PRIOR PRINTER'S NOS. 261, 951 PRINTER'S NO. 1050
No. 255 Session of 2003
INTRODUCED BY TOMLINSON, M. WHITE, CORMAN, RHOADES, WAUGH,
WONDERLING, ERICKSON, WAGNER, SCHWARTZ, TARTAGLIONE, WOZNIAK,
BOSCOLA AND THOMPSON, FEBRUARY 10, 2003
AS AMENDED ON THIRD CONSIDERATION, JULY 1, 2003
AN ACT
1 Relating to alternative fuels; establishing the Alternative
2 Fuels Incentive Grant Fund; authorizing grants to promote the
3 use of alternative fuels; providing for annual report;
4 imposing duties on the Department of Environmental Protection
5 and the Environmental Quality Board; allocating funds
6 collected from the utilities gross receipts tax; making an
7 appropriation; and making a repeal ABROGATING REGULATIONS. <--
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the Alternative
12 Fuels Incentive Grant Act.
13 Section 2. Definitions.
14 The following words and phrases when used in this act shall
15 have the meanings given to them in this section unless the
16 context clearly indicates otherwise:
17 "Alcohols." Fuels composed of 85% ethanol or methanol and
18 15% gasoline.
19 "Alternative fuel vehicle." A self-propelled vehicle
20 operating on an alternative fuel designed for transporting
1 persons or property. This term includes a bi-fuel vehicle, dual-
2 fuel vehicle, hybrid vehicle and dedicated vehicle.
3 "Alternative fuels." Motor vehicle or stationary source
4 fuels and fuel systems which when compared to conventional
5 gasoline or reformulated gasoline, diesel fuel, oil or coal will
6 result in lower emissions of oxides of nitrogen, volatile
7 organic compounds, carbon monoxide or particulates, toxic air
8 pollutants, greenhouse gases or any combination thereof. These
9 shall include compressed natural gas (CNG), liquefied natural
10 gas (LNG), liquid propane gas (LPG), alcohols (ethanol - e85 and
11 methanol - m85), hydrogen, hythane (a combination of CNG and
12 hydrogen), biofuels, renewable energy sources, fuel cells and
13 electricity.
14 "Bi-fuel vehicle" or "dual-fuel vehicle." A vehicle that
15 operates on an alternative fuel and gasoline or an alternative
16 fuel and diesel fuel. This term includes original equipment
17 manufacturer (OEM) and retrofitted vehicles.
18 "Biofuels." Fuels derived from alcohols, ether, esters and
19 other chemicals made from cellulosic biomass such as herbaceous
20 and woody plants, agricultural and forestry residues and a large
21 portion of municipal solid and industrial waste.
22 "Dedicated vehicle." A vehicle that runs exclusively on an
23 alternative fuel. This term includes an original equipment
24 manufacturer or retrofit vehicle.
25 "Department." The Department of Environmental Protection of
26 the Commonwealth.
27 "Diesel fuel." Diesel engine fuel and all other liquids
28 suitable for the generation of power for the propulsion of motor
29 vehicles except gasoline.
30 "Fund." The Alternative Fuels Incentive Grant Fund
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1 established under section 3.
2 "Gallon." The quantity of fluid or liquid at a temperature
3 of 60 degrees Fahrenheit necessary to completely fill a United
4 States standard gallon liquid measure.
5 "Gasoline." The same as a motor fuel and also means every
6 liquid petroleum product, or combination thereof, other than
7 solvents having an Atmospheric Pressure Index gravity of 46
8 degrees or above at a temperature of 60 degrees Fahrenheit and
9 at atmospheric pressure and includes drip, casing head or
10 natural gasoline. The term includes liquid of less than 46
11 degrees Atmospheric Pressure Index gravity at a temperature of
12 60 degrees Fahrenheit compounded, blended, manufactured or
13 otherwise produced by mixing or blending gasoline or solvents
14 with blending materials when the blended product can be used for
15 generating power in internal combustion engines.
16 "Hybrid vehicle." A motor vehicle which:
17 (1) Draws propulsion energy from onboard sources of
18 stored energy which are both:
19 (i) An internal combustion engine using combustible
20 fuel.
21 (ii) A rechargeable energy storage system.
22 (2) In the case of a passenger automobile or light
23 truck:
24 (i) for 2002 and later model vehicles, has received
25 a certificate of conformity under the Clean Air Act (69
26 Stat. 322, 42 U.S.C. § 7401 et seq.) and meets or exceeds
27 the equivalent qualifying California low emission vehicle
28 standard under section 1960.1 of Title 13, California
29 Code of Regulations, for that make and model year; and
30 (ii) for 2004 and later model vehicles, has received
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1 a certificate that such vehicle meets the Tier II
2 emission level established in regulations prescribed by
3 the administrator of the Environmental Protection Agency
4 under section 202(i) of the Clean Air Act for that make
5 and model year vehicle.
6 "Incremental cost." The difference between the purchase
7 price of an alternative fuel vehicle and the purchase price of a
8 same or similar model gasoline-only or diesel-only fueled
9 vehicle.
10 "OEM." The original equipment manufacturer.
11 "OEM vehicle." A vehicle originally manufactured to run on
12 an alternative fuel.
13 "Renewable energy." Energy derived from solar, wind,
14 geothermal and hydroelectric sources.
15 "Retrofit." Install an alternative fuel system into a
16 gasoline-fueled vehicle.
17 Section 3. Alternative Fuels Incentive Grant Fund.
18 (a) Establishment.--There is hereby established a separate
19 account in the State Treasury to be known as the Alternative
20 Fuels Incentive Grant Fund. This fund shall be administered by
21 the department. The fund shall consist of that portion of
22 revenues allocated from the utilities gross receipts tax
23 collected as set forth in section 5.
24 (b) Expenditures.--
25 (1) Moneys from the fund shall be expended by the
26 department:
27 (i) As grants to corporations, limited liability
28 companies or partnerships incorporated or registered in
29 this Commonwealth and to residents of this Commonwealth
30 to meet:
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1 (A) 50% of the cost to install the necessary
2 refueling equipment at a facility owned and operated
3 by a corporation, limited liability company or
4 partnership that permits public access to the
5 facility.
6 (B) 50% of the expenses relative to retrofitting
7 vehicles to operate on alternative fuels as either a
8 bi-fuel, dual-fuel, hybrid or dedicated vehicle.
9 (C) 50% of the incremental cost of purchase of
10 bi-fuel, dual-fuel, hybrid or dedicated vehicles. <--
11 (D) 50% of the cost to purchase and install the
12 necessary fueling OR HOME-REFUELING equipment for bi- <--
13 fuel, dual-fuel, hybrid or dedicated vehicles.
14 (E) 50% of the cost to perform research,
15 development and demonstration of new applications or
16 next phase technology related to alternative fuel
17 vehicles. Vehicles are eligible for grants as hybrid
18 vehicles for the research, development and
19 demonstration of new applications or next phase
20 technology regardless of whether they have received a
21 certificate of conformity.
22 (ii) As grants to school districts, municipal
23 authorities, political subdivisions OR nonprofit entities <--
24 incorporated or registered in this Commonwealth to meet:
25 (A) 60% of the expenses relative to retrofitting
26 vehicles to operate on alternative fuels as either a
27 bi-fuel, dual-fuel, hybrid or dedicated vehicle.
28 (B) 60% of the incremental cost of purchase of
29 bi-fuel, dual-fuel, hybrid or dedicated vehicles.
30 (C) 60% of the cost to purchase and install the
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1 necessary fueling equipment for bi-fuel, dual-fuel,
2 hybrid and dedicated vehicles.
3 (iii) As grants to school districts, municipal
4 authorities, political subdivisions, nonprofit entities
5 and corporations, limited liability companies or
6 partnerships incorporated or registered in this
7 Commonwealth and to residents of this Commonwealth to
8 meet 50% of the cost to purchase and install heating,
9 lighting or power systems operating on renewable energy
10 sources or 50% of the cost to purchase and install other
11 innovative energy-efficient technologies applicable to
12 stationary sources such as fuel cells.
13 (IV) AS REBATES TO RESIDENTS OF THIS COMMONWEALTH TO <--
14 MEET 50% OF THE INCREMENTAL COST TO INDIVIDUALS WHO
15 PURCHASE A HYBRID VEHICLE.
16 (2) Each year the department shall expend an amount of
17 grant funding under paragraph (1)(i) and (ii) combined that
18 is not less than the amount of grant money expended under
19 paragraph (1)(iii) that year. If the grant money to be
20 awarded in a funding year for eligible projects under
21 paragraph (1)(i) and (ii) combined is less than grant money
22 to be awarded in that funding year for eligible projects
23 under paragraph (1)(iii), the department may award the
24 difference for eligible projects under paragraph (1)(iii).
25 (3) Two years ONE YEAR after the effective date of this <--
26 act and for every two-year period YEAR thereafter, the grant <--
27 AMOUNT OF funding amount expended by the department under <--
28 this subsection shall be evaluated to determine whether an
29 adjustment in funding LEVEL is warranted APPROPRIATE. The <--
30 evaluation criteria shall be based on economic and regulatory
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1 conditions that affect the feasibility of alternative fuels
2 and the financial solvency of the fund. At no time shall the
3 grant OR REBATE funding amount be below 20% or above the <--
4 limits established for grants in paragraph (1).
5 (4) No more than 5% of the fund may be used to
6 administer the provisions of this act.
7 (5) No more than 10% of the fund may be awarded to any
8 one school district, municipal authority, political
9 subdivision, nonprofit entity, corporation, limited liability
10 company, partnership or resident of this Commonwealth in any
11 one year, provided that the total amount of grants awarded
12 AND REBATES PROVIDED to grant AND REBATE recipients within a <--
13 political subdivision in a year shall not exceed 15% of the
14 fund. However, if the total grant AND REBATE money to be <--
15 awarded in that year is less than the total grant money
16 available for that year, the department may increase the 10%
17 and 15% funding levels established under this paragraph not
18 to exceed 40% of the fund.
19 (c) Application criteria FOR GRANTS.--The department shall <--
20 establish a method by which grant applications will be
21 prioritized according to, but not limited to, the following
22 goals and criteria:
23 (1) The improvement of this Commonwealth's air quality.
24 (2) The fulfillment of the Commonwealth's
25 responsibilities under the Clean Air Act (69 Stat. 322, 42
26 U.S.C. § 7401 et seq.).
27 (3) The protection of this Commonwealth's natural
28 environment, including land, water and wildlife.
29 (4) The advancement of economic development in this
30 Commonwealth, the promotion of this Commonwealth's indigenous
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1 resources and the development of this Commonwealth's
2 renewable energy sources and biofuels.
3 (5) The reduction of this Commonwealth's dependence on
4 imported crude oil and other petroleum products.
5 (6) The most cost-effective use of private and public
6 funding.
7 (7) The transfer and commercialization of innovative
8 alternative energy technologies.
9 (D) REBATE PROGRAM.--THERE IS HEREBY ESTABLISHED A REBATE <--
10 PROGRAM WITHIN THE DEPARTMENT FOR INDIVIDUALS RESIDING IN THIS
11 COMMONWEALTH WHO PURCHASE A HYBRID VEHICLE.
12 (1) THE DEPARTMENT SHALL ESTABLISH A FORMULA AND METHOD
13 FOR THE AWARDING OF REBATES UNDER THIS PROGRAM. THE
14 DEPARTMENT SHALL PUBLISH THIS INFORMATION YEARLY IN THE
15 PENNSYLVANIA BULLETIN AND MAY ALSO PUBLISH THIS INFORMATION
16 ON THE DEPARTMENT'S WORLD WIDE WEB SITE. REBATES SHALL BE
17 PROVIDED TO THE EXTENT THAT FUNDING IS AVAILABLE FOR THIS
18 PURPOSE. TO THE EXTENT THAT APPLICATIONS FOR REBATES EXCEED
19 THE AVAILABLE FUNDS FOR THIS PROGRAM, THE DEPARTMENT MAY
20 AWARD REBATES ON A PRO RATA BASIS.
21 (2) A REQUEST FOR A REBATE MUST BE SUBMITTED TO THE
22 DEPARTMENT WITHIN SIX MONTHS OF THE PURCHASE DATE OF THE
23 HYBRID VEHICLE, IN A FORM AND MANNER PRESCRIBED BY THE
24 DEPARTMENT. THE DEPARTMENT SHALL PROVIDE AN APPLICATION FORM
25 TO AN INDIVIDUAL UPON REQUEST, AND THE DEPARTMENT MAY MAKE
26 THE APPLICATION FORM ON ITS WORLD WIDE WEB SITE OR THROUGH
27 THE PLACE OF PURCHASE OF THE HYBRID VEHICLE.
28 (3) APPLICANTS SHALL PROVIDE A COPY OF A VALID
29 PENNSYLVANIA VEHICLE REGISTRATION AND PROOF OF PURCHASE WHEN
30 MAKING A REQUEST FOR A REBATE UNDER THIS PROGRAM.
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1 Section 4. Annual report.
2 The department shall annually make a report to the General
3 Assembly on the activities undertaken pursuant to this act,
4 including the number of grants awarded, REBATES GIVEN and other <--
5 expenditures from the fund.
6 Section 5. Appropriation.
7 An amount equal to 0.25 mills of the utilities' gross
8 receipts tax collected during each fiscal year under Article XI
9 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
10 Reform Code of 1971, shall be appropriated annually from the
11 General Fund to the Department of Environmental Protection on a
12 continuing basis for the purpose of carrying out the provisions
13 of this act.
14 Section 6. Regulations.
15 The Environmental Quality Board may promulgate regulations
16 necessary to carry out the purposes of this act.
17 Section 7. Repeal.
18 Chapter 72 of 75 Pa.C.S. is repealed. <--
19 REGULATIONS PROMULGATED UNDER CHAPTER 72 OF 75 PA.C.S. ARE <--
20 HEREBY ABROGATED TO THE EXTENT THAT THEY ARE INCONSISTENT WITH
21 THE PROVISIONS OF THIS ACT.
22 Section 8. Effective date.
23 This act shall take effect immediately.
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