PRINTER'S NO. 3610
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2907
Session of
2022
INTRODUCED BY RABB, HILL-EVANS, GUENST, MADDEN, HERRIN,
HOHENSTEIN AND SIMS, OCTOBER 26, 2022
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
OCTOBER 26, 2022
AN ACT
Establishing the greenhouse gas emissions fee on manufacturers;
establishing the Greenhouse Gas Emissions Fund; and imposing
duties on Department of Community and Economic Development.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Greenhouse
Gas Emissions Fee Act.
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:
"Coal." Any of the recognized classifications and ranks of
coal, including anthracite, bituminous, semibituminous,
subbituminous, lignite and peat.
"Coal preparation and processing plant." A facility,
excluding underground mining operations, which prepares coal by
one or more of the following processes:
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(1) Breaking.
(2) Crushing.
(3) Screening.
(4) Wet or dry cleaning.
(5) Thermal drying.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Facility." A physical property, plant, building, structure,
source or stationary equipment located on one or more contiguous
or adjacent properties in actual physical contact or separated
solely by a public roadway or other public right-of-way and
under common ownership or common control, that emits or may emit
a greenhouse gas.
"Fund." The Greenhouse Gas Emission Fund established under
section 4.
"Greenhouse gas." Carbon dioxide, nitrous oxide, methane,
hydrofluorocarbons, perfluorocarbons or sulfur hexafluoride.
"Manufacturer." A person engaged in any of the following
business activities:
(1) Iron and steel production and metallurgical coke
production.
(2) Underground coal mining.
(3) Coal preparation and processing plants.
(4) Refineries.
(5) Cement production.
(6) Petrochemical production.
(7) Lime production.
(8) Ammonia production.
(9) Aluminum production.
(10) Soda ash production.
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(11) Ferroalloy production.
(12) Phosphoric acid production.
(13) Glass production.
(14) Zinc production.
(15) Lead production.
(16) Magnesium production and processing.
(17) Nitric acid production.
(18) Adipic acid production.
(19) Semiconductor manufacture.
(20) Electrical transmission and distribution.
(21) Natural gas production.
"Opportunity payment." A one-time payment issued to a
taxpayer under this act from money remaining in the fund at the
end of a fiscal year.
"Refinery." A facility engaged in producing gasoline,
kerosene, distillate fuel oils, residual fuel oils, lubricants
or other products through distillation of petroleum or through
redistillation, cracking or reforming of unfinished petroleum
derivatives.
"Secretary." The Secretary of Community and Economic
Development of the Commonwealth.
"Taxpayer." An individual who is a resident of this
Commonwealth and subject to personal income tax under Article
III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971.
Section 3. Imposition of fee.
(a) Threshold.--A fee is imposed on each manufacturer which
produces from any of its facilities in this Commonwealth an
average of more than 25,000 metric tons per year of greenhouse
gases.
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(b) Amount.--The fee imposed under this section shall be $20
per metric ton of greenhouse gas emissions.
(c) Payment.--The fee imposed under this section shall be
paid by the manufacturer to the Commonwealth.
(d) Deposit.--The fee paid to this Commonwealth under this
section shall be deposited into the fund.
Section 4. Greenhouse Gas Emission Fund.
(a) Establishment.--The Greenhouse Gas Emission Fund is
established as a fund in the State Treasury.
(b) Use of money.--The money deposited into the fund is
appropriated on a continuing basis to the department for
purposes of providing grants under the Whole-Home Repairs
Program established under section 135-C of the act of April 9,
1929 (P.L.343, No.176), known as The Fiscal Code. No more than
$25,000,000 in a fiscal year shall be used for grants under the
Whole-Home Repairs Program.
(c) Payments to taxpayers.--Money remaining in the fund at
the end of a fiscal year shall be paid as opportunity payments
as follows:
(1) The department, in consultation with the Department
of Revenue, shall determine the amount payable to each
taxpayer based on the amount of money in the fund subject to
the following:
(i) No opportunity payment shall be issued to an
individual who files a tax return as a single individual
and has a household income of more than $100,000 in a
year.
(ii) No opportunity payment shall be issued to an
individual who files a tax return jointly with another
individual and has a household income of more than
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$200,000 in a year.
(2) The department shall issue opportunity payments to
taxpayers within 120 days after the end of a fiscal year in
which money remains in the fund.
Section 5. Reports.
(a) Publication and contents.--By March 30, 2023, and each
March 30 thereafter, the secretary shall report the emissions
during the calendar year ending on the preceding December 31
from those manufacturers subject to a fee under this act.
(b) Transmittal.--The report under this section shall be
transmitted to all of the following:
(1) The Governor.
(2) The President pro tempore of the Senate.
(3) The Minority Leader of the Senate.
(4) The Speaker of the House of Representatives.
(5) The Minority Leader of the House of Representatives.
Section 6. Rules and regulations.
The department, in consultation with the Department of
Environmental Protection, shall promulgate rules and regulations
as necessary to implement the provisions of this act regarding
the calculation of greenhouse gas emissions and the fee.
Section 7. Effective date.
This act shall take effect as follows:
(1) This section and section 5 shall take effect
immediately.
(2) Sections 1, 2 and 6 shall take effect in 60 days.
(3) The remainder of this act shall take effect in 180
days.
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