1Amending the act of January 8, 1960 (1959 P.L.2119, No.787), 
2entitled, as amended, "An act to provide for the better 
3protection of the health, general welfare and property of the 
4people of the Commonwealth by the control, abatement, 
5reduction and prevention of the pollution of the air by 
6smokes, dusts, fumes, gases, odors, mists, vapors, pollens 
7and similar matter, or any combination thereof; imposing 
8certain powers and duties on the Department of Environmental 
9Resources, the Environmental Quality Board and the 
10Environmental Hearing Board; establishing procedures for the 
11protection of health and public safety during emergency 
12conditions; creating a stationary air contamination source 
13permit system; providing additional remedies for abating air 
14pollution; reserving powers to local political subdivisions, 
15and defining the relationship between this act and the 
16ordinances, resolutions and regulations of counties, cities, 
17boroughs, towns and townships; imposing penalties for 
18violation of this act; and providing for the power to enjoin 
19violations of this act; and conferring upon persons aggrieved 
20certain rights and remedies," further providing for 
21definitions and for disposition of fees, fines and civil 
22penalties; establishing the Keystone Vehicle Program; and 
23making editorial changes.

24The General Assembly of the Commonwealth of Pennsylvania
25hereby enacts as follows:

26Section 1. Section 3 of the act of January 8, 1960 (1959
27P.L.2119, No.787), known as the Air Pollution Control Act,

1amended July 9, 1992 (P.L.460, No.95), is amended to read:

2Section 3. Definitions.--The following words and phrases,
3when used in this act, unless the context clearly indicates
4otherwise, shall have the meaning ascribed to them in this
5section:

6"Administrator." The Administrator of the United States
7Environmental Protection Agency.

8"Air contaminant." Smoke, dust, fume, gas, odor, mist,
9radioactive substance, vapor, pollen or any combination thereof.

10"Air contamination." The presence in the outdoor atmosphere
11of an air contaminant which contributes to any condition of air
12pollution.

13"Air contamination source." Any place, facility or
14equipment, stationary or mobile, at, from or by reason of which
15there is emitted into the outdoor atmosphere any air
16contaminant.

17"Air pollution." The presence in the outdoor atmosphere of
18any form of contaminant, including, but not limited to, the
19discharging from stacks, chimneys, openings, buildings,
20structures, open fires, vehicles, processes or any other source
21of any smoke, soot, fly ash, dust, cinders, dirt, noxious or
22obnoxious acids, fumes, oxides, gases, vapors, odors, toxic,
23hazardous or radioactive substances, waste or any other matter
24in such place, manner or concentration inimical or which may be
25inimical to the public health, safety or welfare or which is or
26may be injurious to human, plant or animal life or to property
27or which unreasonably interferes with the comfortable enjoyment
28of life or property.

29"Applicant." A company which meets the eligibility
30requirements for a Keystone Vehicle Grant.

1"Approved air pollution control agency." An air pollution
2control agency of any political subdivision of the Commonwealth
3which has been granted approval by the Environmental Quality
4Board.

5"Board" or "EQB." The Environmental Quality Board.

6"Clean Air Act." Public Law 95-95 as amended, 42 U.S.C. § 
77401 et seq.

8"Company." An entity doing business in this Commonwealth
9which owns five or more vehicles and which is subject to tax
10under Article III, IV or VI of the act of March 4, 1971 (P.L.6,
11No.2), known as the Tax Reform Code of 1971. The term includes
12the shareholder of a Pennsylvania S corporation that is eligible
13for a Keystone Vehicle Grant.

14"Conversion plan." A natural gas conversion plan.

15"Dedicated compressed natural gas vehicle." A new vehicle
16that operates on ninety per centum (90%) or more compressed
17natural gas fuel and ten per centum (10%) or less on gasoline or
18diesel fuel.

19"Dedicated liquefied natural gas vehicle." A new vehicle
20that operates on ninety per centum (90%) or more liquefied
21natural gas fuel and ten per centum (10%) or less on gasoline or
22diesel fuel.

23"Department." The Department of Environmental [Resources]
24Protection of the Commonwealth.

25"Environmental Protection Agency" or "EPA." The United
26States Environmental Protection Agency or the Administrator of
27the United States Environmental Protection Agency.

28"Fleet vehicle." A vehicle registered to a company.

29"Gasoline-dispensing facility." A facility from which
30gasoline is transferred to motor vehicle fuel tanks.

1"Hearing board." The Environmental Hearing Board.

2"Incremental cost." The excess cost of a new natural gas
3motor vehicle over the price for a gasoline or diesel fuel motor
4vehicle of the same or similar model.

5"Keystone Vehicle Grant." A grant awarded under section
614.2.

7"Natural gas conversion plan." A company's plan to convert
8their vehicle fleet to compressed or liquid natural gas-fueled
9vehicles by purchasing new natural gas motor vehicles.

10"New natural gas motor vehicle." Any of the following:

11(1) A dedicated compressed natural gas vehicle.

12(2) A dedicated liquefied natural gas vehicle.

13"Person." Any individual, public or private corporation for
14profit or not for profit, association, partnership, firm, trust,
15estate, department, board, bureau or agency of the Commonwealth
16or the Federal Government, political subdivision, municipality,
17district, authority or any other legal entity whatsoever which
18is recognized by law as the subject of rights and duties.

19"Plan approval." The written approval from the Department of
20Environmental Resources which authorizes a person to construct,
21assemble, install or modify any stationary air contamination
22source or install thereon any air pollution control equipment or
23device.

24"Region." Any geographical subdivision of the Commonwealth
25whose boundaries shall be determined by the Environmental
26Quality Board.

27"Secretary." The Secretary of Environmental Protection of
28the Commonwealth.

29"Small business stationary source." A stationary source
30that:

1(1) is owned or operated by a person that employs one
2hundred (100) or fewer individuals;

3(2) is a small business as defined in the Small Business Act
4(Public Law 85-536, 15 U.S.C. § 78a et seq.);

5(3) is not a major stationary source;

6(4) does not emit fifty (50) tons per year of any regulated
7pollutant; and

8(5) emits less than seventy-five (75) tons per year of all
9regulated pollutants.

10"Start date." The date on which a company will begin a
11company's conversion plan to natural gas motor vehicles.

12"State implementation plan." The plan or plan revision that
13a state is authorized and required to submit under section 110
14of the Clean Air Act (Public Law 95-95 as amended, 42 U.S.C. § 
157410) to provide for attainment of the national ambient air
16quality standards.

17"Stationary air contamination source." Any air contamination
18source other than that which, when operated, moves in a given
19direction under its own power.

20Section 2. Section 9.2(a) of the act, amended July 7, 2011 
21(P.L.271, No.57), is amended to read:

22Section 9.2. Disposition of Fees, Fines and Civil
23Penalties.--(a) (1) Except as provided under clause (2) and
24subsection (a.1), [all] the following shall apply:

25(i) All fines, civil penalties and fees collected under this
26act shall be paid into the Treasury of the Commonwealth in a
27special fund known as the Clean Air Fund, hereby established,
28which, along with interest earned, shall be administered by the
29department for use in the elimination of air pollution.

30(ii) The department may establish such separate accounts as

1may be necessary or appropriate to implement the requirements of
2this act and the Clean Air Act.

3(iii) The board shall adopt rules and regulations for the
4management and use of the money in the fund.

5(2) Beginning in fiscal year 2013-2014 through fiscal year
62018-2019, six million dollars ($6,000,000.00) of the amount of
7funds deposited in the Clean Air Fund shall annually be used for
8Keystone Vehicle Grants.

9* * *

10Section 3. The act is amended by adding sections to read:

11Section 14. Keystone Vehicle Program.--The Keystone Vehicle
12Program is established to award Keystone Vehicle Grants and
13shall be administered by the department in accordance with this
14act.

15Section 14.1. Keystone Vehicle Grants.--(a) In order to be
16eligible to receive a Keystone Vehicle Grant, a company must
17provide or demonstrate to the department the following:

18(1) A comprehensive natural gas conversion plan of fleet
19vehicles within four years of the start date which is 
20financially viable and includes the construction and utilization 
21of a natural gas fueling station in this Commonwealth or the use 
22of an existing natural gas fueling station in this Commonwealth.

23(2) A statement of the projected usage of natural gas stated
24in gasoline gallon equivalents accompanied by the methodology
25utilized.

26(3) The intent to maintain operations in this Commonwealth
27for a period of not less than six (6) years from the start date.

28(4) Either:

29(i) an agreement between the applicant and a third-party
30natural gas fueling provider in this Commonwealth to supply

1natural gas fuel to the fleet if the Keystone Vehicle Grant is
2awarded; or

3(ii) a minimum fuel usage of 324,000 gasoline gallon 
4equivalents per year or more. Fuel usage requirements may be met
5from a single applicant or multiple companies under a single
6application if:

7(A) The companies have an agreement to utilize a single
8natural gas fueling facility in this Commonwealth.

9(B) The companies demonstrate that the utilization of the
10single natural gas fueling facility would be at a minimum level
11of 324,000 gasoline gallon equivalents per year.

12(5) The majority of operations to be performed by the new
13natural gas motor vehicles purchased with the Keystone Vehicle
14Grant will be for any of the following:

15(i) The transportation of persons or goods from between
16points within this Commonwealth.

17(ii) The transportation of persons or goods from between
18points in this Commonwealth and points outside this
19Commonwealth.

20(iii) A combination of the operations under subparagraphs
21(i) and (ii).

22(6) All of the new natural gas motor vehicles purchased with
23the Keystone Vehicle Grant will be registered in this
24Commonwealth.

25(7) The company's start date will be no more than ninety
26(90) days following the receipt of a Keystone Vehicle Grant by
27the company.

28(b) The following shall constitute eligible vehicle types
29under the Keystone Vehicle Program:

30(1) Dedicated compressed natural gas vehicles having a gross

1vehicle weight rating of at least 33,000 pounds.

2(2) Dedicated liquefied natural gas vehicles having a gross
3vehicle weight rating of at least 33,000 pounds.

4Section 14.2. Application Process.--(a) A company must
5complete and submit to the department a Keystone Vehicle Program
6application.

7(b) The department shall review each application submitted
8under subsection (a) and may, in its sole discretion, approve a
9Keystone Vehicle Grant for eligible applicants. The department
10and the company whose application has been approved for a
11Keystone Vehicle Grant shall execute a commitment letter
12containing the following:

13(1) A description of the natural gas conversion plan which 
14shall include a statement of the projected minimum yearly 
15natural gas usage in terms of gasoline gallon equivalents.

16(2) The amount of private capital investment in the plan.

17(3) A signed statement that the company intends to complete
18its plan and remain in this Commonwealth for six (6) years from
19the start date.

20(4) Any other information as the department deems
21appropriate.

22(c) After a commitment letter has been signed by the
23Commonwealth and the company, the company shall receive a
24Keystone Vehicle Grant.

25Section 14.3. Keystone Vehicle Grant Funding and
26Limitations.--(a) The amount under section 9.2(a)(2) shall be
27transferred annually to fund the Keystone Vehicle Program.

28(b) A company that is approved to receive a Keystone Vehicle
29Grant shall use the funds to purchase new natural gas motor
30vehicles.

1(c) A company may receive a Keystone Vehicle Grant of up to
2fifty per centum (50%) of the incremental cost for new natural
3gas motor vehicles having a gross vehicle weight rating of at
4least 33,000 pounds. The incremental cost for vehicles shall be 
5capped at fifty thousand dollars ($50,000.00).

6Section 14.4. Guidelines.--The department shall establish
7guidelines for the approval of applications under section 14.2.

8Section 14.5. Penalties.--(a) A company which receives a
9Keystone Vehicle Grant and fails to attain at least ninety per 
10centum (90%) of the projected minimum yearly natural gas usage 
11as stated in the commitment letter by the conclusion of the 
12fourth year after the start date shall refund to the
13Commonwealth the total amount of the Keystone Vehicle Grant.

14(b) A company which receives a Keystone Vehicle Grant and
15fails to complete the natural gas conversion plan within four
16(4) years shall refund to the Commonwealth the total amount of
17the Keystone Vehicle Grant.

18(c) A company which receives a Keystone Vehicle Grant and
19fails to maintain registration in this Commonwealth of all new
20natural gas motor vehicles purchased with the Keystone Vehicle
21Grant for a minimum of six (6) years shall refund to the
22Commonwealth the total amount of the Keystone Vehicle Grant per
23new natural gas motor vehicle for each new natural gas motor
24vehicle that has not maintained registration in this
25Commonwealth.

26(d) If a company fails to meet the operations requirements
27under section 14.1(a)(5), the total amount of the Keystone
28Vehicle Grant shall be refunded to the Commonwealth.

29(e) (1) The department may waive the penalties under
30subsections (a), (b), (c) and (d) if it is determined that a

1company's natural gas conversion plan was not completed because
2of circumstances beyond the company's control, including natural
3disasters, unforeseen industry trends or a loss of a major
4supplier or market.

5(2) The company shall promptly notify the department of
6circumstances beyond its control which would delay completion of
7the plan.

8Section 14.6. Report to General Assembly.--Not later than
9June 1, 2015, and each June 1 thereafter, the department shall
10submit a report on the Keystone Vehicle Grants awarded under
11section 14.2. The report shall include the names of companies
12who utilized the Keystone Vehicle Grants as of the date of the
13report and the amount of Keystone Vehicle Grants approved. The
14report may include recommendations for changes in the
15calculation or administration of the Keystone Vehicle Program
16and other information as the department deems appropriate. The
17report shall be submitted to all of the following:

18(1) The chairman and minority chairman of the Appropriations
19Committee of the Senate.

20(2) The chairman and minority chairman of the Appropriations
21Committee of the House of Representatives.

22(3) The chairman and minority chairman of the Finance
23Committee of the Senate.

24(4) The chairman and minority chairman of the Finance
25Committee of the House of Representatives.

26Section 14.7. Regulations.--The secretary shall promulgate
27regulations necessary for the implementation and administration
28of the Keystone Vehicle Program.

29Section 4. Sections 14 and 15 of the act are renumbered to
30read:

1Section [14] 41. Severability.--The provisions of this act
2are severable and if any provision, sentence, clause, section or
3part thereof shall be held illegal, invalid, unconstitutional or
4inapplicable to any person or circumstances, such illegality,
5invalidity, unconstitutionality or inapplicability shall not
6affect or impair any of the remaining provisions, sentences,
7clauses, sections or parts of the ordinance or their application
8to him or to other persons and circumstances. It is hereby
9declared to be the legislative intent that this act would have
10been adopted if such illegal, invalid or unconstitutional
11provision, sentence, clause, section or part had not been
12included therein, and if the person or circumstances to which
13the ordinance or any part thereof is inapplicable had not
14specifically been exempted therefrom.

15Section [15] 42. Effective Date.--This act shall take effect
16immediately: Provided, however, That the rules and regulations
17promulgated pursuant to the provisions of this act shall be of
18no effect until one (1) year after the passage of this act.

19Section 5. The provisions of 25 Pa. Code § 143.1(a) are
20abrogated to the extent they are inconsistent with the
21following:

22(1) The amendment of sections 3 and 9.2 of the act.

23(2) The addition of sections 14, 14.1, 14.2, 14.3, 14.4,
2414.5, 14.6 and 14.7 of the act.

25Section 6. This act shall take effect in 60 days.