PRIOR PRINTER'S NOS. 2014, 2135 PRINTER'S NO. 2280
No. 1439 Session of 2002
INTRODUCED BY TOMLINSON, CORMAN, M. WHITE, WAGNER, ORIE, MUSTO,
ERICKSON, RHOADES, BOSCOLA, LEMMOND, GERLACH AND GREENLEAF,
MAY 16, 2002
SENATOR THOMPSON, APPROPRIATIONS, RE-REPORTED AS AMENDED,
OCTOBER 7, 2002
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
5 Protection, the Department of Transportation and, the <--
6 Department of Revenue AND THE ENVIRONMENTAL QUALITY BOARD; <--
7 making an appropriation; and making a repeal.
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
1 designed for transporting persons or property on a road, street <--
2 or highway that includes, but is not limited to, bi-fuel, dual-
3 fuel and dedicated vehicles. OPERATING ON AN ALTERNATIVE FUEL <--
4 DESIGNED FOR TRANSPORTING PERSONS OR PROPERTY. THIS TERM
5 INCLUDES A BI-FUEL VEHICLE, DUAL-FUEL VEHICLE, HYBRID VEHICLE
6 AND DEDICATED VEHICLE.
7 "Alternative fuels." Motor vehicle or stationary source
8 fuels and fuel systems which when compared to conventional
9 gasoline or reformulated gasoline, diesel fuel, oil or coal will
10 result in lower emissions of oxides of nitrogen, volatile
11 organic compounds, carbon monoxide or particulates, toxic air
12 pollutants, greenhouse gases or any combination thereof. These
13 shall include compressed natural gas (CNG), liquefied natural
14 gas (LNG), liquid propane gas (LPG), alcohols (ethanol - e85 and
15 methanol - m85), hydrogen, hythane (a combination of CNG and
16 hydrogen), biofuels, renewable energy sources, fuel cells and
17 electricity.
18 "Bi-fuel" or "dual-fuel." Vehicles that operate on an "BI- <--
19 FUEL VEHICLE" OR "DUAL-FUEL VEHICLE." A VEHICLE THAT OPERATES
20 ON AN alternative fuel and gasoline or an alternative fuel and
21 diesel fuel. THIS TERM INCLUDES ORIGINAL EQUIPMENT MANUFACTURER <--
22 (OEM) AND RETROFITTED VEHICLES.
23 "Biofuels." Fuels derived from alcohols, ether, esters and
24 other chemicals made from cellulosic biomass such as herbaceous
25 and woody plants, agricultural and forestry residues and a large
26 portion of municipal solid and industrial waste.
27 "Dedicated vehicle." A vehicle that runs exclusively on an
28 alternative fuel. This term includes original equipment <--
29 manufacturer vehicles. AN OEM OR RETROFIT VEHICLE. <--
30 "Department." The Department of Environmental Protection of
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1 the Commonwealth.
2 "Diesel fuel." Diesel engine fuel and all other liquids
3 suitable for the generation of power for the propulsion of motor
4 vehicles except gasoline.
5 "Fund." The Alternative Fuels Incentive Grant Fund
6 established under section 3.
7 "Gallon." The quantity of fluid or liquid at a temperature
8 of 60 degrees Fahrenheit necessary to completely fill a United
9 States standard gallon liquid measure.
10 "Gasoline." The same as a motor fuel and also means every
11 liquid petroleum product, or combination thereof, other than
12 solvents having an Atmospheric Pressure Index gravity of 46
13 degrees or above at a temperature of 60 degrees Fahrenheit and
14 at atmospheric pressure and includes drip, casing head or
15 natural gasoline. The term includes liquid of less than 46
16 degrees Atmospheric Pressure Index gravity at a temperature of
17 60 degrees Fahrenheit compounded, blended, manufactured or
18 otherwise produced by mixing or blending gasoline or solvents
19 with blending materials when the blended product can be used for
20 generating power in internal combustion engines.
21 "HYBRID VEHICLE." A MOTOR VEHICLE WHICH: <--
22 (1) DRAWS PROPULSION ENERGY FROM ONBOARD SOURCES OF
23 STORED ENERGY WHICH ARE BOTH:
24 (I) AN INTERNAL COMBUSTION ENGINE USING COMBUSTIBLE
25 FUEL.
26 (II) A RECHARGEABLE ENERGY STORAGE SYSTEM.
27 (2) IN THE CASE OF A PASSENGER AUTOMOBILE OR LIGHT
28 TRUCK:
29 (I) FOR 2002 AND LATER MODEL VEHICLES, HAS RECEIVED
30 A CERTIFICATE OF CONFORMITY UNDER THE CLEAN AIR ACT (69
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1 STAT, 322, 42 U.S.C. § 7401 ET SEQ.) AND MEETS OR EXCEEDS
2 THE EQUIVALENT QUALIFYING CALIFORNIA LOW EMISSION VEHICLE
3 STANDARD UNDER SECTION 1960.1 OF TITLE 13, CALIFORNIA
4 CODE OF REGULATIONS, FOR THAT MAKE AND MODEL YEAR; AND
5 (II) FOR 2004 AND LATER MODEL VEHICLES, HAS RECEIVED
6 A CERTIFICATE THAT SUCH VEHICLE MEETS THE TIER II
7 EMISSION LEVEL ESTABLISHED IN REGULATIONS PRESCRIBED BY
8 THE ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY
9 UNDER SECTION 202(I) OF THE CLEAN AIR ACT FOR THAT MAKE
10 AND MODEL YEAR VEHICLE.
11 "Incremental cost." The difference between the purchase
12 price of an alternative fuel vehicle and the purchase price of a
13 same or similar model gasoline-only or diesel-only fueled
14 vehicle.
15 "OEM." The original equipment manufacturer.
16 "OEM vehicle." A vehicle originally manufactured to run on
17 an alternative fuel.
18 "Renewable energy." Energy derived from solar, wind,
19 geothermal and hydroelectric sources.
20 "Retrofit." Install an alternative fuel system into a
21 gasoline-fueled vehicle.
22 Section 3. Alternative Fuels Incentive Grant Fund.
23 (a) Establishment.--There is hereby established a separate
24 account in the State Treasury to be known as the Alternative
25 Fuels Incentive Grant Fund. This fund shall be administered by
26 the department. The fund shall consist of that portion of
27 revenues collected under the utilities gross receipts tax
28 collected as set forth in section 5.
29 (b) Expenditures.--
30 (1) Moneys from the fund shall be expended by the
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1 department:
2 (i) As grants to school districts, municipal
3 authorities, political subdivisions, nonprofit entities
4 and corporations, LIMITED LIABILITY COMPANIES or <--
5 partnerships incorporated or registered in this
6 Commonwealth and to residents of this Commonwealth to
7 meet 50% of the expenses relative to retrofitting
8 vehicles to operate on alternative fuels as either a bi-
9 fuel, dual-fuel, HYBRID or dedicated vehicle, including <--
10 TO MEET 50% OF the incremental cost of purchase of bi- <--
11 fuel, dual-fuel, HYBRID or dedicated vehicles, to meet <--
12 50% of the cost to purchase and install the necessary
13 fueling equipment FOR BI-FUEL, DUAL-FUEL, HYBRID AND <--
14 DEDICATED VEHICLES and to meet 50% of the cost to perform
15 research, development and demonstration of new
16 applications or next phase technology related to
17 alternative fuel vehicles. VEHICLES ARE ELIGIBLE FOR <--
18 GRANTS AS HYBRID VEHICLES FOR THE RESEARCH, DEVELOPMENT
19 AND 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, nonprofit entities
24 and corporations, LIMITED LIABILITY COMPANIES or <--
25 partnerships incorporated or registered in this
26 Commonwealth and to residents of this Commonwealth to
27 meet 50% of the cost to purchase and install heating,
28 lighting or power systems operating on renewable energy
29 sources or 50% of the cost of TO PURCHASE AND INSTALL <--
30 other innovative energy-efficient technologies applicable
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1 to stationary sources such as fuel cells.
2 (2) Two years after the effective date of this act and
3 for every two-year period thereafter, the grant funding
4 amount expended by the department under this subsection shall
5 be evaluated to determine whether an adjustment in funding is
6 warranted. The evaluation criteria shall be based on economic
7 and regulatory conditions that affect the feasibility of
8 alternative fuels and the financial solvency of the fund. At
9 no time shall grant expenditure amounts THE GRANT FUNDING <--
10 AMOUNT go below 20% or above 50% OF ELIGIBLE EXPENSES. <--
11 (3) No more than 5% of the fund may be used to
12 administer the provisions of this act.
13 (4) No more than 10% of the fund may go to any one
14 school district, municipal authority, political subdivision,
15 nonprofit entity, corporation, LIMITED LIABILITY COMPANY or <--
16 partnership in any one year, provided that the total amount
17 of grants made to grant recipients within a political
18 subdivision in a year shall not exceed 15% of the fund.
19 However, if the total grant money awarded in that year is
20 less than the total grant money available for that year, the
21 department may increase the 10% and 15% funding levels
22 established under this paragraph not to exceed 40% of the
23 fund.
24 (c) Application criteria.--The department shall establish a
25 method by which grant applications will be prioritized according
26 to, but not limited to, the following goals and criteria:
27 (1) The improvement of this Commonwealth's air quality.
28 (2) The fulfillment of the Commonwealth's
29 responsibilities under the Clean Air Act (69 Stat. 322, 42
30 U.S.C. § 7401 et seq.).
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1 (3) The protection of this Commonwealth's natural
2 environment, including land, water and wildlife.
3 (4) The advancement of economic development in this
4 Commonwealth, the promotion of this Commonwealth's indigenous
5 resources and the development of this Commonwealth's
6 renewable energy sources and biofuels.
7 (5) The reduction of this Commonwealth's dependence on
8 imported crude oil and other petroleum products.
9 (6) The cost-effective use of private and public
10 funding.
11 (7) The transfer and commercialization of innovative
12 alternative energy technologies.
13 Section 4. Annual report.
14 The department shall annually make a report to the General
15 Assembly on the activities undertaken pursuant to this act,
16 including the number of grants awarded and other expenditures
17 from the fund.
18 Section 5. Appropriation.
19 An amount equal to 0.25 mills of the utilities' gross
20 receipts tax collected during each fiscal year under Article XI
21 of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
22 Reform Code of 1971, shall be appropriated annually from the
23 General Fund to the Department of Environmental Protection on a
24 continuing basis for the purpose of carrying out the provisions
25 of this act.
26 Section 6. Regulations.
27 The department ENVIRONMENTAL QUALITY BOARD may promulgate <--
28 regulations necessary to carry out the purposes of this act.
29 Section 7. Repeal.
30 Chapter 72 of 75 Pa.C.S. is repealed.
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1 Section 8. Effective date.
2 This act shall take effect immediately.
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