Pennsylvania SB 504: An Act providing for community energy facilities; imposing duties on the Pennsylvania Public Utility Commission, electric distribution companies and subscriber organizations; and providing for prevailing wage and labor requirements.

Bill Text

PRINTER'S NO. 772
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 504
Session of
2025
INTRODUCED BY SCHWANK, COSTA, TARTAGLIONE, SANTARSIERO, KANE,
STREET, COMITTA, COLLETT, FONTANA, SAVAL, CAPPELLETTI,
HUGHES, HAYWOOD, PISCIOTTANO AND MILLER, MAY 12, 2025
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
MAY 12, 2025
AN ACT
Providing for community energy facilities; imposing duties on
the Pennsylvania Public Utility Commission, electric
distribution companies and subscriber organizations; and
providing for prevailing wage and labor requirements.
TABLE OF CONTENTS
Section 1. Short title.
Section 2. Findings and declarations.
Section 3. Definitions.
Section 4. Authorization to own or operate community energy
facilities.
Section 5. Bill credit for subscribers to community energy
facilities.
Section 6. Protection for customers.
Section 7. Duties of electric distribution companies.
Section 8. Compensation and cost recovery for electric
distribution companies.
Section 9. Interconnection standards for community energy
facilities.
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Section 10. Unsubscribed energy.
Section 11. Customer participation in community energy
programs.
Section 12. Location of multiple community energy facilities.
Section 13. Prevailing wage and labor requirements.
Section 14. Ratepayer protections.
Section 15. Effective date.
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 Community
Energy Act.
Section 2. Findings and declarations.
The General Assembly finds and declares as follows:
(1) Growth in energy generation provides family-
sustaining jobs and investments in this Commonwealth.
(2) Programs for community energy generation provide
customers with additional energy choices and access to
affordable energy options.
(3) Community energy programs provide customers,
including homeowners, renters and businesses, access to the
benefits of Pennsylvania community energy generation that is
unconstrained by the physical attributes of their home, farm
or business, including roof space, shading or ownership
status.
(4) In addition to its provision of standard electricity
market commodities and services, local energy generation can
contribute to a more resilient grid and defer the need for
costly new transmission and distribution system investment.
(5) The intent of this act is to:
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(i) Allow electric distribution customers of this
Commonwealth to subscribe to a portion of a community
energy facility and have the result of the subscription
be guaranteed savings.
(ii) Reasonably allow for the creation, financing,
accessibility and operation of third-party-owned
community energy generating facilities and enable robust
customer participation.
(iii) Encourage the development of community energy
programs that will facilitate participation by and for
accessibility and operation of third-party-owned
community energy generating facilities and enable robust
customer participation.
(iv) Encourage the development of community energy
programs that will facilitate participation by and for
the benefit of low-income and moderate-income customers
and the communities where they live, reduce barriers to
participation by renters and small businesses, promote
affordability and improve access to basic public utility
services.
(v) Maximize the use of Federal money to provide for
the development of community energy programs.
Section 3. 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:
"Bill credit." The commission-approved monetary value of
each kilowatt hour of electricity generated by a community
energy facility and allocated to a subscriber's monthly bill to
offset any part of the subscriber's retail electric bill other
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than volumetric or demand-based distribution charges.
"Brownfield." Real property, the expansion, redevelopment or
reuse of which may be complicated by the presence or potential
presence of a hazardous substance, pollutant or contaminant.
"Brownfield community energy facility." A community energy
facility that is primarily located on land that is a brownfield.
"Commission." The Pennsylvania Public Utility Commission.
"Community energy facility." A facility that meets all of
the following criteria:
(1) Is located within this Commonwealth.
(2) Is connected to and delivers electricity to a
distribution system operated by an electric distribution
company operating in this Commonwealth and in compliance with
requirements under this act.
(3) Generates electricity by means of:
(i) a solar photovoltaic device with a nameplate
capacity rating that does not exceed:
(A) 5,000