Energy (Utility Regulation)

HB 503 establishes the Pennsylvania Climate Emissions Reduction (PACER) Program, creating a state-run "cap-and-invest" system to reduce carbon dioxide emissions from the power sector. The program requires the Department of Environmental Protection to conduct Pennsylvania-run auctions for CO2 allowances, with specific rules for eligible participants, such as electricity generators and financial institutions. Revenue from these auctions will be directed into several designated accounts, including those for consumer protection, energy transformation, workforce enhancement, and low-income support. Upon the program's establishment, Pennsylvania would cease participation in other carbon auction programs related to the electric generation sector.

HB 362 amends Pennsylvania's 1929 Administrative Code to authorize the Energy Development Authority to administer federal funds from the Inflation Reduction Act of 2022 for the Solar for All Program. It directs the Authority to distribute funds for residential solar installations, storage, and upgrades to qualifying households across all Pennsylvania counties, prioritizing rural, suburban, and urban communities. The bill specifically prohibits using funds for solar panels or parts made with forced labor (defined as work performed under threat of penalty without voluntary consent) and requires the Public Utility Commission to protect non-participating ratepayers from cross-subsidization. This creates a clear administrative framework for implementing the federal program while adding labor and ratepayer safeguards.

HB 705 requires Pennsylvania's Public Utility Commission to issue grid security guidelines within 180 days, mandating electric distribution companies to develop and file detailed infrastructure plans within one year. These plans must address grid security against cyber/physical threats, electrify public infrastructure (like transit and emergency services), deploy modern technologies (energy storage, EV chargers), and ensure equitable coverage in underserved areas. Companies must evaluate impacts on grid reliability, economic development, customer rates, and low-income households before submitting plans for commission approval. The bill directly affects all electric distribution companies operating in Pennsylvania, requiring them to coordinate with state agencies and community representatives to modernize the grid for growing demand.

Senate Bill 503 establishes the Pennsylvania Climate Emissions Reduction Program (PACER), a state-run "cap-and-invest" system to regulate carbon dioxide emissions from the power sector. Under PACER, the Department of Environmental Protection will conduct auctions where electricity generators and other eligible parties must purchase CO2 allowances. The program's revenue is intended to fund specific accounts for consumer protection, energy transformation, workforce enhancement, and low-income support. The Department is also mandated to review the program's emissions budget, considering its impacts on jobs, consumers, and the environment. This program aims to replace Pennsylvania's participation in any other multi-state carbon auction for the electric generation sector.