HB 2348 — An Act amending the act of November 30, 2004 (P.L.1672, No.213), known as the Alternative Energy Portfolio Standards Act, further providing for definitions, for interconnection standards for customer-generator facilities and for interagency responsibilities.

PRINTER'S NO.   3139

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 2348
                                               Session of
                                                 2026

     INTRODUCED BY FIEDLER, HILL-EVANS, PROBST, WAXMAN, SANCHEZ,
        NEILSON, MAYES, STEELE, CEPEDA-FREYTIZ AND FREEMAN,
        APRIL 6, 2026

     REFERRED TO COMMITTEE ON ENERGY, APRIL 7, 2026


                                    AN ACT
 1   Amending the act of November 30, 2004 (P.L.1672, No.213),
 2      entitled "An act providing for the sale of electric energy
 3      generated from renewable and environmentally beneficial
 4      sources, for the acquisition of electric energy generated
 5      from renewable and environmentally beneficial sources by
 6      electric distribution and supply companies and for the powers
 7      and duties of the Pennsylvania Public Utility Commission,"
 8      further providing for definitions, for interconnection
 9      standards for customer-generator facilities and for
10      interagency responsibilities.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.    The definitions of "customer-generator" and "net
14   metering" in section 2 of the act of November 30, 2004
15   (P.L.1672, No.213), known as the Alternative Energy Portfolio
16   Standards Act, are amended and the section is amended by adding
17   definitions to read:
18   Section 2.   Definitions.
19      The following words and phrases when used in this act shall
20   have the meanings given to them in this section unless the
21   context clearly indicates otherwise:
 1      "Abandoned mine land."     An area of land no longer in use
 2   that, in connection with extracting a natural resource from its
 3   natural deposits in the earth by any means, has had material
 4   placed upon, under or above the surface.
 5      "Agricultural operations."    As defined in 3 Pa.C.S. § 503
 6   (relating to definitions).
 7      * * *
 8      "Avoided cost."     The average locational marginal price of
 9   energy, capacity and transmission and distribution grid services
10   values, as determined by the commission, in the applicable
11   transmission zone over the customer-generator's billing period.
12      "Brownfield."     A property that the expansion, redevelopment
13   or reuse of which may be complicated by the presence or
14   potential presence of a hazardous substance, pollutant or
15   contaminant.
16      "Capped landfill."     A capped facility for disposal of trash
17   or garbage in which waste is buried between layers of earth and
18   covered by a cap.
19      "Commercial rooftop."     A roof located on a building or group
20   of buildings used primarily for indoor storage, transfer,
21   manufacture, assembly and distribution or sale of products,
22   services and materials.
23      * * *
24      "Customer-generator."     A [nonutility owner or operator of a
25   net metered distributed generation system with] retail electric
26   customer that owns and operates, leases or operates or contracts
27   with a third party that owns or operates an alternative energy
28   system that has a nameplate capacity of not greater than 50
29   kilowatts if installed at a residential service or not larger
30   than 3,000 kilowatts at other customer service locations, except

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 1   for customers whose systems are above three megawatts and up to
 2   five megawatts who make their systems available to operate in
 3   parallel with the electric utility during grid emergencies as
 4   defined by the regional transmission organization or where a
 5   microgrid is in place for the primary or secondary purpose of
 6   maintaining critical infrastructure, such as homeland security
 7   assignments, emergency services facilities, hospitals, traffic
 8   signals, wastewater treatment plants or telecommunications
 9   facilities, provided that technical rules for operating
10   generators interconnected with facilities of an electric
11   distribution company, electric cooperative or municipal electric
12   system have been promulgated by the Institute of Electrical and
13   Electronic Engineers and the Pennsylvania Public Utility
14   Commission.
15      * * *
16      "Full retail value."     The value of electric energy credited
17   to a customer-generator at the retail rate, including the
18   generation, capacity, transmission and distribution components
19   of the electric distribution company's approved tariff.
20      "Industrial land."     Land planned and zoned for industrial
21   use. The term includes land used for manufacturing, assembly,
22   fabrication, processing, storage, logistics, warehousing,
23   importation, distribution, transshipment or research and
24   development.
25      "Large customer-generator."     A customer-generator with a
26   nameplate capacity greater than 50 kilowatts but not greater
27   than 3,000 kilowatts at nonresidential service locations. Except
28   for existing systems and applications provided under section
29   5(e), the following apply:
30          (1)     A large customer-generator must have electric load,

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 1    independent of the alternative energy system, behind the
 2    meter and the point of interconnection of the alternative
 3    energy system. To be independent of the alternative energy
 4    system, the electric load must have a purpose other than to
 5    support operation, maintenance or administration of the
 6    alternative energy system. This paragraph shall not apply to
 7    alternative energy systems under section 5(c).
 8        (2)   The alternative energy system shall be sized to
 9    generate no more than 200% of the large customer-generator's
10    annual electric consumption at the interconnection meter
11    location when combined with all qualifying virtual meter
12    aggregation locations as of the date of the interconnection
13    application. The following shall apply:
14              (i)    For existing service location accounts on the
15        effective date of this subparagraph, annual electric
16        consumption shall be based on the highest electric usage
17        from any 12 consecutive-month period within 24 months
18        before submission of the interconnection application.
19              (ii)    For new service location accounts, annual
20        electric consumption shall be based on the building type
21        and size and the anticipated usage of electric equipment
22        and fixtures planned for the new service location, as
23        well as the customer's annual consumption from dependent
24        accounts to be included for virtual meter aggregation.
25              (iii)    This paragraph shall not apply to alternative
26        energy systems under section 5(c).
27        (3)   Excess generation shall be subject to an annual net-
28    metered accounting period, and compensation to the large
29    customer-generator for any remaining excess generation shall
30    be in accordance with section 5.

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 1      * * *
 2      "Net metering."   The means of measuring the difference
 3   between the electricity supplied by an electric utility and the
 4   electricity generated by a customer-generator when any portion
 5   of the electricity generated by the alternative energy
 6   generating system is used to offset part or all of the customer-
 7   generator's requirements for electricity. Virtual meter
 8   aggregation on properties owned or leased and operated by a
 9   customer-generator [and located within two miles of the
10   boundaries of the customer-generator's property and] within a
11   single electric distribution company's service territory shall
12   be eligible for net metering. All service locations to be
13   aggregated must be metered electric utility service location
14   retail customer accounts, held by the same individual, legal
15   entity or parent corporation.
16      "Parking facility canopy."     A structure constructed over a
17   public or private parking lot.
18      "Preferred site."   A location determined by the commission to
19   qualify based on whether a majority of the facility's generating
20   capacity or physical footprint is located on one or more of the
21   following:
22          (1)   A brownfield.
23          (2)   An abandoned mine land.
24          (3)   A capped landfill.
25          (4)   A parking facility canopy.
26          (5)   A site on or adjacent to coal-fired electric
27      generation plants that have closed or will close within one
28      year of the effective date of this definition.
29          (6)   A school facility.
30          (7)   Industrial land.

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 1             (8)   Land with ongoing agricultural operations, if the
 2      facility's generating capacity is sourced from biologically
 3      derived methane gas.
 4      * * *
 5      "Routine maintenance."         The repair or replacement of
 6   equipment necessary to maintain safe and reliable operation of
 7   the system, including inverters, wiring transformers, combiner
 8   boxes and monitoring equipment, if the action does not increase
 9   the nameplate capacity of the system or materially alter system
10   design.
11      "School facility."         An educational building and surrounding
12   premises owned by any of the following:
13             (1)   A school entity as defined in the act of March 10,
14      1949 (P.L.30, No.14), known as the Public School Code of
15      1949, including any of the following:
16                   (i)     A school district.
17                   (ii)     An intermediate unit.
18                   (iii)     An area career and technical school.
19                   (iv)     A charter school.
20                   (v)     A cyber charter school.
21                   (vi)     A regional charter school.
22             (2)   A charter school for the education of the deaf or
23      the blind.
24             (3)   A nonpublic school recognized by the Department of
25      Education.
26             (4)   A community college.
27             (5)   The Thaddeus Stevens College of Technology.
28             (6)   The Pennsylvania College of Technology.
29      "Small customer-generator."          A customer-generator with a
30   nameplate capacity of not larger than 50 kilowatts at a

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 1   residential or other customer service location.
 2      * * *
 3      "Virtual meter aggregation."    The combination of readings and
 4   billing for meters, regardless of rate class, on properties
 5   owned or leased and operated by a customer-generator by means of
 6   the electric distribution company's billing process rather than
 7   through physical rewiring of the customer-generator's property
 8   for a single physical point of contact. Virtual meter
 9   aggregation on properties owned or leased by the same customer-
10   generator or alternative energy system operator and within a
11   single electric distribution company's service territory shall
12   be eligible for net metering. Service locations of dependent
13   accounts to be aggregated must be electric distribution company
14   service location accounts, held by a customer receiving retail
15   electric service from the same electric distribution company.
16   The location of an alternative energy system that serves virtual
17   meter aggregation service locations of dependent accounts shall
18   not be required to have measurable electric load independent of
19   the alternative energy system.
20      "Warehouse rooftop."    A roof located on a distribution
21   facility, storage facility, fulfillment center, logistics
22   facility or other facility engaged in similar uses.
23      Section 2.   Section 5 of the act is amended to read:
24   Section 5.   Interconnection standards for customer-generator
25                facilities.
26      (a)   Compensation for small customer-generator systems.--
27   Excess generation from [net-metered] small customer-generators
28   shall receive full retail value for all energy produced on an
29   annual basis.
30      (b)   Compensation for large customer-generator systems.--

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 1   Excess generation from large customer-generators shall receive
 2   the value of the avoided cost for all energy produced on an
 3   annual basis.
 4      (c)   Warehouse or commercial rooftop net metering systems.--
 5   Notwithstanding subsection (b), excess generation from a net-
 6   metered alternative energy system located on a warehouse rooftop
 7   or commercial rooftop shall receive full retail value under the
 8   electric distribution company's small general service or small
 9   commercial rate schedule for all energy produced on an annual
10   basis. The following shall apply:
11            (1)   Eligibility for a large customer-generator to
12      receive the full retail value for excess generation under
13      this subsection shall be determined by the commission based
14      on a majority of the facility's generating capacity or
15      physical footprint being located on a warehouse rooftop or
16      commercial rooftop.
17            (2)   Excess generation from virtual meter aggregation
18      projects that are constructed on a warehouse rooftop or
19      commercial rooftop and that commence operation after the
20      effective date of this paragraph shall receive full retail
21      value at the applicable rate schedule of the dependent
22      accounts for all energy produced on a monthly basis.
23            (3)   An alternative energy system under this subsection
24      that serves virtual meter aggregation service locations of
25      dependent accounts shall not be required to have measurable
26      electric load independent of the alternative energy system.
27      (d)   Technical rules.--The commission shall develop technical
28   and net metering interconnection rules for customer-generators
29   intending to operate renewable onsite generators in parallel
30   with the electric utility grid, consistent with rules defined in

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 1   other states within the service region of the regional
 2   transmission organization that manages the transmission system
 3   in any part of this Commonwealth. The commission shall convene a
 4   stakeholder process to develop Statewide technical and net
 5   metering rules for customer-generators. The commission shall
 6   develop these rules within nine months of the effective date of
 7   this act.
 8      (e)   Safe-harbored net metering for existing systems and
 9   applications of large customer-generators.--
10            (1)   Excess generation from net-metered large customer-
11      generators in operation as of the effective date of this
12      paragraph, or that have submitted an interconnection
13      application to an electric distribution company before
14      September 1, 2025, shall receive full retail value under the
15      electric distribution company's small general service or
16      small commercial rate schedule for all energy produced on an
17      annual basis until the earlier of:
18                  (i)    replacement of generation equipment that extends
19            the life of the system or changes the nameplate
20            generating capacity, except when the large customer-
21            generator is actively working to recommence production
22            after routine maintenance or a vis major event; or
23                  (ii)   December 31, 2050.
24            (2)   After the applicable time period specified under
25      paragraph (1), excess generation shall be subject to an
26      annual net metered accounting period, and compensation to the
27      large customer-generator for any remaining excess generation
28      shall be capped at the avoided cost.
29            (3)   A large customer-generator shall be responsible for
30      interconnection costs and distribution system upgrades

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 1    related to the interconnection of the large customer-
 2    generator's facility in accordance with the commission's
 3    regulations.
 4          (4)   The commission, in collaboration with the Office of
 5    Consumer Advocate, electric distribution companies and solar
 6    energy organizations, may establish, by order, a cap on the
 7    total megawatts of customer-generators that are eligible for
 8    safe harbor under this subsection. A cap established under
 9    this paragraph may not exceed a defined percentage of each
10    electric distribution company's default service peak load.
11    The commission shall establish a wait list for net-metered
12    large customer-generators with an interconnection application
13    submitted to an electric distribution company, as specified
14    under paragraph (1), until it determines the cap on the total
15    megawatts of large-customer generators that are eligible for
16    safe harbor under this section. A net-metered large customer-
17    generator that has an interconnection agreement with an
18    electric distribution company that was executed before the
19    effective date of this paragraph, qualifies for safe harbor
20    under this subsection and may not be excluded by a cap
21    established under this paragraph.
22    (f)   Preferred site virtual meter aggregation projects.--
23          (1)   Notwithstanding subsection (b) or (e), excess
24    generation from virtual meter aggregation projects that are
25    constructed on a preferred site and that commence operation
26    after the effective date of this paragraph shall receive full
27    retail value at the applicable rate schedule of the dependent
28    accounts for all energy produced on a monthly basis until the
29    earlier of:
30                (i)   replacement of generation equipment that extends

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 1            the life of the system or changes the nameplate
 2            generating capacity, except when the customer-generator
 3            is actively working to recommence production after
 4            routine maintenance or a vis major event; or
 5                  (ii)   December 31, 2050, if the project is
 6            constructed primarily on a preferred site, as determined
 7            by the commission based on a majority of the facility's
 8            generating capacity or physical footprint.
 9            (2)   A preferred-site alternative energy system that
10      serves virtual meter aggregation service locations of
11      dependent accounts shall not be required to have measurable
12      electric load independent of the alternative energy system.
13            (3)   After the applicable time period specified under
14      paragraph (1), excess generation shall be subject to an
15      annual net metered accounting period, and compensation to the
16      customer-generator for any remaining excess generation shall
17      be capped at the avoided cost.
18      (g)   Rate schedule classification.--The installation of a net
19   metered facility or the participation in virtual meter
20   aggregation shall not constitute grounds for reclassification of
21   the customer-generator's applicable rate schedule.
22      Section 3.     Section 7 of the act is amended by adding a
23   subsection to read:
24   Section 7.     Interagency responsibilities.
25      * * *
26      (d)   Enforcement of provisions.--The commission shall have
27   authority to enforce this act in accordance with the
28   commission's regulations and orders. The commission may issue,
29   modify or rescind a regulation or order to enforce this act,
30   whether issued before or after the effective date of this

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1   subsection. Nothing in this subsection shall be construed to
2   limit authority granted to the commission under 66 Pa.C.S.
3   (relating to public utilities).
4      Section 4.   This act shall take effect in 60 days.




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