1Establishing the Keystone Transit Program; and providing <-a 
2transfer of funds from the Oil and Gas Lease Fund <-for an 
3interfund transfer to the Department of Environmental
4Protection for a competitive grant program for the transition
5of small mass transit bus fleets to compressed natural gas◄.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Short title.

9This act shall be known and may be cited as the Keystone
10Transit Act.

11Section 2. Definitions.

12The following words and phrases when used in this act shall 
13have the meanings given to them in this section unless the 
14context clearly indicates otherwise:◄

15"Department." The Department of Environmental Protection of
16the Commonwealth.

1"Mass transit authority." An operator of regularly scheduled
2transportation that is available to the general public and is
3provided according to published schedules along designated
4published routes with specified stopping points for the taking
5on and discharging of passengers. The term does not include
6exclusive ride taxi services, charter or sightseeing services,
7nonpublic transportation or school bus or limousine services.

8"Program." The Keystone Transit Program.

9"Small mass transit authority." A mass transit authority
10located in this Commonwealth that does not exceed 245,000
11revenue vehicle hours for two consecutive years.

12Section 3. Keystone Transit Program.

13(a) Establishment.--The department shall establish and
14administer the Keystone Transit Program.

15(b) Purpose.--The program is established in order to
16decrease emissions from mass transit buses by utilizing ◄natural 
17gas as a vehicle fuel.

18(c) Transfer of funds.--The State Treasurer shall transfer
<-19from the Oil and Gas Lease Fund to the department the sum of 
20$5,000,000 <-$5,000,000 of the utilities' gross receipts tax 
21collected during the 2014-2015 fiscal year under Article XI of 
22the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform 
23Code of 1971, from the General Fund to the department to fund
24the program.

25(d) Use of funds.--The sum of $5,000,000 shall be used to
26fund competitive grants available to small mass transit
27authorities for the conversion of buses to run on solely
◄28compressed natural gas as a fuel source or to purchase buses
29which use solely ◄compressed natural gas as a fuel source.

30(e) Application process.--

1(1) A mass transit authority must complete and submit to
2the department a keystone transit grant application.

3(2) Approved applications must obligate the mass transit
4authority to contract with a private company:

5(i) to build exclusively with private funds; and

6(ii) to maintain and operate any new ◄compressed 
7natural gas fueling facility necessary to support
◄8compressed natural gas buses purchased with funds
9received under this act.

10(3) The term "operate" as used in this subsection shall
11not include the actual act of fueling buses.

12(f) Eligible costs.--

13(1) Grant funds received under this act shall be
14eligible for:

15(i) Federally assisted bus purchases and <-conversions 
16and shall be limited to the total percentage of the State
17and local match portion applied only to the incremental
18cost of a new ◄compressed natural gas bus or compressed 
19natural gas bus conversion.

20(ii) Nonfederally assisted bus purchases and 
<-21conversions and shall be limited to 50% of the total
22incremental cost of a new ◄compressed natural gas bus or
◄23compressed natural gas bus conversion.

24(2) The incremental cost shall be capped at $50,000 for
25buses which have a gross vehicle weight rating over 26,000
26pounds and $25,000 for buses with a gross vehicle weight
27rating of 26,000 pounds and under.

28(3) Buses with a gross vehicle weight rating of 14,000
29pounds or less shall be ineligible.

30(4) Priority shall be given to those applications which

1provide for public access to ◄compressed natural gas vehicle
2fueling dispensers.

3(g) Grant program.--The department shall establish a formula
4and method for awarding of grants under the program consistent
5with this act.

6(h) Appeal process.--Applicants that are not awarded grants 
7under this act shall not have the right to a hearing or the 
8issuance of an adjudication under section 4 of the act of July 
913, 1988 (P.L.530, No.94), known as the Environmental Hearing 
10Board Act, regarding the department's decision.

11Section 20. Effective date.

12This act shall take effect in 60 days.