AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 18, by striking the word “Provider” and substituting in lieu thereof the words “Supplier or Municipal Electric Company”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161, on line 24, by striking the words “means a calendar year beginning January 1 and ending December 31” and substituting in lieu thereof “means the calendar year beginning with June 1 and ending with May 31 of the following year.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 25, by inserting the words “or Municipal Electric Company,” after the word “Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 35, by inserting the word “planted,” between the words “is” and “cultivated”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161, by striking the words beginning with the words “that the biomass facility is not an “incinerator” as that term is defined elsewhere in this title” as they appear on lines 35 and 36 and by substituting in lieu thereof the words "that the biomass shall not be combusted to produce energy in an incinerator, as that term is defined elsewhere in this title, in a waste to energy facility, nor by co-firing in a fossil fuel fired power plant.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 39, by inserting the words “or Municipal Electric Company,” after the word “Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by inserting between lines 46 and 47 the following new paragraph,

“(13) ‘Municipal Electric Company’ means a public corporation created by contract between 2 or more municipalities pursuant to provisions of Title 22, Chapter 13 of the Delaware Code and the electric utilities that are municipally owned within the State of Delaware”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking the numbers “(14)”, “(15)”, “(16)”, “(17)”, “(18)”, “(19)”, and “(20)” as they appear on lines 49, 51, 56, 59, 64, 66, and 68 respectively and by substituting in lieu thereof the numbers “(15)”, “(16)”, “(17)”, “(18)”, “(19)”, “(20)”, and “(21)”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 67, by inserting the words “or Municipal Electric Company” after the word “Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking lines 69 through 71 and substituting in lieu thereof the words, “in Delaware, including but not limited to non-regulated power producers, electric utility distribution companies supplying standard offer, default service, or any successor service to End-Use Customers. A Retail Electricity Supplier does not include a Municipal Electric Company for the purposes of this subchapter.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by inserting between lines 71 and 72 thereof the following new paragraph:

“(22) ’Rural Electric Cooperative’ – means a non-stock, non-profit, membership corporation organized pursuant to the Federal “Rural Electrification Act of 1936” and operated under the cooperative form of ownership”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 74, by inserting the words “, except for the retail sales of Municipal Electric Companies,” after the word “sales”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 78, by inserting the words, “or Municipal Electric Company” after the word “Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 between lines 79 and 80, by striking the table entitled “Schedule I” and inserting in lieu thereof the following schedule:

SCHEDULE I
Compliance Year	Cumulative Minimum Percentage
2007	1%
2008	1.5%
2009	2%
2010	2.75%
2011	3.5%
2012	4.25%
2013	5%
2014	5.75%
2015	6.5%
2016	7.25%
2017	8%
2018	9%
2019	10%

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 81, by striking the number “2019” and substituting in lieu thereof the number “2020”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 82, by striking the number “2018” and substituting in lieu thereof the number “2019”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by inserting between line 101 and 102 a new subsection as follows:

“(e) With respect to Municipal Electric Companies, any provision that would alter the percentage target requirements or extend those requirements past Compliance Year 2019 must be promulgated by the General Assembly.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking the letters “(e)”, “(f)”, “(g)”, and “(h)” as they appear on lines 102, 123, 125, and 127 respectively and by substituting in lieu thereof the letters “(f)”, “(g)”, “(h)”, and “(i)”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking lines 111 and 112 thereof in their entirety.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking the numbers “(7)”, “(8)”, “(9)”, and “(10)”as they appear on lines 113, 116, 117, and 120 respectively and by substituting in lieu thereof the numbers “(8)”, “(9)”, “(10)”, and “(11)”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 114, by striking the words “installed after January 1, 2006”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161, on line 118 by striking the words “where the biomass facility is not an “incinerator” as defined elsewhere in this title” and by substituting in lieu thereof the phrase: “and is not combusted to produce energy in an incinerator, as that term is defined elsewhere in this title, in a waste to energy facility, nor by co-firing in a fossil fuel fired power plant”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 123, by inserting the words “or Municipal Electric Company” after the word “Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 123, by striking the figure “0.5%” and substitute in lieu thereof “1%”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 125, by inserting the words “or Municipal Electric Company” after the word “Supplier”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking lines 128 and 129 and substituting in lieu thereof the words “collected in a manner consistent with industry standard and, with respect to Retail Electricity Suppliers, Commission regulations. A Retail Electricity Supplier or Municipal Electric Company shall meet the renewable energy portfolio standards by accumulating the equivalent amount of renewable”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 132, by striking the words “January 1, 2006” and substituting in lieu thereof “June 1, 2007”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 134, by inserting the words “except if banked for early compliance as described in section 360(b) of this Act” after the word “subchapter” but before the period.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 141, by striking the words, “An electric supplier shall receive” and substituting in lieu thereof, “A Retail Electricity Supplier or Municipal Electric Company shall receive”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 146, by striking the words, “An electric supplier shall receive” and substituting in lieu thereof, “A Retail Electricity Supplier or Municipal Electric Company shall receive”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 148, by striking the number “2011” and substituting in lieu thereof the number “2012”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 149 by striking the words “qualifying biomass” and substituting in lieu thereof, “eligible landfill gas and biogas”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 150, by striking the words, “An electric supplier shall receive” and substituting in lieu thereof, “A Retail Electricity Supplier or Municipal Electric Company shall receive”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 151 by striking the words “qualifying biomass fraction of biomass” and by substituting in lieu thereof the words “fraction of eligible landfill gas or biogas”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 154, by inserting the words “to Retail Electricity Suppliers” after the word “(RECs)” but before the word “for”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 158, by striking the words “January 1, 2006 each electric supplier” and substituting in lieu thereof “June 1, 2007 each Retail Electricity Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 160, by striking the words, “electric supplier” and substituting in lieu thereof, “Retail Electricity Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 163, by striking the words, “electric supplier” and substituting in lieu thereof, “Retail Electricity Supplier”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by inserting between lines 164 and 165 the following new subsection:

“(c) Beginning June 1, 2007, each Municipal Electric Company shall submit an annual report to the Delaware Energy Office and the Controller General that:

(1) Demonstrates that the Municipal Electric Company has complied with the RPS established pursuant to this subchapter and includes the submission of the required amount of renewable energy credits; or

(2) Demonstrates the amount of electricity sales by which the Municipal Electric Company failed to meet the applicable RPS.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking lines 165 through 168 and substituting in lieu thereof

“(d) In lieu of standard means of compliance with this statue, any Retail Electricity Supplier may pay into the Fund an alternative compliance payment of $25 for each megawatt-hour. A Municipal Electric Company may pay the alternative compliance payment into a fund established by its municipal members. In subsequent years, the alternative compliance payments for any Retail Electricity Supplier or Municipal Electricity Company for shall increase as follows:

(1) If a Retail Electricity Supplier has paid an alternative compliance payment of $25 for each megawatt-hour in any previous year, then the alternative compliance payment shall be $35 for each megawatt-hour.

(2) If a Retail Electricity Supplier has paid an alternative compliance payment of $35 for each megawatt-hour in any previous year, then the alternative compliance payment shall be $45 for each megawatt-hour.

(3) If a Retail Electricity Supplier has paid an alternative compliance payment of $45 for each megawatt-hour in any previous year, then the alternative compliance payment shall be $50 for each megawatt-hour.

(4) If a Retail Electricity Supplier has paid an alternative compliance payment of $50 for each megawatt-hour in any previous year, then the alternative compliance payment shall be $50 for each megawatt-hour.

(5) Alternative compliance payments shall not be more than $50 for each megawatt-hour.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking the letter “(d)” as it appears on line 169 and substituting in lieu thereof the letter “(e)”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 169 by striking the words “retail electricity suppliers” and substituting in lieu thereof “Retail Electricity Suppliers”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 178 by striking the words “electric suppliers” and substitute in lieu thereof “Retail Electricity Suppliers. A Municipal Electric Company may elect to participate in the tracking system established by the Commission and shall participate in the GATS system once it is operational”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 186, by striking the words “electric suppliers” and substituting in lieu thereof “Retail Electricity Suppliers”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 191, by striking the words, “An electric supplier” and substituting in lieu thereof “A Retail Electricity Supplier or Municipal Electric Company”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking lines 195 and 196 and substituting in lieu thereof, “allow New Renewable Generation generated during Compliance Year 2006 to be banked as early compliance, usable towards meeting the 2007 requirement.”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking lines 197 through 202 and substituting in lieu thereof the following:

“(c) A renewable energy credit shall exist for 3 years from the date created unless diminished or extinguished before the expiration of 3 years by:

(1) The Retail Electricity Supplier or Municipal Electric Company that created the credit; or

(2) A nonaffiliated entity of the Retail Electricity Supplier or the Municipal Electric Company:

a. That purchased credit from the Retail Electricity Supplier or Municipal Electric Company creating the credit; or

b. To whom the Retail Electricity Supplier or Municipal Electric Company otherwise transferred the credit.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by inserting, on line 204, the words “A Retail Electricity Supplier with respect to” after the words “fee on” and before the words, “a renewable energy”.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 on line 208 by inserting the words, “as it applies to Retail Electricity Suppliers.” after the word “subchapter” but before the period.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by striking the quotation mark at the end of line 210.

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by inserting between lines 210 and 211 the following new section:

“§ 363 Special Provisions for Municipal Electric Companies and Rural Electric Cooperatives.

Municipal Electric Companies and Rural Electric Cooperatives may elect to be exempt from the requirements of the RPS provided that they:

(1) submit a written request to the General Assembly;

(2) alert their End Use Customers with notices inserted in two consecutive electricity bills

(3) offer their retail customers a voluntary program for purchasing renewable energy under competitive rates; and

(4) either contribute to the Green Energy Fund at levels commensurate with other Retail Electricity Suppliers or create an independent, self-administered fund separate from the Green Energy Fund to be used in support of energy efficiency technologies, renewable energy technologies, or demand side management programs, into which they make payments of $0.178 for each megawatt-hour they sell, transmit, or distribute in this State; and

(5) Provided paragraphs 1, 2, 3, and 4 have been accomplished by June 1, 2006.”

FURTHER AMEND Senate Substitute No. 1 for Senate Bill No. 161 by inserting after line 217, the following new Section,

“Section 5. Nothing in this Act shall be construed to amend or affect the provisions of Title 26, Chapter 10 of the Delaware Code relating to electric utility restructuring.”

SPONSOR:	Sen. McDowell