As science and technology advance, so too does the energy industry. In fact, it may be a misnomer to call it a single “industry” as gas, oil, coal, power generation and power distribution refineries are all unique industries unto themselves. This year saw its share of developments in energy, and, like the industry itself, they were varied and complex. We saw legislative enactments as well as the development of administrative policies across several sectors of the energy industry.
Legislation
With so many diverse issues, energy bills are abundant every legislative session. This year, though, only a few of them crossed the finish line. They are:
- Act 30/S.B. 234 (Blake, D-Lackawanna), which created the Property Assessed Clean Energy Program (PACE) to finance clean energy projects, water conservation projects or alternative energy systems;
- Act 58/H.B. 1782 (Delozier, R-Cumberland), which provides for the use of alternative ratemaking mechanisms by electric distribution companies and natural gas distribution companies; and
- Act 120/H.B. 2075 (Charlton, R-Delaware), which granted public utilities the ability to use rate recovery as a means to recoup the costs incurred when replacing customer-owned lead water service lines or damaged wastewater laterals.
Solar Energy
The “Finding Pennsylvania’s Solar Future” planning project began in 2017. The workgroup was led by the Department of Environmental Protection (DEP) and brought together over 500 stakeholders from across the state to develop a statewide plan. After over a year’s worth of work, the Solar Future Plan was released in November.
Currently, just .5 percent of net electricity generation in Pennsylvania comes from solar energy. The target is to increase in-state solar-powered electricity generation by 10 percent by 2030. To accomplish this goal, the report suggests seven strategies that incorporate development of both grid-scale and distributed systems and eight strategies specific to either distributed or grid-scale solar development.
Driving PA Forward
As part of the Volkswagen settlement relating to their vehicles’ emissions controls, Pennsylvania was allocated $118.5 million to fund projects to reduce diesel emissions via an environmental mitigation trust fund. DEP developed a plan that outlined the focused use of mitigation funds and information on the specific type of projects eligible for funding.
DEP is implementing the state’s plan through the Driving PA Forward initiative. The goal is to permanently reduce nitrogen oxide (NOx) emissions by as much as 27,700 tons. This will improve air quality and drive transformation from older, polluting diesel engines to clean technologies.
Eligible project categories (all 5-year programs) are:
- Ferries, tugs and freight switchers – $34.1 million;
- Onroad rebate program: Class 4-8 tucks, port drayage trucks, school buses and shuttle buses. – $29.9 million;
- Class 8 truck and transit bus grant program – $16.1 million;
- DC fast charging and hydrogen fueling grant program – $10 million;
- Pennsylvania State Clean Diesel Grant Program – $9 million;
- Level 2 electric vehicle charging rebate program – $7.7 million;
- Forklifts, airport ground support equipment and port cargo handling equipment – $5.9 million; and
- Ocean going vessel shore power systems – $5.9 million.
Automated Vehicles
The future of the automotive industry is upon us, as the use of automated vehicles becomes a reality. At the end of session, Act 117/H.B. 1958 (Rothman, R-Cumberland) was enacted, which authorizes the use of automated work zone vehicles by PennDOT and the Turnpike Commission. The legislation also establishes the Highly Automated Vehicle (HAV) Advisory Committee, which is tasked with developing technical guidance, evaluating best practices, and reviewing existing laws, regulations and policies.
In addition, after discussions with the Autonomous Vehicle Policy Task Force, PennDOT issued guidance to enhance safety oversight of HAV’s. All HAV testers are required to submit a “Notice of Testing” prior to allowing vehicles and personnel perform on-the-road testing.
Nuclear Energy Caucus Report
On November 29, the bipartisan and bicameral nuclear energy caucus released its report detailing the nuclear energy industry’s impact to Pennsylvania’s communities, economy and environment. The state’s five nuclear power plants produce 42% of the total electricity production.
The report suggests four options that the Commonwealth could take:
- Do nothing and leave Pennsylvania’s clean energy resources, including its nuclear plants, on a trajectory to early retirement.
- Modify the Alternative Energy Portfolio Standards Act (AEPS), or establish a Zero Emissions Credit (ZEC) Program to put nuclear generation on equal footing with other zero-emission electric generation resources in Pennsylvania.
- Modify the AEPS, or establish a ZEC program, with a “safety valve” mechanism that (depending on the outcome of the FERC proceeding) would allow Pennsylvania to adopt a new capacity construct proposed by FERC that is designed to accommodate state programs to support preferred generation resources.
- Establish a Pennsylvania carbon pricing program.
Looking Forward
The end of the 2017-2018 session brought the retirement of key committee chairmen. House Consumer Affairs Committee Chairman Rep. Robert Godshall (R-Montgomery) retired at the end of 2018, as did Rep. John Maher (R-Allegheny), Chairman of the Environmental Resources and Energy Committee, creating vacancies in those chairmanships. There were no related retirements in the Senate; however, with a new session starting in January, we could see some shuffling of the chairs, so to speak.