PRINTER'S NO. 1592
No. 1371 Session of 1989
INTRODUCED BY BROUJOS, FOX, MICHLOVIC, HAYDEN, ACOSTA, BARLEY,
BELARDI, BISHOP, BLAUM, BORTNER, BOWLEY, BURNS, CALTAGIRONE,
CAPPABIANCA, CARN, CAWLEY, CIVERA, B. D. CLARK, CLYMER,
COHEN, COLE, CORRIGAN, CORNELL, COWELL, COY, DEMPSEY,
DIETTERICK, DONATUCCI, DURHAM, EVANS, FAIRCHILD, FEE, FOSTER,
FREEMAN, FREIND, GAMBLE, GIGLIOTTI, GODSHALL, HAGARTY,
HARPER, HECKLER, HERMAN, HOWLETT, HUGHES, JACKSON, JAROLIN,
JOSEPHS, KUKOVICH, LASHINGER, LEVDANSKY, LINTON, MAIALE,
MAINE, McHALE, MILLER, MORRIS, MRKONIC, MURPHY, NAHILL,
O'DONNELL, OLIVER, PETRONE, PHILLIPS, PICCOLA, PISTELLA,
PRESSMANN, PRESTON, RIEGER, RITTER, ROEBUCK, RUDY, RYBAK,
SALOOM, SCHEETZ, B. SMITH, G. SNYDER, STABACK, STUBAN,
J. TAYLOR, THOMAS, TIGUE, TRELLO, VEON, VROON, WESTON,
WILLIAMS AND WILSON, MAY 1, 1989
REFERRED TO COMMITTEE ON CONSERVATION, MAY 1, 1989
AN ACT
1 Amending the act of January 8, 1960 (1959 P.L.2119, No.787),
2 entitled, as amended, "An act to provide for the better
3 protection of the health, general welfare and property of the
4 people of the Commonwealth by the control, abatement,
5 reduction and prevention of the pollution of the air by
6 smokes, dusts, fumes, gases, odors, mists, vapors, pollens
7 and similar matter, or any combination thereof; imposing
8 certain powers and duties on the Department of Environmental
9 Resources, the Environmental Quality Board and the
10 Environmental Hearing Board; establishing procedures for the
11 protection of health and public safety during emergency
12 conditions; creating a stationary air contamination source
13 permit system; providing additional remedies for abating air
14 pollution; reserving powers to local political subdivisions,
15 and defining the relationship between this act and the
16 ordinances, resolutions and regulations of counties, cities,
17 boroughs, towns and townships; imposing penalties for
18 violation of this act; and providing for the power to enjoin
19 violations of this act; and conferring upon persons aggrieved
20 certain rights and remedies," providing for an acid
21 deposition control program; providing for promotion and use
22 of coal produced in Pennsylvania; and providing for
1 additional powers and duties of the Department of
2 Environmental Resources and the Environmental Quality Board.
3 The General Assembly finds and declares as follows:
4 (1) Acid deposition, commonly referred to as "acid
5 rain," resulting from emissions of acid deposition precursors
6 from other than natural sources, is occurring throughout this
7 Commonwealth.
8 (2) Acid deposition has significant and diverse effects
9 upon the Commonwealth's environment, by degrading natural
10 ecosystems, including streams, lakes, aquatic life and
11 wildlife and their habitat; on the economy of this
12 Commonwealth, by causing declines in revenue from outdoor
13 activities and tourism; upon human made objects such as
14 structures and statuary; on public water supplies; and on
15 public health, welfare and safety. There are substantial
16 indications that acid deposition may adversely affect
17 agricultural crops and forests.
18 (3) Although major sources of acid deposition precursors
19 are located within the Midwestern United States and certain
20 provinces of Canada, emissions from sources within this
21 Commonwealth contribute significantly to acid deposition
22 within this Commonwealth. Four-fifths of sulfur dioxide
23 emissions in this Commonwealth are produced by steam electric
24 generating facilities within this Commonwealth. Among all
25 states, our State suffers the greatest amount of damage from
26 acid deposition.
27 (4) Proposed Federal legislation before the Congress of
28 the United States would require national sulfur dioxide
29 emissions to be reduced, in the 1990's, to a level that is at
30 least ten million (10,000,000) tons per year lower than the
19890H1371B1592 - 2 -
1 national sulfur dioxide emissions in 1980 and such Federal
2 legislation would significantly reduce acid deposition in the
3 Northeastern United States. Pennsylvania's required share of
4 emissions reductions under this Federal program would be
5 approximately 846,000 tons of sulfur per year or about 41%
6 lower than total State emissions in 1980.
7 (5) The persistent efforts to enact Federal legislation
8 have been in response to the serious threat of acid
9 deposition and indicate widespread support for emissions
10 control. Federal or regional direction and coordination of
11 emission control legislation are desirable, because of the
12 interstate transportation of acid deposition precursors and
13 adverse interstate economic impact of diverse state laws.
14 State law may complement an overall Federal law. In the
15 absence of Federal legislation, an interstate acid deposition
16 control program is essential and would require out-of-state
17 emitters to pay their fair, societal cost of doing business
18 and preserving the environment. In the absence of an
19 interstate acid deposition control program, State control is
20 essential to reduce emissions and to establish in-place
21 requirements.
22 (6) Control technology is now available to remove more
23 than 90% of sulfur dioxide and significant portions of nitric
24 oxides from emissions. Such control technology can and should
25 be installed, with the cost thereof shared equitably among
26 levels of government, utilities and utility users.
27 (7) Implementation of a control program will minimize
28 the impact on, and may enhance the use by, Pennsylvania
29 generating plants of coal produced in Pennsylvania.
30 Requirement of control technology will tend to minimize fuel
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1 switching and preserve and promote our significant reserves
2 of coal as an alternative source of energy to oil in the
3 event of reduced availability resulting from international
4 political disruption.
5 (8) Continuing studies of out-of-State and in-State
6 sources and control of emissions, together with coordination
7 of public and private pollution control research are
8 desirable.
9 (9) The policy of this Commonwealth shall be to
10 implement the mandate in section 27 of Article I of the
11 Constitution of Pennsylvania by protecting the environment
12 from irreparable damage from air pollution, including the
13 emission, transmission and deposition of sulfur dioxides and
14 nitrogen oxides, to the degree necessary for the:
15 (i) protection of public health, safety and well
16 being of its citizens;
17 (ii) prevention of injury to aquatic, plant and
18 wildlife and to property;
19 (iii) protection of the recreational resources of
20 this Commonwealth; and
21 (iv) development, attraction and expansion of
22 industry, commerce, tourism and agriculture by an acid
23 deposition control program.
24 (10) The policy of this Commonwealth shall be to develop
25 an effective program of clean coal technology and emission
26 controls to promote and enhance the use of Pennsylvania coal
27 in the national economy and as a viable potential source of
28 energy in the event of reduced oil supplies resulting from
29 international political disruption.
30 (11) A Federal or interstate acid deposition control
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1 program is desirable. In the absence thereof, a State acid
2 deposition control program is required to safeguard public
3 health and to protect the environment, economy and
4 infrastructure from irreparable damage from acid deposition.
5 The intent of this amendatory act is to establish a State
6 acid deposition control program that sets forth a procedure
7 for the control of emissions of acid deposition precursors
8 from sources within this Commonwealth, while pursuing an
9 interstate program. A State program would approximate
10 Pennsylvania's share of the required national reduction under
11 Federal studies and would demonstrate the willingness of the
12 Commonwealth to bear its fair share of the burden for acid
13 deposition control. It is the further intent of the General
14 Assembly that any reductions in acid deposition made in this
15 Commonwealth pursuant to this amendatory act should be fully
16 credited against Pennsylvania's share in any future Federal
17 acid deposition control program.
18 (12) The policy of this Commonwealth shall be that the
19 cost of administering the State acid deposition control
20 program shall be borne by all people in this Commonwealth
21 because acid rain effects everyone.
22 The General Assembly of the Commonwealth of Pennsylvania
23 hereby enacts as follows:
24 Section 1. Section 3(4) of the act of January 8, 1960 (1959
25 P.L.2119, No.787), known as the Air Pollution Control Act,
26 amended October 26, 1972 (P.L.989, No.245), is amended and the
27 section is amended by adding clauses to read:
28 Section 3. Definitions.--The following words and phrases,
29 when used in this act, unless the context clearly indicates
30 otherwise, shall have the meaning ascribed to them in this
19890H1371B1592 - 5 -
1 section:
2 * * *
3 (4) "Air contaminant." Smoke, dust, fume, gas, odor, mist,
4 vapor, pollen, acid deposition precursor or any combination
5 thereof.
6 * * *
7 (11) "Acid deposition." The wet or dry deposition from the
8 atmosphere of chemical compounds, usually in the form of rain or
9 snow, having the potential to form an aqueous compound with a pH
10 level lower than the level considered normal under natural
11 conditions, or lower than 5.6, whichever is less.
12 (12) "Acid deposition precursor." Sulfur dioxide or oxides
13 of nitrogen.
14 (13) "Best available control technology." An emission
15 limitation or equipment standard based on the maximum degree of
16 reduction which the department determines is achievable on a
17 case-by-case basis, taking into account energy, economic,
18 environmental and health impacts and other costs related to the
19 source.
20 (14) "Coal." Bituminous coal, lignite coal or anthracite.
21 (15) "Conversion or modification." Any construction,
22 reconstruction, addition to or alteration of any electric
23 utility unit, boiler unit or major industrial process or other
24 physical changes to allow burning of coal as a boiler fuel.
25 (16) "Emission." The release of acid deposition precursors
26 into the atmosphere from any electric utility unit, boiler unit
27 or major industrial process.
28 (17) "Fossil fuel." Coal, petroleum products and fuel
29 gases.
30 (18) "Major electric utility steam generating units" or
19890H1371B1592 - 6 -
1 "electric utility units." A steam electric generating facility
2 with a generating capacity of fifty thousand (50,000) kilowatts
3 or more which burns fossil fuel.
4 (19) "Major industrial boiler units" or "boiler units."
5 Fossil fuel fired steam generating units other than electric
6 utility units that emit acid deposition precursors in excess of
7 one hundred (100) tons per year.
8 (20) "Major industrial processes." Any stationary sources
9 other than major electric utility units and major boiler units
10 that will emit acid deposition precursors in excess of one
11 hundred (100) tons per year and is granted a permit pursuant to
12 section 6.1 of this act.
13 (21) "New emission source." Any new electric utility unit,
14 boiler unit or major industrial process that will emit acid
15 deposition precursors in excess of one hundred (100) tons per
16 year, and is granted a permit pursuant to section 6.1 of this
17 act.
18 (22) "New source performance standard." A standard
19 developed by the department which sets limitations for emission
20 of acid deposition precursors from new electric utility units,
21 boiler units or major industrial process.
22 (23) "Secretary." The Secretary of Environmental Resources
23 of the Commonwealth.
24 Section 2. Section 4(18) and (19) of the act, amended
25 October 26, 1972 (P.L.989, No.245), are amended and the section
26 is amended by adding clauses to read:
27 Section 4. Powers and Duties of the Department of
28 Environmental Resources.--The department shall have power and
29 its duty shall be to--
30 * * *
19890H1371B1592 - 7 -
1 (18) Cooperate with the appropriate agencies of the United
2 States or of other states or any interstate agencies with
3 respect to the control, prevention, abatement and reduction of
4 air pollution, and where appropriate formulate interstate air
5 pollution control compacts or agreements for the submission
6 thereof to the General Assembly; and prepare and implement
7 provisions with respect to an interstate acid deposition control
8 program as set forth in section 7.1 of this act.
9 (19) Serve as the agency of the Commonwealth for the receipt
10 of moneys from the Federal government or other public or private
11 agencies, and expend such moneys for studies and research with
12 respect to air contaminants, air pollution and acid deposition
13 and the control, prevention, abatement and reduction of air
14 pollution and acid deposition.
15 * * *
16 (21) Take action within the scope of responsibilities
17 required under this act to reduce the impact upon the State's
18 power generating and coal industries and utility consumers of
19 Federal and other State actions adverse to or affecting their
20 interests, including, but not limited to, competitive energy
21 costs and power rates; and, where executive action is
22 insufficient, to promptly recommend to the General Assembly
23 legislative initiatives required to protect such interests.
24 (22) Determine if, at any time during implementation of the
25 emission control program under this act, any cost differential
26 between the cost of fuel utilizing compliance technology set
27 forth in section 7.3 of this act in conjunction with coal
28 produced in Pennsylvania and the cost of fuel utilizing coal
29 from outside Pennsylvania. To this end, the secretary shall
30 promulgate regulations defining the terms set forth herein and
19890H1371B1592 - 8 -
1 the procedure for determining the cost differential, with an
2 opportunity for parties in interest to appear and be heard. The
3 secretary shall then report, with recommendations, to the
4 General Assembly: the nature, amount and basis for
5 determination of the cost differential; if required, methods of
6 reducing the cost differential, including but not limited to,
7 tax credits, rate base adjustment, operating cost subsidies and
8 other relief; and the impact on emission reduction goals and
9 schedules. Major considerations in these determinations shall be
10 to encourage the use of coal produced in Pennsylvania and to
11 discourage the use of coal produced outside Pennsylvania, and to
12 recognize coal as an alternative to oil as a source of energy in
13 the event of reduced availability of oil resulting from
14 international political disruption.
15 (23) Coordinate the research and development of acid
16 deposition and clean coal technology conducted by public
17 agencies, private agencies and institutions, and institutions of
18 higher education that are State-related, State-supported and
19 State-aided, receiving State funds relating thereto.
20 (24) Implement immediately the coal desulfurization research
21 center project authorized under the act of December 6, 1982
22 (P.L.771, No.222), entitled "A supplement to the act of July 1,
23 1981 (P.L.142, No.47), entitled 'An act providing for the
24 capital budget for the fiscal year 1981-1982.'"
25 (25) Conduct studies of nitrogen oxides from electric
26 utility units and boiler units in the Commonwealth in order to
27 identify and calculate the total Statewide potential reduction
28 of emissions of nitrogen oxide economically and technically
29 achievable by December 31, 1998. A report of the studies and
30 recommended reduction values shall be submitted to the board for
19890H1371B1592 - 9 -
1 adoption no later than three years from the effective date of
2 this clause.
3 (26) Submit a report to the General Assembly, no later than
4 one year after the effective date of this act, containing the
5 results of a study conducted by the department to determine the
6 impact upon the environment and the economy of the Commonwealth
7 resulting from both the imposition of and the lack of imposition
8 of emission controls, including risks, benefits and the general
9 costs to utility and utility users in the long term and the
10 short term.
11 (27) Submit a report annually to the General Assembly
12 containing the results of a review of the implementation,
13 operation and effectiveness of the acid deposition control
14 program with recommendations for revising the program, including
15 acceleration of goals and schedules, if indicated.
16 (28) Submit a report to the General Assembly three and one
17 half years after the effective date of the sulfur deposition
18 control program containing the following:
19 (i) The results of the study conducted by the department to
20 determine the reduction achieved pursuant to phase I
21 requirements under section 7.2 of this act.
22 (ii) The feasibility of meeting phase II requirements
23 specified in section 7.2 of this act.
24 (iii) Recommendations to modify or improve the program, if
25 necessary.
26 (29) Submit a report to the General Assembly ten and one
27 half years after the effective date of the sulfur deposition
28 control program containing the following:
29 (i) The results of a study conducted by the department to
30 determine the reduction achieved pursuant to phase II
19890H1371B1592 - 10 -
1 requirements under section 7.2 of this act.
2 (ii) The feasibility of meeting phase II requirements
3 specified in section 7.2.
4 (iii) Recommendations to modify or improve the program if
5 necessary.
6 Section 3. Section 5 of the act is amended by adding clauses
7 to read:
8 Section 5. Environmental Quality Board.--The board shall
9 have the power and its duty shall be to--
10 * * *
11 (7) Adopt acid deposition control programs for the
12 prevention, control, reduction and abatement of acid deposition
13 in the Commonwealth resulting from sulfur dioxide and nitrogen
14 oxide emissions from major electric utility generating units,
15 major industrial boiler units and industrial processes; and
16 adopt rules and regulations which establish the maximum
17 allowable emission rates of nitrogen oxides for electric utility
18 units and boiler units in the Commonwealth after the receipt of
19 the report required by section 4(25) of this act.
20 (8) Conduct public hearings to determine the effectiveness
21 and feasibility of any control technology devices. Any such
22 public hearings shall comply with the notice provisions and
23 other procedures set forth in section 7 of this act.
24 Section 4. Section 7 of the act is amended by adding a
25 subsection to read:
26 Section 7. Public Hearings.--* * *
27 (a.1) Public hearings, in number and at times and places as
28 determined by the board, shall be held by the board or by the
29 department, acting on behalf of and at the direction or request
30 of the board, in areas of the Commonwealth affected before any
19890H1371B1592 - 11 -
1 acid deposition control program regarding the control,
2 abatement, prevention or reduction of acid deposition is
3 adopted.
4 * * *
5 Section 5. The act is amended by adding sections to read:
6 Section 7.1. Interstate Acid Deposition Control Program.--
7 (a) The secretary shall, upon the enactment of this section,
8 prepare an interstate acid deposition control program for
9 presentation to adjacent states, whether contiguous or
10 noncontiguous, that are substantially affected by emissions
11 generated from Pennsylvania or which generate emissions that
12 substantially affect Pennsylvania. The program shall meet the
13 requirements of subsections (b) and (c) of this section. The
14 program shall be submitted to the General Assembly for approval.
15 (b) The program shall include goals, standards, objectives,
16 schedules, research and other matters relating to coordination
17 among the states of control of acid deposition.
18 (c) The secretary shall establish within the program a major
19 objective of achieving relative parity among the states in the
20 cost of production of energy through the use of coal as a fuel.
21 (d) For the purpose of implementing the program, the
22 secretary shall prepare an interstate compact for presentation
23 to and execution by the Commonwealth and affected states.
24 (e) The provisions of sections 7.2 and 7.3 of this act
25 continue in effect until such time as the General Assembly
26 enacts legislation implementing an interstate acid deposition
27 control program.
28 Section 7.2. Acid Deposition Control Program.--(a) The acid
29 deposition control program shall consist of a sulfur deposition
30 control program and a nitrogen deposition control program for
19890H1371B1592 - 12 -
1 electric utility units and boiler units and an acid deposition
2 control program for industrial processes.
3 (b) No later than nine (9) months after the effective date
4 of this section, the department shall:
5 (1) Develop a sulfur deposition control program which
6 establishes emission limitations and compliance schedules for
7 controlling emissions of sulfur dioxide from all major electric
8 utility steam generating units and major industrial boiler units
9 in the Commonwealth. The program shall meet the requirements of
10 subsections (c), (d), (e) and (f) of this section.
11 (2) Submit the program to the board for adoption pursuant to
12 section 5(7) of this act, after a public hearing on its merits
13 in compliance with the notice provisions and other procedures
14 set forth in section 7 of this act.
15 (c) The sulfur deposition control program shall require the
16 department to:
17 (1) Identify and publish a list or inventory of all electric
18 utility units and boiler units in the Commonwealth which emit
19 sulfur dioxide, including the type, nature and origin of the
20 fossil fuel used by such units.
21 (2) Determine the emission of sulfur dioxide from all
22 electric utility units and boiler units in the Commonwealth and
23 periodically update a comprehensive annual inventory on
24 emissions from these sources.
25 (3) Determine the amount of reduction of sulfur dioxide
26 emission for each electric utility unit and boiler unit needed
27 to achieve phase I, phase II and phase III requirements of
28 subsections (d), (e) and (f) of this section. The required
29 reduction values for each electric utility unit or boiler unit
30 will be based primarily on the size of the electric utility unit
19890H1371B1592 - 13 -
1 or boiler unit and the amount of emission.
2 (4) Establish and determine the method of compliance for
3 each electric utility unit and boiler unit in accordance with
4 section 7.3 of this act.
5 (d) Phase I requirements shall be as follows: No later than
6 three (3) years after the effective date of the program, the
7 Statewide emissions of sulfur dioxide (pounds per million Btu of
8 heat input) from the total of all electric utility units and
9 boiler units in the Commonwealth shall not exceed an average
10 quarterly rate of two (2.0) pounds per million Btu heat input.
11 To achieve this Statewide reduction target, the department shall
12 determine the amount and schedule of reduction for each electric
13 utility unit and boiler unit in accordance with subsection
14 (c)(3) of this section.
15 (e) Phase II requirements shall be as follows: No later than
16 ten (10) years after the effective date of the program, the
17 Statewide emissions from the total of all electric utility units
18 and boiler units in the Commonwealth shall not exceed an average
19 quarterly rate of 1.2 pounds per million Btu heat input of
20 sulfur dioxide. To achieve this Statewide reduction target, the
21 department shall determine the amount and schedule of reduction
22 for each electric utility unit or boiler unit in accordance with
23 subsection (c)(3) of this section.
24 (f) Phase III requirements shall be as follows: No later
25 than thirteen (13) years after the effective date of the
26 program, the Statewide emissions from the total of all electric
27 utility units and boiler units in the Commonwealth shall not
28 exceed an average quarterly rate of 0.9 pounds per million Btu
29 heat input of sulfur dioxide. To achieve this Statewide
30 reduction target, the department shall determine the amount and
19890H1371B1592 - 14 -
1 schedule of reduction for each electric utility unit or boiler
2 unit in accordance with subsection (c)(3) of this section.
3 (g) Phase III requirements of subsection (f) of this section
4 shall be effective unless the General Assembly, after the
5 receipt of the report as required by section 4(29) of this act,
6 enacts legislation providing that such requirements shall not
7 take effect.
8 (h) No later than three and one half (3 1/2) years after the
9 effective date of the act, the department shall:
10 (1) Develop a nitrogen deposition control program which
11 establishes emission limitations and compliance schedules for
12 controlling emissions of nitrogen oxides from all major electric
13 utility steam generating units and major industrial boiler units
14 in the Commonwealth. The program shall meet the requirements of
15 subsections (i) and (j) of this section.
16 (2) Submit the program to the board for adoption pursuant to
17 section 5(7) of this act, after a public hearing on its merits
18 in compliance with the notice provisions and other procedures
19 set forth in section 7 of this act.
20 (i) The nitrogen deposition control program shall require
21 the department to:
22 (1) Identify and publish a list or inventory of all electric
23 utility units and boiler units in the Commonwealth which emit
24 nitrogen oxides.
25 (2) Determine the emission of nitrogen oxides from all
26 electric utility units and boiler units in the Commonwealth and
27 periodically update a comprehensive annual inventory on
28 emissions from those sources.
29 (3) Determine the amount and schedule of reduction of
30 nitrogen oxides emission for each electric utility unit and
19890H1371B1592 - 15 -
1 boiler unit needed to achieve the total Statewide reduction of
2 nitrogen oxide emissions identified by the department under
3 section 4(25) of this act. The required reduction values for
4 each electric utility unit or boiler unit shall be based
5 primarily on the size of the unit and the amount of emission.
6 (4) Establish and determine the methods of compliance for
7 each electric utility unit and boiler unit in accordance with
8 section 7.3 of this act.
9 (j) No later than ten (10) years after the effective date of
10 this section, the Statewide emission of nitrogen oxides (pounds
11 per million Btu heat input) from the total of all electric
12 utility units and boiler units in the Commonwealth shall not
13 exceed an average quarterly rate as recommended by the
14 department under section 4(25) of this act and as adopted by the
15 board under sections 5(7) of this act. To achieve this Statewide
16 reduction target, the department shall determine the amount and
17 schedule of reduction for each electric utility unit or boiler
18 unit in accordance with subsection (i)(3) of this section.
19 (k) No later than two (2) years after the effective date of
20 the act, the department shall:
21 (1) Identify the total Statewide potential reductions in
22 emissions of sulfur dioxide and nitrogen oxides which are
23 economically and technically achievable by December 31, 1998, by
24 stationary source industrial process emissions in the
25 Commonwealth.
26 (2) Develop an acid deposition control program which
27 establishes emissions limitations and compliance schedules for
28 controlling emissions for sulfur dioxide and nitrogen oxides
29 from those stationary sources of industrial process, to be
30 achieved no later than ten (10) years after the effective date
19890H1371B1592 - 16 -
1 of this act.
2 (3) Submit the program to the board for adoption pursuant to
3 section 5(7) of this act after a public hearing on the merits of
4 the program in compliance with the notice provisions and other
5 procedures set forth in section 7 of this act.
6 Section 7.3. Compliance Measures.--(a) To achieve phase I,
7 phase II and phase III reduction targets as set forth in section
8 7.2 of this act, the department shall require the use of one or
9 more of the following control technology devices or any control
10 technology with an effectiveness at least comparable to the
11 devices listed in this section, as determined by the secretary
12 in accordance with section 5(8) of this act:
13 (1) The use of best available control technology at the time
14 of construction, reconstruction or substantial addition to or
15 alteration of a electric utility unit, boiler unit or industrial
16 process.
17 (2) The installation of flue gas desulfurization equipment
18 in an existing electric utility unit.
19 (3) The installation of fluidized bed boilers in an existing
20 electric utility unit, boiler unit or industrial process.
21 (4) For persons operating multiple boilers, the coordinated
22 operation of those boilers in existence on the effective date of
23 this act to minimize the discharge of sulfur dioxide from the
24 boilers.
25 (5) The precombustion cleaning of coal to lessen the amount
26 of operation of a facility or stationary source.
27 Section 7.4. Emission Offsets and Credits.--For the purposes
28 of determining the attainment of or compliance with the emission
29 controls or reductions required by this act, or any rules or
30 regulations promulgated herein, the department may allow offsets
19890H1371B1592 - 17 -
1 or greater emissions of acid deposition precursors from an
2 electric utility unit, boiler unit or major industrial process
3 against lower emissions from the same or another electric
4 utility unit, boiler unit or major industrial process within the
5 Commonwealth, and may exclude therefrom newly constructed
6 emission sources required to comply with new source performance
7 standards.
8 Section 7.5. Costs.--(a) The costs incurred by the
9 department for administering the acid deposition control program
10 including the costs of personnel, equipment, consultation and
11 related expenses shall be paid in part from the general fund and
12 to the extent funds are available from fees imposed in
13 accordance with section 7.6 of this act.
14 (b) The costs incurred by any qualifying electric utility
15 unit in the Commonwealth as a result of the installation of
16 approved control technology devices pursuant to sections 7.2 and
17 7.3 of this act and, to the extent authorized by the secretary,
18 costs of operation and maintenance resulting therefrom shall be
19 paid in part by fees imposed on the use of all sources of
20 electric energy in compliance with section 7.6. Such fees shall
21 be held in a trust fund in compliance with section 7.7
22 established for the purpose of making subsidy payments under
23 section 7.8 of this act.
24 Section 7.6. Fees.--(a) The secretary shall impose a fee on
25 the use of all sources of electric energy for the purpose of
26 offsetting a portion of any electric utility rate increases
27 attributable to the costs incurred by installation of approved
28 control technology devices pursuant to sections 7.2 and 7.3 of
29 this act. After public hearings at times and places determined
30 by the secretary, such fee shall be established and adjusted
19890H1371B1592 - 18 -
1 form time to time at such level as will ensure that funds are
2 available to make full or partial subsidy payments in amount
3 authorized under section 7.8 of this act. The secretary shall
4 make provision to protect low income residential electric
5 consumers. The fee may be imposed at such time as is deemed
6 necessary by the secretary to accumulate funds for the purposes
7 herein and may be imposed prior to the installation of control
8 devices. If sufficient funds are generated by this fee, the
9 secretary may also use the funds to offset a portion of any
10 electric utility rate which is attributable to operation and
11 maintenance costs.
12 (b) No later than one year after the effective date of this
13 act, the secretary shall promulgate regulations setting forth
14 the time and manner required for the payment of the fee imposed
15 under subsection (a) and any information required to be reported
16 in connection with the payment of such fee.
17 Section 7.7. Acid Deposition Control Fund.--(a) A trust
18 fund to be known as the Acid Deposition Control Fund shall be
19 established consisting of fees imposed by the secretary on the
20 use of all sources of electric energy in compliance with section
21 7.6 of this act. Amounts in the trust fund shall be available
22 for making subsidy payments under section 7.8 of this act and
23 may be available to offset administrative costs under section
24 7.5 of this act.
25 (b) The secretary shall be the trustee of the fund and shall
26 report to the General Assembly by September 1 of each year on
27 the financial condition and the results of the operations of
28 such trust fund during the prior fiscal year and on its expected
29 condition and operations during the next five (5) fiscal years.
30 Section 7.8. Utility Rate Subsidy Program.--(a) The
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1 secretary shall promulgate regulations not later than one year
2 after the effective date of this act establishing a program to
3 provide for subsidy payments to qualified electric utility units
4 in order to protect electric utility residential customers from
5 excessive rate increases due to the installation of approved
6 control technology devices pursuant to sections 7.2 and 7.3 of
7 this act. The program established under this section shall meet
8 the requirements of subsections (b) and (c) of this section.
9 (b) The payments under this section shall cover the portion
10 of the rates of electric utility residential customers which is
11 attributable to the costs incurred in installing approved
12 control technology devices pursuant to sections 7.2 and 7.3 of
13 this act, which may be attributable to operation and maintenance
14 costs, and which exceeds the rates which would have been
15 applicable in the absence of such control technology
16 requirements.
17 Section 6. This act shall take effect in 60 days.
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