Regulatory Update

    PA Tier II AEC Legislation Tracker: Live Bill Status

    Status verified 3 September 2026

    Jun 28, 2026Updated Sep 3, 20269 min read
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    Pennsylvania Tier II AEC legislation: what is actually moving

    Every bill below amends the Alternative Energy Portfolio Standards Act (Act 213 of 2004) or the Tier II market it created. Status is dated. Where a bill is stalled, we say stalled — a tracker that reads as though everything is imminent is worse than no tracker.

    The one-line summary as of 3 September 2026: nothing affecting Tier II has passed either chamber.

    Stalled: PRESS (HB 501 / SB 501)

    The Pennsylvania Reliable Energy Sustainability Standard would rename and restructure Act 213, expand Tier I, create a Tier III for legacy thermal resources including waste coal and municipal solid waste, and add zero-emission credits for nuclear.

    Status: HB 501 was approved by the House Environmental and Natural Resource Protection Committee on 2 June 2025 and laid on the table under House Rule 71 on 23 March 2026. It has not passed the House. The Senate companion, SB 501, has had no votes and no committee meetings. PRESS was not included in the 2026-27 state budget.

    What it would mean for a Tier II credit holder: under PRESS, efficiency, CHP, fuel cells, storage and demand-side management remain Tier II resources while waste coal and municipal solid waste move to Tier III. We are not publishing a projected post-PRESS obligation percentage or price range. The bill is tabled, the figures in circulation come from bill text that could change in amendment, and a forecast is not a schedule.

    Announced but not introduced: cutting the Tier II ACP to $15

    A Senate co-sponsorship memo circulated in spring 2026 announces legislation to lower the Tier II alternative compliance payment from $45 to $15 per credit. The memo's argument is ratepayer cost: it cites PUC figures showing Tier II ratepayer impact growing from about $1 million in 2016 to $355 million in 2024, with roughly $500 million projected for 2026, and states that even at $15 waste coal and pumped storage generators would retain workable margins.

    Status: no bill number exists. The memo records that it has not been submitted for introduction. The 2025-26 session ends 30 November 2026; any bill not enacted by then dies and must be reintroduced in the session beginning January 2027.

    Two things to keep straight. First, the price figures in that memo are the sponsor's and do not match the PUC's published weighted-average series, which we maintain separately on our AEC market prices page. Second, the $45 figure sits in 52 Pa. Code § 75.65(b)(2) — a Commission regulation, not the statute — and it functions as a penalty that effectively caps price rather than as a formal ceiling. A statutory number would control over the regulation if one were enacted.

    Not an AEPS bill, despite the name

    SB 502 is regularly cited as an AEPS Tier II bill. It is not. It amends Title 27 to establish the Reliable Energy Siting and Electric Transition Board and concerns generation siting. It has no votes and no committee meetings recorded.

    Also live, lower salience

    • SB 372 — Clean Energy Standard and modernised AEPS with a zero-emissions carbon certificate program. Referred to Senate Consumer Protection & Professional Licensure on 6 March 2025; no votes since.
    • SB 699 — would add linear generators as an eligible AEPS resource.
    • HB 2547 — amends AEPS definitions. Introduced 28 May 2026, referred to House Energy. Worth watching because definitional changes can move eligibility without touching a percentage.
    • HB 2595 — AEPS interconnection reviews. Introduced 3 June 2026.
    • SB 1019 and HB 2348 — solar siting and net metering respectively. Tier I-facing.

    What this means if you hold or are registering credits

    Legislative risk in this market is a price risk, not an eligibility risk. Nothing pending would disqualify a certified energy efficiency or CHP project, and no proposal removes efficiency or demand-side management from Tier II. What is at stake is the value of each credit.

    And the market reprices on legislative momentum, not on enactment. Forward Tier II prices would move when a bill gets a committee vote, not when it takes effect — which is the argument for registering and monetising on a known schedule rather than banking credits against a higher future price. Our process page sets out that schedule.

    What we do not claim

    • That any of these bills will pass. None has cleared a chamber.
    • Any projected post-reform Tier II price or obligation percentage.
    • That the $45 ACP is statutory, or a formal price ceiling.
    • Any Tier II supply, bank position or forward-supply figure. Obligation and retirement volumes are published; supply is not.

    Sources

    • Pennsylvania General Assembly bill histories, 2025-26 Regular Session
    • PA PUC AEPS Annual Report, reporting year 2025
    • 52 Pa. Code § 75.65

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