AN ACT

 

1Establishing the Clean Transit Program; and providing <-a transfer 
2of funds from the Oil and Gas Lease Fund <-for an interfund 
3transfer to the Department of Environmental Protection for a
4loan program for the transition of large mass transit bus
5fleets to compressed natural 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 buses of large mass 
16transit authorities by utilizing natural gas 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 <-of the utilities' gross receipts tax collected during 
20the 2013-2014 fiscal year under Article XI of the act of March 
214, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, 
22from the General Fund to the department to fund the program.

23(d) Use of funds.--The sum of $7,500,000 shall be deposited
24into a fund to be administered by the department and made
25available to large mass transit authorities for the conversion
26of buses to run on compressed natural gas as a fuel source, to
27purchase buses which use compressed natural gas as a fuel source
28or to construct generation facilities powered by compressed
29natural gas for the purpose of powering rail transit. The
30following shall apply:

1(1) The money in the fund shall be appropriated on a
2continuing basis.

3(2) No more than 1.5% of the fund may be used for
4administration.

5(3) The department may set terms applicable to loans in
6any manner it deems appropriate, subject to the provisions of
7this act.

8(e) Application process.--

9(1) A <-large mass transit authority must complete and
10submit to the department a clean transit loan application.

11(2) Approved applications must obligate the <-large mass
12transit authority to contract with a private company:

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

14(ii) to maintain and operate any new compressed
15natural gas fueling facility necessary to support
16compressed natural gas buses purchased with funds
17received under this act.

18(3) The term "operate" as used in this subsection shall
19not include the actual act of fueling buses.

20(f) Eligible costs.--

21(1) Loan funds received under this act shall be eligible
22for:

23(i) Federally assisted bus purchases and <-conversions 
24and shall be limited to the total percentage of the State
25and local match portion applied only to the incremental
26cost of a new compressed natural gas bus or compressed
27natural gas bus conversion.

28(ii) Nonfederally assisted bus purchases and 
<-29conversions and shall be limited to 50% of the total
30incremental cost of a new compressed natural gas bus or

1compressed natural gas bus conversion.

2(2) The incremental cost shall be capped at $50,000 for
3buses which have a gross vehicle weight rating over 26,000
4pounds and $25,000 for buses with a gross vehicle weight
5rating of 26,000 pounds and under.

6(3) Buses with a gross vehicle weight rating of 14,000
7pounds or less shall be ineligible.

8(4) Priority shall be given to those applications which
9provide for public access to compressed natural gas vehicle
10fueling dispensers.

11(g) Loan program.--The department shall establish a formula
12and method for awarding of loans under the program consistent
13with this act.

14(h) Fund repayment.--

15(1) Loans disbursed from the fund under subsection (d)
16shall be repaid within five years from disbursement and
17before June 30, 2023.

18(2) On June 30, 2023, no money shall be deposited into
19the fund and any remaining money in the fund shall be
20transferred to the <-Oil and Gas Lease General Fund.

21(3) The interest rate for loans provided by the program
22shall be 2%.

23(i) Appeal process.--Applicants that are not awarded grants 
24under this act shall not have the right to a hearing or the 
25issuance of an adjudication under section 4 of the act of July 
2613, 1988 (P.L.530, No.94), known as the Environmental Hearing 
27Board Act, regarding the department's decision.

28Section 20. Effective date.

29This act shall take effect in 60 days.