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<title>January 2005: Pennsylvania Adopts Renewable Portfolio Standard</title>
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<p align="left"><strong><small><font face="Arial">About The Author:</font></small></strong></p>
<p align="left"><font face="Arial" style="font-size: 9pt">Robert A. Olson is a partner in the law firm of
Brown, Olson & Gould, P.C. which maintains a nationwide practice in energy law,
public utility law and related commercial transactions.</font></p>
<p><small><font face="Arial"><font style="font-size: 9pt">He can be reached at:</font><br>
<br>
<b><font color="#0000FF">Brown, Olson & Gould, PC</font></b><br>
2 Delta Drive<br>
Suite 301<br>
Concord, NH 03301<br>
<a href="mailto:[email protected]">[email protected]</a><br>
(603) 225-9716<br>
<a href="mailto:[email protected]"></a></font></small></p>
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<p ALIGN="left"><u><b>January 2005<br>
</b></u><font size="6"><b>Pennsylvania Adopts
Renewable Portfolio Standard<br>
</b></font><strong>by Robert Olson -- Brown, Olson and Wilson, P.C.<br>
</strong><font face="Arial" size="2">(<em>originally published by PMA OnLine Magazine:
200</em>5/05/06)</font><font size="6"><b><br>
<br>
</b></font>Pennsylvania
is about to join a growing number of states that have created a trading
market for renewable energy attributes separate from the market for energy
itself. On November 20, 2004, the Pennsylvania General Assembly enacted
Senate Bill 1030, known as the “Alternative Energy Portfolio Standards Act.”
Governor Edward Rendell signed the Act into law on December 7, 2004, and it
becomes effective on February 18, 2005.</p>
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<p class="MsoNormal" style="text-autospace: none" align="left">The Act
requires that, beginning in 2006, at least 1.5 % of the electricity sold at
retail come from solar, wind, low impact hydro, geothermal, biological or
coal mine methane gas, fuel cells, or biomass generation sources. This
percentage is to increase by 0.5% per year until at least 8% of the
electricity sold at retail comes from these sources. The Act also requires
that, beginning in 2006, at least 4.2% of the electricity sold at retail
within the Commonwealth be derived from waste coal, distributed generation
systems, demand-side management, large scale hydropower, municipal solid
waste, wood waste, or integrated combined coal gasification technology. This
percentage will increase to 6.2% in 2010, to 8.2% in 2015, and to 10.0% in
2020. By 2020, at least 18% of the electricity sold at retail in
Pennsylvania will have to be generated by the types of sources approved in
the Act. Only generating facilities located inside the geographic boundaries
of the Commonwealth or “within the service territory of any regional
transmission organization that manages the transmission system in any part
of the Commonwealth” are eligible to satisfy these requirements.</p>
<p class="MsoNormal" style="text-autospace: none" align="left">Electric
distribution companies and generation suppliers must demonstrate compliance
with the Act by accumulating “alternative energy credits.” One credit
corresponds to one megawatt hour of qualified alternative electric
generation. Alternative energy credits may be accumulated through
self-generation, purchasing credits in conjunction with electricity, or
purchasing credits that are traded separately from qualified alternative
electric generation. Companies that fail to comply with the percentage
requirements will be required to pay a fee into a special fund of the
Pennsylvania Sustainable Energy Board. These fees are to be used solely to
fund projects that will increase the amount of qualified alternative
generation.</p>
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<p class="MsoNormal" style="text-autospace: none" align="left">Between now
and February 2006, the Pennsylvania Public Utilities Commission is charged
with the responsibility of establishing the alternative energy credits
program needed to implement the Act and with approving an independent entity
to serve as the program’s administrator. The Commission must also develop a
registry of information regarding credit availability and sales, regulations
governing the verification and tracing of energy efficiency and demand-side
management measures that qualify under the Act, and regulations governing
interconnection of customer-generators. Lastly, the Commission is
responsible for reviewing the renewable energy practices and policies of the
Commonwealth on a regular basis.</p>
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<p align="left"><font face="Arial">
<small>Robert A. Olson is a partner in the law firm of Brown, Olson &
Gould P.C.
which maintains a nationwide practice in energy law, public utility law and related
commercial transactions. He can be reached at:</small></font><p align="center">
<font face="Arial"><small><font color="#0000FF"><b>Brown, Olson & Gould, PC</b></font><br>
2 Delta Drive, Suite 301<br>
Concord, NH 03301 <br>
<br>
<a href="mailto:[email protected]">[email protected]</a> | (603) 225-9716<a href="mailto:[email protected]"></a></small></font>
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