THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SAYLOR, BAKER, BOYD, CLYMER, CUTLER, DALEY, DENLINGER, ELLIS, FLECK, GEIST, GERGELY, GILLESPIE, GINGRICH, GODSHALL, GROVE, HARKINS, HARRIS, HICKERNELL, HORNAMAN, F. KELLER, W. KELLER, KOTIK, MAJOR, MARSHALL, MILLER, MOUL, OBERLANDER, PERRY, PETRARCA, PICKETT, ROCK, SCAVELLO, SONNEY, TRUITT AND VULAKOVICH, MARCH 16, 2012

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, MARCH 16, 2012  

AN ACT

Amending the act of January 8, 1960 (1959 P.L.2119, No.787),

entitled, as amended, "An act to provide for the better

protection of the health, general welfare and property of the

people of the Commonwealth by the control, abatement,

reduction and prevention of the pollution of the air by

smokes, dusts, fumes, gases, odors, mists, vapors, pollens

and similar matter, or any combination thereof; imposing

certain powers and duties on the Department of Environmental

Resources, the Environmental Quality Board and the

Environmental Hearing Board; establishing procedures for the

protection of health and public safety during emergency

conditions; creating a stationary air contamination source

permit system; providing additional remedies for abating air

pollution; reserving powers to local political subdivisions,

and defining the relationship between this act and the

ordinances, resolutions and regulations of counties, cities,

boroughs, towns and townships; imposing penalties for

violation of this act; and providing for the power to enjoin

violations of this act; and conferring upon persons aggrieved

certain rights and remedies," further providing for

definitions and for disposition of fees, fines and civil

penalties; establishing the Keystone Vehicle Program; and

making editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 3 of the act of January 8, 1960 (1959

P.L.2119, No.787), known as the Air Pollution Control Act,

amended July 9, 1992 (P.L.460, No.95), is amended to read:

Section 3.  Definitions.--The following words and phrases,

when used in this act, unless the context clearly indicates

otherwise, shall have the meaning ascribed to them in this

section:

"Administrator."  The Administrator of the United States

Environmental Protection Agency.

"Air contaminant."  Smoke, dust, fume, gas, odor, mist,

radioactive substance, vapor, pollen or any combination thereof.

"Air contamination."  The presence in the outdoor atmosphere

of an air contaminant which contributes to any condition of air

pollution.

"Air contamination source."  Any place, facility or

equipment, stationary or mobile, at, from or by reason of which

there is emitted into the outdoor atmosphere any air

contaminant.

"Air pollution."  The presence in the outdoor atmosphere of

any form of contaminant, including, but not limited to, the

discharging from stacks, chimneys, openings, buildings,

structures, open fires, vehicles, processes or any other source

of any smoke, soot, fly ash, dust, cinders, dirt, noxious or

obnoxious acids, fumes, oxides, gases, vapors, odors, toxic,

hazardous or radioactive substances, waste or any other matter

in such place, manner or concentration inimical or which may be

inimical to the public health, safety or welfare or which is or

may be injurious to human, plant or animal life or to property

or which unreasonably interferes with the comfortable enjoyment

of life or property.

"Applicant."  A company which meets the eligibility

requirements for a Keystone Vehicle Grant.

"Approved air pollution control agency."  An air pollution

control agency of any political subdivision of the Commonwealth

which has been granted approval by the Environmental Quality

Board.

"Board" or "EQB."  The Environmental Quality Board.

"Clean Air Act."  Public Law 95-95 as amended, 42 U.S.C. §

7401 et seq.

"Company."  An entity doing business in this Commonwealth

which owns five or more vehicles and which is subject to tax

under Article III, IV or VI of the act of March 4, 1971 (P.L.6,

No.2), known as the Tax Reform Code of 1971. The term includes

the shareholder of a Pennsylvania S corporation that is eligible

for a Keystone Vehicle Grant.

"Conversion plan."  A natural gas conversion plan.

"Dedicated compressed natural gas vehicle."  A new vehicle

that operates on ninety per centum (90%) or more compressed

natural gas fuel and ten per centum (10%) or less on gasoline or

diesel fuel.

"Dedicated liquefied natural gas vehicle."  A new vehicle

that operates on ninety per centum (90%) or more liquefied

natural gas fuel and ten per centum (10%) or less on gasoline or

diesel fuel.

"Department."  The Department of Environmental [Resources]

Protection of the Commonwealth.

"Environmental Protection Agency" or "EPA."  The United

States Environmental Protection Agency or the Administrator of

the United States Environmental Protection Agency.

"Fleet vehicle."  A vehicle registered to a company.

"Gasoline-dispensing facility."  A facility from which

gasoline is transferred to motor vehicle fuel tanks.

"Hearing board."  The Environmental Hearing Board.

"Incremental cost."  The excess cost of a new natural gas

motor vehicle over the price for a gasoline or diesel fuel motor

vehicle of the same or similar model.

"Keystone Vehicle Grant."  A grant awarded under section

14.2.

"Natural gas conversion plan."  A company's plan to convert

their vehicle fleet to compressed or liquid natural gas-fueled

vehicles by purchasing new natural gas motor vehicles.

"New natural gas motor vehicle."  Any of the following:

(1)  A dedicated compressed natural gas vehicle.

(2)  A dedicated liquefied natural gas vehicle.

"Person."  Any individual, public or private corporation for

profit or not for profit, association, partnership, firm, trust,

estate, department, board, bureau or agency of the Commonwealth

or the Federal Government, political subdivision, municipality,

district, authority or any other legal entity whatsoever which

is recognized by law as the subject of rights and duties.

"Plan approval."  The written approval from the Department of

Environmental Resources which authorizes a person to construct,

assemble, install or modify any stationary air contamination

source or install thereon any air pollution control equipment or

device.

"Region."  Any geographical subdivision of the Commonwealth

whose boundaries shall be determined by the Environmental

Quality Board.

"Secretary."  The Secretary of Environmental Protection of

the Commonwealth.

"Small business stationary source."  A stationary source

that:

(1)  is owned or operated by a person that employs one

hundred (100) or fewer individuals;

(2)  is a small business as defined in the Small Business Act

(Public Law 85-536, 15 U.S.C. § 78a et seq.);

(3)  is not a major stationary source;

(4)  does not emit fifty (50) tons per year of any regulated

pollutant; and

(5)  emits less than seventy-five (75) tons per year of all

regulated pollutants.

"Start date."  The date on which a company will begin a

company's conversion plan to natural gas motor vehicles.

"State implementation plan."  The plan or plan revision that

a state is authorized and required to submit under section 110

of the Clean Air Act (Public Law 95-95 as amended, 42 U.S.C. §

7410) to provide for attainment of the national ambient air

quality standards.

"Stationary air contamination source."  Any air contamination

source other than that which, when operated, moves in a given

direction under its own power.

Section 2.  Section 9.2(a) of the act, amended July 7, 2011

(P.L.271, No.57), is amended to read:

Section 9.2.  Disposition of Fees, Fines and Civil

Penalties.--(a)  (1)  Except as provided under clause (2) and 

subsection (a.1), [all] the following shall apply:

(i)  All fines, civil penalties and fees collected under this

act shall be paid into the Treasury of the Commonwealth in a

special fund known as the Clean Air Fund, hereby established,

which, along with interest earned, shall be administered by the

department for use in the elimination of air pollution.

(ii)  The department may establish such separate accounts as

may be necessary or appropriate to implement the requirements of

this act and the Clean Air Act.

(iii)  The board shall adopt rules and regulations for the

management and use of the money in the fund.

(2)  Beginning in fiscal year 2012-2013 through fiscal year

2017-2018, six million dollars ($6,000,000.00) of the amount of

funds deposited in the Clean Air Fund shall annually be used for

Keystone Vehicle Grants.

* * *

Section 3.  The act is amended by adding sections to read:

Section 14.  Keystone Vehicle Program.--The Keystone Vehicle

Program is established to award Keystone Vehicle Grants and

shall be administered by the department in accordance with this

act.

Section 14.1.  Keystone Vehicle Grants.--(a)  In order to be

eligible to receive a Keystone Vehicle Grant, a company must

provide or demonstrate to the department the following:

(1)  A comprehensive natural gas conversion plan of fleet

vehicles within four years of the start date which is

financially viable and includes the construction and utilization

of a natural gas fueling station in this Commonwealth or the use

of an existing natural gas fueling station in this Commonwealth.

(2)  A statement of the projected usage of natural gas stated

in gasoline gallon equivalents accompanied by the methodology

utilized.

(3)  The intent to maintain operations in this Commonwealth

for a period of not less than six (6) years from the start date.

(4)  Either:

(i)  an agreement between the applicant and a third-party

natural gas fueling provider in this Commonwealth to supply

natural gas fuel to the fleet if the Keystone Vehicle Grant is

awarded; or

(ii)  a minimum fuel usage of 324,000 gasoline gallon

equivalents per year or more. Fuel usage requirements may be met

from a single applicant or multiple companies under a single

application if:

(A)  The companies have an agreement to utilize a single

natural gas fueling facility in this Commonwealth.

(B)  The companies demonstrate that the utilization of the

single natural gas fueling facility would be at a minimum level

of 324,000 gasoline gallon equivalents per year.

(5)  The majority of operations to be performed by the new

natural gas motor vehicles purchased with the Keystone Vehicle

Grant will be for any of the following:

(i)  The transportation of persons or goods from between

points within this Commonwealth.

(ii)  The transportation of persons or goods from between

points in this Commonwealth and points outside this

Commonwealth.

(iii)  A combination of the operations under subparagraphs

(i) and (ii).

(6)  All of the new natural gas motor vehicles purchased with

the Keystone Vehicle Grant will be registered in this

Commonwealth.

(7)  The company's start date will be no more than ninety

(90) days following the receipt of a Keystone Vehicle Grant by

the company.

(b)  The following shall constitute eligible vehicle types

under the Keystone Vehicle Program:

(1)  Dedicated compressed natural gas vehicles having a gross

vehicle weight rating of at least 33,000 pounds.

(2)  Dedicated liquefied natural gas vehicles having a gross

vehicle weight rating of at least 33,000 pounds.

Section 14.2.  Application Process.--(a)  A company must

complete and submit to the department a Keystone Vehicle Program

application.

(b)  The department shall review each application submitted

under subsection (a) and may, in its sole discretion, approve a

Keystone Vehicle Grant for eligible applicants. The department

and the company whose application has been approved for a

Keystone Vehicle Grant shall execute a commitment letter

containing the following:

(1)  A description of the natural gas conversion plan which

shall include a statement of the projected minimum yearly

natural gas usage in terms of gasoline gallon equivalents.

(2)  The amount of private capital investment in the plan.

(3)  A signed statement that the company intends to complete

its plan and remain in this Commonwealth for six (6) years from

the start date.

(4)  Any other information as the department deems

appropriate.

(c)  After a commitment letter has been signed by the

Commonwealth and the company, the company shall receive a

Keystone Vehicle Grant.

Section 14.3.  Keystone Vehicle Grant Funding and

Limitations.--(a)  The amount under section 9.2(a)(2) shall be

transferred annually to fund the Keystone Vehicle Program.

(b)  A company that is approved to receive a Keystone Vehicle

Grant shall use the funds to purchase new natural gas motor

vehicles.

(c)  A company may receive a Keystone Vehicle Grant of up to

fifty per centum (50%) of the incremental cost for new natural

gas motor vehicles having a gross vehicle weight rating of at

least 33,000 pounds. The incremental cost for vehicles shall be

capped at fifty thousand dollars ($50,000.00).

Section 14.4.  Guidelines.--The department shall establish

guidelines for the approval of applications under section 14.2.

Section 14.5.  Penalties.--(a)  A company which receives a

Keystone Vehicle Grant and fails to attain at least ninety per

centum (90%) of the projected minimum yearly natural gas usage

as stated in the commitment letter by the conclusion of the

fourth year after the start date shall refund to the

Commonwealth the total amount of the Keystone Vehicle Grant.

(b)  A company which receives a Keystone Vehicle Grant and

fails to complete the natural gas conversion plan within four

(4) years shall refund to the Commonwealth the total amount of

the  Keystone Vehicle Grant.

(c)  A company which receives a Keystone Vehicle Grant and

fails to maintain registration in this Commonwealth of all new

natural gas motor vehicles purchased with the Keystone Vehicle

Grant for a minimum of six (6) years shall refund to the

Commonwealth the total amount of the Keystone Vehicle Grant per

new natural gas motor vehicle for each new natural gas motor

vehicle that has not maintained registration in this

Commonwealth.

(d)  If a company fails to meet the operations requirements

under section 14.1(a)(5), the total amount of the Keystone

Vehicle Grant shall be refunded to the Commonwealth.

(e)  (1)  The department may waive the penalties under

subsections (a), (b), (c) and (d) if it is determined that a

company's natural gas conversion plan was not completed because

of circumstances beyond the company's control, including natural

disasters, unforeseen industry trends or a loss of a major

supplier or market.

(2)  The company shall promptly notify the department of

circumstances beyond its control which would delay completion of

the plan.

Section 14.6.  Report to General Assembly.--Not later than

June 1, 2013, and each June 1 thereafter, the department shall

submit a report on the Keystone Vehicle Grants awarded under

section 14.2. The report shall include the names of companies

who utilized the Keystone Vehicle Grants as of the date of the

report and the amount of Keystone Vehicle Grants approved. The

report may include recommendations for changes in the

calculation or administration of the Keystone Vehicle Program

and other information as the department deems appropriate. The

report shall be submitted to all of the following:

(1)  The chairman and minority chairman of the Appropriations

Committee of the Senate.

(2)  The chairman and minority chairman of the Appropriations

Committee of the House of Representatives.

(3)  The chairman and minority chairman of the Finance

Committee of the Senate.

(4)  The chairman and minority chairman of the Finance

Committee of the House of Representatives.

Section 14.7.  Regulations.--The secretary shall promulgate

regulations necessary for the implementation and administration

of the Keystone Vehicle Program.

Section 4.  Sections 14 and 15 of the act are renumbered to

read:

Section [14] 41.  Severability.--The provisions of this act

are severable and if any provision, sentence, clause, section or

part thereof shall be held illegal, invalid, unconstitutional or

inapplicable to any person or circumstances, such illegality,

invalidity, unconstitutionality or inapplicability shall not

affect or impair any of the remaining provisions, sentences,

clauses, sections or parts of the ordinance or their application

to him or to other persons and circumstances. It is hereby

declared to be the legislative intent that this act would have

been adopted if such illegal, invalid or unconstitutional

provision, sentence, clause, section or part had not been

included therein, and if the person or circumstances to which

the ordinance or any part thereof is inapplicable had not

specifically been exempted therefrom.

Section [15] 42.  Effective Date.--This act shall take effect

immediately: Provided, however, That the rules and regulations

promulgated pursuant to the provisions of this act shall be of

no effect until one (1) year after the passage of this act.

Section 5.  The provisions of 25 Pa. Code § 143.1(a) are

abrogated to the extent they are inconsistent with the

following:

(1)  The amendment of sections 3 and 9.2 of the act.

(2)  The addition of sections 14, 14.1, 14.2, 14.3, 14.4,

14.5, 14.6 and 14.7 of the act.

Section 6.  This act shall take effect in 60 days.