See other bills
under the
same topic
PRINTER'S NO. 1804
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1629
Session of
2021
INTRODUCED BY E. NELSON, NEILSON, STAMBAUGH, SCHLEGEL CULVER,
ROTHMAN, JAMES, DELLOSO, DAVANZO, BERNSTINE, ZIMMERMAN, RAPP,
McNEILL, BURGOS, DRISCOLL, ROWE, FRITZ, STRUZZI, OWLETT AND
MARSHALL, JUNE 14, 2021
REFERRED TO COMMITTEE ON APPROPRIATIONS, JUNE 14, 2021
AN ACT
Amending the act of February 9, 1999 (P.L.1, No.1), entitled "An
act providing for borrowing for capital facilities;
conferring powers and duties on various administrative
agencies and officers; making appropriations; and making
repeals," in capital facilities, further providing for
definitions and for appropriation for and limitation on
redevelopment assistance capital projects and providing for
administration of broadband capital projects and energy
infrastructure capital projects; and making a related repeal.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "applicant" and "capital
project" in section 302 of the act of February 9, 1999 (P.L.1,
No.1), known as the Capital Facilities Debt Enabling Act, are
amended and the section is amended by adding definitions to
read:
Section 302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
* * *
"Applicant." A person that is seeking funding for a
redevelopment assistance capital project, a broadband capital
project or an energy infrastructure capital project that has
been listed in a capital project itemization bill and that is
one of the following:
(1) A redevelopment authority.
(2) An industrial development authority.
(3) A general purpose unit of local government.
(4) A local development district that has an agreement
with a general purpose unit of local government under which
the unit assumes ultimate responsibility for debt incurred to
obtain the non-State financial participation.
(5) A public authority established pursuant to the laws
of this Commonwealth.
(6) An industrial development agency:
(i) which has been certified as an industrial
development agency by the Pennsylvania Industrial
Development Authority Board under the act of May 17, 1956
(1955 P.L.1609, No.537), known as the Pennsylvania
Industrial Development Authority Act; and
(ii) which is itself or which is acting through a
wholly owned subsidiary that is exempt from Federal
taxation under section 501(c)(3) of the Internal Revenue
Code of 1986 (Public Law 99-514, 26 U.S.C. ยง 501(c)(3)).
"Authority." The Commonwealth Financing Authority.
"Broadband capital project." The design and construction of
a redevelopment capital assistance project for the installation
of signal transmission facilities and associated network
equipment proposed to be deployed in a project area used for the
20210HB1629PN1804 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
provision of high-speed broadband service, including fiber optic
equipment, cables, cabinets, wires, junctions, hubs, nodes,
amplifiers, receivers, conduits or poles.
"Capital project." A flood control, highway, public
improvement, redevelopment assistance capital [or],
transportation assistance project, broadband capital project or
energy infrastructure capital project which is financed by debt
or by other funds and which meets all of the following:
(1) Is an undertaking to construct, repair, renovate,
improve, equip, furnish or acquire any:
(i) building, structure, facility, infrastructure or
physical public betterment or improvement;
(ii) land or rights in land; or
(iii) furnishings, machinery, apparatus or equipment
for a building, structure, facility or physical public
betterment or improvement.
(2) Is itemized in a capital project itemization bill as
a capital project.
(3) Has an estimated useful life in excess of five
years.
(4) Has an estimated financial cost in excess of
$100,000. This paragraph does not apply to original equipment
or furnishings for previously authorized public improvement
projects.
* * *
"Energy infrastructure capital project." The design and
construction of a redevelopment capital assistance project for
the installation of one of the following:
(1) Compressed natural gas, liquid natural gas or
renewable natural gas infrastructure to incentivize the use
20210HB1629PN1804 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
of motor vehicles using those sources as fuel.
(2) Improvements to coal and natural gas fired
generation units to comply with Federal or State pollution
control laws.
(3) Onsite cogeneration or combined heat and power
plants to provide electricity for manufacturing operations.
(4) Improvements to oil refineries to comply with
Federal or State pollution control laws.
(5) Conversion of coal-fired electricity generation
units to gas-fired electricity generation to comply with
Federal or State pollution control laws.
(6) Carbon capture or sequestration infrastructure,
including infrastructure for the production of blue hydrogen,
for use for the generation of electricity to comply with
Federal or State pollution control laws.
(7) The construction of an electric generation facility
that emits zero sulfur and reduces carbon emissions.
(8) Construction of above-ground storage facilities for
constituencies of wet gas to include ethane, pentane, butane
and propane and associated infrastructure to include
transmission pipeline development.
* * *
Section 2. Section 317(c) of the act is amended and the
section is amended by adding subsections to read:
Section 317. Appropriation for and limitation on redevelopment
assistance capital projects.
* * *
(b.1) Limitation.--The following limitations shall apply to
redevelopment assistance capital projects, broadband capital
projects and energy infrastructure capital projects:
20210HB1629PN1804 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) Subject to the adjustment under paragraph (2), the
maximum amount of redevelopment assistance capital projects,
broadband capital projects and energy infrastructure capital
projects undertaken by the Commonwealth for which obligations
are outstanding shall not exceed, in the aggregate,
$3,350,000,000.
(2) Except as provided under paragraph (3), beginning
July 1, 2018, and each July 1 thereafter until the sum of the
outstanding obligations for redevelopment assistance capital
projects, broadband capital projects and energy
infrastructure capital projects undertaken by the
Commonwealth equals $3,100,000,000, or July 1, 2022,
whichever occurs first, the sum of the maximum amount of
outstanding obligations for redevelopment assistance capital
projects, broadband capital projects and energy
infrastructure capital projects shall be decreased by
$50,000,000.
(c) Housing units.--An amount not to exceed $50,000,000 of
the amount under subsection [(b)] (b.1)(1) and (2) may be used
for the construction of housing units.
(d) Broadband capital projects and energy infrastructure
capital projects.--
(1) Beginning with the 2021-2022 fiscal year, an amount
not to exceed $40,000,000 per fiscal year shall be available
for broadband capital projects and energy infrastructure
capital projects.
(2) This subsection shall expire on July 1, 2031.
Section 3. The act is amended by adding a section to read:
Section 319. Administration of broadband capital projects and
energy infrastructure capital projects.
20210HB1629PN1804 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) Limitation.--A broadband capital project or an energy
infrastructure capital project may not receive funds unless the
project was itemized in a capital project itemization bill or a
capital budget bill, enacted within ten years of the date the
project was approved under this section. For the purpose of this
section, a broadband capital project or an energy infrastructure
capital project which is itemized as a redevelopment assistance
capital project in a capital project itemization bill or a
capital budget bill enacted prior to the effective date of this
section shall be deemed to have met the requirements of this
subsection.
(b) Application.--An applicant shall submit an application
to the authority consistent with the timeline established by the
authority requesting a grant for a broadband capital project or
an energy infrastructure capital project. The proposal must be
on the form required by the authority and must include or
demonstrate all of the following:
(1) The applicant's name and address.
(2) The location of the project.
(3) An estimate of the cost of the project, prepared by a
qualified professional.
(4) A statement of the amount of the project grant
sought, including a statement as to the financial necessity
for the project grant.
(5) Any other information required by the authority.
(c) Review and approval.--The authority shall review the
application to determine if all the requirements have been met.
Upon being satisfied that all requirements have been met and
after allowing for a 30-day public comment period, the board of
the authority may approve the application, and, if approved, the
20210HB1629PN1804 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
authority shall notify:
(1) The President pro tempore of the Senate.
(2) The Majority Leader of the Senate.
(3) The Minority Leader of the Senate.
(4) The Speaker of the House of Representatives.
(5) The Majority Leader of the House of Representatives.
(6) The Minority Leader of the House of Representatives.
(7) The chair and minority chair of the Appropriations
Committee of the Senate.
(8) The chair and minority chair of the Appropriations
Committee of the House of Representatives.
(9) The State senator and the State representative of the
district where the broadband capital project or energy
infrastructure capital project is located.
(10) The applicant.
(11) The office.
(d) Acceptance and grant agreement.--Within 30 days of
receiving notification of approval under subsection (c), an
applicant shall notify the office if the applicant accepts the
grant. If the applicant notifies the office that the applicant
intends to accept the grant, the office shall forward to the
applicant a grant agreement to be executed by the applicant. The
grant agreement and any attachments to the grant agreement shall
include the following:
(1) The name and address of who will administer the
grant.
(2) A statement and proof of local funding.
(3) An itemized statement of cost associated with the
project.
(4) A contract obligating the applicant to use the grant
20210HB1629PN1804 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
for the project.
(5) A request for any other information the office may
require.
(e) Execution.--The applicant shall return the information
requested and the executed contract within the timelines
established by the office. If the applicant fails to return the
executed contract within the timelines established by the
office, no contract may be executed by the office for the grant.
(f) Time period.--State funding for broadband capital
projects and approved energy infrastructure capital projects
shall be paid over not less than a 36-month period unless the
board of the authority authorizes a shorter period.
(g) (Reserved).
(h) (Reserved).
(i) Verification.--Broadband capital project and energy
infrastructure capital project cost estimates must be verified
by the office or its designated agent before final approval is
given to a project application. Cost estimates include total
project cost, projected use for State and non-State funds and a
year-by-year schedule of costs for the entire project
construction phase.
(j) Bids.--Notwithstanding any other provision of law, the
solicitation of a minimum of three written bids for all
contracted construction work on broadband capital projects and
energy infrastructure capital projects shall be the sole
requirement for the composition, solicitation, opening and award
of bids on such projects. Notwithstanding the foregoing, the
construction work shall be performed subject to the act of March
3, 1978 (P.L.6, No.3), known as the Steel Products Procurement
Act.
20210HB1629PN1804 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(k) Review and audit.--Broadband capital projects and energy
infrastructure capital projects shall be reviewed at regular
intervals by the office or its designated agent during the
funding phase to ensure financial and program compliance. A
final closeout audit shall be performed by the office or its
designated agent for all projects.
(l) Fee.--To pay for administrative expenses related to
broadband capital projects and energy infrastructure capital
projects funded by Commonwealth general obligation bonds, the
office may charge a fee against proceeds from bonds and notes
which were sold to finance construction or acquisition costs of
projects.
(m) Grant administration.--In the event any applicant does
not administer the grant, the applicant shall enter into a
cooperation agreement with the entity administering the grant,
which agreement shall be subject to the approval of the office.
(n) Guidelines.--Within 60 days of the effective date of
this subsection, the authority and the office shall establish
guidelines concerning the administration of and approval process
for broadband capital projects and energy infrastructure capital
projects. The guidelines shall, at a minimum, establish
application timelines, application content and the review,
evaluation and award criteria and process. The criteria shall
reflect population and geographic distinctions of various
communities throughout this Commonwealth. The guidelines must be
posted on the publicly accessible Internet website of the
authority and the publicly accessible Internet website of the
office. The guidelines under this subsection shall be
coordinated with the guidelines adopted by the authority under
section 7(d) of the act of November 25, 2020 (P.L.1253, No.132),
20210HB1629PN1804 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
known as the Unserved High-Speed Broadband Funding Program Act.
(o) Disclosure.--Upon a broadband capital project or an
energy infrastructure capital project being approved under this
section, the office shall post on its publicly accessible
Internet website the date of approval of the project, the name
of the applicant, a short description of the project, the
location of the project, including the municipality in which the
project is located, and the amount of the project grant approved
for the project.
Section 4. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of
section 317(b.1) of the act.
(2) Section 2.1 of the act of May 29, 2020 (P.L.205,
No.25), known as the Capital Budget Act of 2019-2020.
Section 5. This act shall take effect immediately.
20210HB1629PN1804 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16