PRINTER'S NO. 900
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
704
Session of
2019
INTRODUCED BY DiSANTO AND FOLMER, JUNE 6, 2019
REFERRED TO LOCAL GOVERNMENT, JUNE 6, 2019
AN ACT
Providing for electric generation facility cessation mitigation;
establishing the Electric Generation Facility Cessation
Mitigation Program; and providing for eligibility of grants
and for grant funding relating to tax loss for a qualifying
event.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Electric
Generation Facility Cessation Mitigation 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:
"Commission." The Pennsylvania Public Utility Commission.
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Facility." An electric generation facility in this
Commonwealth.
"Program." The Electric Generation Facility Cessation
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Mitigation Program established under this act.
"Qualifying event." Cessation of operations or diminution of
electricity production at a facility within the jurisdiction of
a political subdivision, which cessation or diminution causes a
tax loss.
"Tax loss." A reduction of at least 20% in real property tax
collections or payments in lieu of taxes, or both, owed by a
facility based on the differential between the annual real
property taxes or payments in lieu of taxes, or both, paid by a
facility to a political subdivision in the year prior to the
reduction and the real property taxes or payments in lieu of
taxes paid by a facility to a political subdivision in the year
of the reduction, exclusive of penalties and interest.
Section 3. Program.
(a) Establishment.--The Electric Generation Facility
Cessation Mitigation Program is established and shall be
administered by the Department of Community and Economic
Development to provide grants in accordance with this act.
(b) Grants.--The department shall award grants to eligible
political subdivisions that demonstrate to the department a
qualifying event.
(c) Grant funding.--Grants from the program shall be paid
from money appropriated or otherwise made available to the
department for that purpose.
Section 4. Eligibility for grants.
(a) Condition.--A political subdivision shall be eligible to
receive a grant if a qualifying event has occurred in the
political subdivision.
(b) Documentation.--
(1) The tax loss must be supported by documentary
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evidence of the qualifying event.
(2) Documentation of the qualifying event must be
supported by written confirmation from the commission.
Section 5. Grant amount.
(a) General rule.--An eligible political subdivision may
apply to receive a grant on an annual basis for up to four
years, provided that the application and supporting
documentation confirm that the tax loss in each year remains in
excess of 20%. A political subdivision may apply for only one
grant each year regardless of the number of facilities and
qualifying events within its jurisdiction. Selected applicants
may receive an initial award up to, but not in excess of, 80% of
the demonstrated tax loss associated with the cessation.
(b) Subsequent years.--After the first year in which a grant
is awarded to a political subdivision, the department shall
reduce subsequent maximum potential grant awards to the
political subdivision as follows:
Award Year Maximum Potential Grant Award
2 up to 60% of tax loss
3 up to 40% of tax loss
4 up to 20% of tax loss
(c) Determination of awards.--
(1) The department shall, in its discretion, award
grants based on review of the application materials,
supporting documentation and the demand for and availability
of money for the program. In making awards, the department
may consider the relative economic impact of cessation on an
applicant's jurisdiction and other relevant facts and
circumstances as the department deems necessary.
(2) Applications shall be accepted continuously and
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reviewed on a first-come, first-served basis. An application
shall be considered complete and placed on a reserve list for
funding upon receipt of all items.
(3) Grant payments shall be made only after confirmation
of tax loss and all necessary approvals.
(4) The department shall notify the applicant if the
application is incomplete and include a listing of all
materials or information needed to complete the application.
(5) A complete application must include the following:
(i) An original signature of an official of the
eligible political subdivision.
(ii) Written confirmation from the commission
stating that the facility is no longer producing
electricity.
(iii) The name of the facility as it appears on the
tax roll.
(iv) The name of the facility owner.
(v) The parcel identification number for each parcel
of real property the facility comprises.
(vi) Documentary evidence of real property taxes or
payments in lieu of taxes, or both, paid by the facility
to the applicant in the year prior to the tax loss.
(vii) Documentary evidence of real property taxes or
payments in lieu of taxes, or both, paid by the facility
to the applicant in the year of the tax loss.
(viii) Documentation of other compensation applied
for, received or to be received from insurance payments,
grants or other property tax receipts that offset the tax
loss for the facility, if applicable.
(ix) Other information as required by the
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department.
Section 6. Recapture of grants paid.
(a) General rule.--The department may require a political
subdivision to repay a grant received from the program if:
(1) the application of the political subdivision,
including any information provided with the application,
contains a material misrepresentation or is incomplete;
(2) the grant was awarded or disbursed in error and the
political subdivision is not entitled to assistance under
this act; or
(3) supporting documentation for the tax loss is not
true and complete.
(b) Payments from other sources.--If the applicant receives
insurance payments, additional grants or other property tax
receipts for the facility that reduce the amount of the tax loss
already compensated with a grant from the program, the applicant
shall immediately repay to the department the grant proceeds
corresponding to the payment.
(c) Fraud.--If the applicant makes or made a fraudulent
misrepresentation to the department relating to the application,
in addition to the recapture of the grant, the department may
pursue other legal remedies and refer the matter to the
appropriate governmental authorities for investigation and
prosecution.
Section 7. Resumption of commercial operations.
If a facility resumes commercial operations in a political
subdivision that has received and continues to receive a grant
under the program, the political subdivision shall be ineligible
for grants under the program in subsequent years.
Section 8. Audit and control.
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The department may audit applications on a random or
specified basis for a period extending to six years after
payment of the last grant under this act. The department may
contact a Federal, State or local government agency, insurance
company or other third party to confirm information included, or
identify information that should have been included, in an
application.
Section 9. Disclosure of information.
(a) Political subdivisions.--A political subdivision that
submits an application for a grant under this act must agree to
allow:
(1) A Federal, State or local government agency or
authority that provides funding for a tax loss to share
information with the department relative to the funding. The
department shall maintain the confidentiality of information
shared as a result of the agreement, and the information
shall not be available for disclosure or inspection to the
extent permissible under State law.
(2) The department and its agents access to books and
records as the department deems necessary to monitor
compliance.
(b) Department.--Except as required by applicable law,
regulation or judicial process, the department shall maintain
the confidentiality of information submitted as part of
application submitted under this act. The information may be
made available to the department staff and designated
individuals processing applications, Federal, State and local
agencies, auditors evaluating the program and others as the
department deems necessary in accordance with applicable law and
regulations, including judicial orders and subpoenas.
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Section 10. Effective date.
This act shall take effect in 60 days.
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