THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY WATSON, DENLINGER, MARSHALL, MOUL, PERRY, PICKETT, SAYLOR, MAJOR, AUMENT, BAKER, BARRAR, BOYD, CALTAGIRONE, CARROLL, CAUSER, CREIGHTON, CUTLER, DALEY, DAVIS, ELLIS, J. EVANS, EVERETT, GEIST, GIBBONS, GILLESPIE, GINGRICH, GODSHALL, GRELL, GROVE, HELM, HICKERNELL, KAUFFMAN, M. K. KELLER, KILLION, KNOWLES, MICOZZIE, MILLER, MUSTIO, D. O'BRIEN, QUINN, READSHAW, ROCK, SCAVELLO, SIMMONS, STEPHENS, VULAKOVICH, WHITE, RAPP, PETRI AND BEAR, APRIL 20, 2011

REFERRED TO COMMITTEE ON TRANSPORTATION, APRIL 20, 2011  

AN ACT

Establishing the Clean Transit Program; and providing a transfer

of funds from the Oil and Gas Lease Fund to the Department of

Environmental Protection for a loan program for the

transition of large mass transit bus fleets to compressed

natural gas.

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 Clean Transit

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:

"Department."  The Department of Environmental Protection of

the Commonwealth.

"Large mass transit authority."  A mass transit authority

located in this Commonwealth that exceeds 245,000 revenue

vehicle hours for two consecutive years.

"Mass transit authority."  An operator of regularly scheduled

transportation that is available to the general public and is

provided according to published schedules along designated

published routes with specified stopping points for the taking

on and discharging of passengers. The term does not include

exclusive ride taxi services, charter or sightseeing services,

nonpublic transportation or school bus or limousine services.

"Program."  The Clean Transit Program.

Section 3.  Clean Transit Program.

(a)  Establishment.--The department shall establish and

administer the Clean Transit Program.

(b)  Purpose.--The program is established in order to

decrease emissions from mass transit buses by utilizing natural

gas as a vehicle fuel.

(c)  Transfer of funds.--The State Treasurer shall transfer

from the Oil and Gas Lease Fund to the department the sum of

$7,500,000 to fund the program.

(d)  Use of funds.--The sum of $7,500,000 shall be deposited

into a fund to be administered by the department and made

available to large mass transit authorities for the conversion

of buses to run on compressed natural gas as a fuel source or to

purchase buses which use compressed natural gas as a fuel

source. The following shall apply:

(1)  The money in the fund shall be appropriated on a

continuing basis.

(2)  No more than 1.5% of the fund may be used for

administration.

(3)  The department may set terms applicable to loans in

any manner it deems appropriate, subject to the provisions of

this act.

(e)  Application process.--

(1)  A mass transit authority must complete and submit to

the department a clean transit loan application.

(2)  Approved applications must obligate the mass transit

authority to contract with a private company:

(i)   to build exclusively with private funds; and

(ii)  to maintain and operate any new compressed

natural gas fueling facility necessary to support

compressed natural gas buses purchased with funds

received under this act.

(3)  The term "operate" as used in this subsection shall

not include the actual act of fueling buses.

(f)  Eligible costs.--

(1)  Loan funds received under this act shall be eligible

for:

(i)  Federally assisted bus purchases and shall be

limited to the total percentage of the State and local

match portion applied only to the incremental cost of a

new compressed natural gas bus or compressed natural gas

bus conversion.

(ii)  Nonfederally assisted bus purchases and shall

be limited to 50% of the total incremental cost of a new

compressed natural gas bus or compressed natural gas bus

conversion.

(2)  The incremental cost shall be capped at $50,000 for

buses which have a gross vehicle weight rating over 26,000

pounds and $25,000 for buses with a gross vehicle weight

rating of 26,000 pounds and under.

(3)  Buses with a gross vehicle weight rating of 14,000

pounds or less shall be ineligible.

(4)  Priority shall be given to those applications which

provide for public access to compressed natural gas vehicle

fueling dispensers.

(g)  Loan program.--The department shall establish a formula

and method for awarding of loans under the program consistent

with this act.

(h)  Fund repayment.--

(1)  Loans disbursed from the fund under subsection (d)

shall be repaid within five years from disbursement and

before June 30, 2021.

(2)  On June 30, 2021, no money shall be deposited into

the fund and any remaining money in the fund shall be

transferred to the Oil and Gas Lease Fund.

(3)  The interest rate for loans provided by the program

shall be 2%.

(i)  Appeal process.--Applicants that are not awarded grants

under this act shall not have the right to a hearing or the

issuance of an adjudication under section 4 of the act of July

13, 1988 (P.L.530, No.94), known as the Environmental Hearing

Board Act, regarding the department's decision.

Section 20.  Effective date.

This act shall take effect in 60 days.