PRIOR PRINTER'S NO. 459
PRINTER'S NO. 2790
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
491
Session of
2023
INTRODUCED BY YOUNG, McNEILL, MEHAFFIE, KINSEY, HOHENSTEIN,
BURGOS, SIEGEL, MADDEN, KENYATTA, SANCHEZ, PARKER, DELLOSO,
BRENNAN, SOLOMON, KHAN, T. DAVIS, GUENST, MARSHALL, GREEN,
PIELLI, MALAGARI, KIM, FLEMING AND McANDREW, MARCH 16, 2023
AS REPORTED FROM COMMITTEE ON CONSUMER PROTECTION, TECHNOLOGY
AND UTILITIES, HOUSE OF REPRESENTATIVES, AS AMENDED,
MARCH 26, 2024
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, further providing for energy efficiency and
conservation program.
PROVIDING FOR ENERGY EFFICIENCY AND CONSERVATION PLANS WITH
INCLUSION OF MECHANICAL INSULATION.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2806.1(e)(2) and (m) of Title 66 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 2806.1. Energy efficiency and conservation program.
* * *
(e) Commission approval.--
* * *
(2) The commission shall approve or disapprove a plan
filed under subsection (b) within 120 days of submission. The
following shall apply to an order disapproving a plan:
(i) The commission shall describe in detail the
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reasons for the disapproval.
(ii) The electric distribution company shall have 60
days to file a revised plan to address the deficiencies
identified by the commission. The revised plan shall be
approved or disapproved by the commission within 60 days.
(iii) The commission may not disapprove a plan due
to the inclusion of mechanical insulation which is not
demonstrated to be cost effective using a total resource
cost test approved by the commission.
* * *
(m) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Conservation service provider." An entity that provides
information and technical assistance on measures to enable a
person to increase energy efficiency or reduce energy
consumption and that has no direct or indirect ownership,
partnership or other affiliated interest with an electric
distribution company.
"Electric distribution company total annual revenue."
Amounts paid to the electric distribution company for
generation, transmission, distribution and surcharges by retail
customers.
"Energy efficiency and conservation measures."
(1) Technologies, management practices or other measures
employed by retail customers that reduce electricity
consumption or demand if all of the following apply:
(i) The technology, practice or other measure is
installed on or after the effective date of this section
at the location of a retail customer.
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(ii) The technology, practice or other measure
reduces consumption of energy or peak load by the retail
customer.
(iii) The cost of the acquisition or installation of
the measure is directly incurred in whole or in part by
the electric distribution company.
(2) Energy efficiency and conservation measures shall
include solar or solar photovoltaic panels, energy efficient
windows and doors, energy efficient lighting, including exit
sign retrofit, high bay fluorescent retrofit and pedestrian
and traffic signal conversion, geothermal heating,
insulation, air sealing, reflective roof coatings, energy
efficient heating and cooling equipment or systems and energy
efficient appliances and other technologies, practices or
measures approved by the commission.
"Mechanical insulation." Insulation materials, facings and
accessory products used for thermal requirements for mechanical
piping and equipment, hot and cold applications and heating,
venting and air conditioning applications.
"Peak demand." The highest electrical requirement occurring
during a specified period. For an electric distribution company,
the term shall mean the sum of the metered consumption for all
retail customers over that period.
"Quality assurance." All of the following:
(1) The auditing of buildings, equipment and processes
to determine the cost-effectiveness of energy efficiency and
conservation measures using nationally recognized tools and
certification programs.
(2) Independent inspection of completed energy
efficiency and conservation measures completed by third-party
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entities to evaluate the quality of the completed measure.
"Real-time price." A rate that directly reflects the
different cost of energy during each hour.
"Time-of-use rate." A rate that reflects the costs of
serving customers during different time periods, including off-
peak and on-peak periods, but not as frequently as each hour.
"Total resource cost test." A standard test that is met if,
over the effective life of each plan not to exceed 15 years, the
net present value of the avoided monetary cost of supplying
electricity is greater than the net present value of the
monetary cost of energy efficiency conservation measures.
Section 2. This act shall take effect in 60 days.
SECTION 1. SHORT TITLE.
THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE MECHANICAL
INSULATION ACT.
SECTION 2. 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:
"COMMISSION." THE PENNSYLVANIA PUBLIC UTILITY COMMISSION.
"ELECTRIC DISTRIBUTION COMPANY." AS DEFINED IN 66 PA.C.S. §
2803 (RELATING TO DEFINITIONS).
"MECHANICAL INSULATION." INSULATION MATERIALS, FACINGS AND
ACCESSORY PRODUCTS USED FOR THERMAL REQUIREMENTS FOR MECHANICAL
PIPING AND EQUIPMENT, HOT AND COLD APPLICATIONS AND HEATING,
VENTING AND AIR CONDITIONING APPLICATIONS.
"TOTAL RESOURCE COST TEST." AS DEFINED IN 66 PA.C.S. §
2806.1(M) (RELATING TO ENERGY EFFICIENCY AND CONSERVATION
PROGRAM).
SECTION 3. ENERGY EFFICIENCY AND CONSERVATION PLANS WITH
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INCLUSION OF MECHANICAL INSULATION.
THE COMMISSION MAY NOT DISAPPROVE AN ENERGY EFFICIENCY AND
CONSERVATION PLAN FILED BY AN ELECTRIC DISTRIBUTION COMPANY
UNDER 66 PA.C.S. § 2806.1(B) (RELATING TO ENERGY EFFICIENCY AND
CONSERVATION PROGRAM) SOLELY DUE TO THE INCLUSION OF MECHANICAL
INSULATION WHICH IS NOT DEMONSTRATED TO BE COST EFFECTIVE USING
A TOTAL RESOURCE COST TEST APPROVED BY THE COMMISSION.
SECTION 4. EFFECTIVE DATE.
THIS ACT SHALL TAKE EFFECT IN 60 DAYS.
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