Pennsylvania Act 2008-2 (session 1) — ALTERNATIVE FUELS INCENTIVE ACT - ALTERNATIVE FUELS INCENTIVE FUND AND BIOMASS-BASED DIESEL PRODUCTION INCENTIVES

act-2008-1-22008 Pa. Act 2 (session 1)Law

Act text
ALTERNATIVE FUELS INCENTIVE ACT - ALTERNATIVE FUELS INCENTIVE FUND AND
                BIOMASS-BASED DIESEL PRODUCTION INCENTIVES
        Act of Jul. 10, 2008, Special Session 1, P.L. 1891, No. 2     Cl. 27
                      Special Session No. 1 of 2008
                                No. 2008-2

     SB 22

                                  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 definitions and for the Alternative
        Fuels Incentive Fund; and providing for biomass-based diesel
        production incentives.

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

        Section 1.  Section 2 of the act of November 29, 2004
     (P.L.1376, No.178), known as the Alternative Fuels Incentive
     Act, is amended by adding definitions to read:
      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.
        * * *
        "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. § 7545(o)(1)(D)) and shall meet
     the ASTM Specification D6751 Standard Specification for
     Biodiesel Fuel Blend Stock (B100) for Middle Distillate Fuels or
     its successor standard.
        * * *
        "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.
        * * *
        Section 2.  Section 3(b) and (d) of the act are amended to
     read:
      Section 3.  Alternative Fuels Incentive Fund.
        * * *
        (b)  Expenditures.--
            (1)  Moneys 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 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
                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 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.
                (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.
            (2)  Moneys from the fund may be expended by the
        department as reimbursement of up to [5¢] 10¢ per gallon in a
        calendar year for up to 12,500,000 gallons of renewable fuels
        produced by a qualified renewable fuels producer.
            (3)  One year after the effective date of this act and
        for every year thereafter, the amount of funding by the
        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 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 [2%] 1.5% of the fund may be used to
        administer the provisions of this act.
            (4.1)  No more than 0.5% of the fund may be used to
        educate and do outreach to car 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
        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.
        * * *
        (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[.] 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
        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 make the
        application form on its World Wide Web site or through the
        place of purchase of [the hybrid] a hybrid, plug-in hybrid or
        other alternative fuel vehicle.
            (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.
        Section 3.  The act is amended by adding a section to read:
      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 75¢ 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
        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 4.  This act shall take effect as follows:
            (1)  The amendment or addition of sections 2 and 3.1 of
        the act shall take effect January 1, 2008, or immediately,
        whichever is later.
            (2)  This section shall take effect immediately.
            (3)  The remainder of this act shall take effect in 60
        days.

     APPROVED--The 10th day of July, A. D. 2008.

     EDWARD G. RENDELL

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