SB 146 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in emergency COVID-19 response, providing for extension of use of certain funds; in Child Care Staff Recruitment and Retention Program, further providing for Child Care Staff Recruitment and Retention Program; in cigarette sales and licensing, further providing for definitions and providing for allowable mode of operations for licensed cigarette stamping agents; in joint underwriting association, further providing for fund transfers; providing for food processing residuals; in financially distressed municipalities, further providing for financial recovery; in oil and gas wells, further providing for Oil and Gas Lease Fund and providing for deep wells and Utica Shale permits and for well plugging; providing for manufacturing and investment tax credit, for Innovate in PA 2.0 Tax Credit and for design build best value; in human services, further providing for medical assistance payments for institutional care, for resident care and related costs and for LIFE Program and providing for transition to chip-enabled access cards, for Medical Assistance Reentry Program, for Children's Trust Fund and for medical assistance pharmacy services; in additional keystone opportunity expansion zones, providing for additional zone for shipbuilding and for additional zones; providing for residential revitalization keystone opportunity zones and for violent incident clearance and technological investigative methods; in special funds, further providing for funding and for Pennsylvania Convention Center; in additional special funds and restricted accounts, providing for Veterans' Trust Fund Board and further providing for establishment of special fund and account, for use of fund and for distributions from Pennsylvania Race Horse Development Fund; in additional special funds and restricted accounts, further providing for deposits and providing for Professional Licensure Augmentation Account; in general budget implementation, further providing for Executive Offices, for Department of Agriculture, for Department of Corrections, for Department of Labor and Industry and for Department of Transportation, providing for Pennsylvania Emergency Management Agency and further providing for Commonwealth Financing Authority, for Federal and Commonwealth use of forest land, for Multimodal Transportation Fund, for School Safety and Security Fund, for State Gaming Fund, for State Employees' Retirement System Restricted Account and for Public School Employees' Retirement System Restricted Account; in retirement, providing for 2026 special ad hoc municipal police and firefighter postretirement adjustment, for supplemental annuities for public school employees commencing 2026, for supplemental annuities for State employees commencing 2026 and for payment of supplemental annuity and special ad hoc postretirement adjustment; in electricity load forecast accountability, providing for energy and water reporting and for advanced transmission technologies; in 2025-2026 budget implementation, further providing for Department of Agriculture, for Department of Human Services and for Pennsylvania Higher Education Assistance Agency; providing for 2026-2027 budget implementation and for 2026-2027 restrictions on appropriations for funds and accounts; in fiscal supplements to statutory programs, providing for amusement tax clarification, for situs for local sales tax for cities of the first class, for situs for local sales tax for counties of the second class, for net income and for housing; abrogating a regulation; making repeals; providing for suspension of pension actuarial notes; and making editorial changes.

(5) SECTION 11 OF ARTICLE III OF THE CONSTITUTION OF PENNSYLVANIA REQUIRES THE ADOPTION OF A GENERAL APPROPRIATION ACT THAT EMBRACES "NOTHING BUT APPROPRIATIONS." WHILE ACTUAL ITEMS OF APPROPRIATION CAN BE CONTAINED IN A GENERAL APPROPRIATION ACT, THE ACHIEVEMENT AND IMPLEMENTATION OF A COMPREHENSIVE BUDGET INVOLVES MORE THAN SUBJECTS OF APPROPRIATIONS AND DOLLAR AMOUNTS.

ULTIMATELY, THE BUDGET HAS TO BE BALANCED UNDER SECTION 13 OF ARTICLE VIII OF THE CONSTITUTION OF PENNSYLVANIA.

THIS MAY NECESSITATE CHANGES TO SOURCES OF FUNDING AND ENACTMENT OF STATUTES TO ACHIEVE FULL COMPLIANCE WITH THESE CONSTITUTIONAL PROVISIONS.

(6) FOR THE REASONS UNDER PARAGRAPHS (1), (2), (3), (4) AND (5), IT IS THE INTENT OF THE GENERAL ASSEMBLY THROUGH THIS ACT TO PROVIDE FOR THE IMPLEMENTATION OF THE 2026-2027 COMMONWEALTH BUDGET.

(7) EVERY PROVISION OF THIS ACT RELATES TO THE IMPLEMENTATION OF THE OPERATING BUDGET OF THE COMMONWEALTH FOR THIS FISCAL YEAR, ADDRESSING IN VARIOUS WAYS THE FISCAL OPERATIONS, REVENUES AND POTENTIAL LIABILITIES OF THE COMMONWEALTH.

TO THAT END, THIS ACT IS INTENDED TO IMPLEMENT THE 2026-2027 COMMONWEALTH BUDGET WITHOUT SPECIFICALLY APPROPRIATING PUBLIC MONEY FROM THE GENERAL FUND.

THIS ACT PROVIDES ACCOUNTABILITY FOR SPENDING AND MAKES TRANSFERS OR OTHER CHANGES NECESSARY TO IMPACT THE AVAILABILITY OF REVENUE IN ORDER TO MEET THE REQUIREMENTS OF SECTION 13 OF ARTICLE VIII OF THE CONSTITUTION OF PENNSYLVANIA AND TO IMPLEMENT THE ACT OF , 2026 (P.L.

, NO.

), KNOWN AS THE GENERAL APPROPRIATION ACT OF 2026.

20250SB0146PN1888 - 10 - THE GENERAL ASSEMBLY OF THE COMMONWEALTH OF PENNSYLVANIA HEREBY ENACTS AS FOLLOWS:

SECTION 1.

THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE, IS AMENDED BY ADDING A SECTION TO READ:

SECTION 197-C.

EXTENSION OF USE OF CERTAIN FUNDS.

(A) USE OF REMAINING FUNDS.--NOTWITHSTANDING THE PROVISIONS OF SECTIONS 194-C(B), 195-C(B), 196-C(D) AND 1712-E, THE AGENCY SHALL USE THE REMAINING FUNDS ALLOCATED FOR GRANTS FOR PROJECTS THAT ARE AN ELIGIBLE USE OF FUNDS RELATING TO HOUSING UNDER 31 CFR PT.

35 (RELATING TO PANDEMIC RELIEF PROGRAMS).

(B) TRANSFER OF FUNDS.-- (1) FROM FUNDS APPROPRIATED FOR COVID RELIEF - ARPA - DEVELOPMENT COST RELIEF PROGRAM, COVID RELIEF - ARPA -CONSTRUCTION COST RELIEF AND COVID RELIEF - ARPA - AFFORDABLE HOUSING CONSTRUCTION, THE AGENCY SHALL TRANSFER $11,789,348 TO THE COVID-19 RESPONSE RESTRICTED ACCOUNT, NO LATER THAN SEPTEMBER 10, 2026, WHICH ARE HEREBY APPROPRIATED TO THE DEPARTMENT OF CORRECTIONS FOR THE PURPOSES SPECIFIED UNDER SECTION 1712-E(E)(1).

(2) ANY MONEY NOT EXPENDED BY THE AGENCY BY DECEMBER 11, 2026, SHALL BE TRANSFERRED BY THE STATE TREASURER TO THE COVID-19 RESPONSE RESTRICTED ACCOUNT NO LATER THAN DECEMBER 18, 2026, WHICH ARE HEREBY APPROPRIATED TO THE DEPARTMENT OF CORRECTIONS FOR THE PURPOSES SPECIFIED UNDER SECTION 1712- E(E)(1).

(C) MONEY APPROPRIATED.--ALL MONEY APPROPRIATED FOR THE PROGRAMS ESTABLISHED IN SECTIONS 194-C, 195-C AND 196-C OR OBLIGATED, TRANSFERRED OR APPROPRIATED IN ACCORDANCE WITH THE REQUIREMENTS OF SUBSECTIONS (A) AND (B) MUST BE EXPENDED BY DECEMBER 31, 2026.

20250SB0146PN1888 - 11 - (D) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"AGENCY." THE PENNSYLVANIA HOUSING FINANCE AGENCY.

SECTION 2.

SECTION 103-H.1(C), (D)(1) AND (E)(3) OF THE ACT, ADDED NOVEMBER 12, 2025 (P.L.156, NO.45), ARE AMENDED TO READ:

SECTION 103-H.1.

CHILD CARE STAFF RECRUITMENT AND RETENTION PROGRAM.

* * * (C) DETERMINATION.--THE DEPARTMENT SHALL APPROVE OR DENY AN APPLICATION SUBMITTED UNDER SUBSECTION (B) NO LATER THAN [45] 60 DAYS AFTER RECEIPT.

THE DEPARTMENT MAY NOT MAKE A PAYMENT TO AN ENTITY THAT IS NOT A QUALIFIED CHILD CARE PROVIDER.

(D) ALLOCATION OF PAYMENTS.-- (1) THE DEPARTMENT SHALL ALLOCATE PAYMENTS TO ADMINISTER AN INDIVIDUAL RETENTION BONUS OF AT LEAST [$450] $540 PER MEMBER OF QUALIFIED STAFF.

* * * (E) CONDITIONS.-- * * * (3) PAYMENTS RECEIVED BY A QUALIFIED CHILD CARE PROVIDER SHALL BE EXPENDED IN THE [FISCAL] YEAR IN WHICH THE PAYMENT IS MADE.

A QUALIFIED CHILD CARE PROVIDER SHALL PAY A RETENTION BONUS TO QUALIFIED STAFF WITHIN 45 DAYS OF THE DATE ON WHICH THE QUALIFIED CHILD CARE PROVIDER RECEIVED THE PAYMENT UNDER THIS ARTICLE.

* * * SECTION 3.

SECTION 202-A OF THE ACT IS AMENDED BY ADDING A DEFINITION TO READ:

SECTION 202-A.

DEFINITIONS.--AS USED IN THIS ARTICLE-- 20250SB0146PN1888 - 12 - * * * "RELATED ENTITY SUPPLIER" SHALL MEAN AN ENTITY THAT OWNS AT LEAST A MAJORITY INTEREST IN A CIGARETTE STAMPING AGENT OR IN WHICH A CIGARETTE STAMPING AGENT OWNS A MAJORITY INTEREST, OR AN ENTITY OF WHICH A MAJORITY OF THE BENEFICIAL OWNERSHIP IS THE SAME AS THE MAJORITY BENEFICIAL OWNERSHIP IN A CIGARETTE STAMPING AGENT.

* * * SECTION 4.

THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 204.1-A.

ALLOWABLE MODE OF OPERATIONS FOR LICENSED CIGARETTE STAMPING AGENTS.--A CIGARETTE STAMPING AGENT UNDER THIS ARTICLE SHALL ONLY PURCHASE CIGARETTES DIRECTLY FROM A TOBACCO PRODUCT MANUFACTURER OR FROM A RELATED ENTITY SUPPLIER THAT HAS PURCHASED CIGARETTES DIRECTLY FROM A TOBACCO PRODUCT MANUFACTURER.

CIGARETTE STAMPING AGENTS SHALL NOT OTHERWISE SELL UNSTAMPED CIGARETTES TO ANY OTHER CIGARETTE DEALERS.

SECTION 5.

SECTION 209-D(B) AND (C)(1) OF THE ACT, ADDED NOVEMBER 12, 2025 (P.L.156, NO.45), ARE AMENDED TO READ:

SECTION 209-D.

FUND TRANSFERS.

* * * (B) USE OF MONEY.--MONEY DEPOSITED INTO THE GENERAL FUND UNDER [SUBSECTION (A)] THIS SECTION SHALL BE AVAILABLE FOR EXPENDITURES IN ACCORDANCE WITH APPROPRIATIONS BY THE GENERAL ASSEMBLY TO THE DEPARTMENT OF HUMAN SERVICES FOR MEDICAL ASSISTANCE PAYMENTS FOR CAPITATION PLANS.

(C) FUTURE TRANSFERS.--FOR FISCAL YEARS BEGINNING ON OR AFTER JULY 1, 2026, THE FOLLOWING AMOUNTS, AS CERTIFIED AVAILABLE BY THE COMMISSIONER UNDER SECTION 208-D, SHALL BE TRANSFERRED FROM THE JOINT UNDERWRITING ASSOCIATION TO THE GENERAL FUND:

20250SB0146PN1888 - 13 - (1) [(RESERVED).] FOR THE FISCAL YEAR BEGINNING JULY 1, 2026, THE AMOUNT TO BE TRANSFERRED TO THE GENERAL FUND UNDER THIS SUBSECTION SHALL BE $14,300,000.

* * * SECTION 6.

THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:

ARTICLE XIII FOOD PROCESSING RESIDUALS SUBARTICLE A GENERAL PROVISIONS SECTION 1301.

SCOPE OF ARTICLE.

THIS ARTICLE RELATES TO FOOD PROCESSING RESIDUALS MANAGEMENT.

SECTION 1302.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"AGRICULTURAL OPERATOR." A PERSON THAT HAS MANAGEMENT CONTROL OF A NORMAL FARMING OPERATION.

"BEST MANAGEMENT PRACTICE." A PRACTICE OR COMBINATION OF PRACTICES DETERMINED BY THE COMMISSION TO BE EFFECTIVE AND PRACTICABLE GIVEN TECHNOLOGICAL, ECONOMIC AND INSTITUTIONAL CONSIDERATIONS, TO MANAGE NUTRIENTS AND CHARACTERISTICS OF INTEREST TO PROTECT SURFACE WATER AND GROUNDWATER, TAKING INTO ACCOUNT APPLICABLE NUTRIENT REQUIREMENTS FOR CROP UTILIZATION.

"BOARD." THE AGRICULTURAL ADVISORY BOARD ESTABLISHED UNDER 27 PA.C.S.

§ 702 (RELATING TO ESTABLISHMENT OF BOARD).

"CHARACTERISTICS OF INTEREST." SPECIFIC COMPONENTS THAT MAY BE PRESENT IN FOOD PROCESSING RESIDUALS THAT ARE OF SPECIAL CONCERN DUE TO THEIR POTENTIAL TO CAUSE IRREVOCABLE HARM TO SOIL, POLLUTION TO SURFACE WATER AND GROUNDWATER OR HARM TO PUBLIC HEALTH.

20250SB0146PN1888 - 14 - "COMMERCIAL FOOD PROCESSING RESIDUALS BROKER." A PERSON THAT IS NOT WORKING FOR OR UNDER THE CONTROL OF AN AGRICULTURAL OPERATOR OR FOOD PROCESSING RESIDUALS GENERATOR AND THAT ASSUMES TEMPORARY CONTROL OR OWNERSHIP OF THE FOOD PROCESSING RESIDUALS FROM A FOOD PROCESSING RESIDUALS GENERATOR AND ARRANGES FOR TRANSPORT TO AND UTILIZATION AT AN IMPORTING AGRICULTURAL OPERATION.

"COMMERCIAL FOOD PROCESSING RESIDUALS HAULER." A PERSON THAT TRANSPORTS OR LAND-APPLIES FOOD PROCESSING RESIDUALS UNDER THIS ARTICLE AS A CONTRACT AGENT FOR AN AGRICULTURAL OPERATOR, AS AN EMPLOYEE OR CONTRACT AGENT FOR A FOOD PROCESSING RESIDUALS GENERATOR OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER UNDER THE DIRECTION OF THE OPERATOR, FOOD PROCESSING GENERATOR OR BROKER.

"COMMISSION." THE STATE CONSERVATION COMMISSION ESTABLISHED UNDER SECTION 4 OF THE ACT OF MAY 15, 1945 (P.L.547, NO.217), KNOWN AS THE CONSERVATION DISTRICT LAW.

"DEPARTMENT." THE DEPARTMENT OF AGRICULTURE OF THE COMMONWEALTH.

"FOOD PROCESSING RESIDUALS." RESIDUAL MATERIALS IN LIQUID OR SOLID FORM GENERATED IN THE SLAUGHTERING OF POULTRY AND LIVESTOCK, OR IN PROCESSING AND CONVERTING FISH, SEAFOOD, MILK, MEAT AND EGGS TO FOOD PRODUCTS.

THE TERM INCLUDES RESIDUAL MATERIALS GENERATED IN THE PROCESSING, CONVERTING OR MANUFACTURING OF FRUITS, VEGETABLES, CROPS AND OTHER COMMODITIES INTO MARKETABLE FOOD ITEMS.

THE TERM DOES NOT INCLUDE FOOD PROCESSING RESIDUALS TRANSPORTED TO A NORMAL FARMING OPERATION AND USED TO FEED LIVESTOCK OR POULTRY.

"LAND APPLICATION SYSTEM." A WRITTEN SITE-SPECIFIC PLAN THAT INCORPORATES BEST MANAGEMENT PRACTICES FOR THE USE OF FOOD 20250SB0146PN1888 - 15 - PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS, INCLUDING STORAGE, PROCESSING AND LAND APPLICATION.

"LAND APPLICATION SYSTEM NOTIFICATION." WRITTEN NOTIFICATION THAT A NORMAL FARMING OPERATION HAS A LAND APPLICATION SYSTEM FOR THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS.

"NORMAL FARMING OPERATION." THE CUSTOMARY AND GENERALLY ACCEPTED ACTIVITIES, PRACTICES AND PROCEDURES THAT FARMS ADOPT, USE OR ENGAGE IN YEAR AFTER YEAR IN THE PRODUCTION AND PREPARATION FOR MARKET OF POULTRY, LIVESTOCK AND THEIR PRODUCTS;

AND IN THE PRODUCTION, HARVESTING AND PREPARATION FOR MARKET OF AGRICULTURAL, AGRONOMIC, HORTICULTURAL, SILVICULTURAL AND AQUACULTURAL CROPS AND COMMODITIES;

PROVIDED THAT SUCH OPERATION IS CONDUCTED IN COMPLIANCE WITH APPLICABLE LAWS, AND PROVIDED THAT THE USE OR DISPOSAL OF THESE MATERIALS WILL NOT POLLUTE THE AIR, WATER OR OTHER NATURAL RESOURCES OF THE COMMONWEALTH.

THE TERM INCLUDES THE STORAGE AND UTILIZATION OF AGRICULTURAL WASTE AND FOOD PROCESSING RESIDUALS, SCREENINGS AND SLUDGES FOR ANIMAL FEED, AND INCLUDES THE AGRICULTURAL UTILIZATION OF SEPTIC TANK CLEANINGS AND SEWAGE SLUDGES WHICH ARE GENERATED OFF-SITE.

THE TERM INCLUDES THE MANAGEMENT, COLLECTION, STORAGE, TRANSPORTATION, USE OR DISPOSAL OF MANURE, OTHER AGRICULTURAL WASTE AND FOOD PROCESSING RESIDUALS, SCREENINGS AND SLUDGES ON LAND WHERE SUCH MATERIALS WILL IMPROVE THE CONDITION OF THE SOIL, THE GROWTH OF CROPS OR IN THE RESTORATION OF THE LAND FOR THE SAME PURPOSES.

"NUTRIENT." A SUBSTANCE OR RECOGNIZED PLANT NUTRIENT, ELEMENT OR COMPOUND THAT IS USED OR SOLD FOR ITS PLANT NUTRITIVE CONTENT OR ITS CLAIMED NUTRITIVE VALUE.

THE TERM INCLUDES LIVESTOCK AND POULTRY MANURES, COMPOST AS FERTILIZER, 20250SB0146PN1888 - 16 - COMMERCIALLY MANUFACTURED CHEMICAL FERTILIZERS, SEWAGE SLUDGE, FOOD PROCESSING RESIDUALS OR COMBINATIONS THEREOF.

"NUTRIENT MANAGEMENT ACT." THE PROVISIONS OF 3 PA.C.S.

CH.

5 (RELATING TO NUTRIENT MANAGEMENT AND ODOR MANAGEMENT).

"NUTRIENT MANAGEMENT ADVISORY BOARD." THE BOARD ESTABLISHED UNDER 3 PA.C.S.

§ 510 (RELATING TO NUTRIENT MANAGEMENT ADVISORY BOARD).

"SECRETARY." THE SECRETARY OF AGRICULTURE OF THE COMMONWEALTH.

"SOLID WASTE MANAGEMENT ACT." THE ACT OF JULY 7, 1980 (P.L.380, NO.97), KNOWN AS THE SOLID WASTE MANAGEMENT ACT.

SUBARTICLE B USE OF FOOD PROCESSING RESIDUALS IN NORMAL FARMING OPERATION SECTION 1311.

POWERS AND DUTIES OF COMMISSION.

(A) REGULATIONS.--THE COMMISSION SHALL, IN CONSULTATION WITH THE DEPARTMENT, THE DEPARTMENT OF ENVIRONMENTAL PROTECTION, THE BOARD AND THE NUTRIENT MANAGEMENT ADVISORY BOARD, PROMULGATE REGULATIONS ESTABLISHING MINIMUM CRITERIA FOR THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS TO IMPLEMENT THIS SUBARTICLE.

THE CRITERIA SHALL BE ESTABLISHED USING THE MOST RECENT SCIENCE AVAILABLE.

(B) CRITERIA.--THE CRITERIA ESTABLISHED UNDER SUBSECTION (A) SHALL INCLUDE:

(1) PROCEDURES FOR THE COMMISSION TO IDENTIFY NUTRIENTS.

THERE SHALL BE A PRESUMPTION THAT NITROGEN IS THE NUTRIENT OF PRIMARY CONCERN, UNLESS THE COMMISSION DETERMINES THE PRESUMPTION IS NOT APPROPRIATE.

(2) PROCEDURES FOR THE COMMISSION TO IDENTIFY CHARACTERISTICS OF INTEREST.

20250SB0146PN1888 - 17 - (3) PROCEDURES TO DETERMINE THE PROPER APPLICATION RATES OF NUTRIENTS AND CHARACTERISTICS OF INTEREST IN FOOD PROCESSING RESIDUALS TO BE APPLIED TO LAND BASED ON CONDITIONS OF SOIL, LEVELS OF EXISTING NUTRIENTS AND CHARACTERISTICS OF INTEREST IN THE SOIL, AND THE TYPE OF AGRICULTURAL PRODUCTION TO BE CONDUCTED ON THE LAND.

(4) SCIENCE-BASED AND EVIDENCE-BASED RECOMMENDED BEST MANAGEMENT PRACTICES TO USE FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS.

(5) RECORDKEEPING REQUIREMENTS RELATED TO THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS, INCLUDING STORAGE, PROCESSING AND LAND APPLICATION.

(6) MINIMUM STANDARDS FOR THE LOCATION, CONSTRUCTION AND OPERATION OF A STORAGE FACILITY, INCLUDING STORAGE CAPACITY, FOR FOOD PROCESSING RESIDUALS USED IN THE COURSE OF NORMAL FARMING OPERATIONS.

(7) MINIMUM STANDARDS FOR COMMINGLING OF MANURE AND FOOD PROCESSING RESIDUALS USED IN THE COURSE OF NORMAL FARMING OPERATIONS.

(8) PROCEDURES FOR FILING A LAND APPLICATION SYSTEM NOTIFICATION.

(9) CONDITIONS UNDER WHICH A LAND APPLICATION SYSTEM MUST BE MODIFIED.

(10) PROVISIONS FOR PERIODIC EVALUATION OF A LAND APPLICATION SYSTEM.

(C) ADDITIONAL DUTIES AND AUTHORITY.--THE COMMISSION SHALL HAVE THE FOLLOWING ADDITIONAL DUTIES AND AUTHORITY:

(1) TO CONTINUALLY EVALUATE AND APPROVE BEST MANAGEMENT PRACTICES BASED ON THE LATEST SCIENTIFIC RESEARCH AND 20250SB0146PN1888 - 18 - EVIDENCE-BASED PRACTICES.

(2) TO CONTINUALLY EVALUATE THE CRITERIA FOR A LAND APPLICATION SYSTEM AND PROMULGATE REGULATIONS AS NECESSARY.

A REGULATORY CHANGE UNDER THIS SUBSECTION SHALL REQUIRE A TWO- THIRDS MAJORITY VOTE OF THE COMMISSION.

(3) TO DEVELOP AND IMPLEMENT, IN COOPERATION WITH THE DEPARTMENT, THE DEPARTMENT OF ENVIRONMENTAL PROTECTION, THE BOARD, THE NUTRIENT MANAGEMENT ADVISORY BOARD AND PENN STATE EXTENSION, A PROGRAM TO PROVIDE EDUCATION AND TECHNICAL ASSISTANCE TO THE AGRICULTURAL COMMUNITY AND, TO THE EXTENT FUNDS ARE AVAILABLE, TO PROVIDE FINANCIAL ASSISTANCE TO EXISTING NORMAL FARMING OPERATIONS FOR IMPLEMENTATION OF BEST MANAGEMENT PRACTICES FOR THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS.

(4) TO ISSUE ORDERS AND TAKE ACTIONS AS NECESSARY TO ADMINISTER AND ENFORCE THIS ARTICLE.

SECTION 1312.

LAND APPLICATION OF FOOD PROCESSING RESIDUALS.

(A) REQUIREMENT.--THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS SHALL BE MANAGED UNDER A LAND APPLICATION SYSTEM.

(B) REQUIRED COMPONENTS.--A LAND APPLICATION SYSTEM SHALL INCLUDE ALL OF THE FOLLOWING:

(1) IDENTIFICATION OF SITE-SPECIFIC BEST MANAGEMENT PRACTICES THAT WILL BE IMPLEMENTED FOR THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS, INCLUDING STORAGE, PROCESSING AND LAND APPLICATION.

(2) IDENTIFICATION OF SITE-SPECIFIC BEST MANAGEMENT PRACTICES THAT MAY NEED TO BE IMPLEMENTED TO MANAGE ODORS FROM THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF 20250SB0146PN1888 - 19 - NORMAL FARMING OPERATIONS.

(3) RECORDS OF THE FOOD PROCESSING RESIDUALS RECEIVED FROM A COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR A COMMERCIAL FOOD PROCESSING RESIDUALS BROKER FOR USE IN THE COURSE OF NORMAL FARMING OPERATIONS.

(4) A DESCRIPTION OF EACH TYPE OF FOOD PROCESSING RESIDUALS INTENDED TO BE STORED, PROCESSED OR LAND-APPLIED, AND THE TOTAL ANNUAL VOLUME PLANNED FOR USE.

(5) A DESCRIPTION OF EACH METHOD OF LAND APPLICATION FOR THE USE OF FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS.

(6) A STATEMENT THAT THE AGRICULTURAL OPERATOR COMPLETING THE LAND APPLICATION SYSTEM UNDERSTANDS THAT, IF A NORMAL FARMING OPERATION GENERATES OR UTILIZES MANURE THAT IS COMMINGLED WITH OR APPLIED TO THE SAME AREA AS FOOD PROCESSING RESIDUALS, THE AGRICULTURAL OPERATOR MUST ALSO COMPLY WITH REQUIREMENTS SPECIFIED IN OTHER STATUTES AND REGULATIONS RELATING TO MANAGEMENT OF MANURE.

(C) REVIEW.--THE LAND APPLICATION SYSTEM SHALL BE AVAILABLE FOR REVIEW AT THE REQUEST OF THE COMMISSION TO DETERMINE IF THE LAND APPLICATION SYSTEM MEETS THE REQUIREMENTS OF THIS SUBARTICLE.

SECTION 1313.

LAND APPLICATION SYSTEM NOTIFICATION.

(A) REQUIREMENT.--AN AGRICULTURAL OPERATOR INTENDING TO USE FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS SHALL FILE A LAND APPLICATION SYSTEM NOTIFICATION WITH THE COMMISSION PRIOR TO THE USE IN A FORM AND MANNER DETERMINED BY THE COMMISSION.

THE NOTIFICATION SHALL BE FILED EVERY THREE YEARS AS APPLICABLE.

(B) REQUIRED COMPONENTS.--A LAND APPLICATION SYSTEM 20250SB0146PN1888 - 20 - NOTIFICATION SHALL INCLUDE:

(1) THE NAME, LOCATION AND CONTACT INFORMATION FOR THE AGRICULTURAL OPERATOR.

(2) THE TOTAL ESTIMATED VOLUME PER MONTH OF FOOD PROCESSING RESIDUALS INTENDED TO BE USED IN THE COURSE OF NORMAL FARMING OPERATIONS.

(3) NUTRIENT CONTENT ANALYSIS AND CHARACTERISTICS OF INTEREST ANALYSIS OF FOOD PROCESSING RESIDUALS INTENDED TO BE USED IN THE COURSE OF NORMAL FARMING OPERATIONS.

(4) TOTAL ACREAGE UPON WHICH FOOD PROCESSING RESIDUALS MAY BE LAND-APPLIED IN THE COURSE OF NORMAL FARMING OPERATIONS IN ACCORDANCE WITH THE AGRICULTURAL OPERATOR'S LAND APPLICATION SYSTEM.

(5) A SIGNED STATEMENT CONFIRMING THAT THE USE OF ALL FOOD PROCESSING RESIDUALS IN THE COURSE OF NORMAL FARMING OPERATIONS SHALL BE CONDUCTED UNDER A LAND APPLICATION SYSTEM.

(C) RESUBMISSION.--THE COMMISSION MAY REQUIRE RESUBMISSION OF A LAND APPLICATION SYSTEM NOTIFICATION IF THE COMMISSION FINDS A SUBMISSION TO BE INCOMPLETE.

(D) VALIDITY.--A LAND APPLICATION SYSTEM NOTIFICATION SHALL BE VALID FOR THREE YEARS FROM THE DATE THE LAND SYSTEM NOTIFICATION IS RECEIVED BY THE COMMISSION OR UNTIL THE ASSOCIATED LAND APPLICATION SYSTEM IS MODIFIED IN A FORM AND MANNER DETERMINED BY THE COMMISSION.

SECTION 1314.

CIVIL PENALTIES.

(A) CIVIL PENALTY.--IN ADDITION TO ANY OTHER REMEDY AVAILABLE AT LAW OR IN EQUITY FOR A VIOLATION OF THIS SUBARTICLE, A RULE OR REGULATION ADOPTED, ORDER ISSUED UNDER THIS SUBARTICLE OR LAND APPLICATION SYSTEM, THE COMMISSION MAY 20250SB0146PN1888 - 21 - ASSESS A CIVIL PENALTY OF NOT MORE THAN $500 FOR THE FIRST DAY OF EACH OFFENSE AND $100 FOR EACH ADDITIONAL DAY OF CONTINUING VIOLATION.

IN DETERMINING THE PENALTY AMOUNT, THE COMMISSION SHALL CONSIDER THE FOLLOWING FACTORS:

(1) THE GRAVITY OF THE VIOLATION.

(2) THE POTENTIAL HARM TO THE PUBLIC.

(3) THE POTENTIAL EFFECT ON THE ENVIRONMENT.

(4) THE WILLFULNESS OF THE VIOLATION.

(5) PREVIOUS VIOLATIONS.

(6) THE ECONOMIC BENEFIT TO THE VIOLATOR FOR FAILING TO COMPLY WITH THIS SUBARTICLE.

(B) WARNING IN LIEU OF PENALTY.--IF THE COMMISSION FINDS THAT A VIOLATION DID NOT CAUSE HARM TO HUMAN HEALTH OR AN ADVERSE EFFECT ON THE ENVIRONMENT, THE COMMISSION MAY ISSUE A WARNING IN LIEU OF ASSESSING A PENALTY IF THE OFFENDER, UPON NOTICE, TAKES IMMEDIATE ACTION TO RESOLVE THE VIOLATION AND ACHIEVE COMPLIANCE.

(C) COLLECTION.--IF THE COMMISSION IS UNABLE TO COLLECT A CIVIL PENALTY ASSESSED UNDER THIS SUBARTICLE OR A PERSON FAILS TO PAY ALL OR A PORTION OF THE PENALTY, THE COMMISSION MAY REFER THE MATTER TO THE OFFICE OF GENERAL COUNSEL OR THE OFFICE OF ATTORNEY GENERAL, WHICH MAY INSTITUTE AN ACTION IN THE APPROPRIATE COURT TO RECOVER THE PENALTY.

A CIVIL PENALTY ASSESSED MAY ACT AS A LIEN ON THE PROPERTY OF THE PERSON AGAINST WHOM THE PENALTY HAS BEEN ASSESSED.

SECTION 1315.

ENFORCEMENT AUTHORITY.

(A) RIGHT OF ACCESS.--A DULY AUTHORIZED AGENT OF THE COMMISSION, DEPARTMENT, DEPARTMENT OF ENVIRONMENTAL PROTECTION OR DELEGATED CONSERVATION DISTRICT SHALL HAVE THE AUTHORITY TO ENTER A NORMAL FARMING OPERATION AT REASONABLE TIMES TO CONDUCT 20250SB0146PN1888 - 22 - INVESTIGATIONS AND TO TAKE ACTIONS NECESSARY TO ENFORCE THIS ARTICLE OR ANY ORDER, RULE OR REGULATION ISSUED UNDER THIS ARTICLE.

(B) DUTY TO GRANT ACCESS.--A PERSON OWNING OR OPERATING A NORMAL FARMING OPERATION SHALL GRANT ACCESS TO A DULY AUTHORIZED AGENT OF THE COMMISSION, DEPARTMENT, DEPARTMENT OF ENVIRONMENTAL PROTECTION OR A DELEGATED CONSERVATION DISTRICT UNDER SUBSECTION (A) AND SHALL NOT HINDER, OBSTRUCT, PREVENT OR INTERFERE WITH THE AGENTS IN THE PERFORMANCE OF THEIR DUTIES.

AUTHORIZED AGENTS SHALL PERFORM REASONABLE MEASURES AND ACTIONS AS DIRECTED BY THE OFFENDER OF A NORMAL FARMING OPERATION THAT REASONABLY AND SUBSTANTIALLY PREVENT THE SPREAD OR OUTBREAK OF CONTAGIOUS DISEASES.

SECTION 1316.

APPEALABLE ACTIONS.

A PERSON AGGRIEVED BY AN ORDER OR OTHER ADMINISTRATIVE ACTION OF THE COMMISSION ISSUED OR TAKEN UNDER THIS ARTICLE MAY, WITHIN 10 DAYS FROM ACTUAL OR CONSTRUCTIVE NOTICE OF THE ACTION, APPEAL THE ACTION IN ACCORDANCE WITH 2 PA.C.S.

CHS.

5 SUBCH.

A (RELATING TO PRACTICE AND PROCEDURE OF COMMONWEALTH AGENCIES) AND 7 SUBCH.

A (RELATING TO JUDICIAL REVIEW OF COMMONWEALTH AGENCY ACTION).

SECTION 1317.

APPLICABILITY.

UNLESS CLASSIFIED AS HAZARDOUS BY THE ENVIRONMENTAL QUALITY BOARD, FOOD PROCESSING RESIDUALS UNDER THIS SUBARTICLE:

(1) SHALL NOT BE CONSIDERED RESIDUAL WASTE UNDER THE SOLID WASTE MANAGEMENT ACT.

(2) ARE NOT SUBJECT TO THE PROVISIONS OF SECTION 501(A) OF THE SOLID WASTE MANAGEMENT ACT.

SUBARTICLE C COMMERCIAL FOOD PROCESSING RESIDUALS 20250SB0146PN1888 - 23 - HAULERS AND BROKERS SECTION 1321.

COMMERCIAL FOOD PROCESSING RESIDUALS HAULER AND BROKER CERTIFICATION PROGRAM.

(A) DUTIES OF DEPARTMENT.-- (1) THE DEPARTMENT SHALL ESTABLISH, IN CONSULTATION WITH THE COMMISSION AND THE BOARD, A COMMERCIAL FOOD PROCESSING RESIDUALS HAULER AND BROKER CERTIFICATION PROGRAM FOR THE PURPOSE OF CERTIFYING PERSONS TO STORE, TRANSFER, TRANSPORT OR LAND-APPLY FOOD PROCESSING RESIDUALS.

(2) THE DEPARTMENT SHALL, BY REGULATION, ESTABLISH TERMS, CONDITIONS AND FEES FOR CERTIFICATION AS THE DEPARTMENT DEEMS APPROPRIATE.

(3) THE DEPARTMENT SHALL DEVELOP, IN CONSULTATION WITH THE COMMISSION AND THE BOARD, TRAINING, EDUCATIONAL REQUIREMENTS, TESTING AND OTHER CRITERIA AS THE DEPARTMENT DEEMS NECESSARY FOR CERTIFICATION.

THE TRAINING SHALL ADDRESS THE FOLLOWING TOPICS:

(I) LAWS, REGULATIONS AND ORDERS REGARDING FOOD PROCESSING RESIDUALS USE, STORAGE, TRANSFER, TRANSPORT AND LAND APPLICATION.

(II) BEST MANAGEMENT PRACTICES WITH RESPECT TO FOOD PROCESSING RESIDUALS STORAGE, HAULING AND LAND APPLICATION, TRANSPORT SAFETY PROCEDURES, CALIBRATION OF APPLICATION RATES FOR VARIOUS TYPES OF APPLICATION EQUIPMENT, SETBACKS FROM WATER SOURCES AND PROPERTY LINES, FOOD PROCESSING RESIDUALS RUNOFF CONCERNS AND INCORPORATION TECHNIQUES.

(III) RECORDKEEPING OBLIGATIONS BY COMMERCIAL FOOD PROCESSING RESIDUALS HAULERS OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKERS NECESSARY TO COMPLY WITH 20250SB0146PN1888 - 24 - THIS ARTICLE.

(B) TRAINING PROGRAM APPROVAL.--THE DEPARTMENT MAY APPROVE TRAINING AND EDUCATION PROGRAMS DEVELOPED BY EDUCATIONAL INSTITUTIONS OR ENTITIES WITHIN THIS COMMONWEALTH THAT SATISFY THE REQUIREMENTS OF THIS SECTION.

SECTION 1322.

REQUIREMENTS FOR COMMERCIAL FOOD PROCESSING RESIDUALS HAULERS AND COMMERCIAL FOOD PROCESSING RESIDUALS BROKERS.

(A) CERTIFICATION REQUIREMENT.--A COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER MAY NOT STORE, TRANSFER, TRANSPORT OR LAND-APPLY FOOD PROCESSING RESIDUALS IN THIS COMMONWEALTH, REGARDLESS OF WHERE THE FOOD PROCESSING RESIDUALS ARE GENERATED, UNLESS THE COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER MEETS ALL OF THE FOLLOWING REQUIREMENTS:

(1) HAS SUCCESSFULLY COMPLETED THE CERTIFICATION PROGRAM UNDER SECTION 1321.

(2) HAS BEEN ISSUED CERTIFICATION BY THE DEPARTMENT.

(3) MAINTAINS CERTIFICATION IN ACCORDANCE WITH THE CERTIFICATION PROGRAM'S REQUIREMENTS.

(B) LAND APPLICATION OF FOOD PROCESSING RESIDUALS.--A COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER SHALL LAND-APPLY FOOD PROCESSING RESIDUALS IN ACCORDANCE WITH THIS ARTICLE AND A LAND APPLICATION SYSTEM.

(C) STORAGE, TRANSFER AND TRANSPORT OF FOOD PROCESSING RESIDUALS.--A COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER SHALL STORE, TRANSFER AND TRANSPORT FOOD PROCESSING RESIDUALS IN ACCORDANCE WITH THIS ARTICLE.

20250SB0146PN1888 - 25 - (D) RECORDS.--COMMERCIAL FOOD PROCESSING RESIDUALS HAULERS OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKERS SHALL MAINTAIN RECORDS IN ACCORDANCE WITH THIS ARTICLE OF ALL FOOD PROCESSING RESIDUALS THAT THE COMMERCIAL FOOD PROCESSING RESIDUALS HAULERS OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKERS STORE, BROKER, TRANSPORT OR LAND-APPLY.

RECORDS SHALL BE RETAINED FOR THREE YEARS AND SHALL BE MADE AVAILABLE UPON REQUEST OF THE DEPARTMENT.

SECTION 1323.

ADMINISTRATIVE PENALTIES.

(A) PENALTIES.--IN ADDITION TO ANY OTHER REMEDY AVAILABLE AT LAW OR IN EQUITY FOR A VIOLATION OF THIS SUBARTICLE, THE DEPARTMENT MAY ASSESS AN ADMINISTRATIVE PENALTY OF UP TO $1,000 FOR THE FIRST DAY OF A VIOLATION OF THIS SUBARTICLE AND $500 FOR EACH DAY THE VIOLATION CONTINUES.

IN DETERMINING THE PENALTY AMOUNT, THE DEPARTMENT SHALL CONSIDER THE FOLLOWING FACTORS:

(1) THE SERIOUSNESS OF THE VIOLATION.

(2) THE POTENTIAL HARM TO THE PUBLIC.

(3) THE POTENTIAL EFFECT ON THE ENVIRONMENT.

(4) THE WILLFULNESS OF THE VIOLATION.

(5) PREVIOUS VIOLATIONS.

(6) THE ECONOMIC BENEFIT DERIVED BY THE VIOLATOR FOR NONCOMPLIANCE WITH THIS SUBARTICLE.

(B) WARNING IN LIEU OF PENALTY.--IF THE DEPARTMENT FINDS THAT THE VIOLATION DOES NOT CAUSE HARM TO HUMAN HEALTH OR AN ADVERSE EFFECT ON THE ENVIRONMENT, THE DEPARTMENT MAY ISSUE A WARNING IN LIEU OF AN ADMINISTRATIVE PENALTY IF THE VIOLATOR, UPON NOTICE, TAKES IMMEDIATE ACTION TO CORRECT THE VIOLATION AND COMPLIES WITH THIS SUBARTICLE.

(C) APPEALS.--A PERSON AGGRIEVED BY THE ASSESSMENT OF AN ADMINISTRATIVE PENALTY MAY APPEAL A PENALTY TO THE SECRETARY 20250SB0146PN1888 - 26 - WITHIN 10 DAYS OF THE DATE OF THE PENALTY ASSESSMENT.

THE SECRETARY SHALL ISSUE A DECISION ON THE APPEAL WITHIN 90 DAYS OF THE APPEAL.

IF A DECISION IS NOT ISSUED BY THE SECRETARY WITHIN THE TIME PERIOD SPECIFIED UNDER THIS PARAGRAPH, THE ASSESSMENT OF THE PENALTY SHALL BE DEEMED WITHDRAWN.

APPEALS UNDER THIS SUBSECTION SHALL BE GOVERNED BY 2 PA.C.S.

CHS.

5 SUBCH.

A (RELATING TO PRACTICE AND PROCEDURE OF COMMONWEALTH AGENCIES) AND 7 SUBCH.

A (RELATING TO JUDICIAL REVIEW OF LOCAL AGENCY ACTION).

(D) COLLECTION.--IF THE DEPARTMENT IS UNABLE TO COLLECT AN ADMINISTRATIVE PENALTY ASSESSED UNDER SUBSECTION (A) OR A PERSON FAILS TO PAY ALL OR A PORTION OF THE PENALTY, THE DEPARTMENT MAY REFER THE MATTER TO THE OFFICE OF GENERAL COUNSEL OR THE OFFICE OF ATTORNEY GENERAL, WHICH MAY INSTITUTE AN ACTION IN A COURT OF COMPETENT JURISDICTION TO RECOVER THE PENALTY.

A PENALTY ASSESSED FOR A VIOLATION OF THIS SUBARTICLE MAY OPERATE AS A LIEN ON THE PROPERTY OF THE PERSON AGAINST WHOM THE PENALTY HAS BEEN ASSESSED.

SECTION 1324.

ENFORCEMENT ORDERS AND SUSPENSION OR REVOCATION OF CERTIFICATION.

(A) ORDERS.--THE DEPARTMENT MAY ISSUE ORDERS NECESSARY TO ENFORCE THIS SUBARTICLE.

ORDERS SHALL TAKE EFFECT UPON NOTICE UNLESS OTHERWISE SPECIFIED.

(B) SUSPENSION OR REVOCATION.--THE DEPARTMENT MAY SUSPEND OR REVOKE CERTIFICATION OF A COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER UPON FINDING THAT THE COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER HAS FAILED TO COMPLY OR CONTINUES NONCOMPLIANCE WITH ANY OF THE FOLLOWING:

(1) A PROVISION OF THIS SUBARTICLE.

20250SB0146PN1888 - 27 - (2) CERTIFICATION CRITERIA OR REQUIREMENTS.

(3) A REGULATION PROMULGATED UNDER THIS SUBARTICLE.

(4) AN ORDER ISSUED UNDER THIS SUBARTICLE.

(C) APPEALS.--A PERSON MAY APPEAL AN ORDER, SUSPENSION OR REVOCATION UNDER THIS SUBARTICLE TO THE SECRETARY WITHIN 10 DAYS OF THE DATE OF THE ORDER, SUSPENSION OR REVOCATION.

THE SECRETARY SHALL ISSUE A DECISION ON THE APPEAL WITHIN 90 DAYS OF THE APPEAL.

IF A DECISION IS NOT ISSUED BY THE SECRETARY WITHIN THE TIME PERIOD SPECIFIED UNDER THIS PARAGRAPH, THE ORDER, SUSPENSION OR REVOCATION SHALL BE DEEMED WITHDRAWN.

APPEALS SHALL BE GOVERNED BY 2 PA.C.S.

CHS.

5 SUBCH.

A (RELATING TO PRACTICE AND PROCEDURE OF COMMONWEALTH AGENCIES) AND 7 SUBCH.

A (RELATING TO JUDICIAL REVIEW OF COMMONWEALTH AGENCY ACTION).

SECTION 1325.

TEMPORARY RULEMAKING AUTHORITY.

(A) PROMULGATION.--IN ORDER TO FACILITATE THE PROMPT IMPLEMENTATION OF SECTION 1321, THE DEPARTMENT SHALL PROMULGATE TEMPORARY REGULATIONS THAT SHALL EXPIRE NO LATER THAN THREE YEARS FOLLOWING THE PUBLICATION OF THE TEMPORARY REGULATIONS.

THE DEPARTMENT MAY PROMULGATE TEMPORARY REGULATIONS NOT SUBJECT TO:

(1) SECTIONS 201, 202, 203, 204 AND 205 OF THE ACT OF JULY 31, 1968 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS LAW.

(2) SECTION 204(B) OF THE ACT OF OCTOBER 15, 1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.

(3) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW ACT.

(B) EXPIRATION.--THE DEPARTMENT'S AUTHORITY TO ADOPT TEMPORARY REGULATIONS UNDER SUBSECTION (A) SHALL EXPIRE TWO YEARS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION.

REGULATIONS 20250SB0146PN1888 - 28 - ADOPTED AFTER THIS PERIOD SHALL BE PROMULGATED AS PROVIDED BY LAW BEFORE THE EXPIRATION OF THE TEMPORARY REGULATIONS UNDER SUBSECTION (A).

SUBARTICLE D MISCELLANEOUS PROVISIONS SECTION 1331.

UNLAWFUL CONDUCT.

IT SHALL BE UNLAWFUL TO VIOLATE, CAUSE OR ASSIST IN THE VIOLATION OF ANY OF THE FOLLOWING:

(1) A PROVISION OF THIS ARTICLE.

(2) A REGULATION PROMULGATED UNDER THIS ARTICLE.

(3) AN ORDER ISSUED UNDER THIS ARTICLE.

SECTION 1332.

CIVIL REMEDIES.

(A) ACTION AT LAW.--THE OFFICE OF GENERAL COUNSEL MAY INSTITUTE AN ACTION AT LAW IN A COURT OF COMPETENT JURISDICTION TO RECOVER DAMAGES FOR A VIOLATION OF THIS ARTICLE, A REGULATION PROMULGATED UNDER THIS ARTICLE OR AN ORDER ISSUED UNDER THIS ARTICLE.

(B) ACTION IN EQUITY.--THE OFFICE OF GENERAL COUNSEL MAY INSTITUTE AN ACTION IN EQUITY IN A COURT OF COMPETENT JURISDICTION TO RESTRAIN A VIOLATION OF THIS ARTICLE, A REGULATION PROMULGATED UNDER THIS ARTICLE OR AN ORDER ISSUED UNDER THIS ARTICLE.

IN A PROCEEDING UNDER THIS SUBSECTION, THE FOLLOWING SHALL APPLY:

(1) THE COURT MAY FIX A REASONABLE TIME DURING WHICH THE DEFENDANT MAY MAKE PROVISION FOR THE ABATEMENT OF THE VIOLATION.

(2) THE COURT MAY ISSUE A PRELIMINARY OR SPECIAL INJUNCTION OR TEMPORARY RESTRAINING ORDER WHERE CIRCUMSTANCES WARRANT OR PUBLIC HEALTH IS ENDANGERED.

(3) THE COURT SHALL ISSUE A PRELIMINARY INJUNCTION UPON 20250SB0146PN1888 - 29 - FINDING THAT THE DEFENDANT IS ENGAGING IN UNLAWFUL CONDUCT PROHIBITED UNDER THIS ARTICLE OR IS CAUSING IMMEDIATE OR IRREPARABLE HARM TO THE PUBLIC.

(4) THE COMMONWEALTH SHALL NOT BE REQUIRED TO FURNISH BOND.

(5) THE COURT MAY GRANT EQUITABLE RELIEF IN ADDITION TO DAMAGES UNDER SUBSECTION (A).

SECTION 1333.

POWERS RESERVED UNDER EXISTING LAWS.

(A) RESERVATION.--NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO LIMIT THE POWERS OF THE DEPARTMENT, THE COMMISSION OR THE DEPARTMENT OF ENVIRONMENTAL PROTECTION UNDER OTHER STATE LAWS, INCLUDING THE ACT OF JUNE 22, 1937 (P.L.1987, NO.394), KNOWN AS THE CLEAN STREAMS LAW, THE SOLID WASTE MANAGEMENT ACT AND COMMON LAW.

(B) JUDICIAL JURISDICTION.--A COURT EXERCISING EQUITABLE JURISDICTION IN ACCORDANCE WITH SECTION 1332(B) SHALL NOT BE DEPRIVED OF JURISDICTION EVEN THOUGH A NUISANCE OR CONDITION DETRIMENTAL TO PUBLIC HEALTH IS SUBJECT TO REGULATION OR OTHER ACTION BY THE COMMISSION, DEPARTMENT OF ENVIRONMENTAL PROTECTION OR THE DEPARTMENT UNDER THIS ARTICLE.

SECTION 1334.

PREEMPTION OF LOCAL ORDINANCES.

THIS ARTICLE IS OF STATEWIDE CONCERN, OCCUPIES THE WHOLE FIELD OF REGULATION REGARDING THE USE OF FOOD PROCESSING RESIDUALS IN NORMAL FARMING OPERATIONS AND THE CERTIFICATION OF AND THE REQUIREMENTS UNDER SECTION 1322 AND PREEMPTS ALL LOCAL ORDINANCES AND REGULATIONS GOVERNING THE USE OF FOOD PROCESSING RESIDUALS IN NORMAL FARMING OPERATIONS AND THE CERTIFICATION OR REGULATION OF COMMERCIAL FOOD PROCESSING RESIDUALS HAULERS AND COMMERCIAL FOOD PROCESSING RESIDUALS BROKERS.

SECTION 1335.

MITIGATION.

20250SB0146PN1888 - 30 - (A) OPERATOR COMPLIANCE AS MITIGATING FACTOR.--AN AGRICULTURAL OPERATOR USING FOOD PROCESSING RESIDUALS IN THE COURSE OF A NORMAL FARMING OPERATION THAT IS IN COMPLIANCE WITH ALL APPLICABLE PROVISIONS OF THIS ARTICLE, REGULATIONS PROMULGATED UNDER THIS ARTICLE AND ORDERS ISSUED UNDER THIS ARTICLE SHALL BE AFFORDED APPROPRIATE CONSIDERATION AS A MITIGATING FACTOR IN ANY ACTION ARISING FROM THE USE OF FOOD PROCESSING RESIDUALS IN A NORMAL FARMING OPERATION.

(B) HAULER OR BROKER COMPLIANCE AS MITIGATING FACTOR.--A COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER THAT IS PROPERLY CERTIFIED UNDER THIS ARTICLE AND IN COMPLIANCE WITH ALL APPLICABLE PROVISIONS OF THIS ARTICLE, REGULATIONS PROMULGATED UNDER THIS ARTICLE AND ORDERS ISSUED UNDER THIS ARTICLE SHALL BE AFFORDED APPROPRIATE CONSIDERATION AS A MITIGATING FACTOR IN ANY ACTION ARISING FROM THE STORAGE, TRANSFER, TRANSPORT OR LAND APPLICATION OF FOOD PROCESSING RESIDUALS IN A NORMAL FARMING OPERATION BY THE COMMERCIAL FOOD PROCESSING RESIDUALS HAULER OR COMMERCIAL FOOD PROCESSING RESIDUALS BROKER.

SECTION 1336.

FUNDING.

THE FOLLOWING APPLY:

(1) FUNDING FROM THE NUTRIENT MANAGEMENT FUND ESTABLISHED UNDER 3 PA.C.S.

§ 512 (RELATING TO NUTRIENT MANAGEMENT FUND) MAY BE USED TO IMPLEMENT THE PROVISIONS OF THIS ARTICLE.

(2) ALL FEES AND PENALTIES UNDER THIS ARTICLE SHALL BE DISPOSED OF IN ACCORDANCE WITH 3 PA.C.S.

§ 2384 (RELATING TO DISPOSITION OF FEES, FINES AND CIVIL PENALTIES).

SECTION 6.1.

SECTION 1602-D.1 OF THE ACT IS AMENDED TO READ:

SECTION 1602-D.1.

FINANCIAL RECOVERY.

20250SB0146PN1888 - 31 - (A) MODERATE AND SEVERE DISTRESS.--AS OF THE DATE OF THE TERMINATION OF DISTRESSED STATUS UNDER THE PROVISIONS OF THE ACT OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE MUNICIPALITIES FINANCIAL RECOVERY ACT, A CITY OF THE SECOND CLASS A THAT IS LEVYING, OR HAD BEEN AUTHORIZED TO LEVY WITHIN THE PREVIOUS THREE FISCAL YEARS, A LOCAL SERVICES TAX IN EXCESS OF $52 IN ACCORDANCE WITH THE MUNICIPALITIES FINANCIAL RECOVERY ACT, MAY, UPON THE TERMINATION OF DISTRESSED STATUS, LEVY, WITHOUT COURT APPROVAL, THE LOCAL SERVICES TAX AT A RATE WHICH DOES NOT EXCEED $156 PER YEAR, IF A PENSION SYSTEM OF THE MUNICIPALITY IS IN MODERATE DISTRESS OR SEVERE DISTRESS AS DEFINED BY SECTION 503(D) OF THE ACT OF DECEMBER 18, 1984 (P.L.1005, NO.205), KNOWN AS THE MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, AND THE AMOUNT IN EXCESS OF $52 IS USED SOLELY TO DEFRAY THE MUNICIPALITY'S UNFUNDED ACTUARIAL ACCRUED PENSION LIABILITY.

A LOCAL SERVICES TAX IN EXCESS OF $52 MAY NOT BE LEVIED IN THE SAME YEAR THAT THE INCOME OF NONRESIDENTS IS SUBJECT TO A TAX ABOVE MAXIMUM RATES AS PROVIDED IN SECTION 607(F) OF THE MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT.

(B) MINIMAL DISTRESS.--A CITY OF THE SECOND CLASS A THAT PREVIOUSLY TERMINATED DISTRESSED STATUS UNDER THE MUNICIPALITIES FINANCIAL RECOVERY ACT AND IS LEVYING, OR HAD BEEN AUTHORIZED TO LEVY WITHIN THE PREVIOUS THREE FISCAL YEARS, A LOCAL SERVICES TAX IN EXCESS OF $52 IN ACCORDANCE WITH THE MUNICIPALITIES FINANCIAL RECOVERY ACT OR SUBSECTION (A), MAY LEVY, WITHOUT COURT APPROVAL, THE LOCAL SERVICES TAX AT A RATE WHICH DOES NOT EXCEED $156 PER YEAR, IF A PENSION SYSTEM OF THE MUNICIPALITY IS IN MINIMAL DISTRESS AS DEFINED BY SECTION 503(D) OF THE MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT, AND THE AMOUNT IN EXCESS OF $52 IS USED SOLELY TO DEFRAY THE 20250SB0146PN1888 - 32 - MUNICIPALITY'S UNFUNDED ACTUARIAL ACCRUED PENSION LIABILITY.

A LOCAL SERVICES TAX IN EXCESS OF $52 MAY NOT BE LEVIED IN THE SAME YEAR THAT THE INCOME OF NONRESIDENTS IS SUBJECT TO A TAX ABOVE MAXIMUM RATES AS PROVIDED IN SECTION 607(F) OF THE MUNICIPAL PENSION PLAN FUNDING STANDARD AND RECOVERY ACT.

IN NO EVENT SHALL A MUNICIPALITY THAT HAS NO PENSION SYSTEM IN DISTRESS LEVY UNDER THIS SUBSECTION A LOCAL SERVICES TAX IN EXCESS OF $52 FOR MORE THAN THREE FULL CALENDAR YEARS AFTER ITS PENSION SYSTEMS ARE DECLARED MINIMALLY DISTRESSED.

SECTION 7.

SECTION 1601.2-E(E)(1)(II) OF THE ACT, AMENDED NOVEMBER 12, 2025 (P.L.156, NO.45), IS AMENDED TO READ:

SECTION 1601.2-E.

OIL AND GAS LEASE FUND.

* * * (E) ANNUAL TRANSFERS.--THE FOLLOWING APPLY:

(1) * * * (II) NO AMOUNT SHALL BE TRANSFERRED FROM THE FUND TO THE MARCELLUS LEGACY FUND FOR DISTRIBUTION TO THE ENVIRONMENTAL STEWARDSHIP FUND FOR THE 2019-2020, 2020- 2021, 2021-2022, 2022-2023, 2023-2024, 2024-2025 [AND], 2025-2026 AND 2026-2027 FISCAL YEAR.

* * * SECTION 8.

THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 1609.1-E.

DEEP WELLS AND UTICA SHALE PERMITS.

NOTWITHSTANDING SECTION 6 OF THE ACT OF JULY 25, 1961 (P.L.825, NO.359), KNOWN AS THE OIL AND GAS CONSERVATION LAW, BEFORE DRILLING A WELL THAT IS TO PENETRATE THE ONONDAGA OR DEEPER HORIZONS OR A DEPTH OF 3,800 FEET, WHICHEVER IS DEEPER, AND THAT IS INTENDED TO PRODUCE PRIMARILY FROM THE UTICA SHALE FORMATION OR A DEEPER FORMATION AND NO SPACING ORDER HAS BEEN ENTERED AND NO APPLICATION IS PENDING, THE SETBACK DISTANCE OF 20250SB0146PN1888 - 33 - THREE HUNDRED AND THIRTY FEET FROM THE NEAREST OUTSIDE BOUNDARY LINE OF THE LEASE SHALL BE WAIVED.

THE WELL OPERATOR SHALL OBTAIN A PERMIT AND THE APPLICATION SHALL, AT A MINIMUM, INCLUDE A PLAT PREPARED ON A FORM DEVELOPED BY THE DEPARTMENT OF ENVIRONMENTAL PROTECTION.

SECTION 1611-E.

WELL PLUGGING.

(A) CEMENT PLUG AT ATTAINABLE BOTTOM.--IN ORDER TO COMPLY WITH 58 PA.C.S.

§ 3220(A) (RELATING TO PLUGGING REQUIREMENTS), THE DEPARTMENT SHALL REQUIRE, AT A MINIMUM, THAT A CEMENT PLUG OF AT LEAST 50 FEET BE SET AT THE ATTAINABLE BOTTOM OF THE WELL BORE, THE DEPTH AND EFFICACY OF THE PLUG BE CONFIRMED AND THE REMAINING WELL BORE BE PLUGGED TO THE SURFACE WITH A SOLID COLUMN OF CEMENT.

(B) REQUIREMENTS FOR EACH WELL PLUGGED TO ATTAINABLE BOTTOM.--FOR EACH WELL PLUGGED TO ATTAINABLE BOTTOM WITH REASONABLE EFFORT, THE OPERATOR SHALL:

(1) WITHIN 90 DAYS OF PLUGGING THE WELL, SUBMIT A REPORT TO THE DEPARTMENT THAT INCLUDES A SUMMARY OF THE SPECIFIC TECHNICAL REASONS WHY FURTHER CLEANOUT WAS NOT POSSIBLE AND WHAT CLEANOUT METHODS WERE ATTEMPTED.

(2) COMPLETE A MINIMUM OF ONE POST-PLUGGING MONITORING EVENT TO ASSESS FOR THE VERTICAL FLOW OF FLUIDS OR GAS WITHIN THE WELL BORE PRIOR TO FINAL SITE RESTORATION.

THE EVENT SHALL BE PLANNED TO MAXIMIZE THE AMOUNT OF TIME ELAPSED BETWEEN THE COMPLETION OF PLUGGING THE WELL AND FINAL RESTORATION OF THE SITE.

ANY EVIDENCE OF VERTICAL FLOW OF FLUIDS OR GAS WITHIN THE WELL BORE MUST BE REPORTED IMMEDIATELY TO THE DEPARTMENT.

(C) REGULATIONS.--THE ENVIRONMENTAL QUALITY BOARD SHALL PROMULGATE REGULATIONS SPECIFIC TO REASONABLE EFFORT FOR ALL 20250SB0146PN1888 - 34 - OTHER PLUGGING SCENARIOS NOT ADDRESSED IN THIS SECTION WITHIN 18 MONTHS OF THE EFFECTIVE DATE OF THIS SUBSECTION.

THE REGULATIONS SHALL SPECIFY METHODS OF DETERMINING THE APPROPRIATE EQUIPMENT, TOOLS AND PRUDENT INDUSTRY PRACTICES FOR THE PURPOSE OF DEMONSTRATING ATTAINABLE BOTTOM.

(D) REASONABLE EFFORT REQUIRED FOR CERTAIN WELLS.--AN OPERATOR SHALL MAKE A REASONABLE EFFORT TO ACHIEVE AN ATTAINABLE BOTTOM FOR EACH OF THE FOLLOWING TYPES OF WELLS:

(1) ORPHAN WELLS, SO LONG AS THE ORPHAN WELL IS NOT DRILLED INTO OR THROUGH A GAS STORAGE RESERVOIR OR RESERVOIR PROTECTIVE AREA.

(2) ABANDONED WELLS, SO LONG AS THE DEPARTMENT HAS DETERMINED THAT NO VIABLE RESPONSIBLE PARTY HAS STIPULATED THAT THE ABANDONED WELL IS NOT DRILLED INTO OR THROUGH A GAS STORAGE RESERVOIR OR RESERVOIR PROTECTIVE AREA.

(3) ORPHAN AND ABANDONED WELLS, SO LONG AS THE ORPHAN AND ABANDONED WELL IS THE SUBJECT OF A PLUGGING ORDER UNDER SECTION 13(C) OF THE ACT OF DECEMBER 18, 1984 (P.L.1069, NO.214), KNOWN AS THE COAL AND GAS RESOURCE COORDINATION ACT.

(E) EVALUATION EVERY THREE YEARS.--TO EVALUATE THE EFFECTIVENESS OF USING REASONABLE EFFORT TO PLUG CERTAIN WELLS UNDER THIS SECTION, EVERY THREE YEARS FOLLOWING THE EFFECTIVE DATE OF THIS SUBSECTION, THE DEPARTMENT SHALL SUBMIT TO THE GENERAL ASSEMBLY A REPORT THAT INCLUDES:

(1) THE OCCURRENCE OF PLUG FAILURES AT WELLS PLUGGED TO ATTAINABLE BOTTOM WITH REASONABLE EFFORT.

(2) ENVIRONMENTAL, HEALTH OR SAFETY INCIDENTS ASSOCIATED WITH WELLS PLUGGED TO ATTAINABLE BOTTOM WITH REASONABLE EFFORT.

(3) FINANCIAL LIABILITIES INCURRED BY THE DEPARTMENT 20250SB0146PN1888 - 35 - THAT ARE A DIRECT RESULT OF WELLS PLUGGED TO ATTAINABLE BOTTOM WITH REASONABLE EFFORT.

(F) WAIVERS.--THE ACTIVITIES CONDUCTED WITHIN 300 FEET (91.44 METERS) OF OCCUPIED DWELLINGS THAT CONSIST OF THE PLUGGING, ABANDONMENT, REMEDIATION OR SECURING OF AN OIL OR GAS WELL, INCLUDING ASSOCIATED ACCESS, SITE PREPARATION AND RELATED WORK, CONDUCTED PURSUANT TO THE OIL AND GAS ACT, THE COAL AND GAS RESOURCE COORDINATION ACT OR OTHER APPLICABLE LAWS OR ORDERS OF THE DEPARTMENT SHALL NOT BE CONSIDERED SURFACE MINING OPERATIONS, REGARDLESS OF WHETHER THE ACTIVITIES OCCUR ON LANDS SUBJECT TO A MINING PERMIT, ARE UNDERTAKEN IN ADVANCE OF OR CONCURRENT WITH MINING, OR FACILITATE THE FUTURE EXTRACTION OF COAL.

(G) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"ABANDONED WELL." AS DEFINED UNDER 58 PA.C.S.

§ 3203 (RELATING TO DEFINITIONS).

"ATTAINABLE BOTTOM." THE DEPTH, APPROVED BY THE DEPARTMENT, THAT CAN BE ACHIEVED AFTER A REASONABLE EFFORT MADE IN GOOD FAITH IS EXPENDED TO CLEAN OUT TO THE TOTAL DEPTH.

"DEPARTMENT." THE DEPARTMENT OF ENVIRONMENTAL PROTECTION OF THE COMMONWEALTH.

"OPERATOR." AS DEFINED UNDER 58 PA.C.S.

§ 3203.

"ORPHAN WELL." AS DEFINED UNDER 58 PA.C.S.

§ 3203.

"REASONABLE EFFORT." IN RELATION TO AN OPERATOR'S ACTION TO ACHIEVE AN ATTAINABLE BOTTOM, AN ACTION THAT CLEANS OUT A WELL TO AT LEAST 200 FEET BELOW THE COAL PROTECTIVE CASING OR, IF NO COAL PROTECTIVE CASING IS PRESENT, THE COAL SEAM OR SURFACE CASING, WHICHEVER IS DEEPER, AND CONTINUES TO CLEAN OUT THE WELL 20250SB0146PN1888 - 36 - UNTIL AN ADDITIONAL 100 FEET OF WELL BORE CANNOT BE CLEANED OUT WITHIN TWO EIGHT-HOUR WORK SHIFTS OR THE TOTAL DEPTH OF THE WELL IS REACHED.

"TOTAL DEPTH." THE DEPTH TO WHICH A WELL WAS ORIGINALLY DRILLED OR SUBSEQUENTLY DRILLED OR THE DEPTH TO WHICH IT WAS PLUGGED PREVIOUSLY IN A MANNER APPROVED BY THE DEPARTMENT.

SECTION 9.

THE ACT IS AMENDED BY ADDING ARTICLES TO READ:

ARTICLE XVI-H.1 MANUFACTURING AND INVESTMENT TAX CREDIT SECTION 1601-H.1.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"CLOSING DATE." AS DEFINED IN SECTION 1822-G OF THE TAX REFORM CODE.

"CREDIT-ELIGIBLE CAPITAL CONTRIBUTION." AN INVESTMENT OF CASH BY A BUSINESS FIRM IN A RURAL GROWTH FUND THAT EQUALS THE AMOUNT SPECIFIED ON A TAX CREDIT CERTIFICATE ISSUED BY THE DEPARTMENT UNDER SECTION 1829-G OF THE TAX REFORM CODE.

THE INVESTMENT SHALL PURCHASE AN EQUITY INTEREST IN THE RURAL GROWTH FUND OR PURCHASE, AT PAR VALUE OR PREMIUM, A DEBT INSTRUMENT THAT HAS A MATURITY DATE AT LEAST FIVE YEARS FROM THE CLOSING DATE.

"DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE COMMONWEALTH.

"INVESTMENT AUTHORITY." THE AMOUNT STATED ON THE NOTICE ISSUED UNDER SECTION 1824-G OF THE TAX REFORM CODE APPROVING THE RURAL GROWTH FUND.

"PROGRAM ONE TAX CREDIT AUTHORITY." INVESTMENT AUTHORITY ISSUED BY THE DEPARTMENT BEFORE JANUARY 1, 2024.

20250SB0146PN1888 - 37 - "PROGRAM TWO TAX CREDIT AUTHORITY." INVESTMENT AUTHORITY ISSUED BY THE DEPARTMENT ON OR AFTER JANUARY 1, 2024.

"RURAL GROWTH FUND." AN ENTITY APPROVED BY THE DEPARTMENT UNDER SECTION 1824-G OF THE TAX REFORM CODE.

"TAX CREDIT." THE RURAL JOBS AND INVESTMENT TAX CREDIT PROVIDED UNDER PART II OF ARTICLE XVIII-G OF THE TAX REFORM CODE.

"TAX REFORM CODE." THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.

SECTION 1602-H.1.

LIMITATIONS.

NOTWITHSTANDING SECTION 1828-G(C) OF THE TAX REFORM CODE, THE DEPARTMENT MAY NOT APPROVE MORE THAN $60,000,000 IN CREDIT- ELIGIBLE CAPITAL CONTRIBUTIONS.

SECTION 1603-H.1.

TAX CREDIT CERTIFICATES.

(A) APPLICATION.--NOTWITHSTANDING SECTION 1829-G(A) OF THE TAX REFORM CODE, THE FOLLOWING SHALL APPLY:

(1) WITH RESPECT TO PROGRAM ONE TAX CREDIT AUTHORITY, THE APPLICATION UNDER SECTION 1829-G(A) OF THE TAX REFORM CODE SHALL BE FILED NO LATER THAN FEBRUARY 1 FOR CREDIT- ELIGIBLE CAPITAL CONTRIBUTIONS MADE IN THE PRECEDING CALENDAR YEAR.

(2) WITH RESPECT TO PROGRAM TWO TAX CREDIT AUTHORITY, THE APPLICATION UNDER SECTION 1829-G(A) OF THE TAX REFORM CODE SHALL BE FILED NO LATER THAN FEBRUARY 1 FOR CREDIT- ELIGIBLE CAPITAL CONTRIBUTIONS MADE IN THE PRECEDING CALENDAR YEAR.

(B) REVIEW, RECOMMENDATION AND APPROVAL.--NOTWITHSTANDING SECTION 1829-G(B) OF THE TAX REFORM CODE, THE DEPARTMENT:

(1) BEGINNING WITH FISCAL YEAR 2020-2021, MAY NOT AWARD TAX CREDIT CERTIFICATES THAT WOULD RESULT IN THE UTILIZATION 20250SB0146PN1888 - 38 - OF MORE THAN $12,000,000 IN TAX CREDITS IN ANY FISCAL YEAR, EXCEPT FOR TAX CREDITS CARRIED FORWARD.

(2) MAY NOT AWARD MORE THAN $60,000,000 IN TAX CREDIT CERTIFICATES, IN THE AGGREGATE, UNDER PART II OF ARTICLE XVIII-G OF THE TAX REFORM CODE.

ARTICLE XVI-H.2 INNOVATE IN PA 2.0 TAX CREDIT SECTION 1601-H.2.

SCOPE OF ARTICLE.

THIS ARTICLE RELATES TO THE INNOVATE IN PA 2.0 TAX CREDIT.

SECTION 1602-H.2.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"CAPITAL." THE AMOUNT OF MONEY THAT A PURCHASER INVESTS UNDER THE INNOVATE IN PA 2.0 PROGRAM.

"DEPARTMENT." THE DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT OF THE COMMONWEALTH.

"DEVELOPMENT AUTHORITY." THE BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY CREATED UNDER SECTION 3 OF THE ACT OF JUNE 22, 2001 (P.L.569, NO.38), KNOWN AS THE BEN FRANKLIN TECHNOLOGY DEVELOPMENT AUTHORITY ACT.

"FUND." THE INNOVATE IN PA 2.0 FUND.

"INSURANCE PREMIUMS TAX LIABILITY." ANY LIABILITY INCURRED BY AN INSURANCE COMPANY UNDER ARTICLE IX OF THE TAX REFORM CODE OF 1971.

"PROGRAM." THE INNOVATE IN PA 2.0 PROGRAM.

"QUALIFIED TAXPAYER." ANY OF THE FOLLOWING THAT HAVE INSURANCE PREMIUMS TAX LIABILITY AND CONTRIBUTE CAPITAL TO PURCHASE PREMIUMS TAX CREDITS UNDER THIS ARTICLE:

(1) AN INSURANCE COMPANY AUTHORIZED TO DO BUSINESS IN 20250SB0146PN1888 - 39 - THIS COMMONWEALTH.

(2) A HOLDING COMPANY THAT HAS AT LEAST ONE INSURANCE COMPANY SUBSIDIARY AUTHORIZED TO DO BUSINESS IN THIS COMMONWEALTH.

"RECIPIENT." AN ENTITY THAT RECEIVES A DISTRIBUTION OF FUNDS UNDER SECTION 1610-H.2(C).

"TAX CREDIT." A CREDIT AGAINST INSURANCE PREMIUMS TAX LIABILITY OFFERED TO OR HELD BY A QUALIFIED TAXPAYER UNDER THIS ARTICLE.

"TAX REFORM CODE OF 1971." THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF 1971.

SECTION 1603-H.2.

TAX CREDIT.

A QUALIFIED TAXPAYER MAY PURCHASE TAX CREDITS FROM THE DEPARTMENT IN ACCORDANCE WITH THIS ARTICLE AND MAY APPLY THE TAX CREDITS AGAINST ITS INSURANCE PREMIUMS TAX LIABILITY IN ACCORDANCE WITH THIS ARTICLE.

SECTION 1604-H.2.

DUTIES.

(A) SALE OF TAX CREDITS.--THE DEPARTMENT SHALL HAVE THE AUTHORITY TO SELL UP TO $125,000,000 IN TAX CREDITS TO QUALIFIED TAXPAYERS.

THE SALE OF THE TAX CREDITS SHALL BE IN ACCORDANCE WITH SECTION 1607-H.2.

(B) TIME OF SALE.--THE SALE AUTHORIZED UNDER SUBSECTION (A) MAY NOT OCCUR BEFORE OCTOBER 1, 2026.

SECTION 1605-H.2.

USE OF TAX CREDITS BY QUALIFIED TAXPAYERS.

(A) USE AGAINST INSURANCE PREMIUMS TAX LIABILITY.--A QUALIFIED TAXPAYER THAT PURCHASES TAX CREDITS UNDER SECTION 1604-H.2 MAY CLAIM THE CREDITS BEGINNING IN CALENDAR YEAR 2030 AGAINST INSURANCE PREMIUMS TAX LIABILITY INCURRED FOR A TAXABLE YEAR THAT BEGINS ON OR AFTER JANUARY 1, 2029.

(B) APPLICATION TO DEPARTMENT.--A QUALIFIED TAXPAYER SEEKING 20250SB0146PN1888 - 40 - TO USE PURCHASED TAX CREDITS MAY SUBMIT AN APPLICATION TO THE DEPARTMENT IN A MANNER PRESCRIBED BY THE DEPARTMENT.

(C) CONSTRUCTION.-- (1) A QUALIFIED TAXPAYER MAY NOT BE REQUIRED TO REDUCE THE AMOUNT OF INSURANCE PREMIUMS TAX INCLUDED BY THE TAXPAYER IN CONNECTION WITH RATEMAKING FOR ANY INSURANCE CONTRACT WRITTEN IN THIS COMMONWEALTH BECAUSE OF A REDUCTION OF THE TAXPAYER'S INSURANCE PREMIUMS TAX LIABILITY DERIVED FROM THE TAX CREDIT PURCHASED UNDER THIS ARTICLE.

(2) IF, UNDER THE INSURANCE LAWS OF THIS COMMONWEALTH, THE ASSETS OF THE QUALIFIED TAXPAYER ARE EXAMINED OR CONSIDERED, THE TAXPAYER'S BALANCE OF TAX CREDITS SHALL BE TREATED AS AN ADMITTED ASSET SUBJECT TO THE SAME FINANCIAL RATING AS HELD BY THE COMMONWEALTH.

(D) LIMITATIONS.-- (1) THE TOTAL AMOUNT OF TAX CREDITS APPLIED AGAINST INSURANCE PREMIUMS TAX LIABILITY BY ALL QUALIFIED TAXPAYERS IN A FISCAL YEAR MAY NOT EXCEED $15,000,000 PER YEAR BEGINNING IN CALENDAR YEAR 2030.

(2) THE CREDIT TO BE APPLIED IN ANY ONE YEAR MAY NOT EXCEED THE INSURANCE PREMIUMS TAX LIABILITY OF THE QUALIFIED TAXPAYER FOR THAT TAXABLE YEAR.

SECTION 1606-H.2.

SALE, CARRYOVER AND CARRYBACK.

(A) CARRYOVER.--IF THE QUALIFIED TAXPAYER CANNOT USE THE ENTIRE AMOUNT OF THE TAX CREDIT FOR THE TAXABLE YEAR IN WHICH THE TAXPAYER IS ELIGIBLE FOR THE CREDIT, THE EXCESS MAY BE CARRIED OVER TO SUCCEEDING TAXABLE YEARS AND USED AS A CREDIT AGAINST THE QUALIFIED TAX LIABILITY OF THE TAXPAYER FOR THOSE TAXABLE YEARS, PROVIDED THAT THE CREDIT MAY NOT BE CARRIED OVER TO ANY TAXABLE YEAR THAT BEGINS AFTER DECEMBER 31, 2041.

20250SB0146PN1888 - 41 - (B) SALE.--NO SOONER THAN 30 DAYS AFTER PROVIDING THE INSURANCE DEPARTMENT AND THE DEPARTMENT WRITTEN NOTICE OF THE INTENT TO TRANSFER TAX CREDITS, A QUALIFIED TAXPAYER MAY TRANSFER TAX CREDITS HELD WITHOUT RESTRICTION TO ANY ENTITY THAT IS A QUALIFIED TAXPAYER IN GOOD STANDING WITH THE INSURANCE DEPARTMENT AND THAT AGREES TO ASSUME ALL OF THE TRANSFEROR'S OBLIGATIONS WITH RESPECT TO THE TAX CREDIT.

(C) CARRYBACK.--A QUALIFIED TAXPAYER MAY NOT CARRY BACK A TAX CREDIT.

SECTION 1607-H.2.

SALE OF TAX CREDITS TO QUALIFIED TAXPAYERS.

(A) CONDUCT OF SALE.--THE SALE OF TAX CREDITS AUTHORIZED UNDER SECTION 1604-H.2(A) SHALL BE CONDUCTED IN ACCORDANCE WITH THIS SECTION.

(B) PROCESS.--THE DEPARTMENT MAY SELL THE TAX CREDITS AUTHORIZED UNDER THIS ARTICLE OR MAY CONTRACT WITH AN INDEPENDENT THIRD PARTY TO CONDUCT A BIDDING PROCESS AMONG QUALIFIED TAXPAYERS TO PURCHASE THE CREDITS.

IN RAISING CAPITAL FOR THE PROGRAM, THE DEPARTMENT SHALL HAVE THE DISCRETION TO DISTRIBUTE CREDITS USING A MARKET-DRIVEN APPROACH OR ANY APPROACH THAT MAXIMIZES THE YIELD TO THE COMMONWEALTH.

(C) APPLICATION.--A QUALIFIED TAXPAYER SEEKING TO PURCHASE TAX CREDITS MAY APPLY TO THE DEPARTMENT IN THE MANNER PRESCRIBED BY THE DEPARTMENT.

(D) BIDDING PROCESS.--USING PROCEDURES ADOPTED BY THE DEPARTMENT OR, IF APPLICABLE, BY AN INDEPENDENT THIRD PARTY, EACH QUALIFIED TAXPAYER THAT SUBMITS AN APPLICATION SHALL MAKE A TIMELY AND IRREVOCABLE OFFER, SUBJECT ONLY TO THE DEPARTMENT'S ISSUANCE TO THE TAXPAYER OF TAX CREDIT CERTIFICATES, TO MAKE SPECIFIED CONTRIBUTIONS OF CAPITAL TO THE DEPARTMENT ON DATES SPECIFIED BY THE DEPARTMENT.

20250SB0146PN1888 - 42 - (E) CONTENTS OF OFFER.--THE OFFER UNDER SUBSECTION (D) MUST INCLUDE ALL OF THE FOLLOWING:

(1) THE REQUESTED AMOUNT OF TAX CREDITS, WHICH MAY NOT BE LESS THAN $500,000.

(2) THE QUALIFIED TAXPAYER'S CAPITAL CONTRIBUTION FOR EACH TAX CREDIT DOLLAR REQUESTED, WHICH MAY NOT BE LESS THAN THE GREATER OF EITHER OF THE FOLLOWING:

(I) SEVENTY-FIVE PERCENT OF THE REQUESTED DOLLAR AMOUNT OF TAX CREDITS.

(II) THE PERCENTAGE OF THE REQUESTED DOLLAR AMOUNT OF TAX CREDITS THAT THE DEPARTMENT AND, IF APPLICABLE, THE INDEPENDENT THIRD PARTY DETERMINE TO BE CONSISTENT WITH MARKET CONDITIONS AS OF THE OFFER DATE.

(3) ANY OTHER INFORMATION THE DEPARTMENT OR, IF APPLICABLE, INDEPENDENT THIRD PARTY REQUIRES.

(F) NOTICE OF APPROVAL.--EACH QUALIFIED TAXPAYER THAT SUBMITS AN APPLICATION UNDER THIS SECTION SHALL RECEIVE A WRITTEN NOTICE FROM THE DEPARTMENT INDICATING WHETHER OR NOT IT HAS BEEN APPROVED AS A PURCHASER OF TAX CREDITS AND, IF SO, THE AMOUNT OF TAX CREDITS ALLOCATED.

(G) LIMITATION.--NO TAX CREDITS MAY BE SOLD IF THE BIDDING PROCESS, UPON COMPLETION, HAS FAILED TO YIELD AT LEAST $75,000,000 IN REVENUE.

(H) CONFIRMATION.--THE DEPARTMENT MUST RECEIVE CONFIRMATION FROM THE DEPARTMENT OF REVENUE, PRIOR TO ISSUING THE WRITTEN NOTICE OF APPROVAL, THAT THE QUALIFIED TAXPAYER HAS FILED ALL REQUIRED STATE TAX REPORTS AND RETURNS FOR ALL APPLICABLE TAXABLE YEARS AND PAID ANY BALANCE OF STATE TAX DUE AS DETERMINED BY ASSESSMENT OR DETERMINATION BY THE DEPARTMENT OF REVENUE AND NOT UNDER TIMELY APPEAL.

20250SB0146PN1888 - 43 - SECTION 1608-H.2.

PAYMENT FOR TAX CREDITS PURCHASED AND CERTIFICATES.

(A) PAYMENT OF CAPITAL.--CAPITAL COMMITTED BY A QUALIFIED TAXPAYER SHALL BE PAID TO THE DEPARTMENT FOR DEPOSIT INTO THE FUND.

NOTHING UNDER THIS SECTION SHALL PROHIBIT THE DEPARTMENT FROM ESTABLISHING AN INSTALLMENT PAYMENT SCHEDULE FOR CAPITAL PAYMENTS TO BE MADE BY THE QUALIFIED TAXPAYER.

(B) ISSUANCE OF TAX CREDIT CERTIFICATES.--ON RECEIPT OF PAYMENT OF CAPITAL, THE DEPARTMENT SHALL ISSUE TO EACH QUALIFIED TAXPAYER A TAX CREDIT CERTIFICATE REPRESENTING A FULLY VESTED CREDIT AGAINST INSURANCE PREMIUMS TAX LIABILITY.

(C) CERTIFICATE ISSUED IN ACCORDANCE WITH BIDDING PROCESS.-- THE DEPARTMENT SHALL ISSUE TAX CREDIT CERTIFICATES TO QUALIFIED TAXPAYERS IN ACCORDANCE WITH THE BIDDING PROCESS SELECTED BY THE DEPARTMENT OR THE INDEPENDENT THIRD PARTY.

(D) CONTENTS.--THE TAX CREDIT CERTIFICATE SHALL STATE ALL OF THE FOLLOWING:

(1) THE TOTAL AMOUNT OF PREMIUMS TAX CREDITS THAT THE QUALIFIED TAXPAYER MAY CLAIM.

(2) THE AMOUNT OF CAPITAL THAT THE QUALIFIED TAXPAYER HAS CONTRIBUTED OR AGREED TO CONTRIBUTE IN RETURN FOR THE ISSUANCE OF THE TAX CREDIT CERTIFICATE.

(3) THE DATES ON WHICH THE TAX CREDITS WILL BE AVAILABLE FOR USE BY THE QUALIFIED TAXPAYER.

(4) ANY PENALTIES OR OTHER REMEDIES FOR NONCOMPLIANCE.

(5) THE PROCEDURES TO BE USED FOR TRANSFERRING THE TAX CREDITS.

(6) ANY OTHER REQUIREMENTS THE DEPARTMENT CONSIDERS NECESSARY.

SECTION 1609-H.2.

FAILURE TO MAKE CONTRIBUTION OF CAPITAL AND 20250SB0146PN1888 - 44 - REALLOCATION.

(A) PROHIBITION.--A TAX CREDIT CERTIFICATE UNDER SECTION 1608-H.2 MAY NOT BE ISSUED TO ANY QUALIFIED TAXPAYER THAT FAILS TO MAKE A CONTRIBUTION OF CAPITAL WITHIN THE TIME THE DEPARTMENT SPECIFIES.

(B) PENALTY.--A QUALIFIED TAXPAYER THAT FAILS TO MAKE A CONTRIBUTION OF CAPITAL WITHIN THE TIME THE DEPARTMENT SPECIFIES SHALL BE SUBJECT TO A PENALTY EQUAL TO 10% OF THE AMOUNT OF CAPITAL THAT REMAINS UNPAID.

THE PENALTY SHALL BE PAID TO THE DEPARTMENT WITHIN 30 DAYS AFTER DEMAND.

(C) REALLOCATION.--THE DEPARTMENT MAY OFFER TO REALLOCATE THE DEFAULTED CAPITAL AMONG OTHER QUALIFIED TAXPAYERS, SO THAT THE RESULT AFTER REALLOCATION IS THE SAME AS IF THE INITIAL ALLOCATION HAD BEEN PERFORMED WITHOUT CONSIDERING THE TAX CREDIT ALLOCATION TO THE DEFAULTING QUALIFIED TAXPAYER.

(D) CONTRIBUTION.--IF THE REALLOCATION OF CAPITAL UNDER SUBSECTION (C) RESULTS IN THE CONTRIBUTION BY ANOTHER QUALIFIED TAXPAYER OF THE AMOUNT OF CAPITAL NOT CONTRIBUTED BY THE DEFAULTING QUALIFIED TAXPAYER, THE DEPARTMENT MAY WAIVE THE PENALTY PROVIDED UNDER SUBSECTION (B).

(E) TRANSFER.--A QUALIFIED TAXPAYER THAT FAILS TO MAKE A CONTRIBUTION OF CAPITAL WITHIN THE TIME SPECIFIED MAY AVOID THE IMPOSITION OF THE PENALTY BY TRANSFERRING THE ALLOCATION OF TAX CREDITS TO A NEW OR EXISTING QUALIFIED TAXPAYER WITHIN 30 DAYS AFTER THE DUE DATE OF THE DEFAULTED INSTALLMENT.

ANY TRANSFEREE OF AN ALLOCATION OF TAX CREDITS OF A DEFAULTING QUALIFIED TAXPAYER UNDER THIS SUBSECTION SHALL AGREE TO MAKE THE REQUIRED CONTRIBUTION OF CAPITAL WITHIN 30 DAYS AFTER THE DATE OF THE TRANSFER.

SECTION 1610-H.2.

INNOVATE IN PA 2.0 PROGRAM.

20250SB0146PN1888 - 45 - (A) ESTABLISHMENT.--THE INNOVATE IN PA 2.0 PROGRAM IS ESTABLISHED WITHIN THE DEPARTMENT.

(B) FUND.--THE INNOVATE IN PA 2.0 FUND IS ESTABLISHED AS A RESTRICTED ACCOUNT IN THE STATE TREASURY.

THE NET PROCEEDS RECEIVED BY THE DEPARTMENT AS A RESULT OF THE SALE OF TAX CREDITS UNDER SECTION 1604-H.2(A) SHALL BE DEPOSITED INTO THE FUND.

(C) PROGRAM PURPOSES.--THE DEPARTMENT SHALL ADMINISTER THE PROGRAM TO DISTRIBUTE MONEY FROM THE FUND FOR THE FOLLOWING PURPOSES:

(1) A TRANSFER OF FUNDS TO RECAPITALIZE THE DEVELOPMENT AUTHORITY VENTURE FUNDS WHICH INVEST IN VENTURE FUNDS THAT SUPPORT INNOVATION AS COMPANIES SCALE AND BRING NEW TECHNOLOGIES TO MARKET.

(2) IN THE FORM OF GRANTS TO ADDRESS REGIONAL AND STATEWIDE GAPS IN THE LIFE SCIENCES AND BIOTECHNOLOGY INDUSTRIES FOR STARTUP AND SMALL TO MID-SIZE BUSINESSES, AS DETERMINED BY THE DEPARTMENT.

(3) IN THE FORM OF GRANTS TO SUPPORT PARTNERSHIPS BETWEEN BIOTECHNOLOGY AND LIFE SCIENCE COMPANIES, TRAINING PROVIDERS AND EDUCATIONAL INSTITUTIONS THAT PROVIDE SECONDARY SCHOOL EDUCATIONAL OPPORTUNITIES TO PREPARE STUDENTS FROM ALL BACKGROUNDS, INCLUDING THOSE HISTORICALLY UNDERREPRESENTED OR FROM ECONOMICALLY DISADVANTAGED COMMUNITIES, FOR CAREERS IN THE BIOTECHNOLOGY OR LIFE SCIENCES SECTORS.

(4) IN THE FORM OF GRANTS TO SEED AND SCALE REGIONAL VENTURE STUDIOS ALIGNED WITH UNIVERSITY RESEARCH AND REGIONAL ECONOMIC STRENGTHS, WITH AN EMPHASIS IN RURAL AND ECONOMICALLY DISADVANTAGED AREAS AS DEFINED BY THE DEPARTMENT.

20250SB0146PN1888 - 46 - (5) IN THE FORM OF GRANTS TO DEVELOP AND EXPAND PROGRAMS WITHIN THE DEPARTMENT TO LEVERAGE FEDERAL FUNDING OPPORTUNITIES AND TECHNOLOGICAL INNOVATIONS FOR THE COMMONWEALTH'S RESEARCH UNIVERSITIES, WORKFORCE AND TECHNOLOGY STARTUPS.

SECTION 1611-H.2.

GUIDELINES.

THE DEPARTMENT SHALL DEVELOP WRITTEN GUIDELINES IMPLEMENTING THIS ARTICLE, INCLUDING ASSIGNMENT OF DISTRIBUTION PERCENTAGES OF NET PROCEEDS FOR EACH OF THE PROGRAM PURPOSES ENUMERATED IN SECTION 1610-H.2.

SECTION 1612-H.2.

REPORTS.

(A) DUTIES.--ON OR BEFORE JANUARY 1, 2028, AND JANUARY 1 OF EACH YEAR THEREAFTER, THE DEPARTMENT SHALL DO THE FOLLOWING:

(1) SUBMIT A REPORT ON THE IMPLEMENTATION OF THE PROGRAM TO ALL OF THE FOLLOWING:

(I) THE GOVERNOR.

(II) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE SENATE.

(III) THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(2) PUBLISH THE REPORT UNDER PARAGRAPH (1) ON THE DEPARTMENT'S PUBLICLY ACCESSIBLE INTERNET WEBSITE.

(B) CONTENTS.--THE REPORT UNDER SUBSECTION (A) SHALL INCLUDE THE FOLLOWING:

(1) THE NAME OF THE PURCHASER OF PREMIUMS TAX CREDITS.

(2) THE AMOUNT OF PREMIUMS TAX CREDITS ALLOCATED TO THE PURCHASER.

(3) THE AMOUNT OF CAPITAL THE PURCHASER CONTRIBUTED FOR THE ISSUANCE OF THE TAX CREDIT CERTIFICATE.

20250SB0146PN1888 - 47 - (4) THE AMOUNT OF ANY TAX CREDITS THAT HAVE BEEN TRANSFERRED UNDER SECTION 1609-H.2(E).

(5) THE AMOUNT OF FUNDS RECEIVED BY THE RECIPIENTS DURING THE PREVIOUS YEAR.

(6) THE CUMULATIVE AMOUNT OF CAPITAL RECEIVED BY THE DEPARTMENT IN CONNECTION WITH THE SALE OF THE TAX CREDITS.

(7) THE AMOUNT OF CAPITAL REMAINING UNINVESTED AT THE END OF THE PRECEDING CALENDAR YEAR.

(8) THE NAME, LOCATION, AGE OF BUSINESS, NUMBER OF EMPLOYEES AT TIME OF INVESTMENT AND PRIMARY INDUSTRY OF BUSINESS RECEIVING CAPITAL FROM THE RECIPIENTS, THE REASON FOR THE INVESTMENT AND THE AMOUNT OF THE INVESTMENT.

(9) THE TOTAL NUMBER OF JOBS CREATED IN THIS COMMONWEALTH BY THE INVESTMENT AND THE AVERAGE WAGES PAID FOR THE JOBS.

(10) THE TOTAL NUMBER OF JOBS RETAINED IN THIS COMMONWEALTH AS A RESULT OF THE INVESTMENT AND THE AVERAGE WAGES PAID FOR THE JOBS.

SECTION 1613-H.2.

MISCELLANEOUS.

(A) MUNICIPAL PENSION AID FUND AND FIRE INSURANCE TAX FUND.-- (1) THE IMPLEMENTATION AND ADMINISTRATION OF THIS ARTICLE, AND THE SALE OF TAX CREDITS AUTHORIZED BY THIS ARTICLE, SHALL NOT IMPACT THE FUNDING AVAILABLE VIA THE MUNICIPAL PENSION AID FUND OR THE FIRE INSURANCE TAX FUND ESTABLISHED IN SECTION 902(B.1) OF THE TAX REFORM CODE OF 1971, FOR FIREMEN'S RELIEF PENSION OR RETIREMENT PURPOSES OR FOR POLICE PENSION RETIREMENT OR DISABILITY PURPOSES.

(2) EACH FISCAL YEAR IN WHICH TAX CREDITS ARE CLAIMED UNDER THIS ARTICLE, THE DEPARTMENT OF REVENUE SHALL TRANSFER 20250SB0146PN1888 - 48 - FROM THE GENERAL FUND TO THE MUNICIPAL PENSION AID FUND AND TO THE FIRE INSURANCE TAX FUND AMOUNTS NECESSARY TO OFFSET THE IMPACT OF THESE CLAIMS BASED ON THE PROVISIONS OF SECTION 902(B.1) OF THE TAX REFORM CODE OF 1971.

(B) (RESERVED).

ARTICLE XVI-Q.3 DESIGN BUILD BEST VALUE SECTION 1601-Q.3.

SCOPE OF ARTICLE.

THIS ARTICLE RELATES TO DESIGN BUILD BEST VALUE AS AN ALTERNATIVE PROCUREMENT PROCESS FOR HIGHWAY AND BRIDGE DESIGN AND CONSTRUCTION PROJECTS FOR THE PENNSYLVANIA TURNPIKE COMMISSION.

SECTION 1602-Q.3.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"ALTERNATIVE TECHNICAL CONCEPT" OR "ATC." A PROPOSED VARIANCE FROM THE CONTRACTUAL REQUIREMENTS OR REQUEST FOR PROPOSALS THAT IS EQUAL TO OR BETTER THAN THE REQUIREMENTS IN THE REQUEST FOR PROPOSALS DOCUMENT.

"COMMISSION." THE PENNSYLVANIA TURNPIKE COMMISSION.

"DESIGN BUILD BEST VALUE." THE SOURCE SELECTION METHOD OTHER THAN COMPETITIVE SEALED PROPOSALS IN 62 PA.C.S.