Regular Session 2021-2022 House Bill 1394 P.N. 1565

PRINTER'S NO. 1565

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1394

Session of

2021

INTRODUCED BY QUINN, HILL-EVANS, GUENST, ROZZI, SCHLOSSBERG,

FARRY, CIRESI, HERRIN, WEBSTER, SCHROEDER, STEPHENS,

POLINCHOCK, THOMAS AND MILLARD, MAY 20, 2021

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,

MAY 20, 2021

AN ACT

Providing for alternative energy portfolio standards.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Short title.

This act shall be known and may be cited as the Customer-

Generator Energy Choice Act.

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:

"Alternative energy credit." As defined in section 2 of the

act of November 30, 2004 (P.L.1672, No.213), known as the

Alternative Energy Portfolio Standards Act.

"Alternative energy portfolio standards." As defined in

section 2 of the Alternative Energy Portfolio Standards Act.

"Alternative energy sources." As defined in section 2 of the

Alternative Energy Portfolio Standards Act.

"Commission." As defined in section 2 of the Alternative

Energy Portfolio Standards Act.

"Customer-generator." As defined in section 2 of the

Alternative Energy Portfolio Standards Act.

"Electric distribution company." As defined in section 2 of

the Alternative Energy Portfolio Standards Act.

"Electric generation supplier." As defined in section 2 of

the Alternative Energy Portfolio Standards Act.

"Net metering." As defined in section 2 of the Alternative

Energy Portfolio Standards Act.

"Reporting year." The term shall have the same meaning as

"reporting period" in section 2 of the Alternative Energy

Portfolio Standards Act.

"Retail electric customer." As defined in section 2 of the

Alternative Energy Portfolio Standards Act.

"Tier I." The term shall have the same meaning as "tier I

alternative energy source" in section 2 of the Alternative

Energy Portfolio Standards Act.

Section 3. Alternative energy portfolio standards.

(a) Tier I and solar photovoltaic shares.--Notwithstanding

section 3(b) of the act of November 30, 2004 (P.L.1672, No.213),

known as the Alternative Energy Portfolio Standards Act, 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 as

follows:

(1) Beginning in the reporting year commencing on June

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1, 2021, 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:

(i) 8.75% for June 1, 2021, through May 31, 2022.

(ii) 9.50% for June 1, 2022, through May 31, 2023.

(iii) 11.00% for June 1, 2023, through May 31, 2024.

(iv) 12.75% for June 1, 2024, through May 31, 2025.

(v) 14.00% for June 1, 2025, through May 31, 2026.

(vi) 14.25% for June 1, 2026, through May 31, 2027.

(vii) 14.45% for June 1, 2027, through May 31, 2028.

(viii) 14.70% for June 1, 2028, through May 31,

2029.

(ix) 15.00% for June 1, 2029, and thereafter.

(2) Beginning in the reporting year commencing on June

1, 2021, 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 be sold from customer-generator solar photovoltaic

technologies is:

(i) 0.70% for June 1, 2021, through May 31, 2022.

(ii) 0.95% for June 1, 2022, through May 31, 2023.

(iii) 1.20% for June 1, 2023, through May 31, 2024.

(iv) 1.40% for June 1, 2024, through May 31, 2025.

(v) 1.60% for June 1, 2025, through May 31, 2026.

(vi) 1.85% for June 1, 2026, through May 31, 2027.

(vii) 2.10% for June 1, 2027, through May 31, 2028.

(viii) 2.30% for June 1, 2028, through May 31, 2029.

(ix) 2.50% for June 1, 2029, and thereafter.

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(3) For purposes of the requirements under paragraph

(2), solar photovoltaic technologies that are owned and

operated by customer-generators shall include any of the

following:

(i) Solar photovoltaic technologies that qualify as

customer-generators.

(ii) Non-customer-generator solar photovoltaic

technologies that were certified before or on May 31,

2021, and qualify to generate solar alternative energy

credits.

(4) Electric generation suppliers with existing written

supply contracts in effect prior to the effective date of

this section shall be exempt from purchasing increased Tier I

alternative energy credits under this subsection for the

quantity of load supplied under the existing contracts until

those supply contracts expire. This limited exemption for the

quantity of load supplied under existing contracts shall not

lead to a reallocation of such exempt load requirements to

any other electric generation suppliers.

(b) Alternative compliance payment.--Notwithstanding section

3(f) of the Alternative Energy Portfolio Standards Act,

beginning with the reporting year 2022, the alternative

compliance payment required for each megawatt hour of shortfall

for the customer-generator solar photovoltaic share specified

under section (a)(2) shall be the following in each reporting

year:

(1) $125 for reporting years 2022 through 2025;

(2) $120 for reporting years 2026 through 2029;

(3) $115 for reporting years 2030 through 2033;

(4) $100 for reporting year 2034; and

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(5) An annually decreasing amount that is $5 less than

the previous reporting year starting in reporting year 2035

and culminating in $40 for reporting year 2046 and

thereafter.

Section 4. Effective date.

This act shall take effect immediately.

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