THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HANNA, OCTOBER 17, 2012

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, OCTOBER 17, 2012  

AN ACT

Amending Title 58 (Oil and Gas) of the Pennsylvania Consolidated

Statutes, further providing for distribution of fee and for   

Statewide initiatives; and establishing the Municipal

Infrastructure Emergency Grant Program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2314(c.3) and (d) introductory paragraph

of Title 58 of the Pennsylvania Consolidated Statutes, added  

February 14, 2012 (P.L.87, No.13), are amended and the section

is amended by adding a subsection to read:

§ 2314.  Distribution of fee.

* * *

(c.3)  Municipal infrastructure emergency grants.--Following

distributions from the fund under subsections (c), (c.1) and

(c.2), $5,000,000 shall be deposited annually into the Marcellus

Legacy Fund for distribution to the commission for the Municipal

Infrastructure Emergency Grant Program under Chapter 29

(relating to Municipal Infrastructure Emergency Grant Program).

[(c.3)] (c.4)  Report.--All agencies or organizations

receiving funds under subsections (c), (c.1) [and], (c.2) and 

(c.3) shall submit a report by December 31, 2012, and December

31 of each year thereafter to the Secretary of the Budget and

the Appropriations Committee of the Senate and the

Appropriations Committee of the House of Representatives. The

report shall include an itemization and explanation of the use

of all funds received under subsections (c), (c.1) [and], (c.2)

and (c.3).

(d)  Distribution.--Except as provided in section 2302(a.3)

and (a.4) (relating to unconventional gas well fee), following

fee distribution under subsections (c), (c.1) [and], (c.2) and

(c.3), from fees collected for 2011 and each year thereafter,

60% of the revenue remaining in the fund from fees collected for

the prior year are hereby appropriated to counties and

municipalities for purposes authorized under subsection (g).

Counties and municipalities are encouraged, where appropriate,

to jointly fund projects that cross jurisdictional lines. The

commission, after making a disbursement under subsection (f),

shall distribute the remaining funds appropriated as follows

within three months after the date the fee is due:

* * *

Section 2.  Section 2315(a.1) introductory paragraph of Title

58, added February 14, 2012 (P.L.87, No.13), is amended to read:

§ 2315.  Statewide initiatives.

* * *

(a.1)  Deposit and distribution.--Following distribution

under section 2314(c), (c.1) [and], (c.2) and (c.3) (relating to

distribution of fee) from fees collected for 2011 and each year

thereafter, 40% of the remaining revenue in the fund shall be

deposited into the Marcellus Legacy Fund and appropriated to the

commission and distributed within three months after the date

the fee is due as follows:

* * *

Section 3.  Title 58 is amended by adding a chapter to read:

CHAPTER 29

MUNICIPAL INFRASTRUCTURE EMERGENCY GRANT PROGRAM

Sec.

2901.  Definitions.

2902.  Grants.

2903.  Municipal Infrastructure Emergency Grant Program.

§ 2901.  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:

"Commission."  The Pennsylvania Public Utility Commission.

"Infrastructure repair."  Construction, reconstruction,

maintenance and repair of roadways, bridges and other

infrastructure in a municipality due to damage caused by the

impact of natural gas production from unconventional gas wells

and activities related to natural gas production from

unconventional gas wells.

"Natural gas."  As defined in section 2301 (relating to

definitions).

"Unconventional gas well."  As defined in section 2301

(relating to definitions).

§ 2902.  Grants.

(a)  Funding.--Grants under this chapter shall be made from

amounts deposited in the Marcellus Legacy Fund under section

2314(c.3) (relating to distribution of fee).

(b)  Award.--Grants under this chapter shall be awarded by

the commission on a quarterly basis.

§ 2903.  Municipal Infrastructure Emergency Grant Program.

(a)  Establishment and purpose.--The Municipal Infrastructure

Emergency Grant Program is established. The purpose of the

program is to provide grants to municipalities for the cost of

infrastructure repair.

(b)  Funds.--Funds transferred to the commission under

Chapter 23 (relating to unconventional gas well fee) shall be

utilized for grants under subsection (a).

(c)  Guidelines.--Funds under this section shall be used in

accordance with guidelines adopted by the commission. In

adopting the guidelines, the commission shall include:

(1)  Methods to determine the damage to infrastructure

caused in a municipality by the impact of natural gas

production from unconventional gas wells and activities

related to natural gas production from unconventional gas

wells.

(2)  An application procedure.

(3)  An application period that is open throughout the

year.

(d)  Administrative costs.--No more than 1% of the funds

appropriated to the commission may be used for administrative

costs.

Section 4.  This act shall take effect in 60 days.