PRINTER'S NO. 4698
No. 2976 Session of 2006
INTRODUCED BY GOOD, GEORGE, BALDWIN, BASTIAN, BOYD, CALTAGIRONE,
CAPPELLI, CAUSER, CRAHALLA, DALEY, J. EVANS, FABRIZIO,
GINGRICH, GRELL, GRUCELA, HUTCHINSON, KOTIK, SAYLOR, SOLOBAY,
SONNEY, SURRA, E. Z. TAYLOR, THOMAS, WALKO, WATSON AND
YOUNGBLOOD, OCTOBER 3, 2006
REFERRED TO COMMITTEE ON COMMERCE, OCTOBER 3, 2006
AN ACT
1 Providing for the creation of keystone biorefinery opportunity
2 zones to foster economic opportunities in this Commonwealth,
3 to facilitate economic development, to stimulate industrial,
4 commercial and residential improvements and prevent physical
5 and infrastructure deterioration of geographic areas within
6 this Commonwealth; authorizing expenditures; and providing
7 tax exemptions, tax deductions, tax abatements and tax
8 credits.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 CHAPTER 1
12 PRELIMINARY PROVISIONS
13 Section 101. Short title.
14 This act shall be known and may be cited as the Keystone
15 Biorefinery Opportunity Zone Act.
16 Section 102. Legislative findings.
17 (1) There exists in this Commonwealth and in the United
18 States the need for new methods of and newer more efficient
19 facilities for providing liquid fuels, both for economic
1 expansion and for energy security.
2 (2) This need can be met by providing opportunity for
3 economic development partnerships to establish the necessary
4 facilities and attendant infrastructure to provide for a
5 home-grown energy industry. The establishment of these
6 partnerships in the Commonwealth would make significant
7 contributions to the economic and social life of this
8 Commonwealth as well as providing this Commonwealth and our
9 nation with needed alternatives to high-cost imported
10 supplies of energy products.
11 (3) The long-term economic viability of this
12 Commonwealth and this nation are dependent on secure and
13 reliable sources of energy developed from homegrown products.
14 Section 103. Definitions.
15 The following words and phrases when used in this act shall
16 have the meanings given to them in this section unless the
17 context clearly indicates otherwise:
18 "Alcohols." Fuels composed of 85% ethanol or methanol and
19 15% gasoline.
20 "Alternative fuel." A motor vehicle fuel or fuel system
21 which when compared to conventional gasoline or reformulated
22 gasoline, diesel fuel, oil or coal will result in lower
23 emissions of oxides of nitrogen, volatile organic compounds,
24 carbon monoxide or particulates, toxic air pollutants,
25 greenhouse gases or any combination thereof.
26 "Alternative fuel producer." A producer of an alternative
27 fuel whose production facility of alternative fuel is located
28 within this Commonwealth.
29 "Biodiesel fuel." One of the following:
30 (1) A biofuel derived from vegetable oil or animal fat
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1 that is designated B100 and meets the American Society of
2 Testing and Materials International specification D6751.
3 (2) Fuel comprised of 20% biodiesel with 80% diesel
4 fuel.
5 "Biofuel." Fuel derived from alcohols, ether, esters and
6 other chemicals made from cellulosic biomass such as herbaceous
7 and woody plants, agricultural and forestry residues and a large
8 portion of municipal solid and industrial waste.
9 "Biorefinery opportunity zone." A defined geographic area
10 comprised of one or more political subdivisions or portions of
11 political subdivisions designated by the Department of Community
12 and Economic Development under the act of October 6, 1998
13 (P.L.705, No.92), known as the Keystone Opportunity Zone,
14 Keystone Opportunity Expansion Zone and Keystone Opportunity
15 Improvement Zone Act. A keystone opportunity zone may be
16 comprised of not more than 12 subzones.
17 "Business." An association, partnership, corporation, sole
18 proprietorship, limited liability company or employer.
19 "Department." The Department of Community and Economic
20 Development of the Commonwealth.
21 "Deteriorated property." Any blighted, impoverished area
22 containing residential, industrial, commercial or other real
23 property that is abandoned, unsafe, vacant, undervalued,
24 underutilized, overgrown, defective, condemned or demolished or
25 which contains economically undesirable land use. The term
26 includes property adjacent to deteriorated property that is
27 significantly undervalued and underutilized due to the proximity
28 of the deteriorated property and property which has been
29 designated as deteriorated property in accordance with any other
30 act.
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1 "Metropolitan statistical area." A core area containing a
2 city with a population of 50,000 or more or a bureau of census-
3 defined urbanized area of 50,000 with a total metropolitan
4 population of at least 100,000.
5 "Opportunity plan." A written plan that addresses the
6 criteria and meets the requirements of this act.
7 "Person." Any natural person.
8 "Political subdivision." A county, city, borough, township,
9 town or school district with taxing jurisdiction in a defined
10 geographic area within this Commonwealth.
11 "Qualified business." A biorefinery which is determined by
12 the Department of Community and Economic Development to be an
13 alternative fuel producer, located within this Commonwealth,
14 which produces and distributes for use as a transportation fuel
15 an alternative fuel, including, but not limited to, alcohols,
16 biodiesel, biofuels, compressed natural gas (CNG), liquefied
17 natural gas (LNG), hydrogen, hythane, electricity or any
18 combination of these fuels.
19 "Qualified political subdivision." A political subdivision
20 which has real property within its jurisdiction which has been
21 designated by the Department of Community and Economic
22 Development as a subzone, expansion subzone or improvement
23 subzone under the act of October 6, 1998 (P.L.705, No.92), known
24 as the Keystone Opportunity Zone, Keystone Opportunity Expansion
25 Zone and Keystone Opportunity Improvement Zone Act.
26 "Tax Reform Code of 1971." The act of March 4, 1971 (P.L.6,
27 No.2), known as the Tax Reform Code of 1971, and any subsequent
28 amendments thereto.
29 CHAPTER 3
30 BIOREFINERY OPPORTUNITY ZONES
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1 Section 301. Establishment.
2 There is hereby established within the department a program
3 providing for biorefinery opportunity zones. A biorefinery
4 opportunity zone shall be comprised of deteriorated property
5 located within a subzone, expansion subzone or improvement
6 subzone under the act of October 6, 1998 (P.L.705, No.92), known
7 as the Keystone Opportunity Zone, Keystone Opportunity Expansion
8 Zone and Keystone Opportunity Improvement Zone Act. The
9 department shall authorize qualified businesses to locate into
10 any keystone opportunity zone, keystone opportunity expansion
11 zone or keystone opportunity improvement zone located within
12 this Commonwealth. Qualified businesses shall be entitled to all
13 Commonwealth tax exemptions, deductions, abatements or credits
14 set forth in the Keystone Opportunity Zone, Keystone Opportunity
15 Expansion Zone and Keystone Opportunity Improvement Zone Act for
16 a period not to exceed 15 years beginning January 1, 2007, and
17 ending on or before December 31, 2017. In addition, every
18 political subdivision in which a biorefinery is located may
19 extend the tax exemptions, deductions, abatements and credits it
20 has authorized under the Keystone Opportunity Zone, Keystone
21 Opportunity Expansion Zone and Keystone Opportunity Improvement
22 Zone Act until January 1, 2017, to persons and businesses
23 qualified under this act.
24 Section 302. Application.
25 One or more political subdivisions, or a designee of one or
26 more political subdivisions, may inform the department that they
27 have designated property within an existing keystone opportunity
28 zone, keystone opportunity expansion zone or keystone
29 opportunity improvement zone as a biorefinery opportunity zone.
30 Section 303. Qualified businesses.
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1 In order to qualify each year for a tax exemption, deduction,
2 abatement or credit under this act, a business shall own or
3 lease real property in a subzone, improvement subzone or
4 expansion subzone from which the business actively does business
5 as a biorefinery. The qualified business shall receive
6 certification from the department that the business is located
7 and is actively conducting the business of a biorefinery. The
8 business shall obtain annual renewal of the certification from
9 the department to continue to qualify under this act.
10 CHAPTER 5
11 MISCELLANEOUS PROVISIONS
12 Section 501. Effective date.
13 This act shall take effect immediately.
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