Trial Engrossment of Amendment A05418 to House Bill 1032 P.N. 3415, Regular Session 2023-2024

SENATE AMENDED

A05418

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1032

Session of

2023

INTRODUCED BY FIEDLER, KAUFER, GAYDOS, BOROWSKI, MALAGARI,

PISCIOTTANO, NEILSON, KRUEGER, OTTEN, KRAJEWSKI, INNAMORATO,

SCHLOSSBERG, T. DAVIS, D. WILLIAMS, VITALI, PROBST, GUENST,

HILL-EVANS, TAKAC, SMITH-WADE-EL, MADDEN, McANDREW, BRENNAN,

VENKAT, KHAN, GIRAL, KENYATTA, WAXMAN, HADDOCK, SANCHEZ,

HOWARD, KINSEY, WARREN, O'MARA, FLEMING, FREEMAN, SAMUELSON,

DALEY, STURLA, FRANKEL, CONKLIN, BRIGGS, N. NELSON, CERRATO,

SHUSTERMAN, DONAHUE, SALISBURY, KIM, PIELLI, GREEN, BOYD,

WEBSTER, CEPEDA-FREYTIZ, ISAACSON AND MAYES, APRIL 26, 2023

SENATOR GEBHARD, COMMUNITY, ECONOMIC AND RECREATIONAL

DEVELOPMENT, IN SENATE, AS AMENDED, JUNE 26, 2024

AN ACT

Establishing the Solar for Schools Grant Program; and providing

for powers and duties of the Department of Community and

Economic Development.

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 Solar for

Schools Act.

Section 2. Purpose.

The purpose of this act is to expand the use of solar energy

at school facilities in this Commonwealth to achieve the

following benefits:

(1) To help schools reduce their present and future

energy costs.

(2) To increase the resiliency of school energy systems.

(3) To help schools reduce their emissions of carbon

dioxide and other pollutants.

(4) To grow employment through good-paying jobs in the

solar industry.

(5) To maximize the Inflation Reduction Act's solar

energy investment tax credit for Pennsylvania.

Section 3 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 Community and Economic

Development of the Commonwealth.

"Eligible applicant." Any of the following:

(1) A school district.

(2) An intermediate unit.

(3) An area career and technical school.

(4) A chartered school for the education of the deaf or

the blind.

(5) A community college.

(6) The Thaddeus Stevens College of Technology.

(7) The Pennsylvania College of Technology.

(1) A SCHOOL ENTITY AS DEFINED IN THE ACT OF MARCH 10,

1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF

1949, INCLUDING:

(I) A SCHOOL DISTRICT.

(II) AN INTERMEDIATE UNIT.

(III) AN AREA CAREER AND TECHNICAL SCHOOL.

(IV) A CHARTER SCHOOL.

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(V) A CYBER CHARTER SCHOOL.

(VI) A REGIONAL CHARTER SCHOOL.

(2) A CHARTERED SCHOOL FOR THE EDUCATION OF THE DEAF OR

THE BLIND.

(3) A COMMUNITY COLLEGE.

(4) THE THADDEUS STEVENS COLLEGE OF TECHNOLOGY.

(5) THE PENNSYLVANIA COLLEGE OF TECHNOLOGY.

"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 DIRECTLY RELATED

TO A SOLAR ENERGY PROJECT.

"Inflation Reduction Act." The Inflation Reduction Act of

2022 (Public Law 117-169, 136 Stat. 1818).

"Program." The Solar for Schools Grant Program established

under section 4 3.

"QUALIFIED PROVIDER." A PERSON OR BUSINESS THAT IS CAPABLE

OF EVALUATING, RECOMMENDING, DESIGNING, IMPLEMENTING AND

INSTALLING A SOLAR ENERGY PROJECT.

"School facility." An educational building and surrounding

premises owned by an eligible applicant.

"Solar energy project." A project at a school 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 SCHOOL

FACILITY PERFORMED BY A QUALIFIED PROVIDER TO ASCERTAIN WHETHER

A SCHOOL FACILITY IS CAPABLE OF SUPPORTING A SOLAR ENERGY

PROJECT AND ESTIMATES OF THE AMOUNTS BY WHICH AN ELIGIBLE

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APPLICANT'S ENERGY OR OPERATING COSTS WILL BE REDUCED BY A SOLAR

ENERGY PROJECT.

Section 4 3. Solar for Schools Grant Program.

(a) Establishment.--The Solar for Schools Grant Program is

established in the department to award grants to eligible

applicants on a competitive basis to the extent that money is

appropriated for this purpose.

(b) Use of grants.--A grant awarded under this section shall

be used by the eligible applicant for eligible project costs

related to a solar energy project.

following powers and duties TO THE EXTENT THAT MONEY IS

APPROPRIATED FOR SUCH PURPOSES:

(1) To establish guidelines necessary to implement this

act.

(2) To establish the process through which eligible

applicants may apply for grant money.

(3) To develop the minimum information to be included in

a solar feasibility STANDARDS FOR THE CONDUCT OF A SOLAR

FACILITY SITE assessment.

(4) To provide technical assistance to schools ELIGIBLE

APPLICANTS as appropriate, including, but not limited to,

conducting solar assessments. MAINTAINING A LIST OF QUALIFIED

PROVIDERS.

(5) To develop educational materials about using,

purchasing, financing and maintaining solar energy projects.

(6) To develop a financial risk and savings report that

all solar energy projects approved under this act shall

utilize and update monthly, to be used by the eligible

applicant. The following apply:

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(i) The report shall be submitted quarterly and

posted on the publicly accessible Internet website of the

Department of Education.

(ii) The report shall include, but not be limited

to, the following:

(A) The total cost of the solar energy project

before any deductible amounts.

(B) The total cost of the solar energy project

after any deductible amounts.

including a calculation of the kilowatts produced by

the solar energy project multiplied by the current

cost of electricity per kilowatt hour, subtracted

from the total cost of electricity during the same

billing period from the previous year.

(D) Solar renewable energy credit sales and

savings.

(E) Operations and maintenance costs.

(6) (7) To provide information related to funding

opportunities through the Inflation Reduction Act.

(7) To enter into agreements with third-party entities,

including the Department of Environmental Protection, to

carry out the provisions of this act, including reviewing

applications and providing technical assistance.

(7) (8) TO ENSURE THAT A QUALIFIED PROVIDER THAT

PERFORMS A SOLAR FACILITY SITE ASSESSMENT FOR AN ELIGIBLE

APPLICANT MAY NOT CONTRACT WITH THE ELIGIBLE APPLICANT TO

COMPLETE THE SOLAR ENERGY PROJECT.

(d) Application.--An eligible applicant shall submit an

application on a form and in a manner as determined by the

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department. The following apply:

(1) The application shall include the result of a solar

feasibility FACILITY SITE assessment conducted by a qualified

solar installer PROVIDER.

(2) The application shall include an affidavit to ensure

that a contractor or subcontractor performing construction,

reconstruction, demolition, repair or maintenance work 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

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safety training course or similar training sufficient to

prepare workers for any hazards that may be encountered

during their work.

(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

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PREPARE WORKERS FOR ANY HAZARDS THAT MAY BE ENCOUNTERED

DURING THEIR WORK.

(3) Prior to the time period established by the

department to submit an application, the department shall

solicit and fulfill requests for technical assistance from

eligible applicants.

(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, and as bid under the act of May 1, 1913

(P.L.155, No.104), referred to as the Separations 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 or the Separations Act, the

eligible applicant must refund to the department the total

amount of grants awarded for the solar energy project.

(E) PAYMENT.--IF A GRANT IS AWARDED TO AN ELIGIBLE APPLICANT

FOR THE CONSTRUCTION, REHABILITATION, RENOVATION OR SITE WORK ON

A SCHOOL FACILITY, THE ELIGIBLE APPLICANT SHALL ENSURE THAT ALL

CONTRACTORS AND SUBCONTRACTORS ENGAGED DURING THE ON-SITE

CONSTRUCTION, RENOVATION, REHABILITATION, RECONSTRUCTION,

DEMOLITION, ALTERATION AND REPAIR WORK, OTHER THAN MAINTENANCE

WORK, ON ANY SEGMENT OF WORK AT THE SCHOOL FACILITY PAY TO THEIR

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WORKERS NOT LESS THAN THE PREVAILING MINIMUM WAGE AND BENEFIT

RATES FOR ALL CRAFTS OR CLASSIFICATIONS, 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.

(F) PROJECT DELIVERY.--THE FOLLOWING APPLY:

(1) AN ELIGIBLE APPLICANT SHALL COMPLY WITH THE

CONTRACTING PROCEDURE UNDER THE ACT OF MAY 1, 1913 (P.L.155,

NO.104), REFERRED TO AS THE SEPARATIONS ACT. An eligible

applicant that is approved for a solar energy project grant

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 under the Guaranteed Energy Savings Act

for a solar energy project contemplated by the program,

either separately or together with other energy efficiency

improvements contemplated by the Guaranteed Energy Savings

Act. A grant recipient that elects to use contracting

procedures under the Guaranteed Energy Savings Act may

calculate energy-related cost savings as defined in 62

Pa.C.S. § 3752 (relating to definitions) based upon the cost

of the project as reduced by the amount of the grant received

under the program. If an eligible applicant elects to use

contracting procedures under the Guaranteed Energy Savings

Act for an approved solar energy project, the eligible

applicant shall be exempt from the contracting requirements

under the Separations Act with regard to that approved solar

energy project.

(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

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SEPARATIONS ACT OR PENNSYLVANIA PREVAILING WAGE ACT, THE

ELIGIBLE APPLICANT SHALL REFUND TO THE DEPARTMENT THE TOTAL

AMOUNT OF GRANTS AWARDED FOR THE SOLAR ENERGY PROJECT.

(3) As used in this subsection, the term "Guaranteed

Energy Savings Act" shall mean 62 Pa.C.S. Ch. 37 Subch. E

(relating to guaranteed energy savings contracts).

(f) (G) Grant limits.--An eligible applicant may receive a

grant of up to 50% of the eligible project costs for the solar

energy project.

(g) 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 in close proximity to coal-

powered electric generation plants that have 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 school facility proposed for the

solar energy project.

(5) The department may give preference in award

decisions to school entities that qualify for the Low-Income

Communities Bonus Credit Program established under the

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Inflation Reduction Act.

(6) The department shall ensure that money for the

program is geographically dispersed throughout this

Commonwealth based on the applications received.

(7) A grant award received by a school entity under this

act shall not be included when calculating the amount to be

paid to a charter school under section 1725-A of the act of

March 10, 1949 (P.L.30, No.14), known as the Public School

Code of 1949.

(8) 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.

(9) 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.

(10) 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.

(h) Best practices.--An eligible applicant that receives a

grant under the program may:

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(1) Use the energy cost savings from the solar energy

project to supplement, not supplant, existing spending on

school 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.

(2) Integrate the solar energy project into the school's

educational curriculum, as appropriate.

(i) Reimbursement.--In the event that a school facility that

benefited from a grant under the program is leased or sold, the

eligible applicant that received the grant shall notify the

department, and the new owner of the school facility shall

reimburse the department the amount of the grant related to the

solar energy project at the school facility.

(h) Reimbursement.--In the event that an eligible entity

that received a grant under the program sells, transfers or

conveys the school facility where the solar energy project is

located, the eligible entity that received the grant shall

notify the department and the new owner of record shall

reimburse the department the amount of the grant related to the

solar energy project at the school facility as follows:

(1) If the school facility where the solar energy

project is located is sold, transferred or conveyed to a new

owner of record within five years from the date of the award

of the grant, the new owner of record shall reimburse the

department in an amount equal to 80% of the amount of the

grant.

(2) If the school facility where the solar energy

project is located is sold, transferred or conveyed to a new

owner of record more than 5 years but less than 10 years

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after the date of the award of the grant, the new owner of

record shall reimburse the department in an amount equal to

60% of the amount of the grant.

(3) If the school facility where the solar energy

project is located is sold, transferred or conveyed to a new

owner of record more than 10 years but less than 15 years

after the date of the award of the grant, the new owner of

record shall reimburse the department in an amount equal to

40% of the amount of the grant.

(4) If the school facility where the solar energy

project is located is sold, transferred or conveyed to a new

owner of record more than 15 years but less than 20 years

after the date of the award of the grant, the new owner of

record shall reimburse the department in an amount equal to

20% of the amount of the grant.

(H) (i) GRANT AWARDS.--THE DEPARTMENT SHALL DEVELOP A RUBRIC

TO PRIORITIZE GRANT AWARDS UNDER THIS SECTION. THE RUBRIC SHALL

CONSIDER ALL OF THE FOLLOWING:

(1) THE GEOGRAPHICAL DISPERSEMENT OF GRANTS THROUGHOUT

THIS COMMONWEALTH BASED ON APPLICATIONS RECEIVED. THE

DEPARTMENT SHALL ESTABLISH THREE REGIONS OF EQUAL POPULATION

WITHIN THIS COMMONWEALTH UNDER THIS PARAGRAPH AND ALLOCATE AN

EQUAL PERCENTAGE OF AVAILABLE FUNDS TO EACH REGION.

(2) WHETHER THE ELIGIBLE APPLICANT IS SEEKING FUNDING

UNDER THE INFLATION REDUCTION ACT.

(3) WHETHER THE APPLICANT IS 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 AMOUNT OF SOLAR ENERGY PROJECTED TO BE PRODUCED

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RELATIVE TO THE EXISTING ENERGY USAGE AT THE SCHOOL FACILITY

PROPOSED FOR THE SOLAR ENERGY PROJECT.

(5) WHETHER THE ELIGIBLE APPLICANT QUALIFIES FOR THE

LOW-INCOME COMMUNITIES BONUS CREDIT PROGRAM ESTABLISHED UNDER

THE INFLATION REDUCTION ACT.

(6) WHETHER THE EQUIPMENT, INCLUDING PHOTOVOLTAIC OR

SOLAR THERMAL DEVICES, RELATED TO THE SOLAR ENERGY PROJECT IS

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) (j) LIMITATIONS.--A GRANT AWARD RECEIVED UNDER THIS ACT

BY A SCHOOL DISTRICT SHALL NOT BE INCLUDED WHEN CALCULATING THE

AMOUNT TO BE PAID UNDER SECTION 1725-A OF THE ACT OF MARCH 10,

1949 (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949.

(j) (k) Guidelines.--Within 90 days of the effective date of

this section, 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 the provisions of this act and department

guidelines established under subsection (c).

(l) (K) (l) Administrative fee.--The department may use UP

TO 3% OF THE money appropriated for the program to pay for the

direct costs associated with the administration of the program,

including providing technical assistance TO ELIGIBLE APPLICANTS.

Section 5 4. Effective date.

This act shall take effect July 1, 2023 2024, or immediately,

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whichever is later.

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