See other bills
under the
same topic
                                                        PRINTER'S NO. 47

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1 Special Session No. 1 of 2007-2008


        INTRODUCED BY DePASQUALE, BELFANTI, BENNINGTON, CALTAGIRONE,
           DALEY, EACHUS, FRANKEL, FREEMAN, GEIST, GEORGE, KESSLER,
           KORTZ, McCALL, McGEEHAN, McILVAINE SMITH, M. O'BRIEN,
           PASHINSKI, SIPTROTH, SURRA, VITALI, YUDICHAK, PARKER,
           WOJNAROSKI, JOSEPHS AND WALKO, NOVEMBER 15, 2007

        REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
           NOVEMBER 15, 2007

                                     AN ACT

     1  Amending Title 64 (Public Authorities and Quasi-Public
     2     Corporations) of the Pennsylvania Consolidated Statutes, in
     3     Commonwealth Financing Authority, providing for use of funds
     4     dedicated by the General Assembly; further providing for
     5     indebtedness; consolidating provisions of The Administrative
     6     Code of 1929 relating to the Energy Development Authority and
     7     emergency powers; further providing for board directors,
     8     meetings and quorum, for the powers of the Pennsylvania
     9     Energy Development Authority and for authority indebtedness;
    10     and making a related repeal.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Title 64 of the Pennsylvania Consolidated
    14  Statutes is amended by adding a section to read:
    15  § 1515.  Funds dedicated by the General Assembly.
    16     (a)  Dedication of funds.--The General Assembly shall
    17  dedicate funds to carry out the purposes of this section.
    18     (b)  Transfer of funds.--The State Treasurer shall transfer
    19  all funds received pursuant to this section within 30 days of
    20  receipt of the funds as follows:

     1         (1)  $600 million to the Energy Development Fund for the
     2     purposes of 64 Pa.C.S. § 1806(21) (relating to powers and
     3     duties).
     4         (2)  $250 million to the authority for the purposes of
     5     this section.
     6     (c)  Uses of funds by authority.--With respect to funds
     7  dedicated by the General Assembly for the purposes of this
     8  section, the authority shall have the powers and duties to
     9  fulfill the obligations of a bond for alternative energy
    10  projects, including, but not limited to, funding for alternative
    11  and renewable energy projects, such as:
    12         (1)  $50 million to provide loans to venture capital
    13     partnerships. The funds designated for this purpose shall be
    14     transferred to the New Pennsylvania Venture Capital
    15     Investment Program under section 1557 (relating to New
    16     Pennsylvania Venture Capital Investment Program).
    17         (2)  $50 million to provide grants and loans for working
    18     capital, equipment acquisition, construction and site
    19     preparation.
    20         (3)  $150 million to provide grants and loans to
    21     businesses for infrastructure preparation and development of
    22     high efficient advanced energy business sites.
    23     (d)  Policy.--In exercising its powers and duties under
    24  subsection (a), the authority shall:
    25         (1)  Promote the diversification of energy generation by
    26     supporting a broad cross-section of clean energy
    27     technologies.
    28         (2)  Encourage the deployment of distributed generation
    29     projects for public infrastructure around this Commonwealth.
    30         (3)  Consider the economic development potential of each
    20071H0001B0047                  - 2 -     

     1     proposed project as it fits into the larger context of this
     2     Commonwealth's advanced energy market.
     3         (4)  Establish the goal of expanding the market for
     4     clean, advanced energy technologies, service and fuels. In
     5     pursuit of this goal, the authority shall emphasize the
     6     following investment priorities:
     7             (i)  Attracting or expanding clean, advanced energy
     8         manufacturing operations in this Commonwealth.
     9             (ii)  Deployment of "behind-the-fence" clean,
    10         advanced, energy projects at manufacturing facilities to
    11         enhance their competitiveness.
    12         (5)  Bring the most flexibility possible to the design of
    13     its financing vehicles and to the focus of its solicitations.
    14     Financing vehicles such as loan guarantees, insurance
    15     products and flex loans, which can have delayed repayment
    16     schedules or very low interest rates, may be utilized in
    17     addition to traditional financing for some types of projects.
    18     The authority shall emphasize flexibility in its
    19     solicitations, which may be broadly targeted to the general
    20     advanced energy community or narrowly targeted toward
    21     specific areas where market gaps exist.
    22         (6)  Seek to leverage its capital to the maximum extent
    23     possible. The authority may work with the investment and
    24     developer community to leverage its funds by requiring
    25     significant matching funds for all projects except in rare
    26     circumstances and, when allowable, by investing in projects
    27     that are likely to yield significant returns. The authority
    28     shall consider ways to manage and increase its own funding,
    29     including exploration of a variety of potential avenues,
    30     including, but not limited to, Federal grants, private
    20071H0001B0047                  - 3 -     

     1     foundation grants and legislative appropriations.
     2         (7)  Require, except in rare circumstances, all projects
     3     to demonstrate that they have obtained significant matching
     4     funds, including, but not limited to, funds from Federal,
     5     State, local or private sources, or any combination thereof.
     6         (8)  Evaluate a proposed project to ascertain whether the
     7     project has sufficient funding to enable project completion.
     8         (9)  When considering loans or loan guarantees,
     9     thoroughly evaluate, in partnership with the department, the
    10     credit of all borrowers and ensure that all financing is
    11     awarded to borrowers who evidence a reasonable likelihood of
    12     being able to repay such loans.
    13     (e)  Evaluation criteria.--In addition to specific criteria
    14  developed by the authority, the following general criteria shall
    15  be considered by the authority for all deployment projects:
    16         (1)  Potential to expand the market for the indigenous
    17     energy resources of this Commonwealth.
    18         (2)  Potential to enhance Pennsylvania's energy security
    19     and diversity.
    20         (3)  Ability to demonstrate significant environmental
    21     benefits.
    22         (4)  Potential either to promote energy conservation or
    23     to increase energy production from alternative energy
    24     sources.
    25         (5)  Potential economic benefits for the Commonwealth,
    26     which may be in the form of job creation, new investment,
    27     savings to consumers or revenue generation for other
    28     beneficiaries, such as farmers, local governments or other
    29     landowners.
    30         (6)  Technical feasibility and cost-effectiveness of the
    20071H0001B0047                  - 4 -     

     1     project.
     2     Section 2.  Section 1543 of Title 64 is amended by adding a
     3  subsection to read:
     4  § 1543.  Indebtedness.
     5     * * *
     6     (d.1)  Bonds issued from funds dedicated by the General
     7  Assembly.--Bonds issued for the programs established in section
     8  1515 (relating to funds dedicated by the General Assembly) shall
     9  not be subject to nor shall they apply toward the aggregate
    10  amount of indebtedness permitted to be incurred by the authority
    11  under this section.
    12     Section 3.  Title 64 is amended by adding a chapter to read:
    13                             CHAPTER 18
    14         ENERGY DEVELOPMENT AUTHORITY AND EMERGENCY POWERS
    15  Sec.
    16  1801.  Definitions.
    17  1802.  Emergency petroleum product shortages.
    18  1803.  Energy Development Authority.
    19  1804.  Technical and financial support.
    20  1805.  Annual report.
    21  1806.  Powers and duties.
    22  1807.  Authority indebtedness.
    23  1808.  Financial assistance.
    24  1809.  Energy development plan.
    25  1810.  Exemption from taxation.
    26  1811.  Funding of authority.
    27  1812.  Limitation of powers.
    28  1813.  Audit.
    29  § 1801.  Definitions.
    30     The following words and phrases when used in this chapter
    20071H0001B0047                  - 5 -     

     1  shall have the meanings given to them in this section unless the
     2  context clearly indicates otherwise:
     3     "Authority."  The Energy Development Authority established in
     4  section 1803 (relating to Energy Development Authority).
     5     "Board."  The board of directors of the Energy Development
     6  Authority.
     7     "Bonds."  Notes, bonds, refunding or renewal notes and bonds
     8  and other evidence of indebtedness or obligations which the
     9  Energy Development Authority is authorized to issue.
    10     "Cost."  The expense of construction and the expense of
    11  acquisition of all structures, lands and other property rights
    12  and interests in land necessary to a project. The term also
    13  includes the expense of demolishing, removing or relocating any
    14  buildings or structures on lands acquired or to be acquired,
    15  including the following:
    16         (1)  the expense of acquiring any lands to which the
    17     buildings or structures may be moved or relocated;
    18         (2)  sewage treatment, waste treatment and pollution
    19     control facilities;
    20         (3)  railroad sidings, spurs or branch lines;
    21         (4)  all labor, materials, machinery and equipment and
    22     fixtures;
    23         (5)  financing charges;
    24         (6)  interest on all bonds prior to and during
    25     construction and for a period of one year thereafter;
    26         (7)  engineering, financial and legal services;
    27         (8)  plans, specifications, studies, surveys necessary or
    28     incidental to determining the feasibility or practicability
    29     of constructing a project;
    30         (9)  administrative expenses;
    20071H0001B0047                  - 6 -     

     1         (10)  reserves for interest and for extension,
     2     enlargements, additions and improvements; and
     3         (11)  such other expenses as may be necessary or
     4     incidental to the construction of the project and the placing
     5     of the same in operation.
     6     "Person."  A natural person, corporation, partnership,
     7  association or municipality of this Commonwealth and any public
     8  corporation, authority or body whatsoever.
     9     "Petroleum product."  Motor gasoline, kerosene, distillates,
    10  including Number 2 fuel oil, and diesel fuel.
    11     "Project."  An activity entirely or largely conducted in this
    12  Commonwealth which cannot be effectively funded using privately
    13  available resources, relating to:
    14         (1)  basic and applied research concerning energy use,
    15     renewable energy resources and energy extraction,
    16     transmission, storage or conversion;
    17         (2)  limited scale demonstration of innovative or
    18     commercially unproven technology to promote the production,
    19     use or conservation of energy;
    20         (3)  activities to promote or remove obstacles to the
    21     utilization and transportation of Pennsylvania energy
    22     resources, including, but not limited to, limited scale
    23     synthetic fuel facilities and the conversion or technological
    24     improvement of industrial, commercial or agricultural systems
    25     to utilize Pennsylvania coal or renewable energy resources,
    26     except that the facility shall not unreasonably interfere
    27     with private waste recycling industries;
    28         (4)  activities designed to further development or
    29     deployment of:
    30             (i)  alternative energy sources, including those
    20071H0001B0047                  - 7 -     

     1         defined in the act of November 30, 2004 (P.L.1672,
     2         No.213), known as the Alternative Energy Portfolio
     3         Standards Act;
     4             (ii)  alternative fuels, including those defined in
     5         the act of November 29, 2004 (P.L.1376, No.178), known as
     6         the Alternative Fuels Incentive Act;
     7             (iii)  energy efficiency technology; and
     8             (iv)  energy conservation measures.
     9         (5)  Activities designed to improve the energy efficiency
    10     of large-scale industrial production facilities.
    11  § 1802.  Emergency petroleum product shortages.
    12     (a)  General rule.--The Governor may, by executive order,
    13  proclaim a state of emergency based upon a finding that there
    14  impends or exists a substantial shortage of petroleum products
    15  available for use in this Commonwealth which poses a serious
    16  threat to the health, safety or welfare of the public. A state
    17  of emergency shall remain in effect for the maximum period of 90
    18  days and may be extended by the Governor unless the extension is
    19  disapproved by concurrent resolution adopted by both houses of
    20  the General Assembly. A state of emergency may be declared for
    21  all or any portion of this Commonwealth.
    22     (b)  Designation.--Upon proclamation of a state of emergency,
    23  the Governor shall designate a State agency to conduct emergency
    24  allocation measures during the period of the declared emergency.
    25  Emergency allocation measures may consist of:
    26         (1)  the administration of any emergency allocation
    27     powers delegated to the Commonwealth by the President or any
    28     Federal agency;
    29         (2)  the implementation of a set-aside program, for not
    30     more than 1% of the petroleum products available for use in 
    20071H0001B0047                  - 8 -     

     1     this Commonwealth, to alleviate hardship or meet emergency
     2     needs. A set-aside program shall be established in conformity
     3     with any Federal law, regulations or executive orders
     4     governing petroleum allocation and shall apply only to
     5     petroleum products found to be in a substantial shortage;
     6         (3)  measures to reduce demand for or consumption of
     7     gasoline; and
     8         (4)  other measures identified by the Governor in an
     9     executive order proclaiming a state of emergency as necessary
    10     to protect the public health, safety and welfare.
    11     (c)  Regulations.--The agency designated by the Governor to
    12  conduct emergency measures may, during the period of the
    13  emergency, adopt rules and regulations pursuant to section 204
    14  of the act of July 31, 1968 (P.L.769, No.240), referred to as
    15  the Commonwealth Documents Law. Any regulation adopted during a
    16  state of emergency shall be automatically rescinded upon the
    17  expiration of the emergency.
    18     (d)  Monitoring.--The Governor may designate a State agency
    19  to monitor supplies of petroleum products available for use in
    20  this Commonwealth to determine whether there exists, or is
    21  likely to exist, a shortage.
    22         (1)  In order to monitor supplies of petroleum products,
    23     the agency may require recordkeeping and periodic reports
    24     from petroleum suppliers which shall, to the maximum extent
    25     possible, employ federally mandated reports and records,
    26     avoid duplicative reporting and recordkeeping and minimize
    27     paperwork, recordkeeping and reporting requirements.
    28         (2)  Reports filed and records maintained pursuant to
    29     this subsection shall be deemed confidential.
    30         (3)  When a petroleum supplier or a company providing
    20071H0001B0047                  - 9 -     

     1     information to a petroleum supplier claims that the
     2     information requested by the agency is confidential,
     3     proprietary, market or trade secret information or when the
     4     information is deemed confidential pursuant to this section,
     5     the agency shall not disclose the information publicly or to
     6     any other governmental agency unless the information is
     7     aggregated as part of a statistical report in which the data
     8     and individual companies supplying the data cannot be
     9     identified.
    10         (4)  No employee or appointee of the agency or any other
    11     person may release information from a petroleum product
    12     company that would enable data provided by or relating to
    13     individual customers of the petroleum company to be
    14     identified as relating to or coming from the individual
    15     customer. Any person disclosing the information in violation
    16     of this section commits a misdemeanor of the third degree,
    17     shall be subject to disciplinary action, including reprimand,
    18     suspension or termination, and may be ordered to make
    19     restitution to any injured or aggrieved party for losses or
    20     damages shown.
    21         (5)  In order to obtain information required pursuant to
    22     this subsection, the agency designated by the Governor to
    23     monitor supplies of petroleum products may receive or share
    24     information from any other Federal, State or local agency.
    25     The agency shall provide the same confidentiality to
    26     information recovered as is provided by the supplying agency.
    27  § 1803.  Energy Development Authority.
    28     (a)  Establishment.--There is established the Energy
    29  Development Authority.
    30     (b)  Board of directors.--The authority shall be governed and
    20071H0001B0047                 - 10 -     

     1  all of its corporate powers exercised by a board of directors
     2  which shall be composed of the following individuals:
     3         (1)  The Secretary of Environmental Protection or a
     4     designee.
     5         (2)  The Secretary of Banking or a designee.
     6         (3)  The Secretary of Community and Economic Development
     7     or a designee.
     8         (4)  The Secretary of Agriculture or a designee.
     9         (5)  Four legislative appointees.
    10             (i)  Appointments are as follows:
    11                 (A)  One individual appointed by the President
    12             pro tempore of the Senate.
    13                 (B)  One individual appointed by the Minority
    14             Leader of the Senate.
    15                 (C)  One individual appointed by the Majority
    16             Leader of the House of Representatives.
    17                 (D)  One individual appointed by the Minority
    18             Leader of the House of Representatives.
    19             (ii)  Legislative appointees shall serve at the
    20         pleasure of the appointing authority.
    21             (iii)  An individual appointed to the board pursuant
    22         to subparagraph (i) may not be a member of the General
    23         Assembly or staff of a member of the General Assembly.
    24     (c)  Organization.--The Governor shall select a member of the
    25  board to serve as chairperson. The members shall select from
    26  among themselves such officers as they shall determine.
    27     (d)  Compensation.--Members of the board of directors shall
    28  be entitled to no compensation for their services as members but
    29  shall be entitled to reimbursement for all necessary expenses
    30  incurred in connection with the performance of their duties as
    20071H0001B0047                 - 11 -     

     1  members.
     2     (e)  Meetings and quorum.--The board of directors shall
     3  provide for the holding of regular and special meetings. The
     4  consent of at least five directors, with at least four of the
     5  consenting directors being appointed under subsection (b)(5),
     6  shall be required to adopt any action on behalf of the
     7  authority.
     8  § 1804.  Technical and financial support.
     9     (a)  General rule.--The Governor shall designate a State
    10  agency to provide staff services to the authority for its
    11  administration of this chapter, including technical services to
    12  assist the authority in carrying out the provisions of this
    13  chapter.
    14     (b)  Personnel and services.--The authority may utilize
    15  personnel and services from any departments, agencies or other
    16  authorities of the Commonwealth whose facilities and services
    17  may be useful to the authority for implementation of this
    18  chapter upon approval of the departments, agencies or
    19  authorities.
    20     (c)  Reimbursement.--The authority may make reimbursement to
    21  an agency, department or authority of the Commonwealth for
    22  expenses incurred in providing services or use of facilities
    23  acquired by the authority.
    24     (d)  Construction.--Notwithstanding 66 Pa.C.S. § 511
    25  (relating to disposition, appropriation and disbursement of
    26  assessments and fees) or any other law of this Commonwealth, no
    27  funds received as reimbursement under this section shall be
    28  deemed to be in substitution for funds from another source, nor
    29  shall the funds reduce assessments to any utility. No funds
    30  shall lapse at termination of a fiscal year, nor shall the funds
    20071H0001B0047                 - 12 -     

     1  reduce any assessment by the Pennsylvania Public Utility
     2  Commission in any fiscal year.
     3  § 1805.  Annual report.
     4     The board shall make an annual report of the activities of
     5  the authority for the preceding fiscal year, not later than 120
     6  days after the conclusion of the fiscal year, to the Governor
     7  and General Assembly. Each report shall contain a statement of
     8  activities and a complete operating and financial statement
     9  covering the operations of the authority.
    10  § 1806.  Powers and duties.
    11     The authority, as a public corporation and governmental
    12  instrumentality exercising public powers of the Commonwealth, is
    13  granted, shall have and may exercise all powers necessary or
    14  appropriate to carry out and effectuate the purposes of this
    15  chapter, including, but not limited to, the power:
    16         (1)  To conduct examinations and investigations and take
    17     testimony under oath or affirmation at public or private
    18     hearings on matters material for its information and
    19     necessary to determination and approval of energy development
    20     project loan applications.
    21         (2)  To have existence until its existence shall be
    22     terminated by law.
    23         (3)  To sue and be sued, implead and be impleaded,
    24     complain and defend in all courts.
    25         (4)  To adopt, use and alter at will a corporate seal.
    26         (5)  To make bylaws for management and regulation of its
    27     affairs and make, amend and repeal rules and regulations
    28     governing the business of the authority.
    29         (6)  To seek technical determinations on project
    30     applications.
    20071H0001B0047                 - 13 -     

     1         (7)  To make contracts of every name and nature and
     2     execute all instruments necessary or convenient for the
     3     carrying on of its business.
     4         (8)  To accept grants from and enter into contracts or
     5     other transactions with Federal agencies.
     6         (9)  To take title by foreclosure or otherwise to a
     7     project or other property pledged, mortgaged, encumbered or
     8     otherwise available as security for a project financed in
     9     whole or in part by the authority, whether by loan, loan
    10     guarantee or otherwise where acquisition is necessary to
    11     protect the interests of the authority regarding a project,
    12     to pay costs arising out of the acquisition from money held
    13     in the Energy Development Fund and to sell, transfer and
    14     convey all or any portion of a project to a responsible
    15     buyer.
    16         (10)  To purchase and make payments of mortgages on any
    17     project where the purchase or payment is necessary to protect
    18     a loan or loan guarantee previously made by the authority and
    19     to sell, transfer, convey or assign any such mortgage. Money
    20     so used by the authority in the purchase of any mortgage, or
    21     any payments thereon, shall be withdrawn from the Energy
    22     Development Fund, and money derived from the sale of any
    23     mortgages shall be deposited by the authority in the fund.
    24         (11)  To lease, lease with an option to purchase, sell by
    25     installment sale or otherwise, or otherwise dispose of any or
    26     all of its projects, for the rentals or amounts and upon such
    27     terms and conditions as the authority deems proper.
    28         (12)  To finance projects by making loans to persons to
    29     provide funds for project costs.
    30         (13)  To guarantee loans of money made to persons, upon
    20071H0001B0047                 - 14 -     

     1     the terms and conditions which the authority may prescribe,
     2     relating to projects.
     3         (14)  To make grants to fund projects.
     4         (15)  To collect fees and charges determined to be
     5     reasonable as to activities undertaken in furtherance of the
     6     purposes of this chapter.
     7         (16)  To borrow money for the operation and work of the
     8     authority by making notes and issuing bonds under the
     9     provisions of this chapter.
    10         (17)  To pledge, hypothecate or otherwise encumber
    11     revenues or receipts of the authority as security for bonds
    12     of the authority.
    13         (18)  To receive appropriations and apply for and accept
    14     grants, gifts, donations, bequests and settlements from a
    15     public or private source. Money received by the authority
    16     shall be deposited in the Energy Development Fund and used
    17     for the purposes of the authority.
    18         (19)  To promote and facilitate the sale through this
    19     Commonwealth of alternative energy credits as defined in the
    20     act of November 30, 2004 (P.L.1672, No.213), known as the
    21     Alternative Energy Portfolio Standards Act. This paragraph
    22     shall not be construed as conferring on the Commonwealth the
    23     authority to purchase, acquire or sell alternative energy
    24     credits.
    25         (20)  To establish rebate and incentive programs to help
    26     defray the costs to persons associated with the purchase,
    27     manufacture or distribution of products used to generate
    28     alternative energy or employing energy-efficient technology.
    29         (21)  To enter into agreements with the Department of
    30     Community and Economic Development and the Ben Franklin
    20071H0001B0047                 - 15 -     

     1     Technology Development Authority to provide for the transfer
     2     of funds from the Energy Development Fund or other funds
     3     under the control of the authority, to be used for energy-
     4     related activities and to fulfill the obligations of a bond
     5     for alternative energy projects, including:
     6             (i)  $56 million to the Ben Franklin Technology
     7         Development Authority to support early-stage activities,
     8         including incubator support services, management support,
     9         translational research activities and early-stage
    10         capital. The funds designated for these purposes shall be
    11         transferred to the Ben Franklin Technology Partners, and
    12         the guidelines in effect on the effective date of this
    13         chapter for determining project eligibility and to award
    14         project or program financing shall be used by the Ben
    15         Franklin Technology Partners in providing financial
    16         support called for in this paragraph.
    17             (ii)  $44 million to create a rebate program to lower
    18         the retail price of new energy-efficient appliances.
    19             (iii)  $200 million toward rebates and grants for
    20         solar photovoltaic, other solar electric or solar thermal
    21         installations.
    22             (iv)  $300 million to provide grants and loans for
    23         alternative energy projects, alternative fuels and
    24         demand-side management and efficiency measures for all
    25         customer classes, including, but not limited to, energy-
    26         efficient building construction, equipment and
    27         renovation.
    28  § 1807.  Authority indebtedness.
    29     (a)  General rule.--The authority shall have the power and is
    30  authorized from time to time, by resolution of the authority and
    20071H0001B0047                 - 16 -     

     1  subject to the written approval of the Governor, to issue its
     2  negotiable bonds in such principal amount as, in the opinion of
     3  the authority, shall be necessary to provide sufficient funds
     4  for any of its corporate purposes, the establishment of reserves
     5  to secure the bonds and all other expenditures of the authority
     6  incident to and necessary or convenient to carry out its
     7  corporate purposes and powers. The aggregate principal amount of
     8  bonds and notes of the authority shall not exceed $800,000,000
     9  outstanding at any one time.
    10     (b)  Refund or renewal.--The authority, whenever it deems it
    11  expedient, shall have the power to refund or renew any bonds by
    12  the issuance of new bonds whether the bonds to be refunded or
    13  renewed have or have not matured. Refunding bonds shall be sold
    14  and the proceeds applied to the purchase, redemption or payment
    15  of the bonds to be refunded.
    16     (c)  No personal liability.--Neither the members of the board
    17  of the authority nor any person executing the bonds shall be
    18  liable personally on the bonds or be subject to any personal
    19  liability or accountability by reason of the issuance thereof.
    20     (d)  No Commonwealth debt.--Bonds issued under the provisions
    21  of this chapter shall not be deemed to constitute a debt of the
    22  Commonwealth or any political subdivision or a pledge of the
    23  faith and credit of the Commonwealth or any political
    24  subdivision.
    25     (e)  Bond requirements.--
    26         (1)  The bonds of the authority shall be of the series,
    27     bear date or dates, mature at the time or times not exceeding
    28     40 years from their respective dates, bear interest at the
    29     rate or rates, payable at least semiannually, be in the
    30     denominations, be in the form, either coupon or fully
    20071H0001B0047                 - 17 -     

     1     registered without coupons, carry the registration,
     2     exchangeability and interchangeability privileges, by payment
     3     in medium of payment and at the place or places, be subject
     4     to the terms of redemption, with or without premium, and be
     5     entitled to the priorities in the revenue or receipts of the
     6     authority as the resolution or resolutions of the authority
     7     may provide.
     8         (2)  The bonds shall be signed by or shall bear the
     9     facsimile signature of the officers the authority shall
    10     determine, and coupon bonds shall have attached to the coupon
    11     bond in interest coupons bearing the facsimile signature of
    12     the chairman of the authority, all as may be prescribed in
    13     the resolution or resolutions of the authority.
    14         (3)  Bonds may be issued and delivered, notwithstanding
    15     that one or more of the officers signing the bonds shall have
    16     ceased to be the officer or officers at the time when the
    17     bonds shall actually be delivered.
    18         (4)  Bonds may be sold at public or private sales for the
    19     price or prices as the authority shall determine. Pending the
    20     preparation of the definitive bonds, interim receipts may be
    21     issued to the purchaser or purchasers of the bonds and may
    22     contain such terms and conditions as the authority may
    23     determine.
    24         (5)  Any bond reciting in substance that it has been
    25     issued by the authority to aid in the financing of one or
    26     more projects to accomplish the public purposes of this
    27     chapter shall be conclusively deemed in proceedings involving
    28     the validity or enforceability of the bond or security for
    29     the bond to have been issued for that purpose.
    30     (f)  Bond provisions.--A resolution or resolutions
    20071H0001B0047                 - 18 -     

     1  authorizing bonds may contain provisions, which shall be part of
     2  the contract with holders of the bonds, as to any of the
     3  following:
     4         (1)  Pledging the full faith and credit of the authority.
     5         (2)  The terms and provisions of the bonds.
     6         (3)  Limitations on the purposes to which the proceeds of
     7     the bonds then or from then on to be issued may be applied.
     8         (4)  The setting aside of reserves or sinking funds and
     9     the regulation and disposition of the reserves or sinking
    10     funds.
    11         (5)  Limitations on the issuance of additional bonds.
    12         (6)  The terms and provisions of any indenture under
    13     which the bonds may be issued.
    14         (7)  Any other or additional agreements with the holders
    15     of the bonds.
    16     (g)  Indentures and other agreements.--The authority may
    17  enter into indentures or other agreements, with a bank or trust
    18  company in or outside this Commonwealth, including a Federal
    19  agency, and may assign and pledge all or any of the revenues or
    20  receipts of the authority. The indenture or other agreement may
    21  contain such provisions as may be customary in such instruments
    22  or as the authority may authorize, including, but without
    23  limitation, provisions as to:
    24         (1)  the application of funds and the safeguarding of
    25     funds on hand or on deposit;
    26         (2)  the rights and remedies of the trustee and the
    27     holders of the bonds, which may include restrictions upon the
    28     individual right of action of the holders; and
    29         (3)  the terms and provisions of the bonds or any
    30     additional bonds or the resolutions authorizing the issuance
    20071H0001B0047                 - 19 -     

     1     of the bonds or additional bonds.
     2     (h)  Negotiable instruments.--The bonds shall have all the
     3  qualities of negotiable instruments under 13 Pa.C.S. Div. 3
     4  (relating to negotiable instruments).
     5     (i)  Rights and remedies.--The rights and remedies conferred
     6  upon or granted to the bondholders shall be in addition to and
     7  not in limitation of any rights and remedies lawfully granted to
     8  the bondholders by the resolution or resolutions providing for
     9  the issuance of bonds or by any indenture or other agreement
    10  under which the bonds may be issued.
    11     (j)  Default.--In the event that the authority shall default
    12  in the payment of principal of premium, if any, or interest on
    13  any issue of bonds after the principal, premium or interest
    14  shall become due, whether at maturity, upon call for redemption
    15  or otherwise and the default shall continue for a period of 30
    16  days, or in the event that the authority shall fail or refuse to
    17  comply with the provisions of this chapter or shall default in
    18  any agreement made with the holders of the bonds, the holders of
    19  25% in aggregate principal amount of the bonds then outstanding
    20  of the issues, by instrument or instruments filed in the Office
    21  of the Prothonotary of the Commonwealth Court, may appoint a
    22  trustee to represent the bondholders for the purposes provided
    23  in this subsection. The trustee and any trustee under any
    24  indenture or other agreement may, and upon written request of
    25  the holders of 25% or other percentage as may be specified in
    26  any indenture or other agreement, in principal amount of the
    27  particular issues of bonds then outstanding shall, in the
    28  trustee's own name:
    29         (1)  By mandamus or other suit, action or proceeding at
    30     law or in equity, enforce all rights of the bondholders,
    20071H0001B0047                 - 20 -     

     1     including the right to require the authority to carry out any
     2     agreement as to or pledge of the revenues or receipts of the
     3     authority and to require the authority to carry out any other
     4     agreements with or for the benefit of the bondholders and to
     5     perform its and their duties under this chapter.
     6         (2)  Bring suit upon the bonds.
     7         (3)  By action or suit in equity require the authority to
     8     account as if it were the trustee of an express trust for the
     9     bondholders.
    10         (4)  By action or suit in equity enjoin any acts or
    11     things which may be unlawful or in violation of the rights of
    12     the bondholders.
    13         (5)  By notice in writing to the authority, declare all
    14     bonds due and payable and if all defaults shall be made good,
    15     then with the consent of the holders of 25% or such other
    16     percentage as may be specified in any indenture or other
    17     agreement of the principal amount of bonds then outstanding,
    18     to announce the declaration and its consequences.
    19     (k)  Jurisdiction.--The Commonwealth Court shall have
    20  jurisdiction of any suit, action or proceeding by the trustee on
    21  behalf of the bondholders.
    22     (l)  Trustee powers.--
    23         (1)  A trustee appointed by the court or trustee acting
    24     under an indenture or other agreement, and whether or not all
    25     bonds have been declared due and payable, shall be entitled
    26     as of right to the appointment of a receiver, who may
    27     exercise dominion over the mortgages or other security held
    28     by or available to the authority or any part of the
    29     authority, the revenues or receipts from which are or may be
    30     applicable to the payment of the bonds so in default, and
    20071H0001B0047                 - 21 -     

     1     collect and receive all revenues arising after default from
     2     the bonds in the same manner as the authority might do and
     3     shall deposit all money in a separate account and apply the
     4     same in the manner as the court shall direct.
     5         (2)  In any suit, action or proceeding by a trustee, the
     6     fees, the counsel fees and expenses of the trustee and of the
     7     receiver, if any, and all costs and disbursements allowed by
     8     the court shall be a first charge on any revenues and
     9     receipts derived from the mortgages of the authority or other
    10     security held by or available to the authority, the revenues
    11     or receipts from which are or may be applicable to the
    12     payment of the bonds in default.
    13         (3)  A trustee shall also have all of the power necessary
    14     or appropriate for the exercise of any function specifically
    15     set forth in this section, in any indenture or other
    16     agreement or incident to the general representation of the
    17     bondholders in the enforcement and protection of their
    18     rights.
    19  § 1808.  Financial assistance.
    20     (a)  General rule.--When it has been determined by the
    21  authority, upon application and hearing in the manner provided
    22  in this section, that the granting of financial assistance will
    23  accomplish the public purposes of this chapter, the authority
    24  may contract to make financial assistance available in an amount
    25  not in excess of the cost of the project.
    26     (b)  Confirmation of other funding.--Prior to committing
    27  itself to provide financial assistance under this section, the
    28  authority shall have determined that the person requesting the
    29  assistance has obtained from other responsible and independent
    30  sources, including the Federal Government, banks, savings and
    20071H0001B0047                 - 22 -     

     1  loan associations or otherwise, a firm commitment for all other
     2  funds, over and above the amount of financial assistance
     3  requested from the authority, which in the aggregate shall be
     4  sufficient to cover the entire cost of the project.
     5     (c)  Time period and interest.--Any loan, lease, sale,
     6  guarantee or other agreement with response to a project shall be
     7  for the period of time and shall bear interest at the rate as
     8  shall be determined by the authority and may be secured by
     9  mortgage on and security interest in the project which the loan,
    10  lease, guarantee or other sale agreement relates, or with
    11  respect to any other property of the obligor, or any other
    12  security which the authority determines to be necessary.
    13     (d)  Manner of payment.--Money made available for projects by
    14  the authority shall be withdrawn from the appropriate funds and
    15  paid over to the obligor in the manner provided and prescribed
    16  by the resolutions, rules and regulations of the authority, the
    17  loan, lease, sale, guarantee or other agreement and the
    18  indenture or agreement of trust, if any, relating to the
    19  project.
    20     (e)  Deposit in appropriate funds.--All payments of interest
    21  on funds made available for projects and the principal amount
    22  shall be deposited by or on behalf of the authority in the
    23  appropriate funds.
    24     (f)  Application form.--Prior to disbursing any funds for, or
    25  committing itself to guarantee any indebtedness relating to, or
    26  providing technical assistance for a project, the authority
    27  shall receive an application in the form and having the content
    28  the authority may prescribe from the person seeking the
    29  assistance.
    30  § 1809.  Energy development plan.
    20071H0001B0047                 - 23 -     

     1     (a)  Contents.--In order to devise the most effective
     2  strategy for providing the financial and technical assistance
     3  authorized in this chapter, the authority shall publish by
     4  August 15, 1983, a plan for the allocation and distribution of
     5  financial and technical assistance. The energy development plan
     6  shall do all of the following:
     7         (1)  Place maximum reliance upon allocation and
     8     distribution strategies that exploit the use of other
     9     available Federal, State, local and private financial
    10     support.
    11         (2)  Allocate appropriated authority funds, money made
    12     available from payment of principal and interest received by
    13     the authority not otherwise payable to other creditors or
    14     bondholders and other funds available to the authority to
    15     projects whose likelihood or implementation would be
    16     diminished unless financial and technical assistance from the
    17     authority is made available.
    18         (3)  Provide for the approval of assistance for projects
    19     that will make the greatest possible contributions to energy
    20     conservation and development.
    21         (4)  Provide financial and technical assistance only to
    22     persons with a demonstrated need and who evidence reasonable
    23     likelihood of being able, in the case of loans and loan
    24     guarantees, to repay the loans.
    25         (5)  Identify the various classes of projects to be
    26     provided with financial and technical assistance and allocate
    27     available authority funds among these classes. Specifically,
    28     the authority shall consider increasing coal production and
    29     the use of renewable fuels and in energy efficiency in
    30     buildings and industry in establishing its priorities.
    20071H0001B0047                 - 24 -     

     1         (6)  Establish application procedures and criteria for
     2     granting financial and technical assistance.
     3         (7)  Establish procedures for the periodic updating and
     4     revision of the energy development plan.
     5     (b)  Public hearings.--The authority shall hold public
     6  hearings at locations throughout this Commonwealth to receive
     7  comments upon and suggestions for the improvement of the energy
     8  development plan. These hearings shall be concluded within 90
     9  days of the publication of the initial plan. Not more than 90
    10  days following the completion of hearings, the authority shall
    11  promulgate its final energy development plan.
    12  § 1810.  Exemption from taxation.
    13     (a)  Exemption.--The effectuation of the authorized purposes
    14  of the authority is for the benefit of the people of this
    15  Commonwealth and since the authority will as a government
    16  instrumentality of the Commonwealth be performing essential
    17  government functions in effectuating the purposes, the bonds or
    18  other evidences of indebtedness issued by the authority, their
    19  transfer and the income from the bonds shall at all times be
    20  free from taxation within this Commonwealth.
    21     (b)  Interest on certain bonds.--The authority may covenant
    22  and consent that the interest on certain of its bonds shall be
    23  includable, under the Internal Revenue Code of 1986 (Public Law
    24  99-514, 26 U.S.C. § 1 et seq.) or any subsequent corresponding
    25  internal revenue laws of the United States, in the gross income
    26  of the holders of the bonds to the same extent and in the same
    27  manner that the interest on bills, bonds, notes or other
    28  obligations of the United States is includable in the gross
    29  income of the holders thereof under the Internal Revenue Code of
    30  1986. Notwithstanding any covenant or consent of the authority,
    20071H0001B0047                 - 25 -     

     1  the exemption provided in subsection (a) shall not be affected.
     2  § 1811.  Funding of authority.
     3     (a)  Energy Development Fund.--A special account is hereby
     4  created in the State Treasury to be known as the Energy
     5  Development Fund. The fund shall be used to prepare the energy
     6  development plan, to pay for initial administrative costs
     7  associated with initial bond issues, to make grants for limited
     8  research and pursuant to this chapter to establish such reserves
     9  as in the judgment of the authority with respect to loans
    10  guaranteed or bonds issued by the authority may be necessary or
    11  desirable or to accomplish any other of its corporate purposes.
    12     (b)  Administrative costs.--As often as may be necessary, the
    13  authority shall requisition from the appropriate funds the
    14  amounts necessary to provide adequate funds for the payment of
    15  the administrative costs related to this chapter.
    16     (c)  Excess funds.--At any time that the authority shall
    17  determine that funds held for the credit of the Energy
    18  Development Fund are in excess of the amount needed to carry out
    19  the purposes of this chapter, the authority shall take such
    20  action as shall be required to release the excess from the fund
    21  and transfer the same to the General Fund of the State Treasury.
    22  § 1812.  Limitation of powers.
    23     The Commonwealth pledges to and agrees with any person or
    24  Federal agency subscribing to or acquiring the bonds to be
    25  issued by the authority for the construction of any project or
    26  part of the project, that the Commonwealth will not limit or
    27  alter adversely the rights vested in the authority until all
    28  bonds at any time issued, together with the interest, are fully
    29  met and discharged. The Commonwealth further pledges to and
    30  agrees with any Federal agency that if the Federal agency shall
    20071H0001B0047                 - 26 -     

     1  construct or contribute funds for the construction of any
     2  project or any portion of the project, the Commonwealth will not
     3  alter or limit the rights and powers of the authority in any
     4  manner that would be inconsistent with the continued maintenance
     5  and operation of any project or the improvement of the project,
     6  or that would be inconsistent with the due performance of any
     7  agreements between the authority and the Federal agency, and the
     8  authority shall continue to have and may exercise all powers
     9  granted under this chapter, as long as the same shall be
    10  necessary or desirable for carrying out the purposes of this
    11  chapter and the purposes of the United States pertaining to the
    12  construction, acquisition or improvement of any project or
    13  portion of the project.
    14  § 1813.  Audit.
    15     The accounts and books of the authority, including its
    16  receipts, disbursements, contracts, mortgages, investments and
    17  other matters relating to its finances, operation and affairs
    18  shall be examined and audited every two years by the Auditor
    19  General.
    20     Section 4.  The following apply:
    21         (1)  The General Assembly declares that the repeal under
    22     paragraph (2) is necessary to effectuate the addition of 64
    23     Pa.C.S. Ch. 18.
    24         (2)  Article XXVIII-C of the act of April 9, 1929
    25     (P.L.177, No.175), known as The Administrative Code of 1929,
    26     is repealed.
    27     Section 5.  The addition of 64 Pa.C.S. Ch. 18 is a
    28  continuation of Article XXVIII-C of the act of April 9, 1929
    29  (P.L.177, No.175), known as The Administrative Code of 1929. The
    30  following apply:
    20071H0001B0047                 - 27 -     

     1         (1)  Except as otherwise provided in 64 Pa.C.S. Ch. 18,
     2     all activities initiated under Article XXVIII-C of The
     3     Administrative Code of 1929 shall continue and remain in full
     4     force and effect and may be completed under 64 Pa.C.S. Ch.
     5     18. Orders, regulations, rules and decisions which were made
     6     under Article XXVIII-C of The Administrative Code of 1929 and
     7     which are in effect on the effective date of section 2(2) of
     8     this act shall remain in full force and effect until revoked,
     9     vacated or modified under 64 Pa.C.S. Ch. 18. Contracts,
    10     obligations and collective bargaining agreements entered into
    11     under Article XXVIII-C of The Administrative Code of 1929 are
    12     not affected nor impaired by the repeal of Article XXVIII-C
    13     of The Administrative Code of 1929.
    14         (2)  Except as set forth in paragraph (3), any difference
    15     in language between 64 Pa.C.S. Ch. 18 and Article XXVIII-C of
    16     The Administrative Code of 1929 is intended only to conform
    17     to the style of the Pennsylvania Consolidated Statutes and is
    18     not intended to change or affect the legislative intent,
    19     judicial construction or administration and implementation of
    20     Article XXVIII-C of The Administrative Code of 1929.
    21         (3)  Paragraph (2) does not apply to the following
    22     provisions:
    23             (i)  Paragraphs (3), (4) and (5) of the definition of
    24         "project" in 64 Pa.C.S. § 1801.
    25             (ii)  64 Pa.C.S. § 1802(d)(4).
    26             (iii)  64 Pa.C.S. § 1803(b), (c), (d) and (e).
    27             (iv)  64 Pa.C.S. § 1806(2), (14), (19), (20) and
    28         (21).
    29             (v)  64 Pa.C.S. § 1807 (a) and (c).
    30             (vi)  64 Pa.C.S. § 1811(a).
    20071H0001B0047                 - 28 -     

     1     Section 6.  Upon dedication of funding by the General
     2  Assembly pursuant to 64 Pa.C.S. § 1515, the State Treasurer
     3  shall publish a notice to that effect in the Pennsylvania
     4  Bulletin.
     5     Section 7.  This act shall take effect as follows:
     6         (1)  This section and section 6 of this act shall take
     7     effect immediately.
     8         (2)  The remainder of this act shall take effect upon
     9     publication of the notice required by section 6 of this act.














    K9L64RLE/20071H0001B0047        - 29 -