PRINTER'S NO. 216 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL No.272 Session of 2025 INTRODUCED BY MERSKI, FIEDLER, O'MARA, TAKAC, GIRAL, SANCHEZ, GUENST, HILL-EVANS, SAPPEY, PIELLI, HOHENSTEIN, CIRESI, HARKINS, SHUSTERMAN, VITALI, KRAJEWSKI, FREEMAN, OTTEN, KENYATTA, HADDOCK, NEILSON, CERRATO, VENKAT, CEPEDA-FREYTIZ, PROBST AND KHAN, JANUARY 22, 2025 REFERRED TO COMMITTEE ON ENERGY, JANUARY 22, 2025 AN ACT Establishing the Municipal and Emergency Responder Solar Grant Program; and providing for powers and duties of the Department of Environmental Protection. 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 Municipal and Emergency Responder Solar 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. "Eligible applicant." Any of the following: (1) A political subdivision. (2) A local authority. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 "Eligible facility." A political subdivision or emergency service facility eligible to receive money under this act. "Eligible project costs." The term includes costs related to the purchase and installation of equipment, including prepayment in whole or in part of a solar lease or power purchase agreement, permit fees, energy storage, utility interconnection and any other costs approved by the department. "Emergency service facility." A building and surrounding premises owned by an eligible applicant, a fire department, police department or ambulance service company. "Inflation Reduction Act." The Inflation Reduction Act of 2022 (Public Law 117-169, 136 Stat. 1818). "Political subdivision." A county, city, borough, incorporated town or township. "Program." The Municipal and Emergency Responder Solar Grant Program established under section 3. "Solar energy project." A project at an eligible facility related to photovoltaic or solar thermal devices that convert, transfer or store solar energy in or into usable forms of thermal or electric energy. "Solar facility site assessment." An evaluation of a possible location to ascertain whether it is safe and cost- effective for installing a solar energy project. Section 3. Municipal and Emergency Responder Solar Grant Program. (a) Establishment.-- The Municipal and Emergency Responder Solar Grant Program is established and shall be administered by the department. The program shall award grants to eligible applicants on a competitive basis to the extent that money is appropriated for this purpose. 20250HB0272PN0216 - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (b) Use of grants.--A grant awarded under this act shall be used by the eligible applicant for eligible project costs related to a solar energy project. (c) Duties of department.--The department shall have the following powers and duties: (1) To establish guidelines necessary to implement this act. (2) To establish the process through which eligible applicants may apply for grant money under the program. (3) To develop the minimum information to be included in a solar facility site assessment. (4) To provide technical assistance to an eligible applicant or other entity represented by an eligible applicant as appropriate, including conducting a solar facility site assessment. (5) To develop educational materials about using, purchasing, financing and maintaining solar energy projects. (6) To provide information related to funding opportunities through the Inflation Reduction Act. (7) To enter into agreements with third-party entities if necessary, including the Department of Community and Economic Development, to carry out this act, including reviewing applications, and providing technical assistance and conducting solar facility site assessments. (d) Application.--An eligible applicant shall submit an application on a form and in a manner as determined by the department in accordance with the following: (1) The application shall include the result of a solar facility site assessment conducted by a qualified solar installer. 20250HB0272PN0216 - 3 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (2) The application shall include an affidavit to ensure that a contractor or subcontractor performing construction, reconstruction, demolition or repair on a solar energy project funded under this act meets all of the following requirements: (i) Maintains all valid licenses, registrations or certificates required by the Federal Government, the Commonwealth or a local government entity that is necessary to do business or perform applicable work. (ii) Maintains compliance with the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment Compensation Law, and bonding and liability insurance requirements as specified in the contract for the solar energy project. (iii) Has not defaulted on a project, declared bankruptcy, been debarred or suspended on a project by the Federal Government, the Commonwealth or a local government entity within the previous three years. (iv) Has not been convicted of a misdemeanor or felony relating to the performance or operation of the business of the contractor or subcontractor within the previous 10 years. (v) Has completed a minimum of the United States Occupational Safety and Health Administration's 10-hour safety training course or similar training sufficient to prepare workers for any hazards that may be encountered during their work. (3) Prior to the time period established by the 20250HB0272PN0216 - 4 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 department to submit an application, the department shall solicit and fulfill requests for technical assistance from eligible applicants. (4) An eligible applicant may submit an application on behalf of a fire department, police department or ambulance service company. (e) Prevailing wage requirement.-- (1) An employer or contractor contracted to complete a solar energy project under the program shall pay the prevailing minimum wage and benefit rates for all crafts or classifications performing construction, reconstruction, demolition, alteration and repair work, other than maintenance work, on the solar energy project as determined by the Department of Labor and Industry under the act of August 15, 1961 (P.L.987, No.442), known as the Pennsylvania Prevailing Wage Act. (2) If the department or the Department of Labor and Industry determines that an eligible applicant that received a grant under the program failed to comply with the Pennsylvania Prevailing Wage Act, the eligible applicant must refund to the department the total amount of grants awarded for the solar energy project. (f) Project delivery.--An employer or contractor contracted to complete a solar energy project under the program shall use the contracting procedure under the act of May 1, 1913 (P.L.155, No.104), referred to as the Separations Act, or through a power purchase agreement with a third-party developer or under 62 Pa.C.S. Ch. 37 Subch. E (relating to guaranteed energy savings contracts) for a solar project contemplated by the program either separately or together with other energy efficiency 20250HB0272PN0216 - 5 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 improvements contemplated under 62 Pa.C.S. Ch. 37 Subch. E. For purposes of determining "energy-related cost savings" as defined under 62 Pa.C.S. ยง 3752 (relating to definitions), a grant recipient may use the cost of the project as reduced by the amount of the grant. Should an eligible applicant elect to use contracting procedures under 62 Pa.C.S. Ch. 37 Subch. E or a power purchase agreement, the eligible applicant shall be exempt from contracting requirements under the Separations Act only for projects approved under this act. (g) Grant limits.--An eligible applicant may receive a grant of up to 50% of the eligible project costs for a solar energy project. (h) Grant awards.-- (1) The department, in its discretion, may award in whole or in part a request made by an eligible applicant in its grant application based upon the merit of a specific component requested. (2) The department shall give preference in award decisions to eligible applicants seeking funding under the Inflation Reduction Act. (3) The department shall give preference in award decisions to eligible applicants within 50 miles of a coal- powered electric generation plant that has closed or will close within one year of the effective date of this paragraph. (4) The department may give preference in award decisions to applications demonstrating the greatest amount of solar energy projected to be produced relative to the existing energy usage at the eligible facility proposed for the solar energy project. 20250HB0272PN0216 - 6 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (5) The department shall establish a minimum of three regions of equal population within this Commonwealth for this purpose and allocate an equal percentage of available money to each region. (6) A grant award received under this act shall not be contingent upon the applicant committing to transfer ownership of any solar renewable energy credits generated by a solar energy project. (7) A grant award received under this act shall be contingent upon the eligible applicant retaining ownership of the equipment, including photovoltaic or solar thermal devices, related to the solar energy project at the onset of the purchase and installation of the equipment or at the conclusion of a power purchase agreement or lease agreement with a third party. (8) A grant award received under this act shall be contingent upon the equipment, including photovoltaic or solar thermal devices, related to the solar energy project being produced or manufactured in the United States. For the purpose of this paragraph, equipment shall be considered produced or manufactured in the United States if at least 75% of the articles, materials and supplies are produced or manufactured in the United States, if available. (i) Best practices.--An eligible applicant that receives a grant under the program may use the energy cost savings from the solar energy project to supplement, not supplant, existing spending on eligible facility projects, including environmental and health hazard remediation, indoor air quality improvements, heating, ventilation and air conditioning upgrades, roof, window and plumbing repairs or replacements and emergency repairs. 20250HB0272PN0216 - 7 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 (j) Guidelines.--Within 90 days of the effective date of this subsection, the department shall publish the guidelines required by subsection (c)(1) on the department's publicly accessible Internet website. (k) Audits.--The department may randomly audit and monitor grant recipients to ensure the appropriate use of grant money and compliance with this act and department guidelines. (l) Administrative fee.--The department may use money appropriated for the program to pay for the direct costs associated with the administration of the program, including providing technical assistance. Section 4. Effective date. This act shall take effect immediately. 20250HB0272PN0216 - 8 - 1 2 3 4 5 6 7 8 9 10 11 12 13