HB 1567 — An Act providing for power plant host community benefit agreements between municipalities and owners of certain electric generating facilities, for power plant host community impact fees paid by affected facilities and fee uses; establishing public participation requirements; and providing for administrative fees and for duties of the Department of Environmental Protection.

PRINTER'S NO.   1867

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       HOUSE BILL
                       No. 1567
                                                Session of
                                                  2025

     INTRODUCED BY MULLINS, DONAHUE, HILL-EVANS, PROKOPIAK AND
        CEPEDA-FREYTIZ, JUNE 5, 2025

     REFERRED TO COMMITTEE ON ENVIRONMENTAL AND NATURAL RESOURCE
        PROTECTION, JUNE 9, 2025


                                     AN ACT
 1   Providing for power plant host community benefit agreements
 2      between municipalities and owners of certain electric
 3      generating facilities, for power plant host community impact
 4      fees paid by affected facilities and fee uses; establishing
 5      public participation requirements; and providing for
 6      administrative fees and for duties of the Department of
 7      Environmental Protection.
 8      The General Assembly of the Commonwealth of Pennsylvania
 9   hereby enacts as follows:
10   Section 1.   Short title.
11      This act shall be known and may be cited as the Power Plant
12   Host Community Benefit Agreement and Fee Act.
13   Section 2.   Definitions.
14      The following words and phrases when used in this act shall
15   have the meanings given to them in this section unless the
16   context clearly indicates otherwise:
17      "Affected facility."     An electric generating facility with a
18   capacity of at least 10 megawatts. The term shall not include
19   the portion of an electric generating facility that uses
20   alternative energy sources.
 1      "Alternative energy sources."         Energy derived from:
 2            (1)   Solar photovoltaic and solar thermal energy.
 3            (2)   Wind power.
 4            (3)   Low-impact hydropower.
 5            (4)   Geothermal energy.
 6            (5)   Biologically derived methane gas.
 7            (6)   Fuel cells.
 8            (7)   Biomass energy.
 9            (8)   Coal mine methane.
10      "Department."     The Department of Environmental Protection of
11   the Commonwealth.
12      "Governing body."     A board of county commissioners, city
13   council, borough or incorporated town council, commissioners of
14   a township of the first class, supervisors of a township of the
15   second class, board of school directors of a school district or
16   their successor forms of government.
17   Section 3.     Plan approvals and permits.
18      The department shall not grant to the owner of an affected
19   facility a final plan approval or final operating permit
20   required under section 6.1 of the act of January 8, 1960 (1959
21   P.L.2119, No.787), known as the Air Pollution Control Act, for a
22   stationary air contamination source that is an electric
23   generating facility with a capacity of at least 10 megawatts
24   unless the owner of the affected facility is in full compliance
25   with section 4.
26   Section 4.     Power plant host community benefit agreements.
27      (a)   Consultation required.--The owner of an affected
28   facility and the governing body of the municipality, the county
29   and the school district in which the affected facility is
30   proposed to be located, expanded or subject to the renewal of an

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 1   existing permit shall enter into discussions to evaluate the
 2   need for and potential terms of a power plant host community
 3   benefit agreement.
 4      (b)   Public hearing.--Prior to negotiating the final terms of
 5   a power plant host community benefit agreement, an affected
 6   facility and the municipality, county and school district in
 7   which the affected facility is located shall, in compliance with
 8   section 8, provide a public opportunity for residents of the
 9   municipality, county and school district to be heard regarding
10   the need for and potential terms of a power plant host community
11   benefit agreement.
12      (c)   Notice of agreement.--If the owner of an affected
13   facility and the municipality in which the affected facility is
14   located enter into a power plant host community benefit
15   agreement, a signed and notarized copy of the agreement shall be
16   transmitted to the department. The department shall transmit the
17   agreement to the Legislative Reference Bureau for publication in
18   the next available issue of the Pennsylvania Bulletin.
19      (d)   Agreement not reached.--If a municipality has approved
20   all necessary zoning and building permits for an affected
21   facility and the owner of the affected facility and the
22   municipality in which the affected facility is located fails to
23   enter into a power plant host community benefit agreement, the
24   following shall apply:
25            (1)   The owner of the affected facility and the
26      municipality shall notify the department of the failure to
27      enter into the agreement.
28            (2)   The owner of the affected facility remains subject
29      to the provisions of this act, including payment of the
30      required power plant host community impact fees under section

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 1      5.
 2      (e)    Municipal permits not approved.--If a municipality has
 3   not approved all necessary zoning and building permits for an
 4   affected facility, the provisions of subsection (d) do not
 5   apply.
 6      (f)    Construction.--Nothing in this act shall be construed to
 7   limit the authority of a municipality in which the affected
 8   facility is located to withhold approval of any applicable
 9   zoning, building or other local permits or approvals required to
10   construct or operate the affected facility in the absence of a
11   power plant host community benefit agreement.
12   Section 5.      Power plant host community impact fees.
13      (a)    Fees.--The owner of an affected facility that begins
14   operation under a new or expanded permit after the effective
15   date of this act shall, at a minimum, pay the amount of up-front
16   and annual power plant host community impact fees specified in
17   this section in order to operate in this Commonwealth. Nothing
18   in this act shall preclude an affected facility and
19   municipality, county and school district from entering into an
20   agreement that establishes up-front and annual fees in greater
21   amounts and provides for other financial and nonfinancial terms
22   and considerations.
23      (b)    Minimum standards for power plant host community impact
24   fees.--
25             (1)   The owner of each affected facility shall make an
26      up-front payment of $1,000 per megawatt of electric
27      generating capacity to the municipality in which the affected
28      facility is located. The payment shall be made prior to the
29      generation of any electricity to be supplied to an electric
30      transmission and distribution system. The municipality shall

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 1    use the funds in accordance with section 6.
 2         (2)   The owner of each affected facility shall make an
 3    up-front payment of $200 per megawatt of electric generating
 4    capacity to the county in which the affected facility is
 5    located. The payment shall be made prior to the generation of
 6    any electricity to be supplied to an electric transmission
 7    and distribution system. Subject to section 6, the county
 8    shall use the money to set up an air quality monitoring
 9    program and a water quality monitoring program for the area
10    in the vicinity of the affected facility in conjunction with
11    the municipality and in consultation with the department.
12         (3)   The owner of each affected facility shall make an
13    annual payment of $700 per megawatt of electric generating
14    capacity to the municipality in which the affected facility
15    is located. The payment shall be made by December 31 of the
16    first year in which the generation of electricity commences
17    under the terms of a new or expanded permit. For each
18    succeeding year, the annual payment shall be increased by an
19    additional 2% or the percentage increase, if any, in the
20    Consumer Price Index for All Urban Consumers (CPI-U) as
21    calculated and published by the United States Department of
22    Labor for the most recent 12-month period for which figures
23    have been officially reported, whichever is greater. The
24    municipality shall use the funds in accordance with section
25    6.
26         (4)   The owner of each affected facility shall make an
27    annual payment of $500 per megawatt of electric generating
28    capacity to the school district in which the affected
29    facility is located. The payment shall be made by December 31
30    of the first year in which the generation of electricity

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 1      commences under the terms of a new or expanded permit. For
 2      each succeeding year, the annual payment shall be increased
 3      by an additional 2% or the percentage increase, if any, in
 4      the Consumer Price Index for All Urban Consumers (CPI-U) as
 5      calculated and published by the United States Department of
 6      Labor for the most recent 12-month period for which figures
 7      have been officially reported, whichever is greater. The
 8      school district shall use the funds in accordance with
 9      section 6.
10            (5)   The owner of each affected facility shall make an
11      annual payment of $500 per megawatt of electric generating
12      capacity to the county in which the affected facility is
13      located. The payment shall be made by December 31 of the
14      first year in which the generation of electricity commences
15      under the terms of a new or expanded permit. For each
16      succeeding year, the annual payment shall be increased by an
17      additional 2% or the percentage increase, if any, in the
18      Consumer Price Index for All Urban Consumers (CPI-U) as
19      calculated and published by the United States Department of
20      Labor for the most recent 12-month period for which figures
21      have been officially reported, whichever is greater. The
22      county shall use the funds in accordance with section 6.
23   Section 6.     Uses of power plant host community impact fees.
24      (a)   Counties and municipalities.--A municipality or county
25   that receives funds under section 5 shall use the funds only for
26   the following purposes associated with hosting a power plant
27   facility within the municipality or county as follows:
28            (1)   Construction, reconstruction, maintenance and repair
29      of roadways, bridges and public infrastructure.
30            (2)   Water, storm water and sewer systems, including

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 1    construction, reconstruction, maintenance and repair, and the
 2    use of green infrastructure to diminish and control storm
 3    water.
 4        (3)    Emergency preparedness and public safety, including
 5    law enforcement and fire services, hazardous material
 6    response, 911 service, equipment acquisition and other
 7    services. At least 10% of the up-front funds received shall
 8    be used for the purposes under this paragraph.
 9        (4)    Environmental programs, including trails, parks and
10    recreation, open space, flood plain management, conservation
11    districts and agricultural preservation.
12        (5)    Preservation and reclamation of surface and
13    subsurface waters and water supplies. At least 10% of the up-
14    front and annual funds received shall be used for the
15    purposes under this paragraph.
16        (6)    Tax reductions, including homestead exclusions.
17        (7)    Projects to increase the availability of safe and
18    affordable housing to residents.
19        (8)    Records management, geographic information systems
20    and information technology.
21        (9)    The delivery of social services.
22        (10)   Judicial services.
23        (11)   For deposit into the municipality's or county's
24    capital reserve fund if the funds are used solely for a
25    purpose set forth in this subsection.
26        (12)   Programs and projects to provide energy assistance
27    to low-income households.
28        (13)   Energy conservation programs.
29        (14)   Air and water quality monitoring. At least 10% of
30    the up-front and annual funds received shall be used for the

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 1      purposes under this paragraph.
 2            (15)    Local or regional planning initiatives under the
 3      act of July 31, 1968 (P.L.805, No.247), known as the
 4      Pennsylvania Municipalities Planning Code.
 5      (b)   School districts.--A school district that receives funds
 6   under section 5 shall use the funds received for general
 7   operating expenses to offset expected reductions in property tax
 8   revenue associated with hosting a power plant facility within
 9   the school district. The school district may also use its funds
10   for the construction or maintenance of parks, trails or other
11   recreational facilities that may be located on school district
12   property or elsewhere in the county hosting the affected
13   facility and for student participation in air and water quality
14   monitoring.
15      (c)   Multiple counties.--Payment of up-front and annual power
16   plant host community impact funds to a municipality or school
17   district which is situate in two or more counties shall be
18   allocated based on the ratio which the population of the
19   municipality or school district within each county bears to the
20   total population of the municipality or school district as last
21   officially certified.
22   Section 7.      Administrative fees.
23      The owner of an affected facility that begins operation under
24   a new or expanded permit after the effective date of this
25   section shall pay an annual administrative fee of $300 per
26   megawatt of electric generating capacity to the department. The
27   first payment shall be made within one month of the commencement
28   of generating electricity under the terms of a new or expanded
29   permit. Payments for the following year and each successive year
30   shall be made by June 30. The department shall use the

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 1   administrative fee to cover its expenses in administering this
 2   act and for developing air and water quality monitoring programs
 3   in consultation with the municipality and county hosting the
 4   affected facility.
 5   Section 8.     Power plant host community public participation
 6                  requirements.
 7      (a)   Requirements for owners of affected facilities.--An
 8   owner of an affected facility seeking a final plan approval or
 9   final permit approval from the department as described in
10   section 3 shall submit a public participation plan to the
11   department on a form prescribed by the department. The
12   department shall either approve the plan or request changes in
13   the plan.
14      (b)   Contents of public participation plan.--The public
15   participation plan shall provide for the following:
16            (1)   The opportunity for residents of the municipality,
17      county and school district in which the affected facility is
18      located to participate in the process by which the department
19      approves a plan or permit, including the opportunity to ask
20      questions in a public meeting or forum.
21            (2)   Identification of proposed dates for at least one
22      public meeting or forum.
23            (3)   The means by which the public meeting or forum shall
24      be advertised and publicized.
25      (c)   Requirements for host municipalities, counties and
26   school districts.--
27            (1)   The municipality, county and school district in
28      which the affected facility is proposed to be located,
29      expanded or subject to the renewal of an existing permit,
30      shall each hold at least one separate public meeting or forum

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 1      to evaluate the need for and potential terms of a power plant
 2      host community benefit agreement. The public meeting or forum
 3      shall provide members of the public the opportunity to ask
 4      questions.
 5          (2)   The municipality, county and school district holding
 6      the public meeting or forum shall advertise the meeting in
 7      public newspapers and online and take reasonable steps to
 8      publicize and make residents of the municipality, county and
 9      school district aware of the meeting.
10   Section 9.   Effective date.
11      This act shall take effect in 60 days.




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