PRINTER'S NO. 3543
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2870
Session of
2022
INTRODUCED BY GUZMAN, GLEIM, A. BROWN, ECKER, FRITZ, HOHENSTEIN,
JONES AND PISCIOTTANO, OCTOBER 6, 2022
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
OCTOBER 6, 2022
AN ACT
Amending the act of November 29, 2004 (P.L.1376, No.178),
entitled "An act relating to alternative fuels; establishing
the Alternative Fuels Incentive Fund; authorizing grants and
rebates to promote the use of alternative fuels; imposing
duties on the Department of Environmental Protection;
providing for an annual report; allocating funds collected
from the utilities gross receipts tax; making an
appropriation; abrogating regulations; and making a repeal,"
further providing for title of act, for short title of act,
for definitions and for Alternative Fuels Incentive Fund;
repealing provisions relating to biomass-based diesel
production incentives; further providing for annual report;
and repealing provisions relating to interfund transfer.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The title and sections 1, 2 and 3 of the act of
November 29, 2004 (P.L.1376, No.178), known as the Alternative
Fuels Incentive Act, are amended to read:
AN ACT
Relating to [alternative] low-emission transportation fuels;
establishing the [Alternative] Low-Emission Transportation
Fuels Incentive Fund; authorizing grants and rebates to
promote the use of [alternative] low-emission transportation
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fuels; imposing duties on the Department of Environmental
Protection; providing for an annual report; allocating funds
collected from the utilities gross receipts tax; making an
appropriation; abrogating regulations; and making a repeal.
Section 1. Short title.
This act shall be known and may be cited as the [Alternative]
Low-Emission Transportation Fuels Incentive 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:
["Accredited laboratory." A laboratory accredited by the
American Society for Testing and Materials International.]
"Alcohols." Fuels composed of 85% ethanol or methanol and
15% gasoline.
["Alternative energy source." Includes, but is not limited
to, any of the following sources of energy: wind, solar
photovoltaic, solar thermal, combined heat and power, integrated
gasification combined cycle, geothermal, low-impact
hydroelectric, biomass, biologically derived methane gas, coal
bed methane gas, fuel cells, waste coal and distributed
generated systems.
"Alternative fuel producer." A producer of an alternative
fuel whose production facility of alternative fuel is located
within this Commonwealth.
"Alternative fuel vehicle." A self-propelled vehicle
operating on an alternative fuel designed for transporting
persons or property. This term includes a bi-fuel vehicle, dual-
fuel vehicle, hybrid vehicle and dedicated vehicle.
"Alternative fuels." Motor vehicle fuels and fuel systems
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which when compared to conventional gasoline or reformulated
gasoline, diesel fuel, oil or coal will result in lower
emissions of oxides of nitrogen, volatile organic compounds,
carbon monoxide or particulates, toxic air pollutants,
greenhouse gases or any combination thereof. These shall
include, but are not limited to, compressed natural gas (CNG),
liquefied natural gas (LNG), liquid propane gas (LPG), alcohols
(ethanol - e85 and methanol - m85), hydrogen, hythane (any
combination of CNG and hydrogen), biofuels and electricity.]
"American Society for Testing and Materials International."
The nonprofit organization which develops consensus standards
for materials, products, systems and services.
"Bi-fuel vehicle" or "dual-fuel vehicle." A vehicle that
operates on [an alternative] a low-emission transportation fuel
and gasoline or [an alternative] a low-emission transportation
fuel and diesel fuel. This term includes original equipment
manufacturer (OEM) and retrofitted vehicles.
"Biodiesel fuel." Either of the following:
(1) A biofuel derived from vegetable oils or animal fats
that is designated B100 and meets the American Society of
Testing and Materials International specification D6751.
(2) Fuel comprised of 20% biodiesel with 80% diesel fuel
that is designated B20.
"Biofuels." Fuels derived from alcohols, ether, esters and
other chemicals made from cellulosic biomass such as herbaceous
and woody plants, agricultural and forestry residues and a large
portion of municipal solid and industrial waste.
"Biomass-based diesel." The term shall have the meaning set
forth in section 211(o)(1)(D) of the Clean Air Act (69 Stat.
322, 121 Stat. 1519, 42 U.S.C. ยง 7545(o)(1)(D)) and shall meet
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the ASTM Specification D6751 Standard Specification for
Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels or
its successor standard.
"Dedicated vehicle." A vehicle that runs exclusively on [an
alternative] a low-emission transportation fuel. This term
includes an original equipment manufacturer or retrofit vehicle.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Diesel fuel." Diesel engine fuel and all [other liquids]
non-biomass-based liquid fuels suitable for the generation of
power for the propulsion of motor vehicles except gasoline.
"Fleet." A group of ten or more vehicles, comprised of
passenger cars, light-duty trucks, buses and heavy-duty trucks
up to 26,000 pounds gross vehicle weight that is owned and
operated by a single school district, municipal authority,
political subdivision, nonprofit entity, corporation, limited
liability company or partnership located within this
Commonwealth.
"Fund." The [Alternative] Low-Emission Transportation Fuels
Incentive Fund established under section 3.
"Gallon." The quantity of fluid or liquid at a temperature
of 60 degrees Fahrenheit necessary to completely fill a United
States standard gallon liquid measure.
"Gasoline." The same as a motor fuel and also means every
liquid petroleum product, or combination thereof, other than
solvents having an Atmospheric Pressure Index gravity of 46
degrees or above at a temperature of 60 degrees Fahrenheit and
at atmospheric pressure and includes drip, casing head or
natural gasoline. The term includes liquid of less than 46
degrees Atmospheric Pressure Index gravity at a temperature of
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60 degrees Fahrenheit compounded, blended, manufactured or
otherwise produced by mixing or blending gasoline or solvents
with blending materials when the blended product can be used for
generating power in internal combustion engines. Gasoline Gallon
Equivalent (GGE) conversion of natural gas under standard
conditions to the equivalent of a gallon of gasoline so that 1
GGE is 126.67 cubic feet of natural gas.
["Hybrid vehicle." A motor vehicle that draws propulsion
energy from onboard sources of stored energy that are both:
(1) An internal combustion engine using combustible
fuel.
(2) A rechargeable energy storage system.]
"Incremental cost." Either of the following:
(1) The difference between the purchase price of [an
alternative] a low-emission transportation fuel vehicle and
the purchase price of a same or similar model gasoline-only
or diesel-only fueled vehicle.
(2) The difference between the base price of
conventional [diesel] fuel and biodiesel fuel.
"Low-emission transportation fuel." A motor vehicle fuel
which, when compared to conventional gasoline, reformulated
gasoline or diesel fuel, will result in lower emissions of
oxides of nitrogen, volatile organic compounds, greenhouse gases
or particulates or any combination thereof when evaluated on a
life cycle analysis. These shall include, but are not limited
to, compressed natural gas (CNG), liquid natural gas (LNG),
liquid propane gas (LPG), alcohols (ethanol - e85 and methanol -
m85), biomass-based fuels, hydrogen, hythane (any combination of
CNG and hydrogen) and renewable natural gas.
"Low-emission transportation fuel vehicle." A self-propelled
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vehicle operating on a low-emission transportation fuel designed
for transporting persons or property. This term includes a bi-
fuel vehicle, dual-fuel vehicle and dedicated vehicle.
"OEM." The original equipment manufacturer.
"OEM vehicle." A vehicle originally manufactured to run on
[an alternative] a low-emission transportation fuel.
["Qualified biomass-based diesel producer." A producer of
25,000 gallons or more of biomass-based diesel per month with
its principal production facility in this Commonwealth that has
complied with the requirements of section 3.1(a)(2) and that is
in compliance with all laws and current in all obligations to
the Commonwealth.]
"Qualified low-emission transportation fuel producer." A
producer of low-emission transportation fuel whose production
facility of low-emission transportation fuel is located within
this Commonwealth.
["Renewable energy." Energy derived from solar, wind,
geothermal and hydroelectric sources.]
"Renewable natural gas." Biodiesel or biogas, including
biogas derived from municipal solid waste, industrial and food
waste, wastewater treatment and animal manure, resulting from
the decomposition of that organic matter under anaerobic
conditions, the principal constituents of which are methane and
carbon dioxide, that has been upgraded for use in place of
fossil natural gas, gasoline or diesel fuel.
"Retrofit." Install [an alternative] a low-emission
transportation fuel system into a gasoline-fueled vehicle.
["Stationary power facility." A fixed, in-place facility
that generates electric power for distribution into the electric
distribution system or for use onsite as primary power or backup
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power for critical need or at adjacent locations not connected
to the electricity grid for primary power.]
Section 3. [Alternative] Low-Emission Transportation Fuels
Incentive Fund.
(a) Establishment.--There is [hereby] established a separate
account in the State Treasury to be known as the [Alternative]
Low-Emission Transportation Fuels Incentive Fund. This fund
shall be administered by the department for the purposes of this
act. [The fund shall consist of that portion of revenues
allocated from the utilities gross receipts tax as set forth in
section 5.]
(b) Expenditures.--
(1) [Moneys] Money from the fund shall be expended by
the department:
(i) As grants to school districts, municipal
authorities, political subdivisions, nonprofit entities,
corporations, limited liability companies or partnerships
incorporated or registered in this Commonwealth to
provide funding for:
(A) The expenses relative to retrofitting
vehicles to operate on [alternative] low-emission
transportation fuels as either a bi-fuel, dual-fuel[,
hybrid] or dedicated vehicle.
(B) The incremental cost of purchase of bi-fuel,
dual-fuel[, hybrid] or dedicated vehicles.
(C) The cost to purchase and install the
necessary fleet refueling [or home-refueling]
equipment for bi-fuel, dual-fuel[, hybrid] or
dedicated vehicles.
[(D) The cost to perform research, training
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development and demonstration of new applications or
next-phase technology related to alternative fuel
vehicles.]
(ii) As grants to individual residents of this
Commonwealth who purchase [an alternative] a low-emission
transportation fuel vehicle for the cost to purchase and
install the necessary home refueling equipment for bi-
fuel, dual-fuel[, hybrid] or dedicated vehicles.
(iii) As grants to school districts, municipal
authorities, political subdivisions and nonprofit
entities to cover the incremental cost to purchase
[biofuel] low-emission transportation fuel.
(iv) As rebates to residents of this Commonwealth to
meet the incremental cost to individuals who purchase a
bi-fuel, dual-fuel[, hybrid] or dedicated vehicle.
(v) As rebates to residents, school districts,
municipal authorities, political subdivisions, nonprofit
entities, corporations, limited liability companies or
partnerships incorporated or registered in this
Commonwealth to meet the incremental cost to purchase
low-emission transportation fuels that have been produced
in this Commonwealth by a qualified low-emission
transportation fuel producer.
(2) [Moneys] Money from the fund may be expended by the
department as reimbursement of up to 10ยข per gallon in a
calendar year for up to 12,500,000 gallons of [renewable]
low-emission transportation fuels produced by a qualified
[renewable fuels] low-emission transportation fuel producer.
(3) One year after the effective date of this act and
for every year thereafter, the amount of funding by the
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department under this subsection shall be evaluated to
determine whether an adjustment in funding level is
appropriate. The evaluation criteria shall be based on
economic and regulatory conditions that affect the
feasibility of [alternative] low-emission transportation
fuels and the financial solvency of the fund. At no time
shall the grant or rebate funding amount be below the amounts
specified in this section.
(4) No more than [1.5%] 0.5% of the fund may be used to
administer the provisions of this act.
(4.1) No more than [0.5%] 1.0% of the fund may be used
to educate and do outreach to [car] automotive dealers and
consumers about this program.
(5) No more than 10% of the fund may be awarded to any
one school district, municipal authority, political
subdivision, nonprofit entity, corporation, limited liability
company, partnership or resident of this Commonwealth in any
one year, provided that the total amount of grants awarded
and rebates provided to grant and rebate recipients within a
political subdivision in a year shall not exceed 15% of the
fund. However, if the total grant and rebate money to be
awarded in that year is less than the total grant money
available for that year, the department may increase the 10%
and 15% funding levels established under this paragraph not
to exceed 40% of the fund.
[(6) Beginning fiscal year 2008-2009, through and
including fiscal year 2010-2011, the department may expend up
to $100,000 annually from the fund for a nitrogen tire
inflation grant program. The department may award matching
grants of up to 50% of the costs of purchasing and installing
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a nitrogen tire inflation system to automotive service
providers who sell tires in this Commonwealth. Individual
grants may not exceed $5,000 per nitrogen tire inflation
system. The department shall publish guidelines as necessary
to implement the provisions of this subsection and maintain a
registry of all grant recipients on the department's publicly
accessible World Wide Web site.]
(c) Grant program.--The department shall establish a formula
and method for the awarding of grants under [the program]
subsection (b)(1)(i). The department also shall establish a
method by which grant applications will be prioritized according
to, but not limited to, the following goals and criteria:
(1) The improvement of this Commonwealth's air quality.
(2) The fulfillment of the Commonwealth's
responsibilities under the Clean Air Act (69 Stat. 322, 42
U.S.C. ยง 7401 et seq.).
(3) The protection of this Commonwealth's natural
environment, including land, water and wildlife.
(4) The advancement of economic development in this
Commonwealth and the promotion of this Commonwealth's
indigenous resources.
(5) The reduction of this Commonwealth's dependence on
imported crude oil and other petroleum products.
(6) The most cost-effective use of private and public
funding.
[(7) The transfer and commercialization of innovative
alternative energy technologies.]
(c.1) Posting of forms.--The department shall make the grant
application forms under subsection (c) available on the publicly
accessible Internet website of the department.
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(d) Rebate program.--[There is hereby established a rebate
program within the department for individuals residing in this
Commonwealth who purchase a hybrid, plug-in hybrid or other
alternative fuel vehicle] The department shall establish a
formula and method for the awarding of rebates under subsection
(b)(1)(v) as follows:
(1) [The department shall establish a formula and method
for the awarding of rebates under this program. The
department shall publish this information yearly in the
Pennsylvania Bulletin and may also publish this information
on the department's World Wide Web site. Rebates shall be
provided to the extent that funding is available for this
purpose.] To the extent that applications for rebates exceed
the available funds for this program, the department may
award rebates on a pro rata basis.
(2) A request for a rebate must be submitted to the
department no later than six months after the purchase date
of the [hybrid, plug-in hybrid or other alternative fuel]
low-emission transportation fuel vehicle, in a form and
manner prescribed by the department. The department shall
provide an application form [to an individual] upon request,
and the department [may] shall make the application form
available on [its World Wide Web site or through the place of
purchase of a hybrid, plug-in hybrid or other alternative
fuel vehicle.] the department's publicly accessible Internet
website.
(3) Applicants shall provide a copy of a valid
Pennsylvania vehicle registration and proof of purchase when
making a request for a rebate under this program.
(e) Publication.--The formula, methods and criteria under
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subsections (c) and (d) shall be transmitted to the Legislative
Reference Bureau for annual publication in the Pennsylvania
Bulletin and shall be posted annually on the department's
publicly accessible Internet website.
Section 2. Section 3.1 of the act is repealed:
[Section 3.1. Biomass-based diesel production incentives.
(a) Incentives.--The department shall expend up to
$5,300,000 annually from the fund unless the balance of the fund
is less than $5,300,000 on the first day of the fiscal year, in
which case the department shall expend up to one-third of the
balance of the fund:
(1) As a production incentive of 75ยข per gallon for
biomass-based diesel produced in this Commonwealth beginning
July 1, 2008, and sold in this Commonwealth for commercial
transportation purposes or for residential heating. In the
case of biomass-based diesel, this incentive shall be
available through June 30, 2011. If the total monthly amount
of production incentives applied for by all qualified
applicants exceeds the remaining amount available for those
incentives, then the incentive shall be prorated among all
qualified applicants. An individual qualified biomass-based
diesel producer shall not receive more than $1,900,000 in
incentives in any one fiscal year. For purposes of this
section, all facilities under common ownership shall be
counted as a single facility.
(2) A producer of biomass-based diesel in this
Commonwealth shall file for the production incentive on a
monthly basis on a form furnished by the department. The form
shall require the producer to submit proof of production of
the biomass-based diesel and the number of gallons sold
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during the previous calendar month and such other information
as the department deems appropriate. A biomass-based diesel
producer shall also submit a certificate of analysis from an
accredited laboratory for every 500,000 gallons of biomass-
based diesel produced showing that the biodiesel meets the
ASTM Specification D6751, Standard Specification for
Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels
or its successor standard.
(b) Exception.--A qualified biomass-based diesel producer
who receives an incentive under this section shall not be
eligible to receive an incentive under section 3.]
Section 3. Section 4 of the act is amended to read:
Section 4. Annual report.
The department shall annually make a report to the
Environmental Resources and Energy Committee of the Senate and
the Environmental Resources and Energy Committee of the House of
Representatives [on], including, but not limited to, the
activities undertaken pursuant to this act, including the number
of grants awarded, rebates given and other expenditures from the
fund.
Section 4. Section 5 of the act is repealed:
[Section 5. Interfund transfer.
(a) General rule.--The department may transfer money from
the Alternative Fuels Incentive Fund to the Energy Development
Fund one time during the fiscal year beginning July 1, 2004.
(b) Use of transferred funds.--
(1) Funds transferred to the Energy Development Fund
under this section shall be used to provide financial
assistance for research directly related to alternative
energy sources and for the development and installation of
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stationary power facilities within this Commonwealth that
utilize alternative energy sources to produce electric power.
The financial assistance offered under this section shall be
limited to grants and low-interest loans, at or below
prevailing interest rates and loan guarantees.
(2) These funds shall also be used to support the
establishment of public or private partnerships among
postsecondary institutions and private sector organizations.
The public or private sector partnerships should be designed
to support a broad program of research and development of
alternative energy power sources. Research funds shall be
directed toward those projects that can clearly demonstrate
that the technology being studied can be practically applied.
(c) Development of guidelines.--Prior to any usage of the
funds transferred to the Energy Development Fund, the department
shall develop guidelines for the application and use of these
funds, including all applicable eligibility criteria which shall
also describe the manner of application for financial assistance
and an application for assistance under this section. The
department shall provide these guidelines to the majority and
minority chairman of the Environmental Resources and Energy
Committee of the Senate and the majority and minority chairman
of the Environmental Resources and Energy Committee of the House
of Representatives 60 days prior to issuing the guidelines to
the general public. No financial assistance shall be provided to
any applicant by the department until guidelines are issued to
the general public. The department shall provide a reasonable
opportunity for the general public to apply for funds under this
section before making any financial assistance announcements or
awards.
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(d) Lapse.--Any unexpended funds from the transfer shall
lapse to the General Fund on June 30, 2006.]
Section 5. This act shall take effect immediately.
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