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 (relating to definitions) as it applies to public utilities.

"Energy-efficient heat pump." An electric heat pump that meets or exceeds the highest efficiency tier, excluding any advanced tier, established by the Consortium for Energy Efficiency as of the effective date of this definition or a functionally equivalent program designated by the Department of Environmental Protection.

"High voltage." 69,000 volts or higher.

"Interruptible rate." A rate published in an electric distribution company's tariff and approved by the commission as just and reasonable that authorizes the electric distribution company to curtail service to customers taking service under the rate during a regional supply shortage or in response to a projected regional supply shortage, in response to actual or projected conditions on the bulk power system and under other conditions specified in the rate when, in the electric distribution company's discretion, curtailment is necessary to protect its ability to provide firm electric service to customers served under other tariff rate schedules.

The term includes a rate that contains provisions for coordination with a regional transmission organization voluntary curtailment program 20250HB1834PN3061 - 5 - under which load is curtailed in a preemergency condition.

"Large load user." A facility, campus of facilities or array of interconnected facilities in this Commonwealth that meets all of the following:

(1) Has a peak demand of 25 megawatts or greater.

(2) Is interconnected to a public utility at a single point of interconnection or multiple interconnection points or is interconnected to multiple public utilities in this Commonwealth at multiple interconnection points.

"ELECTRIC GENERATION SUPPLIER." AS DEFINED IN 66 PA.C.S.

§ <-- 2803.

"ELECTRIC SERVICE." ALL INTERCONNECTION SERVICES AND OTHER REQUIRED ELEMENTS PROVIDED BY AN ELECTRIC DISTRIBUTION COMPANY FOR THE JURISDICTIONAL TRANSMISSION AND DISTRIBUTION OF ELECTRICITY.

THE TERM SHALL BE CONSTRUED IN A MANNER CONSISTENT WITH THE MEANING OF SERVICE UNDER 66 PA.C.S.

§ 102 (RELATING TO DEFINITIONS) AS APPLIED TO PUBLIC UTILITIES.

"ENERGY-EFFICIENT HEAT PUMP." AN ELECTRIC HEAT PUMP THAT MEETS OR EXCEEDS THE HIGHEST EFFICIENCY TIER, EXCLUDING AN ADVANCED TIER, ESTABLISHED BY THE CONSORTIUM FOR ENERGY EFFICIENCY AS OF THE EFFECTIVE DATE OF THIS DEFINITION OR A FUNCTIONALLY EQUIVALENT PROGRAM DESIGNATED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.

"ENERGY STAR." THE VOLUNTARY ENERGY EFFICIENCY CERTIFICATION PROGRAM ESTABLISHED BY THE UNITED STATES 20250HB1834PN3061 - 6 - ENVIRONMENTAL PROTECTION AGENCY AND THE UNITED STATES DEPARTMENT OF ENERGY, OR ANY SUCCESSOR PROGRAM, THAT ESTABLISHES MINIMUM PERFORMANCE AND EFFICIENCY STANDARDS FOR QUALIFYING EQUIPMENT.

"FUEL CELL." AN ELECTROCHEMICAL DEVICE THAT CONVERTS CHEMICAL ENERGY IN A HYDROGEN-RICH FUEL DIRECTLY INTO ELECTRICITY, HEAT AND WATER WITHOUT COMBUSTION.

"INCREMENTAL CAPACITY." ADDITIONAL ACCREDITED CAPACITY OR ADDITIONAL NET ENERGY OUTPUT FROM A CLEAN FIRM ENERGY GENERATION RESOURCE OR LONG-DURATION STORAGE RESOURCE THAT MEETS ALL OF THE FOLLOWING:

(1) RESULTS FROM THE PLACEMENT IN SERVICE OF A NEW RESOURCE ON OR AFTER JANUARY 1, 2025.

(2) RESULTS FROM AN UPRATE OR EFFICIENCY IMPROVEMENT COMPLETED ON OR AFTER JANUARY 1, 2025, AT AN EXISTING CLEAN FIRM ENERGY GENERATION RESOURCE OR LONG-DURATION STORAGE RESOURCE, TO THE EXTENT THAT THE IMPROVEMENT INCREASES ACCREDITED CAPACITY OR NET OUTPUT AVAILABLE TO THE GRID.

(3) IN THE CASE OF A BATTERY ENERGY STORAGE SYSTEM OR LONG-DURATION STORAGE RESOURCE, RESULTS FROM THE INSTALLATION OF NEW STORAGE EQUIPMENT OR THE EXPANSION OR REPOWERING OF AN EXISTING STORAGE FACILITY COMPLETED ON OR AFTER JANUARY 1, 2025, THAT INCREASES DISCHARGE DURATION, RATED CAPACITY OR FIRM SERVICE CAPABILITY.

(4) IS VERIFIED AND CERTIFIED BY THE COMMISSION AS REPRESENTING ADDITIONAL ACCREDITED CAPACITY OR ADDITIONAL NET ENERGY OUTPUT THAT WOULD NOT HAVE BEEN AVAILABLE TO THE BULK ELECTRIC SYSTEM IN THIS COMMONWEALTH ABSENT THE INVESTMENT IDENTIFIED UNDER PARAGRAPH (1), (2) OR (3).

"INTERRUPTIBLE RATE." A RATE PUBLISHED IN AN ELECTRIC 20250HB1834PN3061 - 7 - DISTRIBUTION COMPANY'S TARIFF AND APPROVED BY THE COMMISSION AS JUST AND REASONABLE THAT AUTHORIZES THE ELECTRIC DISTRIBUTION COMPANY TO CURTAIL SERVICE TO CUSTOMERS TAKING SERVICE UNDER THE RATE DURING A REGIONAL SUPPLY SHORTAGE, IN RESPONSE TO A PROJECTED REGIONAL SUPPLY SHORTAGE, IN RESPONSE TO ACTUAL OR PROJECTED CONDITIONS ON THE BULK POWER SYSTEM OR UNDER OTHER CONDITIONS SPECIFIED IN THE RATE WHEN, IN THE ELECTRIC DISTRIBUTION COMPANY'S DISCRETION, CURTAILMENT IS NECESSARY TO PROTECT THE ELECTRIC DISTRIBUTION COMPANY'S ABILITY TO PROVIDE FIRM ELECTRIC SERVICE TO CUSTOMERS SERVED UNDER OTHER TARIFF RATE SCHEDULES.

THE TERM INCLUDES A RATE THAT CONTAINS PROVISIONS FOR COORDINATION WITH A REGIONAL TRANSMISSION ORGANIZATION VOLUNTARY OR MANDATORY CURTAILMENT PROGRAM UNDER WHICH LOAD IS CURTAILED IN A PREEMERGENCY CONDITION.

"LIFECYCLE GREENHOUSE GAS EMISSIONS." THE TERM SHALL HAVE THE MEANING GIVEN TO IT UNDER 26 U.S.C.

§ 45V(C)(1)(A) AND (B) (RELATING TO CREDIT FOR PRODUCTION OF CLEAN HYDROGEN), AS IN EFFECT ON THE EFFECTIVE DATE OF THIS DEFINITION.

"LOAD-SERVING ENTITY." AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER THAT SERVES RETAIL LOAD WITHIN THE REGIONAL TRANSMISSION ORGANIZATION IN WHICH THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER PARTICIPATES.

"LONG-DURATION STORAGE RESOURCE." A STORAGE RESOURCE LOCATED WITHIN THIS COMMONWEALTH THAT MEETS ALL OF THE FOLLOWING:

(1) IS CAPABLE OF DELIVERING NOT LESS THAN FOUR HOURS OF CONTINUOUS DISCHARGE AT RATED CAPACITY.

(2) IS DISPATCHABLE OR CAPABLE OF PROVIDING FIRM SERVICE CONSISTENT WITH STANDARDS ESTABLISHED BY THE COMMISSION.

(3) QUALIFIES AS INCREMENTAL CAPACITY PLACED IN SERVICE 20250HB1834PN3061 - 8 - ON OR AFTER JANUARY 1, 2025.

"LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM." A FEDERALLY FUNDED PROGRAM THAT PROVIDES FINANCIAL ASSISTANCE IN THE FORM OF CASH AND CRISIS GRANTS TO LOW-INCOME HOUSEHOLDS FOR HOME ENERGY BILLS AND IS ADMINISTERED BY THE DEPARTMENT OF HUMAN SERVICES.

"MATERIAL ADVERSE IMPACT." A DEMONSTRABLE AND SIGNIFICANT EFFECT ON ELECTRIC BILL AFFORDABILITY FOR RESIDENTIAL CUSTOMERS, AS DETERMINED BY THE COMMISSION BY REGULATION OR ORDER, CONSIDERING RATE LEVELS, CUMULATIVE RIDERS AND SURCHARGES AND INCOME-BASED AFFORDABILITY METRICS.

"Pennsylvania Energy Development Authority." The authority established under section 2803-C of the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929.

"Pennsylvania Energy Independence Account." The restricted account established under section 6(a).

§ 102102. (relating to definitions).

"Ratepayer." A retail customer of aan publicelectric utilitydistribution <-- company that purchases electric service for consumption.

"Renewable"Regional energy."supply Solar,shortage." windA energy,condition biomassin which supply reserves are less than target supply reserves as determined by the regional transmission organization, consistent with the resource adequacy criterion of a loss of load expectation of one day in 10 years or hydroelectric0.1 power.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 20250HB1834PN3061 - 9 - 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 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.

"RATEPAYER." A RETAIL CUSTOMER OF AN ELECTRIC DISTRIBUTION <-- COMPANY THAT PURCHASES ELECTRIC DELIVERY SERVICE.

"REGIONAL SUPPLY SHORTAGE." A CONDITION IN WHICH SUPPLY RESERVES ARE LESS THAN TARGET SUPPLY RESERVES AS DETERMINED BY THE REGIONAL TRANSMISSION ORGANIZATION.

20250HB1834PN3061 - 10 - "REGIONAL TRANSMISSION ORGANIZATION." 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 NATURAL GAS DEVICE." A DEVICE THAT GENERATES ELECTRICITY USING 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 AND 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 OR CLEAN OIL FURNACE 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 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 20250HB1834PN3061 - 11 - (relating to definitions) for natural gas service.

"USEFUL LIFE." FOR PURPOSES OF COST ALLOCATION AND RECOVERY <-- UNDER THIS ACT, THE DEPRECIABLE LIFE USED IN COMMISSION-APPROVED COST RECOVERY OR A PERIOD DETERMINED BY THE COMMISSION.

(a) Temporary regulations.-- (1) InTo order to facilitate the 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 notno later than two years after publication.publication in the Pennsylvania Bulletin.

(3)(1) TheTO commissionFACILITATE mayTHE promulgatePROMPT temporaryIMPLEMENTATION regulationsOF 20250HB1834PN2846THIS -ACT, 2<-- -THE thatCOMMISSION areSHALL notPROMULGATE subjectTEMPORARY to:REGULATIONS NO LATER THAN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION.

THE COMMISSION SHALL TRANSMIT NOTICE OF THE PROMULGATION OF THE TEMPORARY REGULATIONS TO THE LEGISLATIVE REFERENCE BUREAU FOR PUBLICATION IN THE NEXT AVAILABLE ISSUE OF THE PENNSYLVANIA BULLETIN.

(2) TEMPORARY REGULATIONS PROMULGATED 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:

(ii) Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the 20250HB1834PN3061 - 12 - Commonwealth Documents Law.

(4) The commission's authority to promulgate temporary <-- regulations under this subsection shall expire two years after the effective date of this subsection.

(b) RegulationRequired requirements.--Regulationsregulatory topics.--Regulations promulgated under subsection (a) shall include,include at a minimum, provisions relatingaddressing to all of the following:

(1) DepositsCommercial orterms financialand securityconditions requiredbetween fromlarge commercialload datausers centers.and electric distribution companies for high voltage electric service, including all of the following:

(2)(i) CalculationsDeposits ofor contributionsfinancial insecurity aidrequired offrom constructionlarge forload transmissionusers. and distribution infrastructure.

(3)(ii) MinimumCalculations contractof termscontributions betweenin commercialaid dataof centersconstruction andfor publicdistribution utilities.infrastructure or direct assignment through rates of costs for transmission service.

(4)(iii) LoadMinimum rampingcontract schedulesterms that require a large load user, if the large load user ceases operations before satisfying the minimum contract terms, to ensuretake infrastructurea adequacy.minimum level of service sufficient to generate expected revenues that protect other customers.

(5)The Exitelectric distribution company shall require the large load user to 20250HB1834PN3061 - 13 - secure the obligation under this subparagraph by a letter of credit or earlyother terminationcomparable fees.financial instrument that ensures payment if the large load user ceases operations or otherwise fails to satisfy the obligation.

20250HB1834PN2846(iv) -Load 3ramping -schedules (6) Measures to preventensure circumventioninfrastructure ofadequacy. the commercial data center threshold through multiple facilities, interconnection points or metering points.

(7)(v) UtilityExit trackingfees ofor allearly coststermination tofees. serve commercial data centers and verification that revenues collected exceed costs incurred.

(8)(vi) CurtailmentMeasures to prevent circumvention of somethe orlarge allload ofuser athreshold commercialthrough datamultiple center'sfacilities, loadinterconnection duringpoints emergencyor conditions.metering points.

(9)(vii) AnTracking end-of-contractof processall providingcosts, sufficientincluding noticetransmission ofcosts aand commercialdistribution datacosts, center'sto renewalserve orlarge closure.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 20250HB1834PN3061 - 14 - 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.

(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.

RecoveryProhibition on cost shifting and recovery of costs.

A(a) publicProhibition utilityon cross-subsidization.--An electric distribution company may not recover from ratepayers,ratepayers other than large load users, whether through base rates, riders, surcharges or anyanother other ratemaking mechanism, costs that:that meet all of the following:

(1) The costs are directly attributable to the provision of electric service to a commerciallarge dataload center;user.

and (2) The costs would not have been incurred but for the 20250HB1834PN3061 - 15 - electricity demand of the commerciallarge dataload center.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:

(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.

20250HB1834PN3061 - 16 - (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 (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.

(a) Fund.--TheLIHEAP enhancement account.--The Data Center LIHEAPLow-Income Home Energy Assistance Program Enhancement FundAccount is established as a restricted fundaccount in the StateGeneral Treasury.Fund.

The Department of Human Services,Services inshall collaborationuse withmoney appropriated from the Stateaccount Treasurer,under shallsubsection administer(e) thefor fund.a supplemental program to enhance LIHEAP.

The Department of Human Services shall use the money appropriated from the fund under subsection (d) to implement a supplemental program to enhance the Low-Income Home Energy Assistance Program.

(b) Sources.--TheSources fundof shallmoney.--Money consistfrom ofthe allfollowing ofsources shall be deposited into the following:account:

20250HB1834PN284620250HB1834PN3061 - 417 - (1) Payments made under subsection (c).

(2) Interest accrued on the money in the fund.account.

(3) Money from anyanother other source authorized by Federal or State law.

(c) Annual payments.--Nopayments.-- (1) No later than June 301 of each year, each commerciallarge dataload centeruser shallwith makeat aleast payment25 tomegawatts theannual fundpeak inload accordanceshall withmake thepayments followingto schedulethe basedaccount onas peakfollows: demand:

(1)(i) At$40,000 leastper 25megawatt megawattsof butannual lesspeak thanload 75up megawatts:to and including 25 megawatts.

$250,000.(ii) For each additional megawatt of annual peak load above 25 megawatts, an additional $50,000 per megawatt.

(2) AtPayments leastunder 75this megawattssubsection butshall lessbe thanrequired 100for megawatts:the duration of the load.

$400,000.The commission may adjust the payment amounts periodically.

(3)(d) 100Appropriation.--Money megawattsin orthe more:account is appropriated to the Department of Human Services on a continuing basis for the purposes of this section.

$500,000.(4) THE COMMISSION'S AUTHORITY TO PROMULGATE TEMPORARY <-- REGULATIONS UNDER THIS SUBSECTION SHALL EXPIRE TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION.

(d)BEFORE Appropriation.--MoneyTHE inEXPIRATION theOF fundTHIS isAUTHORITY, appropriatedTHE onCOMMISSION aSHALL continuingPROMULGATE basisFINAL toREGULATIONS theIN DepartmentACCORDANCE ofWITH HumanSTATE ServicesLAW forAND theSUBSECTION purposes(B). of this section.

(e)(B) Regulations.--TheREQUIRED DepartmentREGULATORY ofTOPICS.--REGULATIONS HumanPROMULGATED Services,UNDER inSUBSECTION collaboration(A) withSHALL theINCLUDE StatePROVISIONS Treasurer,GOVERNING shallALL promulgateOF regulationsTHE necessaryFOLLOWING: to implement this section.

Section(1) 6.RETAIL TARIFF TERMS AND CONDITIONS BETWEEN A COMMERCIAL DATA CENTER AND AN ELECTRIC DISTRIBUTION COMPANY 20250HB1834PN3061 - 18 - FOR ELECTRIC SERVICE TO SAFEGUARD EXISTING CUSTOMERS FROM STRANDED INVESTMENT AND COST SHIFTING, INCLUDING ALL OF THE FOLLOWING:

Renewable(I) energyDEPOSITS requirements.OR OTHER FINANCIAL SECURITY REQUIRED FROM A COMMERCIAL DATA CENTER.

A(II) publicCONTRIBUTIONS utilityIN thatAID entersOF intoCONSTRUCTION aFOR contractNETWORK forUPGRADES electricOR serviceDISTRIBUTION withINFRASTRUCTURE aAND commercialDIRECT dataASSIGNMENT centerTHROUGH onRATES orOF afterCOSTS theFOR effectiveTRANSMISSION dateSERVICE, ofTO thisTHE sectionEXTENT shallPERMITTED ensureBY thatLAW. not less than 25% of the electricity supplied under the contract is generated from renewable energy sources.

Section(III) 7.MINIMUM CONTRACT TERMS AND MINIMUM LOAD OBLIGATIONS THAT REQUIRE A COMMERCIAL DATA CENTER, IF THE COMMERCIAL DATA CENTER CEASES OPERATIONS BEFORE SATISFYING THE MINIMUM CONTRACT TERM OR ENGAGES IN ECONOMIC PEAK-SHAVING BEHAVIOR, TO TAKE A MINIMUM LEVEL OF SERVICE FOR A MINIMUM NUMBER OF YEARS SUFFICIENT TO GENERATE EXPECTED REVENUES THAT PROTECT OTHER CUSTOMERS.

FilingAN andELECTRIC enforcement.DISTRIBUTION COMPANY SHALL REQUIRE THE COMMERCIAL DATA CENTER TO SECURE THE OBLIGATION UNDER THIS SUBPARAGRAPH BY A LETTER OF CREDIT OR OTHER COMPARABLE FINANCIAL INSTRUMENT THAT ENSURES PAYMENT IF THE COMMERCIAL DATA CENTER CEASES OPERATIONS OR OTHERWISE FAILS TO SATISFY THE OBLIGATION.

(a)(IV) FilingLOAD-RAMPING requirement.--SCHEDULES (1)TO AENSURE publicINFRASTRUCTURE utilityADEQUACY. shall file with the commission a copy of each contract executed with a commercial data center on or after the effective date of this section.

(2) The public utility shall include with the filing 20250HB1834PN2846 - 5 - sufficient documentation to permit the commission to conduct the review under paragraph (3).

(3) The commission shall review each contract under paragraph (1) to determine all of the following:

(i) The impact on the grid system of the PJM Interconnection, L.L.C., regional transmission organization or its successor.

(ii) The effect on the reliability of that grid system.

(iii) The impact on ratepayers.

(iv) Compliance with the requirements under sections 4 and 6.

(b) 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 8.

Effective date.

This act shall take effect in 90 days.

PROVIDING FOR REGULATION OF LARGE LOAD USERS BY THE PENNSYLVANIA <-- PUBLIC UTILITY COMMISSION, FOR COST RESPONSIBILITY, FOR CONTRIBUTIONS TO THE LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM, FOR RENEWABLE ENERGY REQUIREMENTS AND FOR CONTRACT FILING, COMMISSION REVIEW AND ENFORCEMENT;

ESTABLISHING THE DATA CENTER LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM ACCOUNT;

AND IMPOSING DUTIES ON THE PENNSYLVANIA PUBLICDENCE UTILITY COMMISSION, THE DEPARTMENT OF HUMAN SERVICES AND THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY.

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 DATA CENTER 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 20250HB1834PN2846 - 6 - CONTEXT CLEARLY INDICATES OTHERWISE:

"COMMISSION." THE PENNSYLVANIA PUBLIC UTILITY COMMISSION.

"COMMUNITY ENERGY FACILITY." A FACILITY THAT COMPLIES WITH THE TERMS NECESSARY TO ACHIEVE DESIGNATION AS A COMMUNITY ENERGY FACILITY UNDER A STATE LAW ENACTED ON OR AFTER THE EFFECTIVE DATE OF THIS DEFINITION ESTABLISHING A COMMUNITY ENERGY PROGRAM IN THIS COMMONWEALTH.

"ELECTRIC DISTRIBUTION COMPANY." AS DEFINED IN 66 PA.C.S.

§ 2803 (RELATING TO DEFINITIONS).

"ELECTRIC SERVICE." ALL INTERCONNECTION SERVICES AND OTHER REQUIRED ELEMENTS PROVIDED BY AN ELECTRIC DISTRIBUTION COMPANY FOR THE JURISDICTIONAL TRANSMISSION AND DISTRIBUTION OF ELECTRICITY.

THE TERM SHALL BE CONSTRUED IN A MANNER CONSISTENT WITH THE MEANING OF SERVICE AS DEFINED IN 66 PA.C.S.

§ 102 (RELATING TO DEFINITIONS) AS IT APPLIES TO PUBLIC UTILITIES.

"ENERGY-EFFICIENT HEAT PUMP." AN ELECTRIC HEAT PUMP THAT MEETS OR EXCEEDS THE HIGHEST EFFICIENCY TIER, EXCLUDING ANY ADVANCED TIER, ESTABLISHED BY THE CONSORTIUM FOR ENERGY EFFICIENCY AS OF THE EFFECTIVE DATE OF THIS DEFINITION OR A FUNCTIONALLY EQUIVALENT PROGRAM DESIGNATED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.

"HIGH VOLTAGE." 69,000 VOLTS OR HIGHER.

"INTERRUPTIBLE RATE." A RATE PUBLISHED IN AN ELECTRIC DISTRIBUTION COMPANY'S TARIFF AND APPROVED BY THE COMMISSION AS JUST AND REASONABLE THAT AUTHORIZES THE ELECTRIC DISTRIBUTION COMPANY TO CURTAIL SERVICE TO CUSTOMERS TAKING SERVICE UNDER THE RATE DURING A REGIONAL SUPPLY SHORTAGE OR IN RESPONSE TO A PROJECTED REGIONAL SUPPLY SHORTAGE, IN RESPONSE TO ACTUAL OR PROJECTED CONDITIONS ON THE BULK POWER SYSTEM AND UNDER OTHER CONDITIONS SPECIFIED IN THE RATE WHEN, IN THE ELECTRIC 20250HB1834PN2846 - 7 - DISTRIBUTION COMPANY'S DISCRETION, CURTAILMENT IS NECESSARY TO PROTECT ITS ABILITY TO PROVIDE FIRM ELECTRIC SERVICE TO CUSTOMERS SERVED UNDER OTHER TARIFF RATE SCHEDULES.

THE TERM INCLUDES A RATE THAT CONTAINS PROVISIONS FOR COORDINATION WITH A REGIONAL TRANSMISSION ORGANIZATION VOLUNTARY CURTAILMENT PROGRAM UNDER WHICH LOAD IS CURTAILED IN A PREEMERGENCY CONDITION.

"LARGE LOAD USER." A FACILITY, CAMPUS OF FACILITIES OR ARRAY OF INTERCONNECTED FACILITIES IN THIS COMMONWEALTH THAT MEETS ALL OF THE FOLLOWING:

(1) HAS A PEAK DEMAND OF 25 MEGAWATTS OR GREATER.

(2) IS INTERCONNECTED TO A PUBLIC UTILITY AT A SINGLE POINT OF INTERCONNECTION OR MULTIPLE INTERCONNECTION POINTS OR IS INTERCONNECTED TO MULTIPLE PUBLIC UTILITIES IN THIS COMMONWEALTH AT MULTIPLE INTERCONNECTION POINTS.

"LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM" OR "LIHEAP." A FEDERALLY FUNDED PROGRAM THAT PROVIDES FINANCIAL ASSISTANCE IN THE FORM OF CASH AND CRISIS GRANTS TO LOW-INCOME HOUSEHOLDS FOR HOME ENERGY BILLS AND IS ADMINISTERED BY THE DEPARTMENT OF HUMAN SERVICES.

"PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY." THE AUTHORITY ESTABLISHED UNDER SECTION 2803-C OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929.

"PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT." THE RESTRICTED ACCOUNT ESTABLISHED UNDER SECTION 6(A).

"PUBLIC UTILITY." AS DEFINED IN 66 PA.C.S.

§ 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.

20250HB1834PN2846 - 11 - (VI) MEASURES TO PREVENT CIRCUMVENTION OF THE LARGECOMMERCIAL LOADDATA USERCENTER THRESHOLD THROUGH MULTIPLE FACILITIES, INTERCONNECTION POINTS OR METERING POINTS.

(VII) TRACKING OF ALL COSTS, INCLUDING TRANSMISSION COSTS AND DISTRIBUTION COSTS, INCURRED TO SERVE LARGEA LOADCOMMERCIAL USERS20250HB1834PN3061 - 19 - DATA CENTER AND VERIFICATION THAT THE REVENUES COLLECTED EXCEED THE COSTS INCURRED.

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

(2)(IX) CURTAILMENTTO THE EXTENT PERMITTED BY FEDERAL AND STATE LAW, A PROCESS FOR THE DIRECT ASSIGNMENT TO A COMMERCIAL DATA CENTER OF COSTS ASSIGNED BY A LARGEREGIONAL LOADTRANSMISSION USER'SORGANIZATION, LOADAS UNDERDETERMINED ANBY INTERRUPTIBLETHE RATE.COMMISSION.

(3)(2) STANDARDSCURTAILMENT GOVERNING COORDINATION OF ANA ELECTRICCOMMERCIAL DISTRIBUTIONDATA COMPANY'SCENTER'S INTERRUPTIBLELOAD RATEUNDER WITH AN RTOINTERRUPTIBLE VOLUNTARYRATE. CURTAILMENT PROGRAM TO ENSURE STATEWIDE CONSISTENCY.

(4)(3) CONDITIONSSTANDARDS FORGOVERNING INTERCONNECTIONCOORDINATION OF NEWAN LARGEELECTRIC LOADDISTRIBUTION USERCOMPANY'S LOADINTERRUPTIBLE ASRATE NEWWITH LOADA WHILEREGIONAL ENSURINGTRANSMISSION CONTINUEDORGANIZATION PROVISIONVOLUNTARY OFOR ELECTRICMANDATORY SERVICECURTAILMENT PROGRAM TO EXISTINGENSURE CUSTOMERSSTATEWIDE THATCONSISTENCY. IS ADEQUATE, REASONABLE, REASONABLY CONTINUOUS AND WITHOUT UNREASONABLE INTERRUPTION OR DELAY.

FOR(4) NEWCONDITIONS INTERCONNECTIONSFOR ANDINTERCONNECTION INCREMENTAL ADDITIONS OF LOADNEW ASSOCIATEDCOMMERCIAL WITHDATA ANCENTER INTERCONNECTED LARGE LOAD USER,WHILE IFENSURING ATHE REGIONALCONTINUED SUPPLYPROVISION SHORTAGEOF EXISTSELECTRIC ORSERVICE IS LIKELY TO EXISTEXISTING ASCUSTOMERS FORECASTEDTHAT ORIS DETERMINEDADEQUATE, BYREASONABLE, THEREASONABLY RTOCONTINUOUS INAND WHICHWITHOUT THEUNREASONABLE ELECTRICINTERRUPTION DISTRIBUTION SYSTEM PARTICIPATES, THE COMMISSION SHALL IMPOSE ONE OR MOREDELAY. OF THE FOLLOWING CONDITIONS:

(I)IF REQUIREA THEREGIONAL LARGESUPPLY LOADSHORTAGE USEREXISTS OR IS LIKELY TO TAKEEXIST, ELECTRICAS DISTRIBUTIONFORECASTED SERVICEOR UNDERDETERMINED BY THE REGIONAL TRANSMISSION ORGANIZATION IN WHICH THE ELECTRIC DISTRIBUTION COMPANY'SSYSTEM INTERRUPTIBLEPARTICIPATES, RATE.THE COMMISSION SHALL IMPOSE ANY OF THE FOLLOWING CONDITIONS ON A NEW INTERCONNECTION OR AN INCREMENTAL ADDITION OF LOAD ASSOCIATED WITH AN INTERCONNECTED COMMERCIAL DATA CENTER:

20250HB1834PN2846(I) -REQUIRING 12 - (II) PERMIT FIRM ELECTRIC DISTRIBUTION SERVICE ON THE CONDITIONCOMMERCIAL THATDATA THECENTER LARGE LOAD USER HAS BEEN CERTIFIED TO HAVETAKE BROUGHTELECTRIC ITSDISTRIBUTION OWN INCREMENTAL ENERGY RESOURCES AFTER PLACEMENT IN SERVICE OF THE ENERGY RESOURCE OR RESOURCES UNDER A CERTIFICATION PROGRAM ESTABLISHED BY THE COMMISSION,ELECTRIC THEDISTRIBUTION FEDERALCOMPANY'S ENERGYINTERRUPTIBLE REGULATORYRATE. COMMISSION OR THE RTO OR INDEPENDENT SYSTEM OPERATOR IN WHICH THE APPLICABLE PUBLIC UTILITY PARTICIPATES.

(III)(II) PERMITTING FIRM ELECTRIC DISTRIBUTION SERVICE 20250HB1834PN3061 - 20 - ON THE CONDITION THAT THE COMMERCIAL DATA CENTER HAS BEEN CERTIFIED TO HAVE BROUGHT ITS OWN INCREMENTAL CLEAN FIRM ENERGY RESOURCES INTO SERVICE UNDER A COMBINATIONCERTIFICATION OFPROGRAM SUBPARAGRAPHSESTABLISHED (I)BY ANDTHE (II).COMMISSION, THE FEDERAL ENERGY REGULATORY COMMISSION OR THE REGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR IN WHICH THE APPLICABLE PUBLIC UTILITY PARTICIPATES.

(5)(III) DISCLOSUREIMPOSING A COMBINATION OF THE REQUIREMENTS UNDER SECTIONSUBPARAGRAPHS 10.(I) AND (II).

(6)(5) CURTAILMENTCOST RESPONSIBILITY STANDARDS UNDER SECTION 11.4.

(7)(6) CERTIFICATIONESTABLISHMENT ANDOF EXPEDITEDTHE INTERCONNECTIONALTERNATIVE STANDARDSCOMPLIANCE PAYMENT RATE AND CALCULATION METHODS UNDER SECTION 12.7(E).

(8)(7) COSTDISCLOSURE RESPONSIBILITYREQUIREMENTS STANDARDS UNDER SECTION 4.10.

(8) BACKUP GENERATION STANDARDS UNDER SECTION 11.

(9) CURTAILMENT STANDARDS UNDER SECTION 12.

(10) CERTIFICATION AND EXPEDITED INTERCONNECTION STANDARDS UNDER SECTION 13.

(A) PROHIBITION ON CROSS-SUBSIDIZATION.--AN ELECTRIC DISTRIBUTION COMPANY MAY NOT RECOVER FROM RATEPAYERS OTHER THAN LARGECOMMERCIAL LOADDATA USERS,CENTERS, WHETHER THROUGH BASE RATES, RIDERS, SURCHARGES OR ANOTHER RATEMAKING MECHANISM, COSTSA THATCOST MEETCAUSED ALLIN WHOLE OR IN PART BY THE INTERCONNECTION, SERVICE OR LOAD OF A COMMERCIAL DATA CENTER, INCLUDING A COST ASSOCIATED WITH CAPACITY, ENERGY, ANCILLARY SERVICES, TRANSMISSION, DISTRIBUTION, NETWORK UPGRADES OR DEDICATED FACILITIES, IF EITHER OF THE FOLLOWING:FOLLOWING APPLIES:

(1) THE COSTSCOST AREIS DIRECTLY ATTRIBUTABLE TO THE PROVISION OF ELECTRIC SERVICE TO A LARGECOMMERCIAL LOADDATA USER.CENTER.

(2) THE COSTSCOST WOULD NOT HAVE BEEN INCURRED BUT FOR THE 20250HB1834PN3061 - 21 - ELECTRICITY DEMAND OF THEA LARGECOMMERCIAL LOADDATA USER.CENTER.

(B) RATE REVIEW AND ALLOCATION.--THE COMMISSION SHALL REVIEW RATES TO ENSURE THAT COSTSTHE COST OF PROVIDING SERVICE TO A LARGECOMMERCIAL LOADDATA USERCENTER AREIS NOT SUBSIDIZED BY ANOTHER CUSTOMER CLASS.

FOR PURPOSES OF A RATE DETERMINATIONS,DETERMINATION, EACH ELECTRIC DISTRIBUTION COMPANY SERVING LARGEA LOADCOMMERCIAL USERSDATA CENTER SHALL HAVE THE FOLLOWING DUTIES:

(1) DOTO ALLOCATE OR ASSIGN COSTS IN ONE OF THE FOLLOWING:FOLLOWING WAYS:

20250HB1834PN2846 - 13 - (I) ALLOCATE THE COSTSCOST OF SERVING LARGECOMMERCIAL LOADDATA USERSCENTERS TO LARGEA LOADCUSTOMER USERSCLASS CONSISTING SOLELY OF COMMERCIAL DATA CENTERS IN AAN MANNERAMOUNT EQUAL TO THE COSTSCOST OF SERVING LARGECOMMERCIAL LOADDATA USERS,CENTERS, INCLUDING DIRECT COSTS AND INDIRECT COSTS ASSOCIATED WITH PROVIDING SERVICE TO LARGECOMMERCIAL LOADDATA USERS,CENTERS WHETHER THROUGH NEW OR EXISTING FACILITIES.

(II) DIRECTLY ASSIGN THE COSTSCOST OF SERVING A LARGECOMMERCIAL LOADDATA USERCENTER TO THE LARGECOMMERCIAL LOADDATA USER.CENTER.

(2) TO MITIGATE THE RISK OF ALLANY OF THE FOLLOWING:

(I) OTHERANOTHER ELECTRIC SERVICE CUSTOMERSCUSTOMER PAYING COSTSA COST ASSOCIATED WITH PROVIDING SERVICE TO LARGEA LOADCOMMERCIAL USERSDATA WHERECENTER IF THE COSTSCOST DODOES NOT BENEFIT OTHERANOTHER CUSTOMER CLASSES.CLASS.

(II) SHIFTING THETO COSTSANOTHER OFELECTRIC SERVINGSERVICE ACUSTOMER LARGETHE LOADCOST USEROF TOSERVING OTHERA ELECTRICCOMMERCIAL SERVICEDATA CUSTOMERS,CENTER, INCLUDING COSTSA COST INCURRED BY AN ELECTRIC DISTRIBUTION COMPANY TO MEET LOAD REQUIREMENTS RESULTING FROM THE PROVISION OF ELECTRIC SERVICE TO A LARGECOMMERCIAL LOADDATA USER.CENTER.

(C) COST-OF-SERVICE STUDY.--A PUBLIC UTILITY THAT SERVES OR IS REASONABLY EXPECTED TO SERVE LARGECOMMERCIAL LOADDATA USERCENTER LOAD 20250HB1834PN3061 - 22 - 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 LARGECOMMERCIAL LOADDATA USERS.CENTERS.

(D) UNIVERSAL SERVICE AND ENERGY CONSERVATION PROGRAMS.--A PUBLIC UTILITY SHALL RECOVER FROM LARGECOMMERCIAL LOADDATA USERSCENTERS THE COSTS INCURRED BY THE PUBLIC UTILITY IN CONNECTION WITH THE DEVELOPMENT, IMPLEMENTATION AND SUPPORT OF UNIVERSAL SERVICE AND ENERGY CONSERVATION PROGRAMSPROGRAMS, 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)INDUSTRY), THROUGH A TARIFF RATE APPROVED BY THE COMMISSION.

(E) DURATION OF ALLOCATION AND RECOVERY STANDARDS.--THE COMMISSION SHALL ESTABLISH STANDARDS TO ENSURE THAT LARGEA LOADCOMMERCIAL USERDATA COSTCENTER ALLOCATIONRESPONSIBLE ANDFOR RECOVERYCOSTS ASSIGNSSPECIFIED TOUNDER THESUBSECTION LARGE(A), LOADINCLUDING USERCONSTRUCTION, TRANSMISSION AND DISTRIBUTION COSTS, REMAINS RESPONSIBLE FOR THETHOSE COSTS SPECIFIEDFOR UNDERTHE SUBSECTIONUSEFUL (A),LIFE INCLUDINGOF CONSTRUCTIONTHE COSTS,ASSOCIATED ONGOINGINFRASTRUCTURE TRANSMISSIONOR COSTSFOR ANDTHE DISTRIBUTIONDURATION COSTS,OF FORTHE ASERVICE MINIMUMOBLIGATION, OFWHICHEVER 10IS YEARSLONGER, 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.

(F) TRANSMISSION AND REGIONAL COST IMPACTS.--TO THE MAXIMUM EXTENT PERMITTED UNDER FEDERAL LAW, THE COMMISSION SHALL ENSURE THAT A COST ALLOCATED TO AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER UNDER A TARIFF APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION AND ASSOCIATED WITH 20250HB1834PN3061 - 23 - TRANSMISSION FACILITIES, NETWORK UPGRADES, CAPACITY OBLIGATIONS OR ANOTHER REGIONAL SYSTEM COST, IF CAUSED IN WHOLE OR IN PART BY A COMMERCIAL DATA CENTER, IS APPROPRIATELY ALLOCATED AT RETAIL AND RECOVERED FROM THE COMMERCIAL DATA CENTER AND DOES NOT RESULT IN UNREASONABLE COST IMPACTS TO RESIDENTIAL CUSTOMERS OR SMALL COMMERCIAL CUSTOMERS.

(G) CURTAILMENT OBLIGATIONS.-- (1) IF A REGIONAL TRANSMISSION ORGANIZATION ISSUES A CURTAILMENT OBLIGATION OR DIRECTIVE AND ASSIGNS THE OBLIGATION OR DIRECTIVE TO AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER IN ITS CAPACITY AS A LOAD- SERVING ENTITY, IN WHOLE OR IN PART DUE TO THE PROVISION OF ELECTRIC SERVICE TO A COMMERCIAL DATA CENTER, THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER SHALL REQUIRE THE COMMERCIAL DATA CENTER TO SATISFY THE CURTAILMENT OBLIGATION OR DIRECTIVE UNDER CONTRACTUAL TERMS OR TARIFF PROVISIONS APPROVED BY THE COMMISSION.

(2) ANOTHER CUSTOMER OF THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER MAY NOT BE ASSIGNED RESPONSIBILITY FOR A CURTAILMENT OBLIGATION RESULTING FROM THE COMMERCIAL DATA CENTER'S SERVICE.

(3) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO:

(I) PREVENT OR HINDER AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER FROM TAKING ACTION NECESSARY TO MAINTAIN SYSTEM RELIABILITY;

OR (II) PROHIBIT AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER FROM IMPLEMENTING A VOLUNTARY LOAD CURTAILMENT PROGRAM APPROVED BY THE COMMISSION.

(H) BACKSTOP PROCUREMENT OBLIGATIONS.-- 20250HB1834PN3061 - 24 - (1) IF A REGIONAL TRANSMISSION ORGANIZATION UNDERTAKES BACKSTOP PROCUREMENT OF CAPACITY OR A COMPARABLE RELIABILITY SERVICE AND ASSIGNS A FINANCIAL OR OTHER OBLIGATION TO AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER IN ITS CAPACITY AS A LOAD-SERVING ENTITY, IN WHOLE OR IN PART DUE TO A COMMERCIAL DATA CENTER'S SERVICE, THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER SHALL ALLOCATE THE OBLIGATION AT RETAIL TO AND RECOVER THE OBLIGATION FROM THE COMMERCIAL DATA CENTER OR COMMERCIAL DATA CENTERS THAT GAVE RISE TO THE OBLIGATION UNDER TERMS COMPARABLE TO THOSE UNDER WHICH THE OBLIGATION IS ASSIGNED TO THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER.

(2) IF AN ELECTRIC DISTRIBUTION COMPANY DOES NOT PROVIDE RETAIL DEFAULT SERVICE TO A COMMERCIAL DATA CENTER AND, IN ITS CAPACITY AS A LOAD-SERVING ENTITY, RECEIVES AN ASSIGNMENT OF COST OBLIGATIONS RELATED TO BACKSTOP PROCUREMENT FROM A REGIONAL TRANSMISSION ORGANIZATION, THE ELECTRIC DISTRIBUTION COMPANY MAY ESTABLISH A NONBYPASSABLE SURCHARGE TO PASS THROUGH THE OBLIGATION ON A PRO RATA BASIS TO EACH COMMERCIAL DATA CENTER TAKING ELECTRIC SERVICE UNDER THE ELECTRIC DISTRIBUTION COMPANY'S TARIFF IF THE REBUTTABLE PRESUMPTION UNDER SUBSECTION (I)(2) APPLIES.

(I) REGIONAL GENERATION, CAPACITY AND RELIABILITY COSTS.- (1) TO THE MAXIMUM EXTENT PERMITTED UNDER FEDERAL LAW, IF A REGIONAL TRANSMISSION ORGANIZATION ASSIGNS, UNDER A TARIFF APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION, TO AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER IN ITS CAPACITY AS A LOAD-SERVING ENTITY A COST ASSOCIATED IN WHOLE OR IN PART WITH THE PROCUREMENT OF NEW 20250HB1834PN3061 - 25 - GENERATION SUPPLY, CAPACITY OR A COMPARABLE RELIABILITY SERVICE UNDERTAKEN TO MEET THE ELECTRICITY DEMAND OF ONE OR MORE COMMERCIAL DATA CENTERS, THE ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER SHALL DIRECTLY ASSIGN, ALLOCATE AND RECOVER THE COST FROM THE APPLICABLE COMMERCIAL DATA CENTER OR COMMERCIAL DATA CENTERS.

(2) THERE SHALL BE A REBUTTABLE PRESUMPTION THAT A COST DESCRIBED UNDER PARAGRAPH (1) IS ATTRIBUTABLE TO A COMMERCIAL DATA CENTER IF ANY OF THE FOLLOWING APPLY:

(I) THE REGIONAL TRANSMISSION ORGANIZATION OR ITS INDEPENDENT MARKET MONITOR IDENTIFIES THE LOAD ADDITION AS A MATERIAL DRIVER OF THE PROCUREMENT.

(II) THE TIMING OF THE PROCUREMENT IS REASONABLY CORRELATED WITH THE COMMERCIAL DATA CENTER'S LOAD ADDITION.

(III) THE PROCUREMENT WOULD NOT HAVE OCCURRED IN SUBSTANTIALLY THE SAME FORM OR TIME FRAME ABSENT THE COMMERCIAL DATA CENTER'S LOAD ADDITION.

(3) THE PRESUMPTION UNDER PARAGRAPH (2) SHALL APPLY SOLELY TO RETAIL ALLOCATION AND RECOVERY BY THE COMMISSION AND MAY NOT BE CONSTRUED TO ALTER AN ASSIGNMENT OR DETERMINATION MADE UNDER A TARIFF APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION.

(4) IF A REGIONAL TRANSMISSION ORGANIZATION DOES NOT DIRECTLY ALLOCATE THE COSTS DESCRIBED UNDER PARAGRAPH (1) TO THE COMMERCIAL DATA CENTER OR COMMERCIAL DATA CENTERS THAT GAVE RISE TO THE COSTS, THE COMMISSION SHALL ESTABLISH AND IMPLEMENT, CONSISTENT WITH FEDERAL LAW, A JUST AND REASONABLE MECHANISM TO ALLOCATE AND RECOVER THE COSTS FROM THE APPLICABLE COMMERCIAL DATA CENTER OR COMMERCIAL DATA CENTERS 20250HB1834PN3061 - 26 - WITHOUT ALTERING THE WHOLESALE ASSIGNMENT ESTABLISHED UNDER A TARIFF APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION.

(5) IF AN ELECTRIC DISTRIBUTION COMPANY DOES NOT PROVIDE RETAIL DEFAULT SERVICE TO A COMMERCIAL DATA CENTER AND, IN ITS CAPACITY AS A LOAD-SERVING ENTITY, RECEIVES AN ASSIGNMENT OF GENERATION SUPPLY, CAPACITY OR COMPARABLE RELIABILITY SERVICE COST OBLIGATIONS FROM A REGIONAL TRANSMISSION ORGANIZATION, THE ELECTRIC DISTRIBUTION COMPANY MAY ESTABLISH A NONBYPASSABLE SURCHARGE TO PASS THROUGH THE OBLIGATION ON A PRO RATA BASIS TO EACH COMMERCIAL DATA CENTER TAKING SERVICE UNDER THE ELECTRIC DISTRIBUTION COMPANY'S TARIFF IF THE REBUTTABLE PRESUMPTION UNDER PARAGRAPH (2) APPLIES.

(J) FINANCIAL SECURITY.-- (1) AS A CONDITION OF TAKING ELECTRIC SERVICE, A COMMERCIAL DATA CENTER WHOSE LOAD IS REASONABLY LIKELY TO TRIGGER OR CONTRIBUTE TO AN OBLIGATION UNDER SUBSECTION (H) SHALL PROVIDE FINANCIAL SECURITY, IN A FORM AND AMOUNT APPROVED BY THE COMMISSION, SUFFICIENT TO ENSURE THAT EXISTING AND FUTURE CUSTOMERS OF THE PUBLIC UTILITY ARE HELD HARMLESS FOR THE FULL TERM AND VALUE OF THE OBLIGATION.

(2) THE FINANCIAL SECURITY REQUIRED UNDER PARAGRAPH (1) SHALL REMAIN IN EFFECT FOR THE DURATION OF THE APPLICABLE CAPACITY OBLIGATION AND ANY ASSOCIATED COST RECOVERY PERIOD.

(3) AS A CONDITION OF TAKING ELECTRIC SERVICE, A COMMERCIAL DATA CENTER REASONABLY EXPECTED TO TRIGGER OR CONTRIBUTE TO A COST DESCRIBED UNDER SUBSECTION (I) SHALL PROVIDE AND MAINTAIN FINANCIAL SECURITY, IN A FORM AND AMOUNT APPROVED BY THE COMMISSION, SUFFICIENT TO ENSURE FULL RECOVERY OF THE COST FOR THE DURATION OF THE OBLIGATION AND TO HOLD HARMLESS EXISTING AND FUTURE CUSTOMERS OF THE 20250HB1834PN3061 - 27 - ELECTRIC DISTRIBUTION COMPANY.

(K) DURATION OF RESPONSIBILITY.--COST RESPONSIBILITY UNDER SUBSECTIONS (H) AND (I) SHALL APPLY FOR THE USEFUL LIFE OF THE ASSOCIATED FACILITIES OR THE DURATION OF THE REGIONAL OBLIGATION, WHICHEVER IS LONGER.

(L) FEDERAL LAW.--NOTHING IN SUBSECTIONS (G), (H), (I), (J) AND (K) SHALL BE CONSTRUED TO CONFLICT WITH OR PREEMPT THE JURISDICTION OF THE FEDERAL ENERGY REGULATORY COMMISSION OR TO REQUIRE AN ELECTRIC DISTRIBUTION COMPANY OR ELECTRIC GENERATION SUPPLIER TO TAKE ACTION INCONSISTENT WITH A TARIFF APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION.

(M) IMPLEMENTATION.--THE COMMISSION SHALL PROMULGATE REGULATIONS OR ISSUE ORDERS NECESSARY TO IMPLEMENT SUBSECTIONS (G), (H), (I), (J), (K) AND (L) IN A MANNER CONSISTENT WITH FEDERAL LAW GOVERNING REGIONAL TRANSMISSION ORGANIZATIONS AND APPLICABLE TARIFFS AND AGREEMENTS.

(N) ALTERNATIVE COMPLIANCE PAYMENTS NOT RECOVERABLE.--AN ELECTRIC DISTRIBUTION COMPANY MAY NOT RECOVER, THROUGH BASE RATES, RIDERS, SURCHARGES OR ANOTHER RATEMAKING MECHANISM, AN ALTERNATIVE COMPLIANCE PAYMENT UNDER SECTION 7(E) FROM A RATEPAYER OTHER THAN THE COMMERCIAL DATA CENTER RESPONSIBLE FOR THE PAYMENT.

(A) LIHEAPESTABLISHMENT ENHANCEMENTOF 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 DATA CENTER LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM ENHANCEMENT ACCOUNT UNDER SUBSECTION (E)(D) FOR A SUPPLEMENTAL 20250HB1834PN3061 - 28 - PROGRAM TO ENHANCE LIHEAP.THE LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM.

(B) SOURCES OF MONEY.--MONEYMONEY.--THE FROM THE FOLLOWING SOURCES SHALL BE DEPOSITED INTO THE DATA CENTER LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM ENHANCEMENT ACCOUNT:

(2) INTEREST ACCRUED ON MONEY IN THE DATA CENTER LOW- INCOME HOME ENERGY ASSISTANCE PROGRAM ENHANCEMENT ACCOUNT.

(C) ANNUAL PAYMENTS.-- (1) NO LATER THAN JUNE 1 OF EACH YEAR, EACH LARGECOMMERCIAL LOADDATA USERCENTER WITH AN ANNUAL PEAK LOAD OF AT LEAST 25 MEGAWATTS ANNUALSHALL PEAKPAY LOADINTO SHALLTHE MAKEDATA 20250HB1834PN2846CENTER -LOW-INCOME 15HOME -ENERGY PAYMENTSASSISTANCE TOPROGRAM THEENHANCEMENT ACCOUNT AS FOLLOWS:

(II) FOR EACH ADDITIONAL MEGAWATT OF ANNUAL PEAK LOAD ABOVE 25 MEGAWATTS, AN ADDITIONAL $50,000$40,000 PER MEGAWATT.

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

(3) THE COMMISSION MAY ADJUST THE PAYMENT AMOUNTS PERIODICALLY.UNDER THIS SUBSECTION PERIODICALLY TO ACCOUNT FOR INFLATION.

(D) APPROPRIATION.--MONEY IN THE ACCOUNTCOMMISSION ISSHALL APPROPRIATEDMAKE TOAN THEADJUSTMENT DEPARTMENTUNDER OFTHIS HUMANPARAGRAPH SERVICESBY ONPROMULGATING AREGULATIONS. CONTINUING BASIS FOR THE PURPOSES OF THIS SECTION.

(E)(D) REGULATIONSAPPROPRIATION.--MONEY ANDIN GUIDELINES.--THETHE DATA CENTER LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM ENHANCEMENT ACCOUNT IS APPROPRIATED TO THE DEPARTMENT OF HUMAN SERVICES MAYON PROMULGATEA REGULATIONSCONTINUING ORBASIS ISSUEFOR GUIDELINESTHE NECESSARY20250HB1834PN3061 TO- IMPLEMENT29 - 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.

(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 20250HB1834PN3061 - 30 - 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:

(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.

20250HB1834PN3061 - 31 - (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 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 20250HB1834PN3061 - 32 - 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 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 20250HB1834PN3061 - 33 - 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 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 20250HB1834PN3061 - 34 - 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 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 20250HB1834PN3061 - 35 - 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 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.

20250HB1834PN3061 - 36 - (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.

<-- (A) ESTABLISHMENT.--THEESTABLISHMENT OF ACCOUNT.--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 PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT FOR THE PURPOSES OF THIS ACT AND MAY ESTABLISH SEPARATE SUBACCOUNTS WITHIN THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT.

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

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

(2) SUPPLEMENTAL FEDERAL FUNDING AVAILABLE FOR THE PURPOSES OF THIS ACT ASAND APPROPRIATED BY THE GENERAL ASSEMBLY FOR DEPOSIT INTO THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT.

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

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

(C) ALLOCATIONUSE ANDOF GEOGRAPHICMONEY.--MONEY MINIMUMS.--MONEY IN THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT IS APPROPRIATED TO THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY ON A CONTINUING BASIS TO PROVIDE GRANTS, 20250HB1834PN3061 - 37 - LOANS ORAND LOAN GUARANTEES TO FINANCE NEW SMALL-SCALECLEAN FIRM ENERGY SYSTEMSSYSTEMS, ORSMALL-SCALE COMMUNITY ENERGY FACILITIES,SYSTEMS, SUBJECTENERGY TOEFFICIENCY THEPROJECTS FOLLOWINGAND GEOGRAPHICCOMMUNITY MINIMUMS:ENERGY FACILITIES.

(1)(D) NOCONSTRUCTION LESSLOANS.--THE THANPENNSYLVANIA 25%ENERGY OFDEVELOPMENT THEAUTHORITY VALUEMAY OFPROVIDE THEA PAYMENTSCONSTRUCTION SHALLLOAN BEUNDER ALLOCATEDTHIS TOSECTION PROJECTSONLY WITHINIF THE BOROUGH,LOAN TOWNCONSTITUTES OR CITY IN WHICH A LARGE LOAD USER IS LOCATED UNLESS THE PENNSYLVANIASENIOR ENERGYDEBT DEVELOPMENTSECURED AUTHORITYBY DETERMINES THAT INSUFFICIENT HIGH-QUALITY PROJECTS HAVE BEEN PROPOSED WITHIN THE BOROUGH,FACILITY TOWN OR CITY AND PROVIDESDOES NOTICENOT TOEXCEED THE60% MAYOR OR GOVERNING BODY OF THE CITY,FACILITY'S BOROUGH,ESTIMATED TOWNCONSTRUCTION ORCOST. TOWNSHIP AT LEAST 90 DAYS IN ADVANCE OF MAKING THE DETERMINATION.

(2)(E) NOADMINISTRATIVE LESSCOSTS.--THE THANPENNSYLVANIA 50%ENERGY OFDEVELOPMENT THEAUTHORITY VALUEMAY OFUSE THENOT PAYMENTSMORE SHALLTHAN BE5% ALLOCATEDANNUALLY TOOF PROJECTS WITHIN THE COUNTYMONEY IN WHICH THE LARGE LOAD USER IS LOCATED UNLESS THE PENNSYLVANIA ENERGY DEVELOPMENTINDEPENDENCE AUTHORITYACCOUNT DETERMINESFOR THATADMINISTRATIVE INSUFFICIENTCOSTS HIGH-RELATING QUALITY PROJECTS HAVE BEEN PROPOSED WITHIN THE COUNTY AND PROVIDES NOTICE TO THE GOVERNINGAUTHORITY'S BODYRESPONSIBILITIES OFUNDER THETHIS COUNTYACT. AT LEAST 90 DAYS IN ADVANCE OF MAKING THE DETERMINATION.

(D)(F) CONSTRUCTIONAPPLICATION LOANS.--THECRITERIA.--IN PENNSYLVANIAEVALUATING ENERGYAN DEVELOPMENTAPPLICATION AUTHORITYFOR MAY PROVIDE A CONSTRUCTION LOAN UNDER THIS SECTIONSECTION, ONLY IF THE LOANPENNSYLVANIA WILLENERGY BEDEVELOPMENT THEAUTHORITY SENIORSHALL DEBTCONSIDER SECUREDALL BY THE FACILITY AND DOES NOT EXCEED 60% OF THE FACILITY'SFOLLOWING: ESTIMATED CONSTRUCTION COST.

(E)(1) APPLICATION CRITERIA.--THE PENNSYLVANIA ENERGY DEVELOPMENT AUTHORITY SHALL USE THE FOLLOWINGAPPLICANT'S: CRITERIA TO EVALUATE A LOAN APPLICATION UNDER THIS SECTION:

20250HB1834PN2846(I) -QUALITY 17OF -SERVICES (1)AND THEMANAGEMENT; APPLICANT'S:

(I)(II) QUALITYEFFICIENCY OF SERVICESOPERATIONS; AND MANAGEMENT.

(II)(III) EFFICIENCYHISTORY OF OPERATIONS.OPERATIONS IN THIS COMMONWEALTH AND THE UNITED STATES;

(III)(IV) HISTORYRESOURCE OFOPERATION OPERATIONSATTRIBUTES; IN THIS COMMONWEALTH AND THE UNITED STATES.

(IV)(V) RESOURCEABILITY OPERATIONTO ATTRIBUTES.ADDRESS REGIONAL, LOCAL AND RELIABILITY NEEDS;

(V)(VI) ABILITYACCESS TO ADDRESSRESOURCES REGIONALESSENTIAL NEEDS,FOR LOCALOPERATING NEEDSTHE PROJECT FOR WHICH THE LOAN IS REQUESTED, INCLUDING LAND, WATER AND RELIABILITYRELIABLE NEEDS.INFRASTRUCTURE, AS APPLICABLE;

(VI)AND ACCESS(VII) EVIDENCE OF CREDITWORTHINESS AND ABILITY TO RESOURCESREPAY ESSENTIALTHE FORLOAN OPERATINGON THE PROJECTTERMS FORESTABLISHED WHICHIN THE LOAN ISAGREEMENT, REQUESTED, INCLUDING LAND,TOTAL WATERASSETS, TOTAL LIABILITIES, NET 20250HB1834PN3061 - 38 - WORTH AND RELIABLECREDIT INFRASTRUCTURERATINGS ASISSUED APPLICABLE.BY MAJOR CREDIT RATING AGENCIES.

(VII)(2) EVIDENCETHE OFGENERATION CREDITWORTHINESSCAPACITY AND ABILITYESTIMATED TOCOST REPAYOF THE LOANPROJECT ONFOR THEWHICH TERMSA ESTABLISHEDGRANT, INLOAN THEOR LOAN AGREEMENT,GUARANTEE INCLUDINGIS TOTALREQUESTED. ASSETS, TOTAL LIABILITIES, NET WORTH AND CREDIT RATINGS ISSUED BY MAJOR CREDIT RATING AGENCIES.

(2)(3) THEANY GENERATIONOTHER CAPACITYFACTOR AND ESTIMATED COSTS OF THE PROJECTPENNSYLVANIA FORENERGY WHICHDEVELOPMENT THEAUTHORITY LOANCONSIDERS ISAPPROPRIATE. REQUESTED.

(3)(G) OTHERANNUAL FACTORSPAYMENTS.-- (1) NO LATER THAN JUNE 1 OF EACH YEAR, EACH COMMERCIAL DATA CENTER WITH AN ANNUAL PEAK LOAD OF AT LEAST 25 MEGAWATTS SHALL PAY INTO THE PENNSYLVANIA ENERGY DEVELOPMENTINDEPENDENCE AUTHORITYACCOUNT CONSIDERSAS APPROPRIATE.FOLLOWS:

(F)(I) MONTHLY$2,000 PAYMENTS.--APER LARGEMEGAWATT LOAD USER PLACED INTO SERVICE ON OR AFTER THE EFFECTIVE DATE OF THISANNUAL SUBSECTIONPEAK SHALLLOAD MAKEUP A MONTHLY PAYMENT TO THEAND PENNSYLVANIAINCLUDING ENERGY25 INDEPENDENCEMEGAWATTS. ACCOUNT EQUAL TO 0.8¢ PER KILOWATT-HOUR OF ACTUAL ENERGY USAGE IN THE PRECEDING MONTH.

THE(II) MONTHLYFOR PAYMENTEACH SHALLADDITIONAL BEMEGAWATT REDUCEDOF TOANNUAL 0.4¢PEAK PER KILOWATT-HOUR IF THE LARGE LOAD USERABOVE IS25 CERTIFIEDMEGAWATTS, TOAN HAVEADDITIONAL PROVIDED$2,000 ITSPER OWNMEGAWATT. 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.

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

(3) THE COMMISSION MAY ADJUST THE PAYMENT AMOUNTS UNDER THIS SUBSECTION PERIODICALLY TO ACCOUNT FOR INFLATION.

THE COMMISSION SHALL MAKE AN ADJUSTMENT UNDER THIS PARAGRAPH BY PROMULGATING REGULATIONS.

(H) EXEMPTION.--A COMMERCIAL DATA CENTER CERTIFIED BY THE COMMISSION UNDER SECTION 13 TO HAVE BROUGHT ITS OWN INCREMENTAL CLEAN FIRM ENERGY RESOURCES SHALL BE EXEMPT FROM SUBSECTION (G).

RENEWABLECLEAN FIRM ENERGY REQUIREMENTS.

ON(A) ORPROCUREMENT AFTERREQUIREMENT.--ENERGY THESUPPLIED EFFECTIVETO DATEA OFCOMMERCIAL THISDATA SECTION,CENTER SHALL INCLUDE ELECTRICITY PROCURED FROM INCREMENTAL CLEAN FIRM ENERGY SUPPLIEDRESOURCES TOLOCATED LARGEWITHIN LOADTHIS USERS20250HB1834PN3061 SHALL- INCLUDE39 - COMMONWEALTH IN AN AMOUNT NOT LESS THAN 25%THE FOLLOWING PERCENTAGES OF ELECTRICITYTHE GENERATEDCOMMERCIAL FROMDATA RENEWABLECENTER'S ENERGYANNUAL SOURCES.ELECTRICITY CONSUMPTION:

(1) BEGINNING JANUARY 1, 2027, 10%.

(2) BEGINNING JANUARY 1, 2030, 14.5%.

(3) BEGINNING JANUARY 1, 2035, 32%.

(B) INCREMENTAL REQUIREMENT.--AS CERTIFIED BY THE COMMISSION, ONLY INCREMENTAL CAPACITY OR INCREMENTAL NET ADDITIONAL MEGAWATT-HOURS DELIVERED TO THE GRID RELATIVE TO A BASELINE YEAR MAY QUALIFY TO SATISFY SUBSECTION (A).

(C) COMPLIANCE METHODS.--A COMMERCIAL DATA CENTER MAY DEMONSTRATE COMPLIANCE WITH THIS SECTION THROUGH ANY OF THE FOLLOWING:

(1) A POWER PURCHASE AGREEMENT OR OTHER BILATERAL CONTRACT FOR CLEAN FIRM ENERGY.

(2) RETIREMENT OF A CLEAN FIRM ENERGY CERTIFICATE ISSUED THROUGH A REGISTRY ESTABLISHED BY THE COMMISSION.

(3) ANOTHER METHOD OR INSTRUMENT APPROVED BY THE COMMISSION.

(D) COST CONTAINMENT AND FLEXIBILITY.--TO PROTECT SYSTEM RELIABILITY AND RATEPAYER AFFORDABILITY, THE COMMISSION SHALL HAVE THE FOLLOWING DUTIES:

(1) ESTABLISH AN ALTERNATIVE COMPLIANCE PAYMENT AVAILABLE TO A COMMERCIAL DATA CENTER.

(2) PERMIT THE BANKING OF CLEAN FIRM ENERGY CERTIFICATES FOR UP TO THREE COMPLIANCE YEARS.

(3) AUTHORIZE LIMITED BORROWING OF FUTURE-YEAR CERTIFICATES UNDER CONDITIONS DETERMINED BY THE COMMISSION.

(4) TEMPORARILY ADJUST THE PERCENTAGES UNDER SUBSECTION (A) IF THE COMMISSION DETERMINES THAT INSUFFICIENT ELIGIBLE 20250HB1834PN3061 - 40 - IN-STATE SUPPLY OF CLEAN FIRM ENERGY EXISTS FOR A COMPLIANCE YEAR, IF THE COMMISSION ISSUES WRITTEN FINDINGS AND A SCHEDULE FOR RESTORING FULL COMPLIANCE WITH THIS SECTION.

(E) ALTERNATIVE COMPLIANCE PAYMENT.-- (1) A COMMERCIAL DATA CENTER THAT DOES NOT PROCURE OR DEMONSTRATE RETIREMENT OF SUFFICIENT CLEAN FIRM ENERGY CERTIFICATES TO SATISFY SUBSECTION (A) FOR A COMPLIANCE YEAR SHALL MAKE AN ALTERNATIVE COMPLIANCE PAYMENT TO THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT ESTABLISHED UNDER SECTION 6.

(2) THE COMMISSION SHALL ESTABLISH THE RATE OF THE ALTERNATIVE COMPLIANCE PAYMENT BY REGULATION.

THE RATE SHALL BE EXPRESSED IN DOLLARS PER MEGAWATT-HOUR AND SHALL BE CALCULATED IN A MANNER THAT DOES ALL OF THE FOLLOWING:

(I) ENSURES THAT THE ALTERNATIVE COMPLIANCE PAYMENT IS A VIABLE COST CONTAINMENT MECHANISM FOR COMMERCIAL DATA CENTERS.

(II) REFLECTS THE COMMISSION'S ASSESSMENT OF THE MARKET COST OF INCREMENTAL CLEAN FIRM ENERGY RESOURCES.

(III) SUPPORTS THE COMMONWEALTH'S INTEREST IN FACILITATING TIMELY INVESTMENT IN CLEAN FIRM ENERGY AND LONG-DURATION STORAGE RESOURCES LOCATED WITHIN THIS COMMONWEALTH.

(3) AN ALTERNATIVE COMPLIANCE PAYMENT UNDER THIS SUBSECTION SHALL BE DEPOSITED INTO THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT AND USED FOR THE PURPOSES SPECIFIED IN SECTION 6(C), INCLUDING GRANTS, LOANS AND LOAN GUARANTEES TO FINANCE NEW CLEAN FIRM ENERGY SYSTEMS, ENERGY EFFICIENCY PROJECTS, SMALL-SCALE ENERGY SYSTEMS, COMMUNITY ENERGY FACILITIES AND OTHER PROJECTS THAT SUPPORT ENERGY RELIABILITY 20250HB1834PN3061 - 41 - AND INDEPENDENCE IN THIS COMMONWEALTH.

(4) PAYMENT OF AN ALTERNATIVE COMPLIANCE PAYMENT UNDER THIS SUBSECTION SHALL CONSTITUTE FULL COMPLIANCE WITH SUBSECTION (A) FOR THE CORRESPONDING MEGAWATT-HOURS.

CONTRACT FILING,FILING COMMISSION REVIEW AND ENFORCEMENT.COMMISSION REVIEW.

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

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

(2) A CONSTRUCTION SERVICES AGREEMENT, ENGINEERING SERVICES AGREEMENT OR SIMILAR AGREEMENT BETWEEN A PUBLIC UTILITY AND A LARGECOMMERCIAL LOADDATA USERCENTER RELATING TO THE PUBLIC UTILITY'S HIGHHIGH-VOLTAGE VOLTAGE TRANSMISSION INFRASTRUCTURE OR DISTRIBUTION INFRASTRUCTURE.

(3) A CONSTRUCTION SERVICES AGREEMENT, ENGINEERING SERVICES AGREEMENT OR SIMILAR AGREEMENT BETWEEN A PUBLIC UTILITY AND A LARGECOMMERCIAL LOADDATA USERCENTER 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 ANA ELECTRIC SERVICE CONTRACT FILED UNDER THISSUBSECTION SECTION(A) TO THE OFFICE OF CONSUMER ADVOCATE, THE OFFICE OF SMALL BUSINESS ADVOCATE AND THE BUREAU OF INVESTIGATION AND ENFORCEMENT 20250HB1834PN2846 - 19 - WITHIN THE COMMISSION, SUBJECT TO AN APPROPRIATE CONFIDENTIALITY 20250HB1834PN3061 - 42 - AGREEMENT, PROTECTIVE AGREEMENTSAGREEMENT OR ORDERS.PROTECTIVE ORDER.

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

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

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

(3) COMPLIANCEWHETHER WITHTHE SECTIONSCONTRACT 3,IS 4REASONABLY ANDLIKELY 7.TO RESULT IN A MATERIAL ADVERSE IMPACT ON ELECTRIC BILL AFFORDABILITY OR RELIABILITY FOR RESIDENTIAL CUSTOMERS.

(4) WHETHER THE CONTRACT COMPLIES WITH SECTIONS 3, 4 AND 7.

(E) APPROVAL STANDARD.--THE COMMISSION MAY NOT APPROVE A CONTRACT UNDER THIS ACT IF THE COMMISSION FINDS THAT THE CONTRACT IS REASONABLY LIKELY TO RESULT IN A MATERIAL ADVERSE IMPACT ON ELECTRIC BILL AFFORDABILITY OR RELIABILITY FOR RESIDENTIAL CUSTOMERS.

AS A CONDITION OF APPROVAL, THE COMMISSION MAY REQUIRE THE IMPOSITION OF ANY REASONABLE MITIGATION MEASURE NECESSARY TO ENSURE THAT THE CONTRACT WILL NOT RESULT IN A MATERIAL ADVERSE IMPACT ON ELECTRIC BILL AFFORDABILITY OR RELIABILITY FOR RESIDENTIAL CUSTOMERS.

20250HB1834PN3061 - 43 - (A) REPORT.--THEREPORT.--FOR AT LEAST 10 YEARS, 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 ITSTHE COMMISSION'S PUBLICLY ACCESSIBLE INTERNET WEBSITE.

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

(1) THE COMMISSION'S EFFORTS TODURING IMPLEMENTTHE THISPRIOR ACTYEAR DURINGTO THEIMPLEMENT PRIORTHIS YEAR.ACT.

(2) THE COMMISSION'S DETERMINATIONS UNDER SECTION 8(D) REGARDING THE IMPACT OF LARGECOMMERCIAL LOADDATA USERSCENTERS ON THE CONTINUED PROVISION OF ELECTRIC SERVICE THAT IS 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.

(A) INTERCONNECTION REQUESTS.--THE COMMISSION SHALL REQUIRE EACH PLANNED LARGECOMMERCIAL LOADDATA USERCENTER TO DISCLOSE TO THE COMMISSION, THE APPLICABLE ELECTRIC DISTRIBUTION COMPANY AND THE APPLICABLE RTOREGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR WHETHER THE PLANNED LARGECOMMERCIAL LOADDATA USERCENTER IS PURSUING A SUBSTANTIALLY SIMILAR REQUEST FOR ELECTRIC SERVICE WITHIN THIS COMMONWEALTH OR WITHIN THE APPLICABLE RTOREGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR,OPERATOR THEIF APPROVAL OF WHICHTHE SUBSTANTIALLY SIMILAR REQUEST WOULD RESULT IN A MATERIAL CHANGE, A DELAY OR A WITHDRAWAL OF THE INTERCONNECTION REQUEST.

THE COMMISSION SHALL PROHIBIT OR SETIMPOSE REASONABLE 20250HB1834PN3061 - 44 - 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 LARGECOMMERCIAL LOADDATA USERCENTER TO DISCLOSE TO THE COMMISSION, THE APPLICABLE ELECTRIC DISTRIBUTION COMPANY AND THE APPLICABLE RTOREGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR INFORMATION ABOUTREGARDING THE PLANNED LARGECOMMERCIAL LOADDATA USER'SCENTER'S BACKUP GENERATION RESOURCES AND STORAGE RESOURCES AND THE PLANNED COMMERCIAL DATA CENTER'S CAPABILITY TO RELY ON BACKUP GENERATION RESOURCES OR STORAGE RESOURCES DURING PERIODSA PERIOD OF REQUIRED LOAD SHEDSHEDDING OR CURTAILMENT, INCLUDING THE AMOUNT OF NOTICE REQUIRED TO DEPLOY BACKUP GENERATION RESOURCES OR STORAGE RESOURCES.

CURTAILMENTBACKUP GENERATION STANDARDS.

(A)A DIRECTIONCOMMERCIAL TODATA LARGECENTER'S LOADONSITE USERS.--THEFOSSIL-FUELED 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 RESOURCESSHALL ORCOMPLY STORAGEWITH RESOURCESALL OR CURTAIL LOAD BEFORE CURTAILMENT OR MANUAL LOAD DUMP OF RESIDENTIALTHE CUSTOMERSFOLLOWING: OR SMALL COMMERCIAL CUSTOMERS.

(B)(1) PRIORITY.--THEMEET COMMISSIONOR MAYEXCEED REQUIRETHE ANTIER ELECTRIC4 DISTRIBUTIONEMISSIONS COMPANYSTANDARDS TO PRIORITIZE ISSUANCE OF ATHE DIRECTIONUNITED UNDERSTATES SUBSECTIONENVIRONMENTAL (A)PROTECTION TOAGENCY AOR LARGEBOTH LOADMEET USERTHE THATTIER IS2 NOTEMISSIONS CERTIFIEDSTANDARDS TOAND HAVEBE BROUGHTEQUIPPED ITSWITH OWN INCREMENTAL ENERGY RESOURCES AFTER PLACEMENT IN SERVICE OF THE ENERGY RESOURCE OR RESOURCES UNDER A PROGRAMSELECTIVE ESTABLISHEDCATALYTIC BYREDUCTION THESYSTEM COMMISSION, THE FEDERAL ENERGY REGULATORY COMMISSION OR THEANOTHER RTOEMISSIONS ORCONTROL INDEPENDENT SYSTEM OPERATORTHAT INMORE WHICHSTRINGENTLY THEREDUCES APPLICABLENITROGEN PUBLICOXIDES, UTILITYWHERE PARTICIPATES.APPLICABLE.

(C)(2) ENVIRONMENTAL COMPLIANCE.--NOTHING IN THIS SECTION SHALL BE CONSTRUEDLIMITED TO AUTHORIZEEMERGENCY ORUSE REQUIREAND ALIMITED VIOLATIONTESTING OFAND ANMAINTENANCE EMISSIONSCONSISTENT LIMITATIONWITH UNDER FEDERAL ORAND STATE LAWAIR ORQUALITY ALAWS VIOLATIONAND OFREGULATIONS. ANOTHER ENVIRONMENTAL REGULATION.

(3) BE PERMITTED, MONITORED AND REPORTED IN THE AGGREGATE AS A SINGLE EMISSIONS SOURCE OR AS PART OF A SINGLE EMISSIONS SOURCE, WHERE PRACTICABLE, IN COORDINATION WITH THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.

CERTIFICATIONCURTAILMENT ANDSTANDARDS. EXPEDITED INTERCONNECTION FOR LARGE LOAD USERS BRINGING INCREMENTAL ENERGY RESOURCES.

20250HB1834PN3061 - 45 - (A) CERTIFICATIONDIRECTION PROGRAM.--THETO COMMERCIAL DATA CENTERS.--DURING A PERIOD OF EMERGENCY CURTAILMENT OR MANUAL LOAD DUMP, THE COMMISSION SHALL ESTABLISHREQUIRE AN ELECTRIC DISTRIBUTION COMPANY TO DIRECT A PROGRAMCOMMERCIAL DATA CENTER TO CERTIFYDEPLOY LARGEBACKUP LOADGENERATION USERSRESOURCES THATOR HAVESTORAGE BROUGHTRESOURCES OR PLANCURTAIL LOAD BEFORE THE ELECTRIC DISTRIBUTION COMPANY CURTAILS SERVICE TO BRINGA INCREMENTALRESIDENTIAL ENERGYCUSTOMER RESOURCES.OR SMALL COMMERCIAL CUSTOMER.

CERTIFICATION(B) SHALLPRIORITY.--THE BECOMMISSION BASEDMAY ONREQUIRE AAN BINDINGELECTRIC FINANCIALDISTRIBUTION COMMITMENTCOMPANY BYTO AGIVE LARGEPRIORITY LOADUNDER USER,SUBSECTION INCLUDING(A) TO A POWERCOMMERCIAL PURCHASEDATA AGREEMENT,CENTER TOTHAT ENABLEHAS ANNOT INCREMENTALBEEN ENERGYCERTIFIED RESOURCETO ORHAVE RESOURCESBROUGHT EQUIVALENTITS ONOWN AINCREMENTAL ONE-FOR-ONECLEAN ACCREDITEDFIRM UNFORCEDENERGY CAPACITYRESOURCES BASIS,INTO INCLUDINGSERVICE UNDER A REASONABLEPROGRAM RESERVEESTABLISHED MARGIN,BY TIEDTHE TOCOMMISSION, THE LARGEFEDERAL LOADENERGY USER'SREGULATORY RAMPCOMMISSION ANDOR UTILIZATION SCHEDULE, THROUGH ANY COMBINATION OF THE FOLLOWINGREGIONAL (1)TRANSMISSION PLACEMENTORGANIZATION IN SERVICE OF A NEW GENERATION RESOURCE OR 20250HB1834PN2846INDEPENDENT -SYSTEM 22OPERATOR -IN COMBINEDWHICH GENERATIONTHE ANDAPPLICABLE STORAGEPUBLIC RESOURCE.UTILITY PARTICIPATES.

(2)(C) UPRATEENVIRONMENTAL ORCOMPLIANCE.--NOTHING EXPANSIONIN OFTHIS ANSECTION EXISTINGSHALL GENERATIONBE RESOURCECONSTRUED TO THEAUTHORIZE EXTENTOR REQUIRE A VIOLATION OF THEA UPRATEDFEDERAL CAPACITY.OR STATE EMISSIONS LIMITATION OR ANOTHER FEDERAL OR STATE ENVIRONMENTAL LAW OR REGULATION.

(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.

ENFORCEMENT.CERTIFICATION AND EXPEDITED INTERCONNECTION FOR COMMERCIAL DATA CENTERS BRINGING INCREMENTAL CLEAN FIRM ENERGY RESOURCES.

A(A) VIOLATIONCERTIFICATION OFPROGRAM.--THE THISCOMMISSION ACT SHALL BEESTABLISH SUBJECTA PROGRAM TO ENFORCEMENTCERTIFY BYA THECOMMERCIAL COMMISSIONDATA UNDERCENTER 66THAT PA.C.S.HAS BROUGHT OR PLANS TO BRING INCREMENTAL CLEAN FIRM ENERGY RESOURCES.

CH.CERTIFICATION SHALL BE BASED ON A BINDING FINANCIAL COMMITMENT BY THE COMMERCIAL DATA CENTER, INCLUDING A POWER PURCHASE AGREEMENT, TO ENABLE INCREMENTAL CLEAN FIRM ENERGY RESOURCES ON A ONE-FOR-ONE ACCREDITED UNFORCED CAPACITY BASIS, INCLUDING A REASONABLE RESERVE MARGIN, TIED TO THE COMMERCIAL DATA CENTER'S 20250HB1834PN3061 - 46 - RAMP-UP AND UTILIZATION SCHEDULE, THROUGH ANY COMBINATION OF THE FOLLOWING:

33(1) (RELATINGPLACEMENT TOIN VIOLATIONSSERVICE BY THE COMMERCIAL DATA CENTER OR A THIRD PARTY OF AN INCREMENTAL CLEAN FIRM ENERGY RESOURCE OR COMBINED GENERATION AND PENALTIES).STORAGE RESOURCE WITHIN THE REGIONAL TRANSMISSION ORGANIZATION THAT SERVES THE COMMERCIAL DATA CENTER.

SECTION(2) 14.AN UPRATE OR EXPANSION OF AN EXISTING CLEAN FIRM ENERGY RESOURCE OR COMBINED GENERATION AND STORAGE RESOURCE WITHIN THE REGIONAL TRANSMISSION ORGANIZATION THAT SERVES THE COMMERCIAL DATA CENTER, TO THE EXTENT OF THE ADDITIONAL ACCREDITED UNFORCED CAPACITY.

CONSTRUCTION.(3) PARTICIPATION IN A DEMAND RESPONSE PRODUCT, IF THE PARTICIPATION CONTINUES FOR THE DURATION OF THE CERTIFICATION PERIOD OR UNTIL THE COMMERCIAL DATA CENTER HAS BROUGHT ADDITIONAL ACCREDITED UNFORCED CAPACITY EQUIVALENT TO THE CAPACITY VALUE OF THE DEMAND RESPONSE PRODUCT.

NOTHING(4) INANOTHER THISINCREMENTAL ACTADDITION SHALLOF BEACCREDITED CONSTRUEDUNFORCED TOCAPACITY AUTHORIZEFROM ANINCREMENTAL ELECTRICCLEAN DISTRIBUTIONFIRM COMPANYENERGY TORESOURCES, OWNAS ELECTRICMEASURED GENERATIONBY SUPPLYTHE INAPPLICABLE THISREGIONAL COMMONWEALTH.TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR.

SECTION(B) 15.INTERCONNECTION PRIORITY.--THE COMMISSION SHALL REQUIRE AN ELECTRIC DISTRIBUTION COMPANY TO GIVE PRIORITY TO THE INTERCONNECTION OF A COMMERCIAL DATA CENTER CERTIFIED UNDER SUBSECTION (A).

EFFECTIVEFOR DATE.AN INTERCONNECTION SUBJECT TO STATE JURISDICTION, THE COMMISSION SHALL ALSO REQUIRE AN ELECTRIC DISTRIBUTION COMPANY TO GIVE PRIORITY TO THE INTERCONNECTION OF AN INCREMENTAL CLEAN FIRM ENERGY RESOURCE OR COMBINED GENERATION AND STORAGE RESOURCE ASSOCIATED WITH A CERTIFIED COMMERCIAL DATA CENTER.

THIS20250HB1834PN3061 ACT- SHALL47 TAKE- EFFECTSection IN13 6014. DAYS.

20250HB1834PN2846Enforcement. - 23 -

<-- 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 15.

Construction.

<-- Nothing in this act shall be construed to authorize an electric distribution company to own electric generation supply in this Commonwealth.

Section 15 16.

Effective date.

<-- This act shall take effect in 60 days.

20250HB1834PN3061 - 48 -