On October 8, Sen. John Blake (D-Lackawanna) and Rep. Kyle Mullins (D-Lackawanna) announced plans to introduce legislation setting minimum standards for host community agreements between new power plants and their surrounding communities and school districts as well as a minimum host community fee.

It would also set a fee to be used by DEP to develop air and water monitoring programs around the power plants.

In their cosponsor memo to colleagues asking them to sponsor the bills, Sen. Blake and Rep. Mullins said--

"The host fees and environmental safeguards I am [we are] proposing would provide much needed predictability for both host communities and power plant developers, thus avoiding an often-contentious process at the local level while, at the same time, adequately compensating and protecting residents.

"This bill will also require opportunities for the citizens of the host municipality, school district and county to provide meaningful input into any host agreement negotiated with the owner of a power plant subject to this legislation.

"This bill would require that minimum payments be made to host municipalities, school districts and counties where plants are sited, it would also set parameters on how political subdivisions could spend monies that are collected.

"Host municipalities would receive a minimum upfront payment of $1,000 per megawatt and a minimum annual payment of $700 per megawatt.

“Host counties would receive a minimum upfront payment of $200 per megawatt and a minimum annual payment of $500 per megawatt.

“School districts would receive a minimum annual payment of $500 per megawatt.

"The Department of Environmental Protection would receive an annual fee of $300 per megawatt to cover its expenses for administering this program, and for developing air and water quality monitoring programs in consultation with the host municipality and county – perhaps the most critical component of this proposal.

“Host community uses for the proceeds include, but are not limited to:

-- Road, bridge and public infrastructure projects

-- Sanitary sewer system and stormwater management projects

-- Environmental programs including recreation, open space, floodplain management, conservation districts and agricultural preservation

-- Tax reductions, including homestead exclusions (property taxes)

-- Delivery of emergency and social services

-- Energy assistance to low-income households

“To be clear, the provisions of this bill lay out a minimum set of standards. Local governing boards and power plant developers are free to negotiate standards that go beyond the floor set by this legislation.

“The lack of host agreement standards was revealed to me [us] during the recent construction of a 1,500 megawatt power plant – a source of great division within a local community I now represent. Companion legislation will be offered in the Senate by Senator John Blake because of our mutually-impacted constituency. It is our hope that other host communities may avoid the division I [we] referenced.”

Click Here for a copy of the cosponsor memo.

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