PRINTER'S NO. 2861

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2034

Session of

2019

INTRODUCED BY PUSKARIC, DOWLING, BERNSTINE AND ROTHMAN,

NOVEMBER 14, 2019

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,

hereby enacts as follows:

Section 1. Short title.

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

General Microhydropower Pilot Program 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:

"Approved applicant." A qualified applicant that has been

approved for a consolidated general microhydropower permit in

hydroelectric potential of moving water impoundments and meets

the certification standards established by the second edition of

the Low Impact Hydropower Institute's Low Impact Hydropower

Certification Handbook.

"Nonparticipant." An applicant or qualified applicant that

is no longer participating or has never participated in the

program.

"Pass-through entity." Any of the following:

act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform

Code of 1971.

"Qualified applicant." An agency of this Commonwealth or the

political subdivisions of the Commonwealth, municipal or other

local authorities or an agency of the political subdivision or

local authority. The term shall include State-aided and State-

related colleges and universities.

"Qualified tax liability." The liability for taxes imposed

under Article III, IV, VII, VIII, IX or XV of the Tax Reform

Code of 1971. The term includes the liability for taxes imposed

under Article III of the Tax Reform Code of 1971 on the owner or

owners of a pass-through entity. The term does not include

this act.

"Vendor." Any offeror, bidder or contractor that, for

purposes of this act, sells or provides a service or supply or

engages in the construction of microhydropower. The term does

not include an attorney at law, a lobbyist or a lobbying firm.

Section 3. Consolidated general microhydropower permits.

(a) General rule.--An applicant shall receive a permit which

shall encompass all necessary permits required by Federal or

State law.

(b) Procedure.--Within 180 days of the effective date of

this section, the department shall develop a procedure to issue

on the department's publicly accessible Internet website shall

be transmitted to the Legislative Reference Bureau for

publication in the Pennsylvania Bulletin.

(c) Timeframe.--The department shall approve or deny an

application of an applicant within 60 days of filing. If the

department fails to approve or deny an application, the

department shall correspond by mail with the applicant as to the

circumstances pertaining to the department's noncompliance. The

correspondence shall occur no less than five days before the

initial timeframe established under this subsection. The

additional 30-day extension from the original 60-day deadline to

approve or deny an application.

(d) Authorization of permit.--The permit authorizes the

entity to which the permit is issued to install a

microhydropower generator at a specific location in this

Commonwealth.

Section 4. Pilot program.

(a) Intent.--The program is established to better understand

the capabilities of microhydropower utilization as a reliable

and efficient form of alternative energy generation in this

Commonwealth.

Senate and the Speaker of the House of Representatives. A

qualified applicant shall be deemed eligible upon approval of a

permit.

(c) Length.--The program shall extend no more than five

years from the date the department establishes and transmits

notice to the Legislative Reference Bureau under section 3.

(d) Vendors.--No less than five vendors shall be accepted by

the department for participation in the program.

(e) Report.--The department, as well as the Department of

Community and Economic Development, shall develop a procedure to

previous year, the department shall submit a report to the

chairperson and minority chairperson of the Environmental

Resources and Energy Committee of the Senate and the chairperson

and minority chairperson of the Environmental Resources and

Energy Committee of the House of Representatives which shall

include, but not be limited to:

a permit to each qualified applicant.

installation of a microhydropower generator.

related to microhydropower.

implementation and utilization of microhydropower.

act in aggregate.

regarding the issuance of the tax credit established in this

act to each nonparticipant.

department all information needed to complete the report under

subsection (e).

(g) Microhydropower Pilot Program Restricted Account.--The

Microhydropower Pilot Program Restricted Account is established

in the General Fund. All money deposited into the restricted

account shall be used by the Commonwealth to implement

microhydropower generators for approved applicants of the

program established in this section. The account shall expire on

the day succeeding the last day of the program. All remaining

money in the account shall be returned to the General Fund.

(h) Funding.--The Commonwealth shall be responsible for 80%

(i) Compensation.--An approved applicant shall be prohibited

from receiving compensation or revenue from any electric

distribution company for the duration of the applicant's

participation in the program.

(j) Termination.--If an approved applicant terminates

participation at any point during the program, the approved

applicant shall be responsible to refund all payments under

subsection (h).

Section 5. Microhydropower Tax Credit application and approval.

(a) Establishment.--The Microhydropower Tax Credit is

reduction of greenhouse gas emissions and the overall

proliferation of clean energy generation and consumption in this

Commonwealth.

(b) General Rule.--For the purposes of this section, only

nonparticipants shall be eligible for the Microhydropower Tax

Credit.

(c) Application.--The following shall apply:

thereafter, a nonparticipant may submit an application

prescribed and provided by the Department of Community and

Economic Development to the Department of Community and

of State tax due as determined at settlement or assessment by

the Department of Community and Economic Development.

(d) Approval.--The Department of Community and Economic

Development may approve an application under section 5(c). If

the Department of Community and Economic Development chooses to

approve an application under section 5(c), the application must

be approved no later than March 1. The Department of Community

and Economic Development shall notify the nonparticipating

applicant of the approved application accompanied by a

certificate of the authorized tax credit amount established in

Section 6. Use of tax credit.

(a) Rate.--A tax credit may be applied against up to 30% of

the nonparticipant's qualified tax liability incurred while

implementing a microhydropower generator in the taxable year for

which the tax credit was approved.

(b) Carryforward, transfer and refund.--The credit provided

in this section may be carried over or transferred and applied

to no more than two taxable years following the first taxable

year for which the nonparticipant or pass-through entity was

entitled to claim the credit. The credit provided under this

section may not be refunded if not used within the period

grants provided under Federal acts and regulations and grants

provided under acts and regulations of this Commonwealth.

(d) Pass-through entity.--If a tax credit certificate is

issued to a pass-through entity, the pass-through entity may

elect in writing, according to procedures established by the

Department of Community and Economic Development, to transfer

all or a portion of the credit to shareholders, members or

partners in proportion to the share of the entity's distributive

income to which the shareholders, members or partners are

entitled or in any other manner designated by the pass-through

(e) Shareholders, members or partners of a pass-through

entity.--The following shall apply:

entity to whom the credit is transferred under subsection (d)

shall immediately claim the credit in the taxable year in

which the transfer is made.

through entity does not utilize the entirety of the tax

credit transferred to them by a pass-through entity, the

shareholder, member or partner may not carryback, obtain a

refund of or sell or assign the credit as provided under

unused tax credit to succeeding taxable years as provided

under subsection (b).

(f) Expiration.--This section shall expire for taxable years

beginning after December 31, 2029.

Section 7. Effective date.

This act shall take effect in 60 days.