AN ACT

 

1Establishing the Keystone Transit Program; and providing <-a 
2transfer of funds from the Oil and Gas Lease Fund <-for an 
3interfund transfer to the Department of Environmental
4Protection for a competitive grant program for the transition
5of small mass transit bus fleets to <-compressed natural gas 
<-6alternative fuels.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. Short title.

10This act shall be known and may be cited as the Keystone
11Transit Act.

12Section 2. Definitions.

13The following words and phrases when used in this act shall
14have the meanings given to them in this section unless the
15context clearly indicates otherwise:

<-16"Alternative fuels." Motor vehicle fuels which when compared
17to conventional gasoline or reformulated gasoline, diesel fuel,

1oil or coal will result in lower emissions of oxides of
2nitrogen, volatile organic compounds, carbon monoxide or
3particulates, toxic air pollutants, greenhouse gases or any
4combination thereof. These shall include, but are not limited
5to, compressed natural gas (CNG), liquefied natural gas (LNG),
6liquid propane gas (LPG), alcohols (ethanol - e85 and methanol -
7m85), hydrogen, hythane (any combination of CNG and hydrogen),
8biofuels, electricity and fuel systems which combine
9conventional internal combustion engine propulsion systems with
10electric propulsion systems.

11"Department." The Department of Environmental Protection of
12the Commonwealth.

13"Mass transit authority." An operator of regularly scheduled
14transportation that is available to the general public and is
15provided according to published schedules along designated
16published routes with specified stopping points for the taking
17on and discharging of passengers. The term does not include
18exclusive ride taxi services, charter or sightseeing services,
19nonpublic transportation or school bus or limousine services.

20"Program." The Keystone Transit Program.

21"Small mass transit authority." A mass transit authority
22located in this Commonwealth that does not exceed 245,000
23revenue vehicle hours for two consecutive years.

24Section 3. Keystone Transit Program.

25(a) Establishment.--The department shall establish and
26administer the Keystone Transit Program.

27(b) Purpose.--The program is established in order to
28decrease emissions from mass transit buses by utilizing <-natural 
29gas <-alternative fuels as a vehicle fuel.

30(c) Transfer of funds.--The State Treasurer shall transfer

1from the Oil and Gas Lease Fund to the department the sum of<- 
2$5,000,000 <-$5,000,000 of the utilities' gross receipts tax 
3collected during the 2014-2015 fiscal year under Article XI of 
4the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform 
5Code of 1971, from the General Fund to the department to fund
6the program.

7(d) Use of funds.--The sum of $5,000,000 shall be used to
8fund competitive grants available to small mass transit
9authorities for the conversion of buses to run on solely
<-10compressed natural gas alternative fuels as a fuel source or to
11purchase buses which use solely <-compressed natural gas 
<-12alternative fuels as a fuel source.

13(e) Application process.--

14(1) A mass transit authority must complete and submit to
15the department a keystone transit grant application.

16(2) Approved applications must obligate the mass transit
17authority to contract with a private company:

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

19(ii) to maintain and operate any new <-compressed 
20natural gas <-alternative fuels fueling facility necessary
21to support <-compressed natural gas alternative fuels buses
22purchased with funds received under this act.

23(3) The term "operate" as used in this subsection shall
24not include the actual act of fueling buses.

25(f) Eligible costs.--

26(1) Grant funds received under this act shall be
27eligible for:

28(i) Federally assisted bus purchases and <-conversions 
29and shall be limited to the total percentage of the State
30and local match portion applied only to the incremental

1cost of a new <-compressed natural gas alternative fuels
2bus or compressed natural gas <-alternative fuels bus
3conversion.

4(ii) Nonfederally assisted bus purchases and 
<-5conversions and shall be limited to 50% of the total
6incremental cost of a new <-compressed natural gas 
7alternative fuels bus or <-compressed natural gas 
<-8alternative fuels bus conversion.

9(2) The incremental cost shall be capped at $50,000 for
10buses which have a gross vehicle weight rating over 26,000
11pounds and $25,000 for buses with a gross vehicle weight
12rating of 26,000 pounds and under.

13(3) Buses with a gross vehicle weight rating of 14,000
14pounds or less shall be ineligible.

15(4) Priority shall be given to those applications which
16provide for public access to <-compressed natural gas 
<-17alternative fuels vehicle fueling dispensers.

18(g) Grant program.--The department shall establish a formula
19and method for awarding of grants under the program consistent
20with this act.

21(h) Appeal process.--Applicants that are not awarded grants 
22under this act shall not have the right to a hearing or the 
23issuance of an adjudication under section 4 of the act of July 
2413, 1988 (P.L.530, No.94), known as the Environmental Hearing 
25Board Act, regarding the department's decision.

26Section 20. Effective date.

27This act shall take effect in 60 days.