1Establishing the Clean Transit Program; and providing a transfer
2of funds from the Oil and Gas Lease Fund to the Department of
3Environmental Protection for a loan program for the
4transition of large mass transit bus fleets to compressed
5natural gas.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Short title.

9This act shall be known and may be cited as the Clean Transit
10Act.

11Section 2. Definitions.

12The following words and phrases when used in this act shall
13have the meanings given to them in this section unless the
14context clearly indicates otherwise:

15"Department." The Department of Environmental Protection of
16the Commonwealth.

17"Large mass transit authority." A mass transit authority

1located in this Commonwealth that exceeds 245,000 revenue
2vehicle hours for two consecutive years.

3"Mass transit authority." An operator of regularly scheduled
4transportation that is available to the general public and is
5provided according to published schedules along designated
6published routes with specified stopping points for the taking
7on and discharging of passengers. The term does not include
8exclusive ride taxi services, charter or sightseeing services,
9nonpublic transportation or school bus or limousine services.

10"Program." The Clean Transit Program.

11Section 3. Clean Transit Program.

12(a) Establishment.--The department shall establish and
13administer the Clean Transit Program.

14(b) Purpose.--The program is established in order to
15decrease emissions from mass transit buses by utilizing natural
16gas as a vehicle fuel.

17(c) Transfer of funds.--The State Treasurer shall transfer
18from the Oil and Gas Lease Fund to the department the sum of
19$7,500,000 to fund the program.

20(d) Use of funds.--The sum of $7,500,000 shall be deposited
21into a fund to be administered by the department and made
22available to large mass transit authorities for the conversion
23of buses to run on compressed natural gas as a fuel source, to
24purchase buses which use compressed natural gas as a fuel source
25or to construct generation facilities powered by compressed
26natural gas for the purpose of powering rail transit. The
27following shall apply:

28(1) The money in the fund shall be appropriated on a
29continuing basis.

30(2) No more than 1.5% of the fund may be used for

1administration.

2(3) The department may set terms applicable to loans in
3any manner it deems appropriate, subject to the provisions of
4this act.

5(e) Application process.--

6(1) A mass transit authority must complete and submit to
7the department a clean transit loan application.

8(2) Approved applications must obligate the mass transit
9authority to contract with a private company:

10(i) to build exclusively with private funds; and

11(ii) to maintain and operate any new compressed
12natural gas fueling facility necessary to support
13compressed natural gas buses purchased with funds
14received under this act.

15(3) The term "operate" as used in this subsection shall
16not include the actual act of fueling buses.

17(f) Eligible costs.--

18(1) Loan funds received under this act shall be eligible
19for:

20(i) Federally assisted bus purchases and shall be
21limited to the total percentage of the State and local
22match portion applied only to the incremental cost of a
23new compressed natural gas bus or compressed natural gas
24bus conversion.

25(ii) Nonfederally assisted bus purchases and shall
26be limited to 50% of the total incremental cost of a new
27compressed natural gas bus or compressed natural gas bus
28conversion.

29(2) The incremental cost shall be capped at $50,000 for
30buses which have a gross vehicle weight rating over 26,000

1pounds and $25,000 for buses with a gross vehicle weight
2rating of 26,000 pounds and under.

3(3) Buses with a gross vehicle weight rating of 14,000
4pounds or less shall be ineligible.

5(4) Priority shall be given to those applications which
6provide for public access to compressed natural gas vehicle
7fueling dispensers.

8(g) Loan program.--The department shall establish a formula
9and method for awarding of loans under the program consistent
10with this act.

11(h) Fund repayment.--

12(1) Loans disbursed from the fund under subsection (d)
13shall be repaid within five years from disbursement and
14before June 30, 2023.

15(2) On June 30, 2023, no money shall be deposited into
16the fund and any remaining money in the fund shall be
17transferred to the Oil and Gas Lease Fund.

18(3) The interest rate for loans provided by the program
19shall be 2%.

20(i) Appeal process.--Applicants that are not awarded grants 
21under this act shall not have the right to a hearing or the 
22issuance of an adjudication under section 4 of the act of July 
2313, 1988 (P.L.530, No.94), known as the Environmental Hearing 
24Board Act, regarding the department's decision.

25Section 20. Effective date.

26This act shall take effect in 60 days.