PRINTER'S NO. 4632
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2978
Session of
2020
INTRODUCED BY RABB, KINSEY, HILL-EVANS, DONATUCCI, FRANKEL,
WEBSTER, JOHNSON-HARRELL, FIEDLER, INNAMORATO, OTTEN, LEE,
SHUSTERMAN, D. MILLER, MADDEN, DAWKINS, HOHENSTEIN AND
VITALI, NOVEMBER 30, 2020
REFERRED TO COMMITTEE ON FINANCE, NOVEMBER 30, 2020
AN ACT
Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An
act relating to tax reform and State taxation by codifying
and enumerating certain subjects of taxation and imposing
taxes thereon; providing procedures for the payment,
collection, administration and enforcement thereof; providing
for tax credits in certain cases; conferring powers and
imposing duties upon the Department of Revenue, certain
employers, fiduciaries, individuals, persons, corporations
and other entities; prescribing crimes, offenses and
penalties," providing for greenhouse gas emissions tax.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of March 4, 1971 (P.L.6, No.2), known as
the Tax Reform Code of 1971, is amended by adding an article to
read:
ARTICLE XXIX-I
GREENHOUSE GAS EMISSIONS TAX
Section 2901-I. Scope of article.
This article relates to the imposition of a tax on greenhouse
gas emissions.
Section 2902-I. Definitions.
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The following words and phrases when used in this article
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:
(1) Breaking.
(2) Crushing.
(3) Screening.
(4) Wet or dry cleaning.
(5) Thermal drying.
"Department." The Department of Environmental Protection 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
any greenhouse gas.
"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.
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(4) Refineries.
(5) Cement production.
(6) Petrochemical production.
(7) Lime production.
(8) Ammonia production.
(9) Aluminum production.
(10) Soda ash production.
(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.
"Point of taxation." A facility of a manufacturer which
emits greenhouse gases subject to taxation under this article in
any calendar 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 Environmental Protection.
Section 2903-I. Imposition of tax.
(a) Threshold.--A tax is imposed on each manufacturer which
produces from any of its facilities in this Commonwealth an
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average of more than 25,000 metric tons per year of greenhouse
gases.
(b) Amount.--The tax imposed under this section shall be $20
per metric ton of greenhouse gas emissions.
(c) Payment.--The tax imposed under this section shall be
paid by the manufacturer at the point of taxation.
(d) Collection and administration.--The provisions of Part
VI of Article II shall apply to the tax imposed under this
section.
Section 2904-I. Deposit.
The tax collected under this article shall be deposited into
the General Fund.
Section 2905-I. Reports.
(a) Publication and contents.--By March 30, 2021, 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 taxation under this article.
(b) Transmittal.--The report under this section shall be
transmitted to all of the following:
(1) The commission.
(2) The Governor.
(3) The President pro tempore of the Senate.
(4) The Minority Leader of the Senate.
(5) The Speaker of the House of Representatives.
(6) The Minority Leader of the House of Representatives.
Section 2906-I. Rules and regulations.
The department shall promulgate rules and regulations as
necessary to implement the provisions of this article regarding
the calculation of greenhouse gas emissions and points of
taxation.
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Section 2. This act shall take effect as follows:
(1) This section and the addition of section 2905-I of
the act shall take effect immediately.
(2) The addition of sections 2901-I, 2902-I and 2906-I
of the act shall take effect in 60 days.
(3) The remainder of this act shall take effect in 180
days.
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