PRINTER'S NO. 633
No. 566 Session of 2007
INTRODUCED BY BENNINGHOFF, BARRAR, CALTAGIRONE, CLYMER, CREIGHTON, CURRY, DALEY, FABRIZIO, GEIST, GEORGE, GINGRICH, GRUCELA, HERSHEY, HUTCHINSON, KOTIK, MENSCH, D. O'BRIEN, PETRARCA, READSHAW, SCHRODER, WATSON, YOUNGBLOOD, YUDICHAK AND HORNAMAN, MARCH 6, 2007
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 6, 2007
AN ACT 1 Establishing the Pennsylvania Energy Freedom Support Account 2 within the Energy Development Fund; and providing for the 3 Federal Government Research Support Program, for the 4 Municipal Energy Freedom Grant Program and for the powers and 5 duties of the Energy Development Authority. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. Short title. 9 This act shall be known and may be cited as the Pennsylvania 10 Energy Freedom Support Act. 11 Section 2. Declaration of policy. 12 The General Assembly finds and declares that: 13 (1) Pennsylvania faces a tremendous challenge to meet 14 its energy needs while protecting the public and the 15 environment. 16 (2) Without adequate funding for basic energy research, 17 Pennsylvania will suffer the consequences of falling behind
1 on energy information, projects and programs affecting the 2 quality of life now and in the future. 3 (3) The absence of State financial backing of 4 university-based energy research represents missed 5 opportunities for Pennsylvania to participate in Federal 6 research programs that require local cost-share funding and 7 it places the Commonwealth in a poor competitive position 8 with respect to other states rich in energy resources. 9 (4) Pennsylvania local governments also face increasing 10 energy costs, while at the same time struggle to deliver 11 basic community services to their residents and businesses. 12 Section 3. Definitions. 13 The following words and phrases when used in this act shall 14 have the meanings given to them in this section unless the 15 context clearly indicates otherwise: 16 "Account." The Pennsylvania Energy Freedom Support Account 17 established under section 4. 18 "Authority." The Energy Development Authority of the 19 Commonwealth. 20 "Cost-share grant." The Commonwealth's share of the cost of 21 carrying out a particular project which cost includes an 22 appropriate allowance for the administrative expenses involved 23 in carrying out the project. 24 "Eligible municipality." A county, city, district, 25 municipality, municipal authority, political subdivision, 26 borough, incorporated town, township, poor district or other 27 public instrumentality that has the authority to contract for 28 the construction, reconstruction, alteration or repair of a 29 public building or other public work or public improvement, 30 including, but not limited to, highway work. 20070H0566B0633 - 2 -
1 "Fund." The Energy Development Fund. 2 "Secretary." The Secretary of the Budget of the 3 Commonwealth. 4 "University." An institution of higher learning that 5 provides facilities for teaching and research and is authorized 6 to grant academic degrees within this Commonwealth. 7 Section 4. Pennsylvania Energy Freedom Support Account. 8 (a) Establishment.--There is established within the Energy 9 Development Fund a restricted receipt account to be known as the 10 Pennsylvania Energy Freedom Support Account. Interest that 11 accrues in the account shall be credited to the account. 12 (b) Receipts.--The secretary may transfer funds from the 13 fund to the account necessary to comply with the requirements of 14 this act. 15 Section 5. Federal Government Research Support Program. 16 (a) State cost share.--Subject to the restrictions and 17 limitations set forth below, universities may draw up to 20%, or 18 $20,000, whichever is greater, as a State cost share for 19 Department of Energy research grants or cooperative agreements. 20 (b) Restrictions and limitations.--The eligibility for cost- 21 share grants shall be restricted to Pennsylvania-based nonprofit 22 universities. Only Department of Energy basic energy research 23 grant awards or cooperative agreements shall be eligible for the 24 Federal Government Research Support Program. Other grants or 25 agreements for technology transfer, weatherization or other 26 nonbasic energy research sponsored by the Department of Energy 27 shall not be eligible. 28 (c) Application.--To be eligible for cost-share grants from 29 the program, a university must make application to the authority 30 to request a cost-sharing grant for a research project sponsored 20070H0566B0633 - 3 -
1 by the Department of Energy. The application shall be on the 2 form required by the authority and shall include or demonstrate 3 the following: 4 (1) The name and address of the applicant. 5 (2) A statement that the applicant is an eligible 6 recipient under the program. 7 (3) A statement of the amount of grant sought. 8 (4) A brief description of the project. 9 (5) Evidence of an approved Department of Energy grant 10 award or agreement. 11 (6) A commitment from the applicant to complete the 12 project. 13 (d) Review.--The authority shall review the application to 14 determine if the applicant has met all of the criteria set forth 15 in subsection (c). The authority shall review applications in 16 the order in which they are received. 17 (e) Approval.-- 18 (1) Upon being satisfied that all requirements under 19 subsection (c) have been met, the authority shall approve the 20 application and award a grant. 21 (2) The authority shall award grants subject to maximum 22 award limitation and based upon the availability of moneys in 23 the account. 24 (3) Prior to providing grant funds to an applicant, the 25 authority shall enter into a contract with the applicant. The 26 contract shall include provisions requiring the applicant to 27 use the grant to pay the cost share required under the terms 28 of the award or agreement with the Department of Energy. 29 (4) The authority may award a grant to an eligible 30 applicant in an amount greater than $20,000 if the Department 20070H0566B0633 - 4 -
1 of Energy award or agreement is in excess of one year. For a 2 multiple-year award or agreement, the authority may award up 3 to 20% or $20,000, whichever is greater, for each year of the 4 award. 5 (f) Limitations.-- 6 (1) An eligible applicant may not apply for a cost-share 7 grant from the account before official notification of a 8 research grant award or agreement by the Department of 9 Energy. 10 (2) In no case shall the aggregate amount of grants paid 11 in any fiscal year under this act exceed the annual 12 appropriation to the authority for the program. 13 (3) A grant awarded under this act shall in no way 14 constitute an entitlement derived from the Commonwealth or a 15 claim on any other funds of the Commonwealth. 16 Section 6. Municipal Energy Freedom Grant Program. 17 (a) Establishment.--There is hereby established within the 18 authority a program to be known as the Municipal Energy Freedom 19 Grant Program. The program shall be administered by the 20 authority to provide grants of matching funds equal to 50% of 21 the proposed project costs to eligible municipalities for the 22 installation of qualified energy efficiency measures within 23 buildings owned and operated by a municipality. 24 (b) Application.--An eligible municipality may submit an 25 application to the authority requesting a grant of matching 26 funds for the installation of energy efficiency measures. The 27 application shall be on a form required by the authority and 28 shall include or demonstrate all of the following: 29 (1) The name and address of the applicant. 30 (2) A statement that the applicant is an eligible 20070H0566B0633 - 5 -
1 recipient under the program. 2 (3) A statement of the amount of matching funds sought. 3 (4) A brief description of the project. 4 (5) Evidence of an energy audit of the facility or other 5 similar report that provides the appropriate document to 6 support the energy efficiency measures for which matching 7 funds are being requested. 8 (6) A commitment from the applicant to complete the 9 project and to provide 50% of the total cost of all energy 10 efficiency measures to be installed under the proposed 11 project. 12 (c) Review.--The authority shall review the application to 13 determine if the applicant has met all of the criteria set forth 14 in subsection (b). The authority shall review applications in 15 the order in which they are received. 16 (d) Eligible efficiency measures.--An "eligible efficiency 17 measure" is a program or facility alteration designed to reduce 18 energy consumption or operating costs and includes, but is not 19 limited to: 20 (1) Insulation of a building structure or system within 21 a building. 22 (2) Storm windows or doors, caulking or weather 23 stripping, multiglazed windows or doors, heat-absorbing or 24 heat-reflective glazed and coated window or door systems, 25 additional glazing, reductions in glass area or other window 26 and door system modifications that reduce energy consumption. 27 (3) An automated or computerized energy control system. 28 (4) A heating, ventilating or air conditioning system 29 modification or replacement. 30 (5) Replacement or modification of lighting fixtures to 20070H0566B0633 - 6 -
1 increase the energy efficiency of a lighting system without 2 increasing the overall illumination of a facility, unless an 3 increase in illumination is necessary to conform to 4 applicable State or local building codes for the lighting 5 systems after the proposed modification is made. 6 (6) An energy recovery system. 7 (7) A system that produces steam or forms of energy such 8 as heat as well as electricity for use within a building or 9 complex of buildings. 10 (8) An energy conservation measure that provides 11 operating cost reductions based on life cycle cost analysis. 12 (9) The installation of an energy information and 13 control system that monitors consumption, redirects systems 14 to optimal energy sources and manages energy-using equipment. 15 (10) An indoor air quality improvement. 16 (11) A daylighting system. 17 (12) An energy-efficient street lighting or traffic 18 signal system. 19 (13) A renewable or onsite-distributed power generation 20 system. 21 (14) A geothermal heat pump system, which is a system of 22 pipes, heat exchangers and building ductwork using the latent 23 heat of the earth to heat and cool buildings. 24 (15) Any other measures approved by the authority that 25 from time to time may be developed and proven to be cost 26 effective in reducing energy consumption and costs. 27 Section 7. Development of guidelines. 28 Prior to the disbursement of any grant matching funds from 29 the account, the authority shall develop and issue guidelines 30 for the application and use of the matching funds, including all 20070H0566B0633 - 7 -
1 applicable eligibility criteria which shall also describe the 2 manner of application for financial assistance and an 3 application for assistance under this section. The authority 4 shall provide these guidelines to the chairman and minority 5 chairman of the Environmental Resources and Energy Committee of 6 the Senate and the chairman and minority chairman of the 7 Environmental Resources and Energy Committee of the House of 8 Representatives 90 days prior to issuing the guidelines to the 9 general public. The authority shall provide a reasonable 10 opportunity for eligible applicants to apply for matching funds 11 under section 6 before making any financial assistance 12 announcements or awards. 13 Section 8. Annual report. 14 The authority shall annually make a report to the 15 Environmental Resources and Energy Committee of the Senate and 16 the Environmental Resources and Energy Committee of the House of 17 Representatives on the activities undertaken pursuant to this 18 act, including, but not limited to: 19 (1) The number of cost-share grants awarded to support 20 Department of Energy research grants or cooperative agreement 21 awards. 22 (2) The name of each educational institution receiving a 23 cost-share grant, including information about the amount and 24 duration of the cost-share grant award and a description of 25 the research being supported. 26 (3) A description of each grant of matching funds 27 awarded under the Municipal Energy Freedom Grant Program. 28 Section 9. Effective date. 29 This act shall take effect in 60 days. A17L27DMS/20070H0566B0633 - 8 -