PRINTER'S NO. 4453
No. 2793 Session of 2008
INTRODUCED BY SONNEY, CAUSER, J. EVANS, EVERETT, FRANKEL, GEIST,
GEORGE, GINGRICH, HENNESSEY, HERSHEY, MURT, O'NEILL, PYLE,
RAPP, READSHAW, ROCK AND SIPTROTH, SEPTEMBER 29, 2008
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
SEPTEMBER 29, 2008
AN ACT
1 Amending the act of November 29, 2004 (P.L.1376, No.178),
2 entitled "An act relating to alternative fuels; establishing
3 the Alternative Fuels Incentive Fund; authorizing grants and
4 rebates to promote the use of alternative fuels; imposing
5 duties on the Department of Environmental Protection;
6 providing for an annual report; allocating funds collected
7 from the utilities gross receipts tax; making an
8 appropriation; abrogating regulations; and making a repeal,"
9 further providing for biomass-based diesel production
10 incentives.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. Section 3.1 of the act of November 29, 2004
14 (P.L.1376, No.178), known as the Alternative Fuels Incentive
15 Act, added July 10, 2008 (1st Sp.Sess., P.L. , No.2) is amended
16 to read:
17 Section 3.1. Biomass-based diesel production incentives.
18 (a) Incentives.--The department shall expend up to
19 $5,300,000 annually from the fund unless the balance of the fund
20 is less than $5,300,000 on the first day of the fiscal year, in
21 which case the department shall expend up to one-third of the
1 balance of the fund:
2 (1) As a production incentive of 75¢ per gallon for
3 biomass-based diesel produced in this Commonwealth beginning
4 July 1, 2008, and sold in this Commonwealth for commercial
5 transportation purposes or for residential heating. In the
6 case of biomass-based diesel, this incentive shall be
7 available through June 30, 2011. If the total monthly amount
8 of production incentives applied for by all qualified
9 applicants exceeds the remaining amount available for those
10 incentives, then the incentive shall be prorated among all
11 qualified applicants. [An] Subject to the provisions of
12 subsection (c), an individual qualified biomass-based diesel
13 producer shall not receive more than $1,900,000 in incentives
14 in any one fiscal year. For purposes of this section, all
15 facilities under common ownership shall be counted as a
16 single facility.
17 (2) A producer of biomass-based diesel in this
18 Commonwealth shall file for the production incentive on a
19 monthly basis on a form furnished by the department. The form
20 shall require the producer to submit proof of production of
21 the biomass-based diesel and the number of gallons sold
22 during the previous calendar month and such other information
23 as the department deems appropriate. A biomass-based diesel
24 producer shall also submit a certificate of analysis from an
25 accredited laboratory for every 500,000 gallons of biomass-
26 based diesel produced showing that the biodiesel meets the
27 ASTM Specification D6751, Standard Specification for
28 Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels
29 or its successor standard.
30 (b) Exception.--A qualified biomass-based diesel producer
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1 who receives an incentive under this section shall not be
2 eligible to receive an incentive under section 3.
3 (c) Proration required with balance of funds.--During any
4 fiscal year in which the balance of the fund is equal to or in
5 excess of $5,300,000 on the first day of the fiscal year, if the
6 total monthly amount of production incentives applied for by all
7 qualified applicants is less than the remaining amount available
8 for those incentives under the annual expenditure limitation
9 specified in subsection (a), then the incentive shall be
10 prorated among all qualified applicants who would have been
11 otherwise limited to reimbursement of $1,900,000 under
12 subsection (a)(1).
13 Section 2. This act shall take effect in 60 days.
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