Pennslyvania Alternative Fuels Incentive Fund Signed

Senate Bill 255, sponsored by Sen. Robert M. Tomlinson (R-Bucks), establishes the Alternative Fuels Incentive Act and establishes a separate fund in the State Treasury to be known as the Alternative Fuels Incentive Fund.
The fund is to consist of a portion of revenues allocated from the utilities gross receipts tax. Moneys are to be expended by the Department of Environmental Protection for grants to school districts, municipal authorities, political subdivisions, nonprofit entities, corporations, LLC’s or partnerships for costs associated with retrofitting and acquisition of vehicles that use alternative fuels.
Additionally, citizens may be eligible for grants to offset the cost of home refueling equipment and or rebates to meet the incremental costs of bi-fuel, dual-fuel, hybrid, or dedicated vehicles. The bill provides DEP with up to 2% of the fund for administrative costs and limits the amount of the fund that can be awarded to any one entity. The bill provides for an annual report by DEP to the House and Senate Environmental Resources and Energy Committees as to the number of grants and rebates awarded.

The bill also provides for a one-time transfer of money for the 2004-2005 fiscal year from the fund to the Energy Development Fund. Funds will be used for financial assistance in the form of grants and low interest loans for research directly related to alternative energy sources and installation of stationary power facilities in the state that use alternative energy sources to produce electric power. The Department is to develop guidelines for use of the funds. Unspent funds are to lapse to the general fund on June 30, 2006. The bill also repeals current regulations that are inconsistent. The measure passed the Senate, 48-0, and was approved in the House, 196-0, where it was amended. The Senate concurred and passed the bill, 47-0. It takes effect immediately.

http://www.state.pa.us/papower/cwp/view.asp?A=11&Q=439232