HB 1834 — An Act providing for the regulation of commercial data centers; imposing duties on the Pennsylvania Public Utility Commission, the Department of Human Services and the Pennsylvania Energy Development Authority; establishing the Data Center Low-Income Home Energy Assistance Program Enhancement Account and the Pennsylvania Energy Independence Account; providing for clean firm energy requirements, contract filing, commission review, disclosure requirements, backup generation standards, curtailment standards and certification and expedited interconnection for commercial data centers bringing incremental clean firm energy resources; and imposing penalties.

§ 102.

"RATEPAYER." A RETAIL CUSTOMER OF AN ELECTRIC DISTRIBUTION COMPANY THAT PURCHASES ELECTRIC SERVICE FOR CONSUMPTION.

"REGIONAL SUPPLY SHORTAGE." A CONDITION IN WHICH SUPPLY RESERVES ARE LESS THAN TARGET SUPPLY RESERVES AS DETERMINED BY THE REGIONAL TRANSMISSION ORGANIZATION, CONSISTENT WITH THE 20250HB1834PN2846 - 8 - RESOURCE ADEQUACY CRITERION OF A LOSS OF LOAD EXPECTATION OF ONE DAY IN 10 YEARS OR 0.1 DAYS PER YEAR FOR THE APPLICABLE REGION.

"REGIONAL TRANSMISSION ORGANIZATION" OR "RTO." AN ENTITY APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION TO CONTROL AND OPERATE ELECTRIC TRANSMISSION FACILITIES IN INTERSTATE COMMERCE AND ENSURE NONDISCRIMINATORY ACCESS TO THOSE FACILITIES.

"RENEWABLE ENERGY." SOLAR ENERGY, WIND ENERGY, NUCLEAR ENERGY, GEOTHERMAL ENERGY, BIOMASS ENERGY, ENERGY GENERATED FROM A RENEWABLE NATURAL GAS DEVICE OR HYDROELECTRIC POWER.

"RENEWABLE NATURAL GAS DEVICE." A DEVICE THAT GENERATES ELECTRICITY RELYING UPON A FUEL SOURCE CONSISTING OF AT LEAST 75% BIODIESEL OR BIOGAS, INCLUDING BIOGAS DERIVED FROM MUNICIPAL SOLID WASTE, INDUSTRIAL WASTE, FOOD WASTE, WASTEWATER TREATMENT MATERIAL AND ANIMAL MANURE, RESULTING FROM THE DECOMPOSITION OF ORGANIC MATTER UNDER ANAEROBIC CONDITIONS, OR ANY METHANE RESOURCE CLASSIFIED AS A TIER I ALTERNATIVE ENERGY SOURCE 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, THE PRINCIPAL CONSTITUENTS OF WHICH ARE METHANE AND CARBON DIOXIDE, THAT HAS BEEN UPGRADED FOR USE IN PLACE OF FOSSIL NATURAL GAS, GASOLINE OR DIESEL FUEL.

"SMALL-SCALE ENERGY SYSTEM." A SYSTEM WITH A NAMEPLATE CAPACITY RATING THAT DOES NOT EXCEED TWO MEGAWATTS THAT GENERATES OR STORES ELECTRICITY BY MEANS OF SOLAR PANELS, BATTERIES OR RENEWABLE NATURAL GAS DEVICES, OR A COMBINATION OF THOSE RESOURCES.

THE TERM INCLUDES AN ENERGY-EFFICIENT HEAT PUMP INSTALLED AT A HOME OR RESIDENTIAL BUILDING, A SMALL BUSINESS AS DEFINED IN 62 PA.C.S.

§ 2102 (RELATING TO DEFINITIONS), A CHARITABLE ORGANIZATION AS DEFINED IN SECTION 3 OF THE ACT OF 20250HB1834PN2846 - 9 - DECEMBER 19, 1990 (P.L.1200, NO.202), KNOWN AS THE SOLICITATION OF FUNDS FOR CHARITABLE PURPOSES ACT, AN EDUCATIONAL INSTITUTION, A RELIGIOUS INSTITUTION, A MUNICIPAL BUILDING OR A STATE GOVERNMENT BUILDING.

"UNIVERSAL SERVICE AND ENERGY CONSERVATION." AS DEFINED IN 66 PA.C.S.

§ 2803 FOR ELECTRIC SERVICE AND 66 PA.C.S.

§ 2202 (RELATING TO DEFINITIONS) FOR NATURAL GAS SERVICE.

SECTION 3.

DUTIES OF COMMISSION.

(A) TEMPORARY REGULATIONS.-- (1) TO FACILITATE PROMPT IMPLEMENTATION OF THIS ACT, THE COMMISSION SHALL PROMULGATE TEMPORARY REGULATIONS NO LATER THAN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION.

(2) TEMPORARY REGULATIONS UNDER THIS SUBSECTION SHALL EXPIRE NO LATER THAN TWO YEARS AFTER PUBLICATION IN THE PENNSYLVANIA BULLETIN.

(3) THE COMMISSION MAY PROMULGATE TEMPORARY REGULATIONS UNDER THIS SUBSECTION THAT ARE NOT SUBJECT TO ANY OF THE FOLLOWING:

(I) SECTION 612 OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929.

(II) SECTIONS 201, 202, 203, 204 AND 205 OF THE ACT OF JULY 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW.

(III) SECTIONS 204(B) AND 301(10) OF THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.

(IV) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW ACT.

(4) THE COMMISSION'S AUTHORITY TO PROMULGATE TEMPORARY 20250HB1834PN2846 - 10 - REGULATIONS UNDER THIS SUBSECTION SHALL EXPIRE TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION.

AFTER THE EXPIRATION OF THIS AUTHORITY, THE COMMISSION SHALL PROMULGATE FINAL REGULATIONS IN ACCORDANCE WITH STATE LAW AND SUBSECTION (B).

(B) REQUIRED REGULATORY TOPICS.--REGULATIONS PROMULGATED UNDER SUBSECTION (A) SHALL INCLUDE PROVISIONS ADDRESSING ALL OF THE FOLLOWING:

(1) COMMERCIAL TERMS AND CONDITIONS BETWEEN LARGE LOAD USERS AND ELECTRIC DISTRIBUTION COMPANIES FOR HIGH VOLTAGE ELECTRIC SERVICE, INCLUDING ALL OF THE FOLLOWING:

(I) DEPOSITS OR FINANCIAL SECURITY REQUIRED FROM LARGE LOAD USERS.

(II) CALCULATIONS OF CONTRIBUTIONS IN AID OF CONSTRUCTION FOR DISTRIBUTION INFRASTRUCTURE OR DIRECT ASSIGNMENT THROUGH RATES OF COSTS FOR TRANSMISSION SERVICE.

(III) MINIMUM CONTRACT TERMS THAT REQUIRE A LARGE LOAD USER, IF THE LARGE LOAD USER CEASES OPERATIONS BEFORE SATISFYING THE MINIMUM CONTRACT TERMS, TO TAKE A MINIMUM LEVEL OF SERVICE SUFFICIENT TO GENERATE EXPECTED REVENUES THAT PROTECT OTHER CUSTOMERS.

THE ELECTRIC DISTRIBUTION COMPANY SHALL REQUIRE THE LARGE LOAD USER TO SECURE THE OBLIGATION UNDER THIS SUBPARAGRAPH BY A LETTER OF CREDIT OR OTHER COMPARABLE FINANCIAL INSTRUMENT THAT ENSURES PAYMENT IF THE LARGE LOAD USER CEASES OPERATIONS OR OTHERWISE FAILS TO SATISFY THE OBLIGATION.

(IV) LOAD RAMPING SCHEDULES TO ENSURE INFRASTRUCTURE ADEQUACY.

(V) EXIT FEES OR EARLY TERMINATION FEES.

20250HB1834PN2846 - 11 - (VI) MEASURES TO PREVENT CIRCUMVENTION OF THE LARGE LOAD USER THRESHOLD THROUGH MULTIPLE FACILITIES, INTERCONNECTION POINTS OR METERING POINTS.

(VII) TRACKING OF ALL COSTS, INCLUDING TRANSMISSION COSTS AND DISTRIBUTION COSTS, TO SERVE LARGE LOAD USERS AND VERIFICATION THAT REVENUES COLLECTED EXCEED COSTS INCURRED.

(VIII) AN END-OF-CONTRACT PROCESS THAT PROVIDES SUFFICIENT NOTICE OF A LARGE LOAD USER'S RENEWAL OR CLOSURE.

(2) CURTAILMENT OF A LARGE LOAD USER'S LOAD UNDER AN INTERRUPTIBLE RATE.

(3) STANDARDS GOVERNING COORDINATION OF AN ELECTRIC DISTRIBUTION COMPANY'S INTERRUPTIBLE RATE WITH AN RTO VOLUNTARY CURTAILMENT PROGRAM TO ENSURE STATEWIDE CONSISTENCY.

(4) CONDITIONS FOR INTERCONNECTION OF NEW LARGE LOAD USER LOAD AS NEW LOAD WHILE ENSURING CONTINUED PROVISION OF ELECTRIC SERVICE TO EXISTING CUSTOMERS THAT IS ADEQUATE, REASONABLE, REASONABLY CONTINUOUS AND WITHOUT UNREASONABLE INTERRUPTION OR DELAY.

FOR NEW INTERCONNECTIONS AND INCREMENTAL ADDITIONS OF LOAD ASSOCIATED WITH AN INTERCONNECTED LARGE LOAD USER, IF A REGIONAL SUPPLY SHORTAGE EXISTS OR IS LIKELY TO EXIST AS FORECASTED OR DETERMINED BY THE RTO IN WHICH THE ELECTRIC DISTRIBUTION SYSTEM PARTICIPATES, THE COMMISSION SHALL IMPOSE ONE OR MORE OF THE FOLLOWING CONDITIONS:

(I) REQUIRE THE LARGE LOAD USER TO TAKE ELECTRIC DISTRIBUTION SERVICE UNDER THE ELECTRIC DISTRIBUTION COMPANY'S INTERRUPTIBLE RATE.

20250HB1834PN2846 - 12 - (II) PERMIT FIRM ELECTRIC DISTRIBUTION SERVICE ON THE CONDITION THAT THE LARGE LOAD USER HAS BEEN CERTIFIED TO HAVE BROUGHT ITS OWN INCREMENTAL ENERGY RESOURCES AFTER PLACEMENT IN SERVICE OF THE ENERGY RESOURCE OR RESOURCES UNDER A CERTIFICATION PROGRAM ESTABLISHED BY THE COMMISSION, THE FEDERAL ENERGY REGULATORY COMMISSION OR THE RTO OR INDEPENDENT SYSTEM OPERATOR IN WHICH THE APPLICABLE PUBLIC UTILITY PARTICIPATES.

(III) A COMBINATION OF SUBPARAGRAPHS (I) AND (II).

(5) DISCLOSURE REQUIREMENTS UNDER SECTION 10.

(6) CURTAILMENT STANDARDS UNDER SECTION 11.

(7) CERTIFICATION AND EXPEDITED INTERCONNECTION STANDARDS UNDER SECTION 12.

(8) COST RESPONSIBILITY STANDARDS UNDER SECTION 4.

SECTION 4.

PROHIBITION ON COST SHIFTING AND RECOVERY OF COSTS.

(A) PROHIBITION ON CROSS-SUBSIDIZATION.--AN ELECTRIC DISTRIBUTION COMPANY MAY NOT RECOVER FROM RATEPAYERS OTHER THAN LARGE LOAD USERS, WHETHER THROUGH BASE RATES, RIDERS, SURCHARGES OR ANOTHER RATEMAKING MECHANISM, COSTS THAT MEET ALL OF THE FOLLOWING:

(1) THE COSTS ARE DIRECTLY ATTRIBUTABLE TO THE PROVISION OF ELECTRIC SERVICE TO A LARGE LOAD USER.

(2) THE COSTS WOULD NOT HAVE BEEN INCURRED BUT FOR THE ELECTRICITY DEMAND OF THE LARGE LOAD USER.

(B) RATE REVIEW AND ALLOCATION.--THE COMMISSION SHALL REVIEW RATES TO ENSURE THAT COSTS OF PROVIDING SERVICE TO A LARGE LOAD USER ARE NOT SUBSIDIZED BY ANOTHER CUSTOMER CLASS.

FOR RATE DETERMINATIONS, EACH ELECTRIC DISTRIBUTION COMPANY SERVING LARGE LOAD USERS SHALL HAVE THE FOLLOWING DUTIES:

(1) DO ONE OF THE FOLLOWING:

20250HB1834PN2846 - 13 - (I) ALLOCATE THE COSTS OF SERVING LARGE LOAD USERS TO LARGE LOAD USERS IN A MANNER EQUAL TO THE COSTS OF SERVING LARGE LOAD USERS, INCLUDING DIRECT COSTS AND INDIRECT COSTS ASSOCIATED WITH PROVIDING SERVICE TO LARGE LOAD USERS, WHETHER THROUGH NEW OR EXISTING FACILITIES.

(II) DIRECTLY ASSIGN THE COSTS OF SERVING A LARGE LOAD USER TO THE LARGE LOAD USER.

(2) MITIGATE THE RISK OF ALL OF THE FOLLOWING:

(I) OTHER ELECTRIC SERVICE CUSTOMERS PAYING COSTS ASSOCIATED WITH PROVIDING SERVICE TO LARGE LOAD USERS WHERE THE COSTS DO NOT BENEFIT OTHER CUSTOMER CLASSES.

(II) SHIFTING THE COSTS OF SERVING A LARGE LOAD USER TO OTHER ELECTRIC SERVICE CUSTOMERS, INCLUDING COSTS INCURRED BY AN ELECTRIC DISTRIBUTION COMPANY TO MEET LOAD REQUIREMENTS RESULTING FROM THE PROVISION OF ELECTRIC SERVICE TO A LARGE LOAD USER.

(C) COST-OF-SERVICE STUDY.--A PUBLIC UTILITY THAT SERVES OR IS REASONABLY EXPECTED TO SERVE LARGE LOAD USER LOAD SHALL SUBMIT A FULL COST-OF-SERVICE STUDY WHEN SEEKING A RATE INCREASE UNDER 66 PA.C.S.

§ 1308 (RELATING TO VOLUNTARY CHANGES IN RATES) TO SUPPORT THE PUBLIC UTILITY'S PROPOSED ALLOCATION OF SHARED COSTS OR INDIRECT COSTS THAT BENEFIT MULTIPLE CUSTOMER CLASSES, INCLUDING LARGE LOAD USERS.

(D) UNIVERSAL SERVICE AND ENERGY CONSERVATION PROGRAMS.--A PUBLIC UTILITY SHALL RECOVER FROM LARGE LOAD USERS COSTS INCURRED BY THE PUBLIC UTILITY IN CONNECTION WITH THE DEVELOPMENT, IMPLEMENTATION AND SUPPORT OF UNIVERSAL SERVICE AND ENERGY CONSERVATION PROGRAMS CONSISTENT WITH 66 PA.C.S.

§§ 2203(6), (7), (8), (9) AND (10) (RELATING TO STANDARDS FOR RESTRUCTURING OF NATURAL GAS UTILITY INDUSTRY) AND 2804(8) AND 20250HB1834PN2846 - 14 - (9) (RELATING TO STANDARDS FOR RESTRUCTURING OF ELECTRIC INDUSTRY) THROUGH A TARIFF RATE APPROVED BY THE COMMISSION.

(E) DURATION OF ALLOCATION AND RECOVERY STANDARDS.--THE COMMISSION SHALL ESTABLISH STANDARDS TO ENSURE THAT LARGE LOAD USER COST ALLOCATION AND RECOVERY ASSIGNS TO THE LARGE LOAD USER RESPONSIBLE FOR THE COSTS SPECIFIED UNDER SUBSECTION (A), INCLUDING CONSTRUCTION COSTS, ONGOING TRANSMISSION COSTS AND DISTRIBUTION COSTS, FOR A MINIMUM OF 10 YEARS IN A MANNER THAT SUPPORTS BUSINESS DEVELOPMENT IN THIS COMMONWEALTH WHILE MINIMIZING THE RISK OF STRANDED INFRASTRUCTURE COSTS, MAINTAINING CUSTOMER AFFORDABILITY AND MAINTAINING OVERALL SYSTEM RELIABILITY.

SECTION 5.

CONTRIBUTIONS TO LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

(A) LIHEAP ENHANCEMENT ACCOUNT.--THE DATA CENTER LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM ENHANCEMENT ACCOUNT IS ESTABLISHED AS A RESTRICTED ACCOUNT IN THE GENERAL FUND.

THE DEPARTMENT OF HUMAN SERVICES SHALL USE MONEY APPROPRIATED FROM THE ACCOUNT UNDER SUBSECTION (E) FOR A SUPPLEMENTAL PROGRAM TO ENHANCE LIHEAP.

THE SUPPLEMENTAL PROGRAM SHALL INCLUDE A SUMMER COOLING COMPONENT.

(B) SOURCES OF MONEY.--MONEY FROM THE FOLLOWING SOURCES SHALL BE DEPOSITED INTO THE ACCOUNT:

(1) PAYMENTS MADE UNDER SUBSECTION (C).

(2) INTEREST ACCRUED ON MONEY IN THE ACCOUNT.

(3) MONEY FROM ANOTHER SOURCE AUTHORIZED BY FEDERAL OR STATE LAW.

(C) ANNUAL PAYMENTS.-- (1) NO LATER THAN JUNE 1 OF EACH YEAR, EACH LARGE LOAD USER WITH AT LEAST 25 MEGAWATTS ANNUAL PEAK LOAD SHALL MAKE 20250HB1834PN2846 - 15 - PAYMENTS TO THE ACCOUNT AS FOLLOWS:

(I) $40,000 PER MEGAWATT OF ANNUAL PEAK LOAD UP TO AND INCLUDING 25 MEGAWATTS.

(II) FOR EACH ADDITIONAL MEGAWATT OF ANNUAL PEAK LOAD ABOVE 25 MEGAWATTS, AN ADDITIONAL $50,000 PER MEGAWATT.

(2) PAYMENTS UNDER THIS SUBSECTION SHALL BE REQUIRED FOR THE DURATION OF THE LOAD.

THE COMMISSION MAY ADJUST THE PAYMENT AMOUNTS PERIODICALLY.

(D) APPROPRIATION.--MONEY IN THE ACCOUNT IS APPROPRIATED TO THE DEPARTMENT OF HUMAN SERVICES ON A CONTINUING BASIS FOR THE PURPOSES OF THIS SECTION.

(E) REGULATIONS AND GUIDELINES.--THE DEPARTMENT OF HUMAN SERVICES MAY PROMULGATE REGULATIONS OR ISSUE GUIDELINES NECESSARY TO IMPLEMENT THIS SECTION.

SECTION 6.

PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT.

(A) ESTABLISHMENT.--THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT IS ESTABLISHED AS A RESTRICTED ACCOUNT IN THE GENERAL FUND.

THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY SHALL EXPEND MONEY FROM THE ACCOUNT FOR THE PURPOSES OF THIS ACT AND MAY ESTABLISH SEPARATE SUBACCOUNTS WITHIN THE ACCOUNT.

(B) SOURCES OF MONEY.--MONEY FROM THE FOLLOWING SOURCES SHALL BE DEPOSITED INTO THE ACCOUNT:

(1) MONEY APPROPRIATED OR TRANSFERRED BY THE GENERAL ASSEMBLY FOR DEPOSIT INTO THE ACCOUNT.

(2) FEDERAL FUNDING AVAILABLE FOR THE PURPOSES OF THIS ACT AS APPROPRIATED BY THE GENERAL ASSEMBLY FOR DEPOSIT INTO THE ACCOUNT.

(3) INTEREST AND OTHER AMOUNTS RESULTING FROM INVESTMENT OF MONEY IN THE ACCOUNT.

20250HB1834PN2846 - 16 - (4) GIFTS, GRANTS AND DONATIONS MADE TO THE ACCOUNT.

(C) ALLOCATION AND GEOGRAPHIC MINIMUMS.--MONEY IN THE ACCOUNT IS APPROPRIATED TO THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY ON A CONTINUING BASIS TO PROVIDE GRANTS, LOANS OR LOAN GUARANTEES TO FINANCE NEW SMALL-SCALE ENERGY SYSTEMS OR COMMUNITY ENERGY FACILITIES, SUBJECT TO THE FOLLOWING GEOGRAPHIC MINIMUMS:

(1) NO LESS THAN 25% OF THE VALUE OF THE PAYMENTS SHALL BE ALLOCATED TO PROJECTS WITHIN THE BOROUGH, TOWN OR CITY IN WHICH A LARGE LOAD USER IS LOCATED UNLESS THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY DETERMINES THAT INSUFFICIENT HIGH-QUALITY PROJECTS HAVE BEEN PROPOSED WITHIN THE BOROUGH, TOWN OR CITY AND PROVIDES NOTICE TO THE MAYOR OR GOVERNING BODY OF THE CITY, BOROUGH, TOWN OR TOWNSHIP AT LEAST 90 DAYS IN ADVANCE OF MAKING THE DETERMINATION.

(2) NO LESS THAN 50% OF THE VALUE OF THE PAYMENTS SHALL BE ALLOCATED TO PROJECTS WITHIN THE COUNTY IN WHICH THE LARGE LOAD USER IS LOCATED UNLESS THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY DETERMINES THAT INSUFFICIENT HIGH- QUALITY PROJECTS HAVE BEEN PROPOSED WITHIN THE COUNTY AND PROVIDES NOTICE TO THE GOVERNING BODY OF THE COUNTY AT LEAST 90 DAYS IN ADVANCE OF MAKING THE DETERMINATION.

(D) CONSTRUCTION LOANS.--THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY MAY PROVIDE A CONSTRUCTION LOAN UNDER THIS SECTION ONLY IF THE LOAN WILL BE THE SENIOR DEBT SECURED BY THE FACILITY AND DOES NOT EXCEED 60% OF THE FACILITY'S ESTIMATED CONSTRUCTION COST.

(E) APPLICATION CRITERIA.--THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY SHALL USE THE FOLLOWING CRITERIA TO EVALUATE A LOAN APPLICATION UNDER THIS SECTION:

20250HB1834PN2846 - 17 - (1) THE APPLICANT'S:

(I) QUALITY OF SERVICES AND MANAGEMENT.

(II) EFFICIENCY OF OPERATIONS.

(III) HISTORY OF OPERATIONS IN THIS COMMONWEALTH AND THE UNITED STATES.

(IV) RESOURCE OPERATION ATTRIBUTES.

(V) ABILITY TO ADDRESS REGIONAL NEEDS, LOCAL NEEDS AND RELIABILITY NEEDS.

(VI) ACCESS TO RESOURCES ESSENTIAL FOR OPERATING THE PROJECT FOR WHICH THE LOAN IS REQUESTED, INCLUDING LAND, WATER AND RELIABLE INFRASTRUCTURE AS APPLICABLE.

(VII) EVIDENCE OF CREDITWORTHINESS AND ABILITY TO REPAY THE LOAN ON THE TERMS ESTABLISHED IN THE LOAN AGREEMENT, INCLUDING TOTAL ASSETS, TOTAL LIABILITIES, NET WORTH AND CREDIT RATINGS ISSUED BY MAJOR CREDIT RATING AGENCIES.

(2) THE GENERATION CAPACITY AND ESTIMATED COSTS OF THE PROJECT FOR WHICH THE LOAN IS REQUESTED.

(3) OTHER FACTORS THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY CONSIDERS APPROPRIATE.

(F) MONTHLY PAYMENTS.--A LARGE LOAD USER PLACED INTO SERVICE ON OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION SHALL MAKE A MONTHLY PAYMENT TO THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT EQUAL TO 0.8¢ PER KILOWATT-HOUR OF ACTUAL ENERGY USAGE IN THE PRECEDING MONTH.

THE MONTHLY PAYMENT SHALL BE REDUCED TO 0.4¢ PER KILOWATT-HOUR IF THE LARGE LOAD USER IS CERTIFIED TO HAVE PROVIDED ITS OWN INCREMENTAL ENERGY RESOURCES AFTER PLACEMENT IN SERVICE OF THE ENERGY RESOURCE OR RESOURCES UNDER A PROGRAM ESTABLISHED BY THE COMMISSION, THE FEDERAL ENERGY REGULATORY COMMISSION OR THE RTO OR INDEPENDENT SYSTEM OPERATOR IN WHICH 20250HB1834PN2846 - 18 - THE APPLICABLE PUBLIC UTILITY PARTICIPATES.

SECTION 7.

RENEWABLE ENERGY REQUIREMENTS.

ON OR AFTER THE EFFECTIVE DATE OF THIS SECTION, ENERGY SUPPLIED TO LARGE LOAD USERS SHALL INCLUDE NOT LESS THAN 25% OF ELECTRICITY GENERATED FROM RENEWABLE ENERGY SOURCES.

SECTION 8.

CONTRACT FILING, COMMISSION REVIEW AND ENFORCEMENT.

(A) FILING REQUIRED.--AN ELECTRIC DISTRIBUTION COMPANY SHALL FILE WITH THE COMMISSION A COPY OF EACH ELECTRIC SERVICE CONTRACT EXECUTED WITH A LARGE LOAD USER ON OR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, INCLUDING THE FOLLOWING:

(1) A CONTRACT FOR ELECTRIC SERVICE BETWEEN A PUBLIC UTILITY AND A LARGE LOAD USER FOR HIGH VOLTAGE ELECTRIC SERVICE ENTERED INTO UNDER A COMMISSION-APPROVED RATE SCHEDULE FOR DISTRIBUTION SERVICE.

(2) A CONSTRUCTION SERVICES AGREEMENT, ENGINEERING AGREEMENT OR SIMILAR AGREEMENT BETWEEN A PUBLIC UTILITY AND A LARGE LOAD USER RELATING TO THE PUBLIC UTILITY'S HIGH VOLTAGE TRANSMISSION INFRASTRUCTURE OR DISTRIBUTION INFRASTRUCTURE.

(3) A CONSTRUCTION SERVICES AGREEMENT, ENGINEERING SERVICES AGREEMENT OR SIMILAR AGREEMENT BETWEEN A PUBLIC UTILITY AND A LARGE LOAD USER RELATING TO TRANSMISSION INFRASTRUCTURE THAT IS THE SUBJECT OF THE PUBLIC UTILITY'S APPLICATION FOR COMMISSION APPROVAL AND AUTHORIZATION TO LOCATE AND CONSTRUCT A TRANSMISSION LINE OR A PORTION OF A TRANSMISSION LINE WITH A DESIGN VOLTAGE GREATER THAN 100,000 VOLTS.

(B) DISTRIBUTION OF FILED CONTRACTS.--A PUBLIC UTILITY SHALL PROVIDE A COPY OF AN ELECTRIC SERVICE CONTRACT FILED UNDER THIS SECTION TO THE OFFICE OF CONSUMER ADVOCATE, THE OFFICE OF SMALL BUSINESS ADVOCATE AND BUREAU OF INVESTIGATION AND ENFORCEMENT 20250HB1834PN2846 - 19 - WITHIN THE COMMISSION, SUBJECT TO APPROPRIATE CONFIDENTIALITY PROTECTIVE AGREEMENTS OR ORDERS.

(C) SUPPORTING DOCUMENTATION.--AN ELECTRIC DISTRIBUTION COMPANY SHALL INCLUDE WITH THE FILING SUFFICIENT DOCUMENTATION TO PERMIT THE COMMISSION TO CONDUCT THE REVIEW UNDER SUBSECTION (D).

(D) COMMISSION REVIEW.--THE COMMISSION SHALL REVIEW EACH CONTRACT FILED UNDER THIS SECTION TO DETERMINE ALL OF THE FOLLOWING:

(1) THE IMPACT ON CONTINUED PROVISION OF ELECTRIC SERVICE THAT IS ADEQUATE, SAFE AND RELIABLE TO RESIDENTS AND BUSINESSES OF THIS COMMONWEALTH.

(2) THE IMPACT ON RATEPAYERS AND ELECTRIC BILL AFFORDABILITY FOR RESIDENTIAL CUSTOMERS AND COMMERCIAL CUSTOMERS.

THE IMPACT ON LOW-INCOME CUSTOMERS SHALL BE DETERMINED AS A SUBSET OF RESIDENTIAL CUSTOMERS.

(3) COMPLIANCE WITH SECTIONS 3, 4 AND 7.

SECTION 9.

ANNUAL REPORT.

(A) REPORT.--THE COMMISSION SHALL SUBMIT A WRITTEN REPORT TO THE GENERAL ASSEMBLY EACH YEAR FOR A MINIMUM OF 10 YEARS AND SHALL MAKE A PUBLIC VERSION OF THE REPORT AVAILABLE ON ITS PUBLICLY ACCESSIBLE INTERNET WEBSITE.

(B) CONTENTS.--THE REPORT SHALL DESCRIBE ALL OF THE FOLLOWING:

(1) THE COMMISSION'S EFFORTS TO IMPLEMENT THIS ACT DURING THE PRIOR YEAR.

(2) THE COMMISSION'S DETERMINATIONS UNDER SECTION 8(D) REGARDING THE IMPACT OF LARGE LOAD USERS ON CONTINUED PROVISION OF ADEQUATE, SAFE AND RELIABLE ELECTRIC SERVICE TO RESIDENTS AND BUSINESSES OF THIS COMMONWEALTH, THE IMPACT ON 20250HB1834PN2846 - 20 - RATEPAYERS AND ELECTRIC BILL AFFORDABILITY AND COMPLIANCE WITH SECTIONS 3, 4 AND 7.

(3) RECOMMENDATIONS FOR LEGISLATIVE CHANGES OR REGULATORY CHANGES TO FURTHER IMPROVE THE COMMISSION'S OVERSIGHT RESPONSIBILITIES UNDER THIS ACT.

SECTION 10.

DISCLOSURE REQUIREMENTS.

(A) INTERCONNECTION REQUESTS.--THE COMMISSION SHALL REQUIRE EACH PLANNED LARGE LOAD USER TO DISCLOSE TO THE COMMISSION, THE APPLICABLE ELECTRIC DISTRIBUTION COMPANY AND THE APPLICABLE RTO OR INDEPENDENT SYSTEM OPERATOR WHETHER THE PLANNED LARGE LOAD USER IS PURSUING A SUBSTANTIALLY SIMILAR REQUEST FOR ELECTRIC SERVICE WITHIN THIS COMMONWEALTH OR WITHIN THE APPLICABLE RTO OR INDEPENDENT SYSTEM OPERATOR, THE APPROVAL OF WHICH WOULD RESULT IN A MATERIAL CHANGE, A DELAY OR A WITHDRAWAL OF THE INTERCONNECTION REQUEST.

THE DISCLOSURE MAY WITHHOLD OR ANONYMIZE COMPETITIVELY SENSITIVE DETAILS.

THE COMMISSION SHALL PROHIBIT OR SET REASONABLE RESTRICTIONS ON THE SALE OR DISCLOSURE OF INFORMATION PROVIDED TO AN ELECTRIC DISTRIBUTION COMPANY UNDER THIS SUBSECTION.

(B) BACKUP GENERATION.--THE COMMISSION SHALL REQUIRE EACH PLANNED LARGE LOAD USER TO DISCLOSE TO THE COMMISSION, THE APPLICABLE ELECTRIC DISTRIBUTION COMPANY AND THE APPLICABLE RTO OR INDEPENDENT SYSTEM OPERATOR INFORMATION ABOUT THE PLANNED LARGE LOAD USER'S BACKUP GENERATION RESOURCES AND STORAGE RESOURCES AND THE CAPABILITY TO RELY ON BACKUP GENERATION RESOURCES OR STORAGE RESOURCES DURING PERIODS OF REQUIRED LOAD SHED OR CURTAILMENT, INCLUDING THE AMOUNT OF NOTICE REQUIRED TO DEPLOY BACKUP GENERATION RESOURCES OR STORAGE RESOURCES.

SECTION 11.

CURTAILMENT STANDARDS.

(A) DIRECTION TO LARGE LOAD USERS.--THE COMMISSION SHALL 20250HB1834PN2846 - 21 - REQUIRE ELECTRIC DISTRIBUTION COMPANIES, DURING PERIODS OF EMERGENCY CURTAILMENT OR MANUAL LOAD DUMP, TO DIRECT LARGE LOAD USERS TO DEPLOY BACKUP GENERATION RESOURCES OR STORAGE RESOURCES OR CURTAIL LOAD BEFORE CURTAILMENT OR MANUAL LOAD DUMP OF RESIDENTIAL CUSTOMERS OR SMALL COMMERCIAL CUSTOMERS.

(B) PRIORITY.--THE COMMISSION MAY REQUIRE AN ELECTRIC DISTRIBUTION COMPANY TO PRIORITIZE ISSUANCE OF A DIRECTION UNDER SUBSECTION (A) TO A LARGE LOAD USER THAT IS NOT CERTIFIED TO HAVE BROUGHT ITS OWN INCREMENTAL ENERGY RESOURCES AFTER PLACEMENT IN SERVICE OF THE ENERGY RESOURCE OR RESOURCES UNDER A PROGRAM ESTABLISHED BY THE COMMISSION, THE FEDERAL ENERGY REGULATORY COMMISSION OR THE RTO OR INDEPENDENT SYSTEM OPERATOR IN WHICH THE APPLICABLE PUBLIC UTILITY PARTICIPATES.

(C) ENVIRONMENTAL COMPLIANCE.--NOTHING IN THIS SECTION SHALL BE CONSTRUED TO AUTHORIZE OR REQUIRE A VIOLATION OF AN EMISSIONS LIMITATION UNDER FEDERAL OR STATE LAW OR A VIOLATION OF ANOTHER ENVIRONMENTAL REGULATION.

SECTION 12.

CERTIFICATION AND EXPEDITED INTERCONNECTION FOR LARGE LOAD USERS BRINGING INCREMENTAL ENERGY RESOURCES.

(A) CERTIFICATION PROGRAM.--THE COMMISSION SHALL ESTABLISH A PROGRAM TO CERTIFY LARGE LOAD USERS THAT HAVE BROUGHT OR PLAN TO BRING INCREMENTAL ENERGY RESOURCES.

CERTIFICATION SHALL BE BASED ON A BINDING FINANCIAL COMMITMENT BY A LARGE LOAD USER, INCLUDING A POWER PURCHASE AGREEMENT, TO ENABLE AN INCREMENTAL ENERGY RESOURCE OR RESOURCES EQUIVALENT ON A ONE-FOR-ONE ACCREDITED UNFORCED CAPACITY BASIS, INCLUDING A REASONABLE RESERVE MARGIN, TIED TO THE LARGE LOAD USER'S RAMP AND UTILIZATION SCHEDULE, THROUGH ANY COMBINATION OF THE FOLLOWING (1) PLACEMENT IN SERVICE OF A NEW GENERATION RESOURCE OR 20250HB1834PN2846 - 22 - COMBINED GENERATION AND STORAGE RESOURCE.

(2) UPRATE OR EXPANSION OF AN EXISTING GENERATION RESOURCE TO THE EXTENT OF THE UPRATED CAPACITY.

(3) PARTICIPATION IN A DEMAND RESPONSE PRODUCT, IF PARTICIPATION CONTINUES FOR THE DURATION OF THE CERTIFICATION PERIOD OR UNTIL THE LARGE LOAD USER HAS BROUGHT ADDITIONAL ENERGY CAPACITY EQUIVALENT TO THE CAPACITY VALUE OF THE DEMAND RESPONSE PRODUCT.

(4) ANOTHER INCREMENTAL ADDITION OF ACCREDITED UNFORCED CAPACITY AS MEASURED BY THE APPLICABLE RTO OR INDEPENDENT SYSTEM OPERATOR.

(B) INTERCONNECTION PRIORITY.--THE COMMISSION SHALL REQUIRE ELECTRIC DISTRIBUTION COMPANIES TO PRIORITIZE THE INTERCONNECTION OF LARGE LOAD USERS CERTIFIED UNDER SUBSECTION (A) AND, FOR INTERCONNECTIONS SUBJECT TO STATE JURISDICTION, TO PRIORITIZE THE INTERCONNECTION OF PAIRED GENERATION RESOURCES OR STORAGE RESOURCES ASSOCIATED WITH A CERTIFIED LARGE LOAD USER.

SECTION 13.

ENFORCEMENT.

A VIOLATION OF THIS ACT SHALL BE SUBJECT TO ENFORCEMENT BY THE COMMISSION UNDER 66 PA.C.S.

CH.

33 (RELATING TO VIOLATIONS AND PENALTIES).

SECTION 14.

CONSTRUCTION.

NOTHING IN THIS ACT SHALL BE CONSTRUED TO AUTHORIZE AN ELECTRIC DISTRIBUTION COMPANY TO OWN ELECTRIC GENERATION SUPPLY IN THIS COMMONWEALTH.

SECTION 15.

EFFECTIVE DATE.

THIS ACT SHALL TAKE EFFECT IN 60 DAYS.

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