Bill Summary – FastDemocracy

PRINTER'S NO.   1648
                  THE GENERAL ASSEMBLY OF PENNSYLVANIA
          SENATE RESOLUTION
             No. 295
                                              Session of
                                                2024
     INTRODUCED BY COLEMAN, PENNYCUICK, ARGALL, FLYNN, VOGEL,
        PHILLIPS-HILL, BROWN AND CULVER, MAY 29, 2024
     REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MAY 29, 2024
                               A RESOLUTION
 Directing the Joint State Government Commission, along with the
    Pennsylvania Public Utility Commission, the Department of
    Community and Economic Development and the Department of
    Environmental Protection, to conduct an assessment and
    develop recommendations with the intention of establishing a
    comprehensive State energy strategy for this Commonwealth.
    WHEREAS, Electricity is a basic need, essential to every
 resident, business and community in Pennsylvania; and
    WHEREAS, Pennsylvania's economy and ability to sustain a
 competitive business environment and build strong communities
 relies on affordable, reliable and resilient production,
 transmission and delivery of electricity; and
    WHEREAS, Businesses, communities and homeowners benefit from
 and demand energy supply availability from a diverse portfolio
 of resources to support the delivery of reliable electricity 24
 hours per day, 7 days per week and 365 days per year; and
    WHEREAS, Federal and State policies to integrate renewable
 resources have spurred the rapid evolution of scalable
 nonthermal energy resources regionally, in PJM Interconnection,
 LLC (PJM), the regional transmission organization of which
 Pennsylvania electric utilities are founding members; and
       WHEREAS, As the PJM markets continue to integrate an
 accelerated new resource mix, resource adequacy, generator
 performance and supply reliability have been called into
 question as a total of 40 gigawatts of reliable, dispatchable
 generation are anticipated to be retired by 2030; and
       WHEREAS, Pennsylvania is the largest net exporter of
 generation in PJM, and regional generation retirements, whether
 driven by State policies within PJM, Federal policies or
 economic factors, could result in a gap between the available
 generation resources in PJM and the number of megawatts required
 to meet regional system load; and
       WHEREAS, The ability of PJM to maintain a robust, transparent
 and nondiscriminatory wholesale market is essential to the
 success of Pennsylvania's competitive electricity market; and
       WHEREAS, PJM and its market rules are regulated by the
 Federal Energy Regulatory Commission (FERC); and
       WHEREAS, Certain recent actions by FERC and PJM could lead to
 higher costs to Pennsylvania consumers, jeopardize reliability
 in the region and erode the benefits Pennsylvania has achieved
 since the passage of the Electricity Generation Customer Choice
 and Competition Act in 1996; and
       WHEREAS, PJM and other electric grid operators, serving more
 than 40% of the United States population in 35 states and the
 District of Columbia, are calling on regulators to strengthen
 natural gas networks and market rules to help prevent energy
 emergencies related to weather conditions such as winter storms;
 and
       WHEREAS, National trade associations representing natural gas
 suppliers and marketers, interstate natural gas pipelines and
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 competitive natural-gas-fired generators have proposed changes
 in gas markets to mitigate the threat to continued supplies in
 extreme weather; and
    WHEREAS, PJM, like all regional transmission organizations,
 is a voluntary organization and Pennsylvania's utilities can
 leave PJM's markets if those markets are no longer supportive of
 Pennsylvania's energy policies; and
    WHEREAS, It is in the interest of this Commonwealth to
 proactively evaluate the changing generation mix, both in
 Pennsylvania and in PJM, and develop recommendations for a State
 energy plan that ensures resource adequacy while also driving
 economic development in this Commonwealth; therefore be it
    RESOLVED, That the Senate direct the Joint State Government
 Commission, in consultation with the Pennsylvania Public Utility
 Commission, along with the Department of Community and Economic
 Development and the Department of Environmental Protection, to
 conduct an assessment and issue recommendations that can serve
 as the basis for a comprehensive State energy strategy, which
 shall include:
        (1)   An evaluation of Pennsylvania's electric utility
    participation in PJM, including benefits, risks and costs to
    the energy security of this Commonwealth.
        (2)   An evaluation of the options available to
    Pennsylvania under current Federal law and PJM tariffs that
    would allow Pennsylvania to remain in PJM without
    compromising the Commonwealth's energy policy.
        (3)   An evaluation of the options available to
    Pennsylvania if its utilities left PJM and the possible
    benefits and consequences associated with such an action.
        (4)   An evaluation of Pennsylvania's advocacy efforts
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  before PJM and FERC to determine if they are sufficiently
  advancing the Commonwealth's interests.
      (5)    An evaluation of Pennsylvania's options under State
  law to secure a reliable supply of power for the
  Commonwealth's consumers in the face of other states'
  policies that reduce the available supply of power in the PJM
  region.
      (6)    Identification of the need for new and existing
  energy generation resources to serve current and expected
  load growth in this Commonwealth, including future economic
  development and growth in high-energy use sectors, such as
  advanced manufacturing, health care and data centers.
      (7)    A review of Pennsylvania's current generation
  capacity, the actual portfolio mixes from 5, 10 and 15 years
  ago, and the forecasted change to the portfolio for 5, 10 and
  15 years in the future.
      (8)    A review of the need for additional electrical
  transmission and natural gas pipeline infrastructure, as well
  as increased coordination between electric and natural gas
  markets, to ensure adequate electric generation capacity in
  this Commonwealth.
      (9)    A review of current State energy programs and
  mandates in light of Federal energy policies, including the
  act of October 15, 2008 (P.L.1592, No.129) (Act 129), and
  recommendations of what should be created, eliminated or
  modified to advance electricity resource adequacy,
  reliability and affordability in this Commonwealth.
      (10)    Proposed actions that may be taken to enable the
  commercialization and deployment of new generation
  technologies to sustain and promote the availability of
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    generation resources required to meet customer demand in this
    Commonwealth today and in the future, including carbon
    capture and sequestration technologies, small modular nuclear
    reactors, long duration energy storage solutions and
    hydrogen.
        (11)     A review of alternative energy portfolio standards
    mandates from Act 129, how they compare to our neighboring
    states, and the impact that those mandates have had on
    generation capacity in this Commonwealth and our neighbors to
    include an analysis of baseload generation capacity.
        (12)     Consultation with Federal and other State agencies
    as necessary, as well as PJM, academic institutions, business
    and energy sector representatives and other relevant
    stakeholders deemed by the Joint State Government Commission
    as necessary to represent the diverse energy and economic
    interests of this Commonwealth;
 and be it further
    RESOLVED, That the Joint State Government Commission, on
 behalf of itself, the Pennsylvania Public Utility Commission,
 the Department of Community and Economic Development and the
 Department of Environmental Protection, submit its final report
 no later than 12 months after the adoption of this resolution to
 the following:
        (1)     The Governor.
        (2)     The chairperson of the Pennsylvania Public Utility
    Commission.
        (3)     The Secretary of Community and Economic Development.
        (4)     The Secretary of Environmental Protection.
        (5)     The chairperson and minority chairperson of the
    Consumer Protection and Professional Licensure Committee of
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   the Senate.
       (6)   The chairperson and minority chairperson of the
   Environmental Resources and Energy Committee of the Senate.
       (7)   The chairperson and minority chairperson of the
   Consumer Protection, Technology and Utilities Committee of
   the House of Representatives.
       (8)   The chairperson and minority chairperson of the
   Environmental Resources and Energy Committee of the House of
   Representatives.
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