Regular Session 2021-2022 Senate Bill 1339 P.N. 1952

PRINTER'S NO. 1952

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1339

Session of

2022

INTRODUCED BY YAW, MARTIN, GORDNER, SCAVELLO, ARGALL, PITTMAN,

J. WARD, YUDICHAK, VOGEL, DiSANTO, GEBHARD, BOSCOLA, STREET,

BARTOLOTTA, ROBINSON, SCHWANK, FLYNN AND STEFANO,

OCTOBER 3, 2022

REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, OCTOBER 3, 2022

AN ACT

Amending the act of November 29, 2004 (P.L.1376, No.178),

entitled "An act relating to alternative fuels; establishing

the Alternative Fuels Incentive Fund; authorizing grants and

rebates to promote the use of alternative fuels; imposing

duties on the Department of Environmental Protection;

providing for an annual report; allocating funds collected

from the utilities gross receipts tax; making an

appropriation; abrogating regulations; and making a repeal,"

further providing for title of act, for short title of act,

for definitions and for Alternative Fuels Incentive Fund;

repealing provisions relating to biomass-based diesel

production incentives; further providing for annual report;

and repealing provisions relating to interfund transfer.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The title and sections 1, 2 and 3 of the act of

November 29, 2004 (P.L.1376, No.178), known as the Alternative

Fuels Incentive Act, are amended to read:

AN ACT

Relating to [alternative] low-emission transportation fuels;

establishing the [Alternative] Low-Emission Transportation

Fuels Incentive Fund; authorizing grants and rebates to

promote the use of [alternative] low-emission transportation

fuels; imposing duties on the Department of Environmental

Protection; providing for an annual report; allocating funds

collected from the utilities gross receipts tax; making an

appropriation; abrogating regulations; and making a repeal.

Section 1. Short title.

This act shall be known and may be cited as the [Alternative]

Low-Emission Transportation Fuels Incentive 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:

["Accredited laboratory." A laboratory accredited by the

American Society for Testing and Materials International.]

"Alcohols." Fuels composed of 85% ethanol or methanol and

15% gasoline.

["Alternative energy source." Includes, but is not limited

to, any of the following sources of energy: wind, solar

photovoltaic, solar thermal, combined heat and power, integrated

gasification combined cycle, geothermal, low-impact

hydroelectric, biomass, biologically derived methane gas, coal

bed methane gas, fuel cells, waste coal and distributed

generated systems.

"Alternative fuel producer." A producer of an alternative

fuel whose production facility of alternative fuel is located

within this Commonwealth.

"Alternative fuel vehicle." A self-propelled vehicle

operating on an alternative fuel designed for transporting

persons or property. This term includes a bi-fuel vehicle, dual-

fuel vehicle, hybrid vehicle and dedicated vehicle.

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"Alternative fuels." Motor vehicle fuels and fuel systems

which when compared to conventional gasoline or reformulated

gasoline, diesel fuel, oil or coal will result in lower

emissions of oxides of nitrogen, volatile organic compounds,

carbon monoxide or particulates, toxic air pollutants,

greenhouse gases or any combination thereof. These shall

include, but are not limited to, compressed natural gas (CNG),

liquefied natural gas (LNG), liquid propane gas (LPG), alcohols

(ethanol - e85 and methanol - m85), hydrogen, hythane (any

combination of CNG and hydrogen), biofuels and electricity.]

"American Society for Testing and Materials International."

The nonprofit organization which develops consensus standards

for materials, products, systems and services.

"Bi-fuel vehicle" or "dual-fuel vehicle." A vehicle that

operates on [an alternative] a low-emission transportation fuel

and gasoline or [an alternative] a low-emission transportation

fuel and diesel fuel. This term includes original equipment

manufacturer (OEM) and retrofitted vehicles.

"Biodiesel fuel." Either of the following:

(1) A biofuel derived from vegetable oils or animal fats

that is designated B100 and meets the American Society of

Testing and Materials International specification D6751.

(2) Fuel comprised of 20% biodiesel with 80% diesel fuel

that is designated B20.

"Biofuels." Fuels derived from alcohols, ether, esters and

other chemicals made from cellulosic biomass such as herbaceous

and woody plants, agricultural and forestry residues and a large

portion of municipal solid and industrial waste.

"Biomass-based diesel." The term shall have the meaning set

forth in section 211(o)(1)(D) of the Clean Air Act (69 Stat.

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322, 121 Stat. 1519, 42 U.S.C. § 7545(o)(1)(D)) and shall meet

the ASTM Specification D6751 Standard Specification for

Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels or

its successor standard.

"Dedicated vehicle." A vehicle that runs exclusively on [an

alternative] a low-emission transportation fuel. This term

includes an original equipment manufacturer or retrofit vehicle.

"Department." The Department of Environmental Protection of

the Commonwealth.

"Diesel fuel." Diesel engine fuel and all [other liquids]

non-biomass-based liquid fuels suitable for the generation of

power for the propulsion of motor vehicles except gasoline.

"Fleet." A group of ten or more vehicles, comprised of

passenger cars, light-duty trucks, buses and heavy-duty trucks

up to 26,000 pounds gross vehicle weight that is owned and

operated by a single school district, municipal authority,

political subdivision, nonprofit entity, corporation, limited

liability company or partnership located within this

Commonwealth.

"Fund." The [Alternative] Low-Emission Transportation Fuels

Incentive Fund established under section 3.

"Gallon." The quantity of fluid or liquid at a temperature

of 60 degrees Fahrenheit necessary to completely fill a United

States standard gallon liquid measure.

"Gasoline." The same as a motor fuel and also means every

liquid petroleum product, or combination thereof, other than

solvents having an Atmospheric Pressure Index gravity of 46

degrees or above at a temperature of 60 degrees Fahrenheit and

at atmospheric pressure and includes drip, casing head or

natural gasoline. The term includes liquid of less than 46

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degrees Atmospheric Pressure Index gravity at a temperature of

60 degrees Fahrenheit compounded, blended, manufactured or

otherwise produced by mixing or blending gasoline or solvents

with blending materials when the blended product can be used for

generating power in internal combustion engines. Gasoline Gallon

Equivalent (GGE) conversion of natural gas under standard

conditions to the equivalent of a gallon of gasoline so that 1

GGE is 126.67 cubic feet of natural gas.

["Hybrid vehicle." A motor vehicle that draws propulsion

energy from onboard sources of stored energy that are both:

(1) An internal combustion engine using combustible

fuel.

(2) A rechargeable energy storage system.]

"Incremental cost." Either of the following:

(1) The difference between the purchase price of [an

alternative] a low-emission transportation fuel vehicle and

the purchase price of a same or similar model gasoline-only

or diesel-only fueled vehicle.

(2) The difference between the base price of

conventional [diesel] fuel and biodiesel fuel.

"Low-emission transportation fuel." A motor vehicle fuel

which, when compared to conventional gasoline, reformulated

gasoline or diesel fuel, will result in lower emissions of

oxides of nitrogen, volatile organic compounds, greenhouse gases

or particulates or any combination thereof when evaluated on a

life cycle analysis. These shall include, but are not limited

to, compressed natural gas (CNG), liquid natural gas (LNG),

liquid propane gas (LPG), alcohols (ethanol - e85 and methanol -

m85), biomass-based fuels, hydrogen, hythane (any combination of

CNG and hydrogen) and renewable natural gas.

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"Low-emission transportation fuel vehicle." A self-propelled

vehicle operating on a low-emission transportation fuel designed

for transporting persons or property. This term includes a bi-

fuel vehicle, dual-fuel vehicle and dedicated vehicle.

"OEM." The original equipment manufacturer.

"OEM vehicle." A vehicle originally manufactured to run on

[an alternative] a low-emission transportation fuel.

["Qualified biomass-based diesel producer." A producer of

25,000 gallons or more of biomass-based diesel per month with

its principal production facility in this Commonwealth that has

complied with the requirements of section 3.1(a)(2) and that is

in compliance with all laws and current in all obligations to

the Commonwealth.]

"Qualified low-emission transportation fuel producer." A

producer of low-emission transportation fuel whose production

facility of low-emission transportation fuel is located within

this Commonwealth.

["Renewable energy." Energy derived from solar, wind,

geothermal and hydroelectric sources.]

"Renewable natural gas." Biodiesel or biogas, including

biogas derived from municipal solid waste, industrial and food

waste, wastewater treatment 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.

"Retrofit." Install [an alternative] a low-emission

transportation fuel system into a gasoline-fueled vehicle.

["Stationary power facility." A fixed, in-place facility

that generates electric power for distribution into the electric

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distribution system or for use onsite as primary power or backup

power for critical need or at adjacent locations not connected

to the electricity grid for primary power.]

Section 3. [Alternative] Low-Emission Transportation Fuels

Incentive Fund.

(a) Establishment.--There is [hereby] established a separate

account in the State Treasury to be known as the [Alternative]

Low-Emission Transportation Fuels Incentive Fund. This fund

shall be administered by the department for the purposes of this

act. [The fund shall consist of that portion of revenues

allocated from the utilities gross receipts tax as set forth in

section 5.]

(b) Expenditures.--

(1) [Moneys] Money from the fund shall be expended by

the department:

(i) As grants to school districts, municipal

authorities, political subdivisions, nonprofit entities,

corporations, limited liability companies or partnerships

incorporated or registered in this Commonwealth to

provide funding for:

(A) The expenses relative to retrofitting

vehicles to operate on [alternative] low-emission

transportation fuels as either a bi-fuel, dual-fuel[,

hybrid] or dedicated vehicle.

(B) The incremental cost of purchase of bi-fuel,

dual-fuel[, hybrid] or dedicated vehicles.

necessary fleet refueling [or home-refueling]

equipment for bi-fuel, dual-fuel[, hybrid] or

dedicated vehicles.

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[(D) The cost to perform research, training

development and demonstration of new applications or

next-phase technology related to alternative fuel

vehicles.]

(ii) As grants to individual residents of this

Commonwealth who purchase [an alternative] a low-emission

transportation fuel vehicle for the cost to purchase and

install the necessary home refueling equipment for bi-

fuel, dual-fuel[, hybrid] or dedicated vehicles.

(iii) As grants to school districts, municipal

authorities, political subdivisions and nonprofit

entities to cover the incremental cost to purchase

[biofuel] low-emission transportation fuel.

(iv) As rebates to residents of this Commonwealth to

meet the incremental cost to individuals who purchase a

bi-fuel, dual-fuel[, hybrid] or dedicated vehicle.

(v) As rebates to residents, school districts,

municipal authorities, political subdivisions, nonprofit

entities, corporations, limited liability companies or

partnerships incorporated or registered in this

Commonwealth to meet the incremental cost to purchase

low-emission transportation fuels that have been produced

in this Commonwealth by a qualified low-emission

transportation fuel producer.

(2) [Moneys] Money from the fund may be expended by the

department as reimbursement of up to 10¢ per gallon in a

calendar year for up to 12,500,000 gallons of [renewable]

low-emission transportation fuels produced by a qualified

[renewable fuels] low-emission transportation fuel producer.

(3) One year after the effective date of this act and

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for every year thereafter, the amount of funding by the

department under this subsection shall be evaluated to

determine whether an adjustment in funding level is

appropriate. The evaluation criteria shall be based on

economic and regulatory conditions that affect the

feasibility of [alternative] low-emission transportation

fuels and the financial solvency of the fund. At no time

shall the grant or rebate funding amount be below the amounts

specified in this section.

(4) No more than [1.5%] 0.5% of the fund may be used to

administer the provisions of this act.

(4.1) No more than [0.5%] 1.0% of the fund may be used

to educate and do outreach to [car] automotive dealers and

consumers about this program.

(5) No more than 10% of the fund may be awarded to any

one school district, municipal authority, political

subdivision, nonprofit entity, corporation, limited liability

company, partnership or resident of this Commonwealth in any

one year, provided that the total amount of grants awarded

and rebates provided to grant and rebate recipients within a

political subdivision in a year shall not exceed 15% of the

fund. However, if the total grant and rebate money to be

awarded in that year is less than the total grant money

available for that year, the department may increase the 10%

and 15% funding levels established under this paragraph not

to exceed 40% of the fund.

[(6) Beginning fiscal year 2008-2009, through and

including fiscal year 2010-2011, the department may expend up

to $100,000 annually from the fund for a nitrogen tire

inflation grant program. The department may award matching

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grants of up to 50% of the costs of purchasing and installing

a nitrogen tire inflation system to automotive service

providers who sell tires in this Commonwealth. Individual

grants may not exceed $5,000 per nitrogen tire inflation

system. The department shall publish guidelines as necessary

to implement the provisions of this subsection and maintain a

registry of all grant recipients on the department's publicly

accessible World Wide Web site.]

and method for the awarding of grants under [the program]

subsection (b)(1)(i). The department also shall establish a

method by which grant applications will be prioritized according

to, but not limited to, the following goals and criteria:

(1) The improvement of this Commonwealth's air quality.

(2) The fulfillment of the Commonwealth's

responsibilities under the Clean Air Act (69 Stat. 322, 42

U.S.C. § 7401 et seq.).

(3) The protection of this Commonwealth's natural

environment, including land, water and wildlife.

(4) The advancement of economic development in this

Commonwealth and the promotion of this Commonwealth's

indigenous resources.

(5) The reduction of this Commonwealth's dependence on

imported crude oil and other petroleum products.

(6) The most cost-effective use of private and public

funding.

[(7) The transfer and commercialization of innovative

alternative energy technologies.]

(c.1) Posting of forms.--The department shall make the grant

application forms under subsection (c) available on the publicly

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accessible Internet website of the department.

(d) Rebate program.--[There is hereby established a rebate

program within the department for individuals residing in this

Commonwealth who purchase a hybrid, plug-in hybrid or other

alternative fuel vehicle] The department shall establish a

formula and method for the awarding of rebates under subsection

(b)(1)(v) as follows:

(1) [The department shall establish a formula and method

for the awarding of rebates under this program. The

department shall publish this information yearly in the

Pennsylvania Bulletin and may also publish this information

on the department's World Wide Web site. Rebates shall be

provided to the extent that funding is available for this

purpose.] To the extent that applications for rebates exceed

the available funds for this program, the department may

award rebates on a pro rata basis.

(2) A request for a rebate must be submitted to the

department no later than six months after the purchase date

of the [hybrid, plug-in hybrid or other alternative fuel]

low-emission transportation fuel vehicle, in a form and

manner prescribed by the department. The department shall

provide an application form [to an individual] upon request,

and the department [may] shall make the application form

available on [its World Wide Web site or through the place of

purchase of a hybrid, plug-in hybrid or other alternative

fuel vehicle.] the department's publicly accessible Internet

website.

(3) Applicants shall provide a copy of a valid

Pennsylvania vehicle registration and proof of purchase when

making a request for a rebate under this program.

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(e) Publication.--The formula, methods and criteria under

subsections (c) and (d) shall be transmitted to the Legislative

Reference Bureau for annual publication in the Pennsylvania

Bulletin and shall be posted annually on the department's

publicly accessible Internet website.

Section 2. Section 3.1 of the act is repealed:

[Section 3.1. Biomass-based diesel production incentives.

(a) Incentives.--The department shall expend up to

$5,300,000 annually from the fund unless the balance of the fund

is less than $5,300,000 on the first day of the fiscal year, in

which case the department shall expend up to one-third of the

balance of the fund:

(1) As a production incentive of 75¢ per gallon for

biomass-based diesel produced in this Commonwealth beginning

July 1, 2008, and sold in this Commonwealth for commercial

transportation purposes or for residential heating. In the

case of biomass-based diesel, this incentive shall be

available through June 30, 2011. If the total monthly amount

of production incentives applied for by all qualified

applicants exceeds the remaining amount available for those

incentives, then the incentive shall be prorated among all

qualified applicants. An individual qualified biomass-based

diesel producer shall not receive more than $1,900,000 in

incentives in any one fiscal year. For purposes of this

section, all facilities under common ownership shall be

counted as a single facility.

(2) A producer of biomass-based diesel in this

Commonwealth shall file for the production incentive on a

monthly basis on a form furnished by the department. The form

shall require the producer to submit proof of production of

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the biomass-based diesel and the number of gallons sold

during the previous calendar month and such other information

as the department deems appropriate. A biomass-based diesel

producer shall also submit a certificate of analysis from an

accredited laboratory for every 500,000 gallons of biomass-

based diesel produced showing that the biodiesel meets the

ASTM Specification D6751, Standard Specification for

Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels

or its successor standard.

(b) Exception.--A qualified biomass-based diesel producer

who receives an incentive under this section shall not be

eligible to receive an incentive under section 3.]

Section 3. Section 4 of the act is amended to read:

Section 4. Annual report.

The department shall annually make a report to the

Environmental Resources and Energy Committee of the Senate and

the Environmental Resources and Energy Committee of the House of

Representatives [on], including, but not limited to, the

activities undertaken pursuant to this act, including the number

of grants awarded, rebates given and other expenditures from the

fund.

Section 4. Section 5 of the act is repealed:

[Section 5. Interfund transfer.

(a) General rule.--The department may transfer money from

the Alternative Fuels Incentive Fund to the Energy Development

Fund one time during the fiscal year beginning July 1, 2004.

(b) Use of transferred funds.--

(1) Funds transferred to the Energy Development Fund

under this section shall be used to provide financial

assistance for research directly related to alternative

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energy sources and for the development and installation of

stationary power facilities within this Commonwealth that

utilize alternative energy sources to produce electric power.

The financial assistance offered under this section shall be

limited to grants and low-interest loans, at or below

prevailing interest rates and loan guarantees.

(2) These funds shall also be used to support the

establishment of public or private partnerships among

postsecondary institutions and private sector organizations.

The public or private sector partnerships should be designed

to support a broad program of research and development of

alternative energy power sources. Research funds shall be

directed toward those projects that can clearly demonstrate

that the technology being studied can be practically applied.

funds transferred to the Energy Development Fund, the department

shall develop guidelines for the application and use of these

funds, including all applicable eligibility criteria which shall

also describe the manner of application for financial assistance

and an application for assistance under this section. The

department shall provide these guidelines to the majority and

minority chairman of the Environmental Resources and Energy

Committee of the Senate and the majority and minority chairman

of the Environmental Resources and Energy Committee of the House

of Representatives 60 days prior to issuing the guidelines to

the general public. No financial assistance shall be provided to

any applicant by the department until guidelines are issued to

the general public. The department shall provide a reasonable

opportunity for the general public to apply for funds under this

section before making any financial assistance announcements or

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awards.

(d) Lapse.--Any unexpended funds from the transfer shall

lapse to the General Fund on June 30, 2006.]

Section 5. This act shall take effect immediately.

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