Bill Text: PA HB1040 | 2009-2010 | Regular Session | Introduced

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Bill Title: Establishing the Fuels for Schools and Beyond Program and a special fund; providing for grants, for powers and duties of the Department of Agriculture, for reports and for interfund transfers.

Spectrum: Moderate Partisan Bill (Republican 44-6)

Status: (Introduced - Dead) 2009-03-23 - Referred to AGRICULTURE AND RURAL AFFAIRS [HB1040 Detail]

Download: Pennsylvania-2009-HB1040-Introduced.html

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PRINTER'S NO. 1211
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 1040 Session of2009
INTRODUCED BY RAPP, HUTCHINSON, GABLER, OBERLANDER, BROOKS, BEYER, CAUSER, CHRISTIANA, CLYMER, CREIGHTON, CUTLER, GABIG, GEIST, GILLESPIE, GINGRICH, GRELL, GROVE, HALUSKA, HARPER, HORNAMAN, KAUFFMAN, M. KELLER, KORTZ, KRIEGER, MAHER, MAJOR, MARSHALL, MENSCH, METCALFE, MILLARD, MOUL, PEIFER, PICKETT, PYLE, REICHLEY, ROAE, ROHRER, SAYLOR, SCAVELLO, SCHRODER, SIPTROTH, SONNEY, STERN, STEVENSON, SWANGER, VITALI AND VULAKOVICH, MARCH 23, 2009
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, MARCH 23, 2009
AN ACT
Establishing the Fuels for Schools and Beyond Program and a
special fund; providing for grants, for powers and duties of
the Department of Agriculture, for reports and for interfund
transfers.
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 Fuels for
Schools and Beyond Program Act.
Section 2. Legislative findings.
The General Assembly of the Commonwealth of Pennsylvania
finds and declares as follows:
(1) Biomass heating is a proven technology, and this
Commonwealth is home to a prosperous and vibrant biomass
industry. Increased use of biomass as a fuel source can
contribute to this Commonwealth's energy security through a
more diversified mix of energy sources.
(2) Utilizing one ton of wood for heat displaces
approximately 79 gallons of fuel oil that would have
otherwise been used.
(3) Biomass has been recognized as a cost-efficient fuel
and can significantly reduce expenditures associated with
energy needs.
(4) The economic value of biomass use is significant.
Studies have indicated that 90% of the funds used to produce
and utilize biomass energy remain in local economies, whereas
only about 10% of the funds used to produce and utilize
fossil fuels remain local.
(5) Using biomass as a fuel source provides a beneficial
use for underutilized low-grade timber, resulting in
healthier and more productive forests, and creates additional
forestry and agricultural jobs for residents of this
Commonwealth.
Section 3. 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:
"Biomass energy." Organic matter, especially plant matter,
which can be utilized or converted for fuel, which shall mean
the generation of heat or electricity utilizing the following:
(1) the cellulosic products and by-products of forestry
operations, wood manufacturing processes and pulp and paper
manufacturing processes;
(2) organic material from a plant that is grown for the
purpose of being used for fuel or is protected by the Federal
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Conservation Reserve Program (CRP) and provided further that
crop production on CRP lands does not prevent achievement of
the water quality protection, soil erosion prevention or
wildlife enhancement purposes for which the land was
primarily set aside; or
(3) any solid nonhazardous, cellulosic waste material
that is segregated from other waste materials, such as waste
pallets, crates and landscape or right-of-way tree trimmings
or agricultural sources, including orchard tree crops,
vineyards, grain, legumes, sugar and other crop by-products
or residues.
"Biomass system." A space heating, water heating or
cogeneration system that uses biomass energy as its primary fuel
source.
"Cogeneration system." A system that uses a heat engine or
power station to simultaneously generate space or water heat as
well as electricity.
"Department." The Department of Agriculture of the
Commonwealth.
"Eligible costs." Specifically, the expense of biomass
energy heating system installation, including the costs of
necessary equipment, a chimney, air quality technology,
additional square footage necessary to house the heating unit
and fuel, equipment for fuel storage and delivery and equipment
to deliver heat to adjoining buildings. The term does not
include the costs of staff, fuel delivery and other ancillary
costs as determined by the Department of Environmental
Protection.
"Fund." The Fuels for Schools and Beyond Program Fund.
"Program." The Fuels for Schools and Beyond Program.
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"Secretary." The Secretary of Agriculture of the
Commonwealth.
"School." A public or nonpublic pre-kindergarten,
kindergarten, elementary school or secondary school at which the
compulsory attendance requirements of the Commonwealth may be
met and which meets the applicable requirements of Title VI of
the Civil Rights Act of 1964 (Public Law 88-352, 78 Stat. 241).
The term includes a postsecondary institution of higher
education.
"Working group." A Statewide energy-use collaboration
identified by the Department of Agriculture as the primary
organization aimed at promoting the use of local wood and
biomass resources to provide reliable energy for Pennsylvania
schools and businesses.
Section 4. Fuels for Schools and Beyond Program.
The Fuels for Schools and Beyond Program is established
within the department. The purpose of the program is to aid
Commonwealth schools in converting traditional heating systems
to biomass energy as a primary fuel source.
Section 5. Fuels for Schools and Beyond Program funding grants.
The amount of an award for the incremental costs associated
with the installation of a space heating or water heating system
that uses biomass energy as the primary fuel source shall be 50%
of the approved eligible costs not to exceed $300,000. Schools
applying for funding under this act or receiving funding under
this act must conform to any and all Department of Education
regulations pertaining to facility improvements and school
construction.
Section 6. Standards.
The department shall establish and adopt minimum standards
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relating to design, efficiency, performance and emissions for
biomass energy heating systems receiving funding under this act.
Section 7. Application.
On or before May 1 of each year following the enactment of
this act, schools interested in participating in the program
must submit an application to the department for funding under
this act. The application shall be on a form provided by the
department and shall include all of the following:
(1) The name of the school or school district and
building or buildings where biomass energy is to be used as
fuel.
(2) Demonstrated cost effectiveness, including a
detailed cost analysis of the proposed biomass system
outlining fuel costs and savings over time, as well as other
operating costs, and the net savings against the cost of
installing the biomass system in relation to current fuel and
energy costs.
(3) A description of the biomass system to be installed.
(4) A description of the project costs, including the
amount the recipient is intending to spend on the project and
the amount of assistance sought as a match under this act.
(5) Such other information as the department may
require.
Section 8. Department review.
The department shall review all applications received and
shall determine the applicants eligible for funding under this
act. The department, being satisfied that the applicant has met
all requirements, shall approve the application and award the
grant. The department shall forward copies of all applications
received to the working group. The working group shall review
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the applications and provide its recommendations for use by the
department in awarding grants.
Section 9. Establishment of fund.
The Fuels for Schools and Beyond Program Fund is established
in the State Treasury. All payments received by the department
pursuant to this act shall be deposited in the fund. Any unused
moneys in the fund shall remain in the fund and any interest
earned by the fund shall remain in the fund.
Section 10. Report and recommendations.
The department shall make a report of the program listing the
schools and school districts that were funded under this act, a
brief description of the nature of their projects and the amount
of funding each school received, as well as recommendations for
improving upon the program within one year of awarding the first
grants under this act and each subsequent year, to the President
pro tempore of the Senate, the Minority Leader of the Senate,
the Speaker of the House of Representatives and the Minority
Leader of the House of Representatives. The department shall
also make the report available on the department's Internet
website. Following the third year of funded projects under this
act, the department shall, in addition, recommend any changes
that would allow for the program to be expanded to include other
public buildings, as well as any funding changes the department
may recommend.
Section 11. Interfund transfer.
The Secretary of the Budget shall transfer $15,000,000 from
the funds appropriated to the Commonwealth Financing Authority
under section 307(a) of the act of July 9, 2008 (Sp.Sess., P.L.
, No.1), known as the Alternative Energy Investment Act, to the
Fuels for Schools and Beyond Fund. Not more than $5,000,000 of
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this fund may be used annually to support grants under section
5.
Section 12. Effective date.
This act shall take effect immediately.
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