Regular Session 2021-2022 House Bill 2871 P.N. 3544

PRINTER'S NO. 3544

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2871

Session of

2022

INTRODUCED BY GLEIM, GUZMAN, A. BROWN, ECKER, HOHENSTEIN, JONES

AND PISCIOTTANO, OCTOBER 6, 2022

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,

OCTOBER 6, 2022

AN ACT

Amending the act of July 10, 2008 (P.L.1009, No.78), entitled

"An act providing for the study and mandated content of

biofuels," further providing for short title of act and for

definitions; providing for low emission transportation fuel

incentive and for registration and other requirements; and

further providing for department authority and responsibility

and for infrastructure reports.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 1 of the act of July 10, 2008 (P.L.1009,

No.78), known as the Biofuel Development and In-State Production

Incentive Act, is amended to read:

Section 1. Short title.

This act shall be known and may be cited as the Biofuel and

Low Emission Transportation Fuel Development and In-State

Production Incentive Act.

Section 2. Section 2 of the act is amended by adding

definitions to read:

Section 2. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Account." The Biofuel and Low Emission Transportation Fuel

Development Account established under section 5(g).

* * *

"Gasoline gallon equivalent." Conversion of natural gas

under standard conditions to the equivalent of a gallon of

gasoline so that one gasoline gallon equivalent is 126.67 cubic

feet of natural gas.

"Low emission transportation fuel." A motor vehicle fuel

which emits lower levels of oxides of nitrogen, volatile organic

compounds, greenhouse gases or particulates or any combination

thereof when evaluated on a lifecycle analysis than conventional

gasoline, reformulated gasoline or diesel fuel. The term shall

include compressed natural gas (CNG), liquefied natural gas

(LNG), liquefied propane gas (LPG), alcohols (ethanol - e85 and

methanol - m85), biomass-based fuels, hydrogen, hythane (any

combination of CNG and hydrogen) and renewable natural gas.

* * *

"Renewable natural gas." Biogas, including biogas derived

from municipal solid waste, industrial and food waste,

wastewater treatment material and animal manure, resulting from

the decomposition of that organic matter under anaerobic

conditions, the principal constituents of which are methane and

carbon dioxide, that has been upgraded for use in place of

fossil natural gas, gasoline or diesel fuel.

* * *

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

Section 4.2. Low emission transportation fuel incentive.

If the blending requirements under section 3(a) have not been

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met in any year as determined by the department, the balance may

be comprised of other low emission transportation fuels.

Section 4.3. Registration and other requirements.

(a) Registration requirements.--Any person that offers for

sale, sells or otherwise transfers title in this Commonwealth a

low emission transportation fuel for use by consumers in on-road

compression or spark ignition engines shall register annually

with the department. Each location in this Commonwealth where

the person conducts the activity shall be separately registered,

but may be submitted in a single form. This subsection shall

apply to in-State and out-of-State persons. The application for

registration shall be on a form prescribed by the department and

may be accepted electronically by the department.

(b) Shipping manifest.--

(1) Each time a low emission transportation fuel is

sold, offered for sale or title to which is otherwise

transferred by a person other than a retailer for ultimate

sale to consumers in this Commonwealth, a shipping manifest

meeting the requirements of paragraph (2) shall be provided

to the person that receives the low emission transportation

fuel.

(2) The shipping manifest required under paragraph (1)

shall:

(i) Include a certification by the person that

created the low emission transportation fuel stating that

the information on the shipping manifest is true and

correct. The certification shall be subject to the

penalties under 18 Pa.C.S. § 4904 (relating to unsworn

falsification to authorities).

(ii) Contain the following information:

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(A) The name and location of the person that

created the low emission transportation fuel and, if

the low emission transportation fuel was created in

this Commonwealth, the registration number assigned

by the department to the subject location.

(B) The gasoline gallon equivalent of the low

emission transportation fuel sold, offered for sale

or title to which is otherwise being transferred.

(3) A retailer selling, offering to sell or otherwise

transferring title to a low emission transportation fuel

shall retain a copy of the shipping manifest required under

paragraph (1) for a period of one year from receipt of the

low emission transportation fuel or for a longer period of

time, if the shipping manifest is part of an enforcement

action initiated during the one-year period. The shipping

manifest must remain at the facility where the low emission

transportation fuel has been offered for sale, sold or title

to which has otherwise been transferred at least until the

low emission transportation fuel physically leaves the

facility, after which it may be retained at the corporate

headquarters of the retailer. Failure by a retailer to make a

copy of a shipping manifest immediately available to the

department for inspection at the facility where the low

emission transportation fuel was offered for sale, sold or

title to which was otherwise transferred shall not be deemed

a violation of this act if the copy is submitted to the

department within two business days following the inspection.

(1) Any time low emission transportation fuel is sold,

offered for sale or title to which is otherwise transferred

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in this Commonwealth for use in compression or spark ignition

engines, the person selling, offering for sale or otherwise

transferring title to the low emission transportation fuel

shall provide a certification stating that the low emission

transportation fuel is compliant with this act. The

certification shall also contain the name and location of the

person that manufactured the low emission transportation

fuel.

(2) A copy of the certification required under paragraph

(1) shall be provided to any person that receives the low

emission transportation fuel. The person providing the

certification and each person that receives a copy of the

certification shall retain a copy of the certification for a

period of one year from the delivery of the low emission

transportation fuel or for a longer period of time, if part

of an enforcement action initiated during the one-year

period.

Section 4. Sections 5(d), (e) and (g) and 6(a) of the act

are amended to read:

Section 5. Department authority and responsibility.

* * *

(d) Reduction.--The department, in consultation with the

Department of Environmental Protection, may suspend or modify to

reduce the mandated contents required by section 3 [or 4], 4,

4.2 or 4.3 if the department determines that doing so is

warranted by factors, including, but not limited to,

substantially increased costs to consumers or insufficient

quantity or distribution of biodiesel [or], cellulosic ethanol

or low emission transportation fuel.

(e) Authority.--

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(1) The department shall have the following authority:

(i) To access during regular business hours and to

conduct unannounced random inspections of any facility

located in this Commonwealth that stores, holds, blends,

sells, offers for sale or otherwise transfers title to

diesel fuel, biodiesel [or], biodiesel blend or low

emission transportation fuel. Inspections shall include

the premises of the facility, tanks, storage facilities,

transportation and storage vehicles, dispensing devices

and any other place where diesel fuel, biodiesel [or],

biodiesel blend or low emission transportation fuel is

stored, held, blended, sold, offered for sale or title to

which is otherwise transferred.

(ii) To take samples of and test the diesel fuel,

biodiesel and biodiesel blend being stored, held,

blended, sold, offered for sale or title to which is

otherwise being transferred.

(iii) To audit and copy the books and records

pertaining to the diesel fuel, biodiesel [or], biodiesel

blend or low emission transportation fuel being stored,

held, sold, offered for sale or title to which is

otherwise being transferred, and its component parts,

including:

(A) Delivery invoices, sales invoices, bills of

lading and shipping manifests.

(B) Inventory records.

(iv) To issue stop-sale orders with respect to all

biodiesel blend and biodiesel stored, held, blended, sold

or title to which is otherwise transferred or offered for

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sale to consumers in this Commonwealth for use in on-road

compression or spark ignition engines if the department

determines, after sampling and analysis, that the

biodiesel blend [or], biodiesel or low emission

transportation fuel does not comply with the standards

established under this act or the regulations promulgated

under this act and would be detrimental to the operation

of on-road compression or spark ignition engines if used

for its intended use. The department may release the

noncompliant biodiesel blend [or], biodiesel or low

emission transportation fuel for sale only when the

department determines the [biodiesel blend or biodiesel]

noncompliant fuel is either brought into compliance with

this act or regulations promulgated under this act or it

would no longer be detrimental to the operation of on-

road compression or spark ignition engines if used for

its intended use. All [such biodiesel blend or biodiesel]

noncompliant fuel must be properly labeled as to its

noncompliant characteristics if released and permitted to

be sold without being brought into compliance with this

act or regulations promulgated under this act. A person

that knowingly sells, offers for sale or otherwise

transfers title to biodiesel blend [or], biodiesel or low

emission transportation fuel in this Commonwealth subject

to a stop-sale order for use by consumers in on-road

compression or spark ignition engines commits a

misdemeanor of the third degree.

(2) A person that willfully and intentionally interferes

with an employee of the department in the performance of the

duties conferred upon the department under the provisions of

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this act commits a misdemeanor of the third degree.

* * *

(g) Account.--

(1) There is established a restricted account within the

State Treasury to be known as the Biofuel and Low Emission

Transportation Fuel Development Account. All money in the

account is hereby appropriated on a continuing basis to the

department for the enforcement and administration of this

act.

(2) The following shall be deposited in the Biofuel and

Low Emission Transportation Fuel Development Account:

(i) Federal and State funds appropriated to the

department for implementation and administration of this

act.

(ii) Notwithstanding the provisions of 42 Pa.C.S. §§

3733 (relating to deposits into account) and 3733.1

(relating to surcharge), all fines, judgments and

penalties, including administrative, civil and criminal

penalties, and interest on the foregoing collected by the

department under this act.

(iii) Interest and any other earnings on money in

the account.

(iv) Funds from any other source, including gifts

and other contributions from public and private sources.

Section 6. Infrastructure reports.

(a) Certification.--At least six months prior to the

effective dates of the mandated content requirements contained

in sections 3(a)(1), (2), (3) and (4) [and], 4, 4.2 and 4.3, the

department and the Department of Transportation shall jointly

make a certification as to whether there is sufficient

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transportation, distribution and other necessary infrastructure,

including rail capability and terminal facilities, in this

Commonwealth to meet the requirements of this act.

* * *

Section 5. This act shall take effect in 60 days.

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