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Harrisburg: Rep. Eugene DePasquale (D-York) announced he will be introducing legislation to amend the Alternative Energy Portfolio Standards Act to provide for increases in Tier I and solar share requirements, provide a Tier II carve out for advanced coal combustion with limited carbon dioxide emissions and create a permitting process for facilities that capture and sequester carbon dioxide. This new bill is expected to replace House Bill 80 as the principal Clean Energy bill in the state House.
Sponsors and environmental groups hope the bill will have broader support from labor and environmental groups which split over provisions in HB 80.DePasquale said in a memo to members that the legislation would increase Tier I requirements to 15% by 2024. The solar carve-out in Tier I will be increased to a total of 3% by 2024. DePasquale said extending these deadlines is important to provide those wishing to invest in alternative energy the time needed to plan, develop and build facilities and then operate them long enough to recover their investments. The bill will carve out a Tier II niche for advanced coal combustion electricity production.
Utilities will be asked, beginning in 2020, to secure 3% of their production from sources that can capture and sequester carbon. The Tier II shares required will be increased to accommodate this carve-out. DePasquale noted the legislation also establishes a permitting process for carbon sequestration facilities and requires these facilities to accept rights, title and liability of the carbon dioxide. As part of the permitting process, facilities would be required to pay fees to DEP, which would be placed in the Carbon Dioxide Indemnification Fund.
To address concerns about the cost passed onto ratepayers, he said his bill would require the Public Utility Commission (PUC) to declare force majeure if it determines the price of alternative energy credits exceeds the cost of alternative energy compliance payments.
The alternative compliance payment for the solar alternative share would be set at $450 per megawatt hour per year beginning on January 1, 2011 and then reduced by 3% each year thereafter. Finally, this legislation would require the PUC to provide a ratepayer notification summary on an annual basis regarding the cost of AEPS compliance compared to the related benefits of AEPS compliance. |
