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PRIOR PRINTER'S NOS. 2257, 2846 PRINTER'S NO. 3061
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1834
Session of
2025
INTRODUCED BY MATZIE, INGLIS, DEASY, NEILSON, MULLINS, HADDOCK,
DONAHUE, PROBST, HILL-EVANS, GIRAL, SANCHEZ, CURRY,
D. WILLIAMS, DAVIDSON, HOWARD, FRANKEL, MALAGARI, BOROWSKI,
BOYD, PROKOPIAK, SCOTT, MARKOSEK, STEELE, SMITH-WADE-EL,
CIRESI, FREEMAN, FRIEL, WEBSTER, McNEILL, WAXMAN, TAKAC,
O'MARA, KHAN, KRAJEWSKI, GUENST, HANBIDGE, DOUGHERTY, RIVERA
AND GREEN, SEPTEMBER 2, 2025
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
MARCH 23, 2026
AN ACT
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
Enhancement Account and the Pennsylvania Energy Independence
Account; and imposing duties on the Pennsylvania Public
Utility Commission, the Department of Human Services and the
Pennsylvania Energy Development Authority.
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.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
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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
context clearly indicates otherwise:
"ALTERNATIVE COMPLIANCE PAYMENT." A PER-MEGAWATT-HOUR
PAYMENT MADE BY A COMMERCIAL DATA CENTER UNDER SECTION 7(E) IF
THE COMMERCIAL DATA CENTER ELECTS TO SATISFY ITS CLEAN FIRM
ENERGY PROCUREMENT REQUIREMENT THROUGH PAYMENT IN LIEU OF
PROCUREMENT.
"BACKSTOP PROCUREMENT OF CAPACITY." AN EMERGENCY OR BACKSTOP
PROCUREMENT OF CAPACITY BY THE APPLICABLE REGIONAL TRANSMISSION
ORGANIZATION OR ITS SUCCESSOR ORGANIZATION.
"CLEAN FIRM ENERGY." ENERGY DERIVED FROM NUCLEAR ENERGY,
HYDROELECTRIC POWER, INCLUDING PUMPED STORAGE, GEOTHERMAL
ENERGY, FUEL CELLS, SOLAR ENERGY, INCLUDING SOLAR ENERGY PAIRED
WITH STORAGE RESOURCES, WIND ENERGY, INCLUDING WIND ENERGY
PAIRED WITH STORAGE RESOURCES, CLEAN HYDROGEN-FUELED ENERGY
GENERATION, BATTERY ENERGY STORAGE SYSTEMS AND LONG-DURATION
STORAGE RESOURCES THAT MEET ALL OF THE FOLLOWING:
(1) THE RESOURCE IS DISPATCHABLE OR CAPABLE OF PROVIDING
FIRM SERVICE SO THAT THE RESOURCE CAN DELIVER ELECTRICITY ON
DEMAND WITH AN AVAILABILITY FACTOR CONSISTENT WITH STANDARDS
ESTABLISHED BY THE COMMISSION.
(2) THE RESOURCE CONSTITUTES INCREMENTAL CAPACITY,
INCLUDING ANY OF THE FOLLOWING:
(I) PLACEMENT IN SERVICE OF A NEW CLEAN FIRM ENERGY
GENERATION FACILITY ON OR AFTER JANUARY 1, 2025.
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(II) AN UPRATE OR EFFICIENCY IMPROVEMENT AT AN
EXISTING CLEAN FIRM ENERGY GENERATION FACILITY COMPLETED
ON OR AFTER JANUARY 1, 2025, THAT INCREASES ACCREDITED
CAPACITY OR NET OUTPUT.
(III) PLACEMENT IN SERVICE OF A BATTERY ENERGY
STORAGE SYSTEM ON OR AFTER JANUARY 1, 2025, THAT PROVIDES
AT LEAST TWO HOURS OF CONTINUOUS DISCHARGE OR ANOTHER
DURATION DETERMINED BY THE COMMISSION TO PROVIDE RELIABLE
CAPACITY VALUE.
(IV) PLACEMENT IN SERVICE OF A LONG-DURATION STORAGE
RESOURCE ON OR AFTER JANUARY 1, 2025, THAT PROVIDES NOT
LESS THAN FOUR HOURS OF CONTINUOUS DISCHARGE CAPABILITY
AND FIRM SERVICE AS DETERMINED BY THE COMMISSION.
"CLEAN FIRM ENERGY CERTIFICATE." A TRADABLE INSTRUMENT
REPRESENTING ONE MEGAWATT-HOUR OF ELIGIBLE INCREMENTAL CLEAN
FIRM ENERGY, ISSUED AND RETIRED THROUGH A REGISTRY ESTABLISHED
BY THE COMMISSION TO DEMONSTRATE ADDITIONALITY AND
DELIVERABILITY CONSISTENT WITH SECTION 7 AND REGULATIONS
PROMULGATED UNDER THIS ACT.
"CLEAN FIRM ENERGY GENERATION." ELECTRICITY GENERATED FROM
CLEAN FIRM ENERGY. THE TERM DOES NOT INCLUDE A BATTERY ENERGY
STORAGE SYSTEM OR LONG-DURATION STORAGE RESOURCE. THE TERM
INCLUDES SOLAR ENERGY PAIRED WITH STORAGE RESOURCES AND WIND
ENERGY PAIRED WITH STORAGE RESOURCES.
"CLEAN HYDROGEN." HYDROGEN PRODUCED THROUGH A PROCESS THAT
RESULTS IN A LIFECYCLE GREENHOUSE GAS EMISSIONS RATE OF LESS
THAN FOUR KILOGRAMS OF CARBON DIOXIDE EQUIVALENT PER KILOGRAM OF
HYDROGEN.
"CLEAN OIL FURNACE." AN OIL-FIRED FURNACE THAT MEETS ALL OF
THE FOLLOWING:
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(1) IS ENERGY STAR-CERTIFIED.
(2) IS DESIGNED TO OPERATE ON A BLENDED LIQUID FUEL
CONTAINING NOT LESS THAN 20% BIODIESEL, RENEWABLE DIESEL
OR SECOND GENERATION BIOFUEL.
(3) DEMONSTRATES IMPROVED EFFICIENCY OR REDUCED
EMISSIONS RELATIVE TO THE SYSTEM BEING REPLACED, AS
DETERMINED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.
"COMMERCIAL DATA CENTER." A FACILITY, CAMPUS OF FACILITIES
OR ARRAY OF INTERCONNECTED FACILITIES IN THIS COMMONWEALTH THAT
MEETS ALL OF THE FOLLOWING:
(1) IS USED BY A BUSINESS ENTITY OR OTHER ENTERPRISE TO
OPERATE, MANAGE OR MAINTAIN A COMPUTER, GROUP OF COMPUTERS OR
OTHER ORGANIZED ASSEMBLY OF HARDWARE AND SOFTWARE FOR THE
PRIMARY PURPOSE OF PROCESSING, STORING, RETRIEVING OR
TRANSMITTING DATA.
(2) HAS A PEAK DEMAND OF 25 MEGAWATTS OR GREATER.
(3) IS INTERCONNECTED TO A PUBLIC UTILITY AT A SINGLE
POINT OF INTERCONNECTION OR MULTIPLE POINTS OF
INTERCONNECTION OR IS INTERCONNECTED TO MULTIPLE PUBLIC
UTILITIES WITHIN THIS COMMONWEALTH THROUGH MULTIPLE POINTS OF
INTERCONNECTION.
"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.
"COMMUNITY ENERGY FACILITY." A FACILITY THAT COMPLIES WITH
THE REQUIREMENTS NECESSARY TO ACHIEVE DESIGNATION AS A COMMUNITY
ENERGY FACILITY UNDER A STATE LAW ENACTED ON OR AFTER THE
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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
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
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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.
"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
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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
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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
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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).
"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
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
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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.
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"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
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(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.
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.
(1) 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. 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:
(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
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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
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
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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.
(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
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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.
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
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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:
(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.
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(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.
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:
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(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
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.
(4) THE COMMISSION'S AUTHORITY TO PROMULGATE TEMPORARY
REGULATIONS UNDER THIS SUBSECTION SHALL EXPIRE TWO YEARS
AFTER THE EFFECTIVE DATE OF THIS SUBSECTION. BEFORE 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 GOVERNING ALL OF
THE FOLLOWING:
(1) RETAIL TARIFF TERMS AND CONDITIONS BETWEEN A
COMMERCIAL DATA CENTER AND AN ELECTRIC DISTRIBUTION COMPANY
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FOR ELECTRIC SERVICE TO SAFEGUARD EXISTING CUSTOMERS FROM
STRANDED INVESTMENT AND COST SHIFTING, INCLUDING ALL OF THE
FOLLOWING:
(I) DEPOSITS OR OTHER FINANCIAL SECURITY REQUIRED
FROM A COMMERCIAL DATA CENTER.
(II) CONTRIBUTIONS IN AID OF CONSTRUCTION FOR
NETWORK UPGRADES OR DISTRIBUTION INFRASTRUCTURE AND
DIRECT ASSIGNMENT THROUGH RATES OF COSTS FOR TRANSMISSION
SERVICE, TO THE EXTENT PERMITTED BY LAW.
(III) 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.
AN ELECTRIC 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.
(IV) LOAD-RAMPING SCHEDULES TO ENSURE INFRASTRUCTURE
ADEQUACY.
(V) EXIT FEES OR EARLY TERMINATION FEES.
(VI) MEASURES TO PREVENT CIRCUMVENTION OF THE
COMMERCIAL DATA CENTER THRESHOLD THROUGH MULTIPLE
FACILITIES, INTERCONNECTION POINTS OR METERING POINTS.
(VII) TRACKING OF ALL COSTS, INCLUDING TRANSMISSION
AND DISTRIBUTION COSTS, INCURRED TO SERVE A COMMERCIAL
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DATA CENTER AND VERIFICATION THAT THE REVENUES COLLECTED
EXCEED THE COSTS INCURRED.
(VIII) AN END-OF-CONTRACT PROCESS THAT PROVIDES
SUFFICIENT NOTICE OF A COMMERCIAL DATA CENTER'S RENEWAL
OR CLOSURE.
(IX) TO THE EXTENT PERMITTED BY FEDERAL AND STATE
LAW, A PROCESS FOR THE DIRECT ASSIGNMENT TO A COMMERCIAL
DATA CENTER OF COSTS ASSIGNED BY A REGIONAL TRANSMISSION
ORGANIZATION, AS DETERMINED BY THE COMMISSION.
(2) CURTAILMENT OF A COMMERCIAL DATA CENTER'S LOAD UNDER
AN INTERRUPTIBLE RATE.
(3) STANDARDS GOVERNING COORDINATION OF AN ELECTRIC
DISTRIBUTION COMPANY'S INTERRUPTIBLE RATE WITH A REGIONAL
TRANSMISSION ORGANIZATION VOLUNTARY OR MANDATORY CURTAILMENT
PROGRAM TO ENSURE STATEWIDE CONSISTENCY.
(4) CONDITIONS FOR INTERCONNECTION OF NEW COMMERCIAL
DATA CENTER LOAD WHILE ENSURING THE CONTINUED PROVISION OF
ELECTRIC SERVICE TO EXISTING CUSTOMERS THAT IS ADEQUATE,
REASONABLE, REASONABLY CONTINUOUS AND WITHOUT UNREASONABLE
INTERRUPTION OR DELAY. IF A REGIONAL SUPPLY SHORTAGE EXISTS
OR IS LIKELY TO EXIST, AS FORECASTED OR DETERMINED BY THE
REGIONAL TRANSMISSION ORGANIZATION IN WHICH THE ELECTRIC
DISTRIBUTION SYSTEM PARTICIPATES, 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:
(I) REQUIRING THE COMMERCIAL DATA CENTER TO TAKE
ELECTRIC DISTRIBUTION SERVICE UNDER THE ELECTRIC
DISTRIBUTION COMPANY'S INTERRUPTIBLE RATE.
(II) PERMITTING FIRM ELECTRIC DISTRIBUTION SERVICE
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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 CERTIFICATION
PROGRAM ESTABLISHED BY THE COMMISSION, THE FEDERAL ENERGY
REGULATORY COMMISSION OR THE REGIONAL TRANSMISSION
ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR IN WHICH THE
APPLICABLE PUBLIC UTILITY PARTICIPATES.
(III) IMPOSING A COMBINATION OF THE REQUIREMENTS
UNDER SUBPARAGRAPHS (I) AND (II).
(5) COST RESPONSIBILITY STANDARDS UNDER SECTION 4.
(6) ESTABLISHMENT OF THE ALTERNATIVE COMPLIANCE PAYMENT
RATE AND CALCULATION METHODS UNDER SECTION 7(E).
(7) DISCLOSURE REQUIREMENTS UNDER SECTION 10.
(8) BACKUP GENERATION STANDARDS UNDER SECTION 11.
(9) CURTAILMENT STANDARDS UNDER SECTION 12.
(10) CERTIFICATION AND EXPEDITED INTERCONNECTION
STANDARDS UNDER SECTION 13.
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
COMMERCIAL DATA CENTERS, WHETHER THROUGH BASE RATES, RIDERS,
SURCHARGES OR ANOTHER RATEMAKING MECHANISM, A COST CAUSED IN
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 APPLIES:
(1) THE COST IS DIRECTLY ATTRIBUTABLE TO THE PROVISION
OF ELECTRIC SERVICE TO A COMMERCIAL DATA CENTER.
(2) THE COST WOULD NOT HAVE BEEN INCURRED BUT FOR THE
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ELECTRICITY DEMAND OF A COMMERCIAL DATA CENTER.
(B) RATE REVIEW AND ALLOCATION.--THE COMMISSION SHALL REVIEW
RATES TO ENSURE THAT THE COST OF PROVIDING SERVICE TO A
COMMERCIAL DATA CENTER IS NOT SUBSIDIZED BY ANOTHER CUSTOMER
CLASS. FOR PURPOSES OF A RATE DETERMINATION, EACH ELECTRIC
DISTRIBUTION COMPANY SERVING A COMMERCIAL DATA CENTER SHALL HAVE
THE FOLLOWING DUTIES:
(1) TO ALLOCATE OR ASSIGN COSTS IN ONE OF THE FOLLOWING
WAYS:
(I) ALLOCATE THE COST OF SERVING COMMERCIAL DATA
CENTERS TO A CUSTOMER CLASS CONSISTING SOLELY OF
COMMERCIAL DATA CENTERS IN AN AMOUNT EQUAL TO THE COST OF
SERVING COMMERCIAL DATA CENTERS, INCLUDING DIRECT AND
INDIRECT COSTS ASSOCIATED WITH PROVIDING SERVICE TO
COMMERCIAL DATA CENTERS THROUGH NEW OR EXISTING
FACILITIES.
(II) DIRECTLY ASSIGN THE COST OF SERVING A
COMMERCIAL DATA CENTER TO THE COMMERCIAL DATA CENTER.
(2) TO MITIGATE THE RISK OF ANY OF THE FOLLOWING:
(I) ANOTHER ELECTRIC SERVICE CUSTOMER PAYING A COST
ASSOCIATED WITH PROVIDING SERVICE TO A COMMERCIAL DATA
CENTER IF THE COST DOES NOT BENEFIT ANOTHER CUSTOMER
CLASS.
(II) SHIFTING TO ANOTHER ELECTRIC SERVICE CUSTOMER
THE COST OF SERVING A COMMERCIAL DATA CENTER, INCLUDING A
COST INCURRED BY AN ELECTRIC DISTRIBUTION COMPANY TO MEET
LOAD REQUIREMENTS RESULTING FROM THE PROVISION OF
ELECTRIC SERVICE TO A COMMERCIAL DATA CENTER.
(C) COST-OF-SERVICE STUDY.--A PUBLIC UTILITY THAT SERVES OR
IS REASONABLY EXPECTED TO SERVE COMMERCIAL DATA CENTER LOAD
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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 OR INDIRECT COSTS THAT BENEFIT MULTIPLE CUSTOMER CLASSES,
INCLUDING COMMERCIAL DATA CENTERS.
(D) UNIVERSAL SERVICE AND ENERGY CONSERVATION PROGRAMS.--A
PUBLIC UTILITY SHALL RECOVER FROM COMMERCIAL DATA CENTERS THE
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 A COMMERCIAL
DATA CENTER RESPONSIBLE FOR COSTS SPECIFIED UNDER SUBSECTION
(A), INCLUDING CONSTRUCTION, TRANSMISSION AND DISTRIBUTION
COSTS, REMAINS RESPONSIBLE FOR THOSE COSTS FOR THE USEFUL LIFE
OF THE ASSOCIATED INFRASTRUCTURE OR FOR THE DURATION OF THE
SERVICE OBLIGATION, WHICHEVER IS LONGER, 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
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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.--
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(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
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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
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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
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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.
SECTION 5. CONTRIBUTIONS TO LOW-INCOME HOME ENERGY ASSISTANCE
PROGRAM.
(A) ESTABLISHMENT OF 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 (D) FOR A SUPPLEMENTAL
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PROGRAM TO ENHANCE THE LOW-INCOME HOME ENERGY ASSISTANCE
PROGRAM. THE SUPPLEMENTAL PROGRAM SHALL INCLUDE A SUMMER COOLING
COMPONENT.
(B) SOURCES OF MONEY.--THE FOLLOWING SHALL BE DEPOSITED INTO
THE DATA CENTER LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM
ENHANCEMENT ACCOUNT:
(1) PAYMENTS MADE UNDER SUBSECTION (C).
(2) INTEREST ACCRUED ON MONEY IN THE DATA CENTER LOW-
INCOME HOME ENERGY ASSISTANCE PROGRAM ENHANCEMENT 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 COMMERCIAL
DATA CENTER WITH AN ANNUAL PEAK LOAD OF AT LEAST 25 MEGAWATTS
SHALL PAY INTO THE DATA CENTER LOW-INCOME HOME ENERGY
ASSISTANCE PROGRAM ENHANCEMENT 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 $40,000 PER
MEGAWATT.
(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.
(D) APPROPRIATION.--MONEY IN THE DATA CENTER LOW-INCOME HOME
ENERGY ASSISTANCE PROGRAM ENHANCEMENT ACCOUNT IS APPROPRIATED TO
THE DEPARTMENT OF HUMAN SERVICES ON A CONTINUING BASIS FOR THE
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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
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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.
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(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
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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
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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
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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
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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.
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(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 6. PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT.
(A) ESTABLISHMENT 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
SUBACCOUNTS WITHIN THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT.
(B) SOURCES OF MONEY.--THE FOLLOWING 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 AND 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.
(4) GIFTS, GRANTS AND DONATIONS MADE TO THE PENNSYLVANIA
ENERGY INDEPENDENCE ACCOUNT.
(C) USE OF MONEY.--MONEY IN THE PENNSYLVANIA ENERGY
INDEPENDENCE ACCOUNT IS APPROPRIATED TO THE PENNSYLVANIA ENERGY
DEVELOPMENT AUTHORITY ON A CONTINUING BASIS TO PROVIDE GRANTS,
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LOANS AND LOAN GUARANTEES TO FINANCE NEW CLEAN FIRM ENERGY
SYSTEMS, SMALL-SCALE ENERGY SYSTEMS, ENERGY EFFICIENCY PROJECTS
AND COMMUNITY ENERGY FACILITIES.
(D) CONSTRUCTION LOANS.--THE PENNSYLVANIA ENERGY DEVELOPMENT
AUTHORITY MAY PROVIDE A CONSTRUCTION LOAN UNDER THIS SECTION
ONLY IF THE LOAN CONSTITUTES THE SENIOR DEBT SECURED BY THE
FACILITY AND DOES NOT EXCEED 60% OF THE FACILITY'S ESTIMATED
CONSTRUCTION COST.
(E) ADMINISTRATIVE COSTS.--THE PENNSYLVANIA ENERGY
DEVELOPMENT AUTHORITY MAY USE NOT MORE THAN 5% ANNUALLY OF THE
MONEY IN THE PENNSYLVANIA ENERGY INDEPENDENCE ACCOUNT FOR
ADMINISTRATIVE COSTS RELATING TO THE AUTHORITY'S
RESPONSIBILITIES UNDER THIS ACT.
(F) APPLICATION CRITERIA.--IN EVALUATING AN APPLICATION FOR
A LOAN UNDER THIS SECTION, THE PENNSYLVANIA ENERGY DEVELOPMENT
AUTHORITY SHALL CONSIDER ALL OF THE FOLLOWING:
(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, LOCAL 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; AND
(VII) EVIDENCE OF CREDITWORTHINESS AND ABILITY TO
REPAY THE LOAN ON THE TERMS ESTABLISHED IN THE LOAN
AGREEMENT, INCLUDING TOTAL ASSETS, TOTAL LIABILITIES, NET
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WORTH AND CREDIT RATINGS ISSUED BY MAJOR CREDIT RATING
AGENCIES.
(2) THE GENERATION CAPACITY AND ESTIMATED COST OF THE
PROJECT FOR WHICH A GRANT, LOAN OR LOAN GUARANTEE IS
REQUESTED.
(3) ANY OTHER FACTOR THE PENNSYLVANIA ENERGY DEVELOPMENT
AUTHORITY CONSIDERS APPROPRIATE.
(G) ANNUAL PAYMENTS.--
(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 INDEPENDENCE ACCOUNT
AS FOLLOWS:
(I) $2,000 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 $2,000 PER
MEGAWATT.
(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).
SECTION 7. CLEAN FIRM ENERGY REQUIREMENTS.
(A) PROCUREMENT REQUIREMENT.--ENERGY SUPPLIED TO A
COMMERCIAL DATA CENTER SHALL INCLUDE ELECTRICITY PROCURED FROM
INCREMENTAL CLEAN FIRM ENERGY RESOURCES LOCATED WITHIN THIS
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COMMONWEALTH IN AN AMOUNT NOT LESS THAN THE FOLLOWING
PERCENTAGES OF THE COMMERCIAL DATA CENTER'S ANNUAL 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
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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
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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.
SECTION 8. CONTRACT FILING AND COMMISSION REVIEW.
(A) FILING REQUIREMENT.--AN ELECTRIC DISTRIBUTION COMPANY
SHALL FILE WITH THE COMMISSION A COPY OF EACH CONTRACT EXECUTED
WITH A COMMERCIAL DATA CENTER 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 COMMERCIAL DATA CENTER 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 COMMERCIAL DATA CENTER 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 COMMERCIAL DATA CENTER 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 A CONTRACT FILED UNDER SUBSECTION (A) TO THE
OFFICE OF CONSUMER ADVOCATE, THE OFFICE OF SMALL BUSINESS
ADVOCATE AND THE BUREAU OF INVESTIGATION AND ENFORCEMENT WITHIN
THE COMMISSION, SUBJECT TO AN APPROPRIATE CONFIDENTIALITY
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AGREEMENT, PROTECTIVE AGREEMENT OR PROTECTIVE ORDER.
(C) SUPPORTING DOCUMENTATION.--AN ELECTRIC DISTRIBUTION
COMPANY SHALL INCLUDE WITH A FILING UNDER SUBSECTION (A)
SUFFICIENT DOCUMENTATION TO PERMIT THE COMMISSION TO CONDUCT THE
REVIEW REQUIRED 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 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. THE IMPACT ON LOW-INCOME CUSTOMERS
SHALL BE DETERMINED AS A SUBSET OF RESIDENTIAL CUSTOMERS.
(3) WHETHER THE CONTRACT IS REASONABLY LIKELY 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.
SECTION 9. ANNUAL REPORT.
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(A) REPORT.--FOR AT LEAST 10 YEARS, THE COMMISSION SHALL
SUBMIT A WRITTEN REPORT TO THE GENERAL ASSEMBLY EACH YEAR AND
SHALL MAKE A PUBLIC VERSION OF THE REPORT AVAILABLE ON THE
COMMISSION'S PUBLICLY ACCESSIBLE INTERNET WEBSITE.
(B) CONTENTS.--THE REPORT SHALL INCLUDE ALL OF THE
FOLLOWING:
(1) THE COMMISSION'S EFFORTS DURING THE PRIOR YEAR TO
IMPLEMENT THIS ACT.
(2) THE COMMISSION'S DETERMINATIONS UNDER SECTION 8(D)
REGARDING THE IMPACT OF COMMERCIAL DATA CENTERS ON THE
CONTINUED PROVISION OF ELECTRIC SERVICE THAT IS ADEQUATE,
SAFE AND RELIABLE 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 OR REGULATORY
CHANGES TO IMPROVE THE COMMISSION'S OVERSIGHT
RESPONSIBILITIES UNDER THIS ACT.
SECTION 10. DISCLOSURE REQUIREMENTS.
(A) INTERCONNECTION REQUESTS.--THE COMMISSION SHALL REQUIRE
EACH PLANNED COMMERCIAL DATA CENTER TO DISCLOSE TO THE
COMMISSION, THE APPLICABLE ELECTRIC DISTRIBUTION COMPANY AND THE
APPLICABLE REGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT
SYSTEM OPERATOR WHETHER THE PLANNED COMMERCIAL DATA CENTER IS
PURSUING A SUBSTANTIALLY SIMILAR REQUEST FOR ELECTRIC SERVICE
WITHIN THIS COMMONWEALTH OR WITHIN THE APPLICABLE REGIONAL
TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM OPERATOR IF
APPROVAL OF THE SUBSTANTIALLY SIMILAR REQUEST WOULD RESULT IN A
CHANGE, DELAY OR WITHDRAWAL OF THE INTERCONNECTION REQUEST. THE
DISCLOSURE MAY WITHHOLD OR ANONYMIZE COMPETITIVELY SENSITIVE
DETAILS. THE COMMISSION SHALL PROHIBIT OR IMPOSE REASONABLE
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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 COMMERCIAL DATA CENTER TO DISCLOSE TO THE COMMISSION,
THE APPLICABLE ELECTRIC DISTRIBUTION COMPANY AND THE APPLICABLE
REGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT SYSTEM
OPERATOR INFORMATION REGARDING THE PLANNED COMMERCIAL DATA
CENTER'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 A PERIOD
OF REQUIRED LOAD SHEDDING OR CURTAILMENT, INCLUDING THE AMOUNT
OF NOTICE REQUIRED TO DEPLOY BACKUP GENERATION RESOURCES OR
STORAGE RESOURCES.
SECTION 11. BACKUP GENERATION STANDARDS.
A COMMERCIAL DATA CENTER'S ONSITE FOSSIL-FUELED BACKUP
GENERATION SHALL COMPLY WITH ALL OF THE FOLLOWING:
(1) MEET OR EXCEED THE TIER 4 EMISSIONS STANDARDS OF THE
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY OR BOTH MEET
THE TIER 2 EMISSIONS STANDARDS AND BE EQUIPPED WITH A
SELECTIVE CATALYTIC REDUCTION SYSTEM OR ANOTHER EMISSIONS
CONTROL SYSTEM THAT MORE STRINGENTLY REDUCES NITROGEN OXIDES,
WHERE APPLICABLE.
(2) BE LIMITED TO EMERGENCY USE AND LIMITED TESTING AND
MAINTENANCE CONSISTENT WITH FEDERAL AND STATE AIR QUALITY
LAWS AND REGULATIONS.
(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.
SECTION 12. CURTAILMENT STANDARDS.
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(A) DIRECTION TO COMMERCIAL DATA CENTERS.--DURING A PERIOD
OF EMERGENCY CURTAILMENT OR MANUAL LOAD DUMP, THE COMMISSION
SHALL REQUIRE AN ELECTRIC DISTRIBUTION COMPANY TO DIRECT A
COMMERCIAL DATA CENTER TO DEPLOY BACKUP GENERATION RESOURCES OR
STORAGE RESOURCES OR CURTAIL LOAD BEFORE THE ELECTRIC
DISTRIBUTION COMPANY CURTAILS SERVICE TO A RESIDENTIAL CUSTOMER
OR SMALL COMMERCIAL CUSTOMER.
(B) PRIORITY.--THE COMMISSION MAY REQUIRE AN ELECTRIC
DISTRIBUTION COMPANY TO GIVE PRIORITY UNDER SUBSECTION (A) TO A
COMMERCIAL DATA CENTER THAT HAS NOT BEEN CERTIFIED TO HAVE
BROUGHT ITS OWN INCREMENTAL CLEAN FIRM ENERGY RESOURCES INTO
SERVICE UNDER A PROGRAM ESTABLISHED BY THE COMMISSION, THE
FEDERAL ENERGY REGULATORY COMMISSION OR THE REGIONAL
TRANSMISSION ORGANIZATION 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 A FEDERAL OR
STATE EMISSIONS LIMITATION OR ANOTHER FEDERAL OR STATE
ENVIRONMENTAL LAW OR REGULATION.
SECTION 13. CERTIFICATION AND EXPEDITED INTERCONNECTION FOR
COMMERCIAL DATA CENTERS BRINGING INCREMENTAL CLEAN
FIRM ENERGY RESOURCES.
(A) CERTIFICATION PROGRAM.--THE COMMISSION SHALL ESTABLISH A
PROGRAM TO CERTIFY A COMMERCIAL DATA CENTER THAT HAS BROUGHT OR
PLANS TO BRING INCREMENTAL CLEAN FIRM ENERGY RESOURCES.
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
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RAMP-UP AND UTILIZATION SCHEDULE, THROUGH ANY COMBINATION OF THE
FOLLOWING:
(1) PLACEMENT IN SERVICE BY THE COMMERCIAL DATA CENTER
OR A THIRD PARTY OF AN INCREMENTAL CLEAN FIRM ENERGY RESOURCE
OR COMBINED GENERATION AND STORAGE RESOURCE WITHIN THE
REGIONAL TRANSMISSION ORGANIZATION THAT SERVES THE COMMERCIAL
DATA CENTER.
(2) 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.
(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.
(4) ANOTHER INCREMENTAL ADDITION OF ACCREDITED UNFORCED
CAPACITY FROM INCREMENTAL CLEAN FIRM ENERGY RESOURCES, AS
MEASURED BY THE APPLICABLE REGIONAL TRANSMISSION ORGANIZATION
OR INDEPENDENT SYSTEM OPERATOR.
(B) 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). FOR 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.
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Section 13 14. 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 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.
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