuant
          to an automatic energy adjustment clause under 66 Pa.C.S.
          § 1307 as a cost of generation supply under 66 Pa.C.S. §
          2807.
    (b)   Tier I and solar photovoltaic shares through the 17th
 reporting year.--
          (1)   Two years after the effective date of this act, at
    least 1.5% of the electric energy sold by an electric
    distribution company or electric generation supplier to
    retail electric customers in this Commonwealth shall be
    generated from Tier I alternative energy sources. Except as
    provided in this section, the minimum percentage of electric
    energy required to be sold to retail electric customers from
    alternative energy sources shall increase to 2% three years
    after the effective date of this act. The minimum percentage
    of electric energy required to be sold to retail electric
    customers from alternative energy sources shall increase by
    at least 0.5% each year so that at least 8% of the electric
    energy sold by an electric distribution company or electric
    generation supplier to retail electric customers in that
    certificated territory in the [15th] 17th reporting year
    after the effective date of this subsection is sold from Tier
    I alternative energy resources.
          (2) [The] Through the 17th reporting year ending May 31,
    2023, 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
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    be sold from solar photovoltaic technologies is:
              * * *
              (xv)    0.5000% for June 1, 2020, [and thereafter]
        through May 31, 2023.
        (3)   Upon commencement of the beginning of the 6th
    reporting year, the commission shall undertake a review of
    the compliance by electric distribution companies and
    electric generation suppliers with the requirements of this
    act. The review shall also include the status of alternative
    energy technologies within this Commonwealth and the capacity
    to add additional alternative energy resources. [The
    commission shall use the results of this review to recommend
    to the General Assembly additional compliance goals beyond
    year 15.] The commission shall work with the department in
    evaluating the future alternative energy resource potential.
    (b.1)   Tier I and solar photovoltaic shares beginning in the
 18th reporting year.--
        (1)   Each electric distribution company and electric
    generation supplier shall purchase, at a minimum, an amount
    of Tier I alternative energy credits equal to the percentage
    of electric energy required to be sold by an electric
    distribution company or electric generation supplier to
    retail electric customers from Tier I alternative energy
    sources for that reporting year and as provided under this
    paragraph. Beginning in the 18th reporting year commencing on
    June 1, 2023, the minimum percentage of electric energy
    required to be sold by an electric distribution company or
    electric generation supplier to retail electric customers in
    this Commonwealth from Tier I alternative energy sources for
    each reporting year is:
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            (i)     12.89% for June 1, 2023, through May 31, 2024.
            (ii)     15.33% for June 1, 2024, through May 31, 2025.
            (iii)    17.78% for June 1, 2025, through May 31, 2026.
            (iv)     20.22% for June 1, 2026, through May 31, 2027.
            (v)     22.66% for June 1, 2027, through May 31, 2028.
            (vi)     25.11% for June 1, 2028, through May 31, 2029.
            (vii)    27.55% for June 1, 2029, through May 31, 2030.
            (viii)       30.00% for June 1, 2030, through May 31,
      2031.
      (2)     An electric generation supplier with an existing
  written supply contract in effect before the effective date
  of this paragraph shall be exempt from purchasing increased
  Tier I alternative energy credits under paragraph (1) for the
  quantity of load supplied under the existing contract until
  the supply contract expires. The limited exemption for the
  quantity of load supplied under an existing contract shall
  not lead to a reallocation of exempt load requirements to any
  other electric generation supplier.
      (3)     The following shall apply:
            (i)     Beginning in the 18th reporting year commencing
      on June 1, 2023, the minimum 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 that are owned and operated by
      customer-generators is:
                   (A)    1.00% for June 1, 2023, through May 31,
            2024.
                   (B)    1.26% for June 1, 2024, through May 31,
            2025.
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                   (C)   1.59% for June 1, 2025, through May 31,
            2026.
                   (D)   1.97% for June 1, 2026, through May 31,
            2027.
                   (E)   2.38% for June 1, 2027, through May 31,
            2028.
                   (F)   2.83% for June 1, 2028, through May 31,
            2029.
                   (G)   3.36% for June 1, 2029, through May 31,
            2030.
                   (H)   4.00% for June 1, 2030, through May 31,
            2031.
            (ii)    For the purposes of the requirements under
      subparagraph (i), solar photovoltaic technologies that
      are owned and operated by customer-generators shall
      include any of the following:
                   (A)   Solar photovoltaic technologies that were
            certified before or on May 31, 2023, under subsection
            (b)(2) and qualify to generate solar alternative
            energy credits in accordance with section 3.1.
                   (B)   Solar photovoltaic technologies that qualify
            as customer-generators certified under subsection (b)
            (2).
      (4)   Beginning in the 18th reporting year commencing on
  June 1, 2023, and each reporting year thereafter, a solar
  photovoltaic system that is certified on or before May 31,
  2023 and meets the requirements under section 3.1 shall be
  included in the percentage of the required solar photovoltaic
  energy systems owned and operated by customer-generators
  under paragraph (3).
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      (5)   A solar photovoltaic energy system owned and
  operated by a customer-generator in accordance with paragraph
  (4) shall remain eligible to receive solar alternative energy
  credits for no more than 15 years beginning on June 1, 2023,
  or 15 years beginning on the date of the solar photovoltaic
  energy system's certification if the certification occurs
  after June 1, 2023. Upon expiration of the 15-year period
  specified under this paragraph, the solar photovoltaic energy
  system shall be eligible for alternative energy credits
  provided for Tier I alternative energy sources under
  paragraph (1).
      (6)   Beginning in the 18th reporting year commencing on
  June 1, 2023, the minimum 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 that are owned and operated by community solar
  organizations is:
            (i)     0.00% for June 1, 2023, through May 31, 2024.
            (ii)     0.35% for June 1, 2024, through May 31, 2025.
            (iii)    0.95% for June 1, 2025, through May 31, 2026.
            (iv)     1.55% for June 1, 2026, through May 31, 2027.
            (v)     1.70% for June 1, 2027, through May 31, 2028.
            (vi)     1.80% for June 1, 2028, through May 31, 2029.
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