SB 147 — An Act establishing the Near Zero Emission Truck Incentive Program and the Near Zero Emission Truck Incentive Fund; and providing for the powers and duties of the Department of Transportation.

PRINTER'S NO.   94

                   THE GENERAL ASSEMBLY OF PENNSYLVANIA



                       SENATE BILL
                       No. 147
                                               Session of
                                                 2025

     INTRODUCED BY BROWN, PENNYCUICK, BOSCOLA, FONTANA, CULVER, KANE,
        J. WARD, BAKER AND STEFANO, JANUARY 22, 2025

     REFERRED TO TRANSPORTATION, JANUARY 22, 2025


                                   AN ACT
 1   Establishing the Near Zero Emission Truck Incentive Program and
 2      the Near Zero Emission Truck Incentive Fund; and providing
 3      for the powers and duties of the Department of
 4      Transportation.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7   Section 1.   Short title.
 8      This act shall be known and may be cited as the Near Zero
 9   Emission Truck Incentive Program Act.
10   Section 2.   Findings and declarations.
11      The General Assembly finds and declares as follows:
12          (1)   The purpose of this act is to reduce air pollution
13      from heavy-duty diesel trucks in this Commonwealth.
14          (2)   Clean air is necessary for the health and well-being
15      of all Pennsylvanians, and the transportation sector is vital
16      for a functioning supply chain and growing economy.
17          (3)   Incentivizing fleets to upgrade their equipment can
18      slash truck emissions in this Commonwealth. A truck sold in
19      2006 emits roughly 10 times the amount of NOx and particulate
 1      matter as a truck sold today.
 2          (4)   No single technology transfer can affect the
 3      Commonwealth's air quality as much as replacing pre-2010
 4      models. The year 2010 marked a major milestone in truck
 5      engine technology with the standardization of selective
 6      catalytic reduction and diesel particulate filters.
 7   Section 3.   Definitions.
 8      The following words and phrases when used in this act shall
 9   have the meanings given to them in this section unless the
10   context clearly indicates otherwise:
11      "Board of Vehicles Act."     The act of December 22, 1983
12   (P.L.306, No.84), known as the Board of Vehicles Act.
13      "Department."   The Department of Transportation of the
14   Commonwealth.
15      "Eligible applicant."    The purchaser of a near zero emission
16   truck from a licensed dealer.
17      "Eligible costs."    Costs related to offsetting the Federal
18   excise tax on the purchase of a new near zero emission truck in
19   this Commonwealth or an amount equal to the value of 6% of the
20   secondary sale price or $5,000, whichever is greater, on the
21   purchase of a used near zero emission truck in this
22   Commonwealth.
23      "Federal excise tax."    The Federal excise tax imposed under
24   26 U.S.C. § 4051 (relating to imposition of tax on heavy trucks
25   and trailers sold at retail).
26      "Fund."   The Near Zero Emission Truck Incentive Fund
27   established under section 5.
28      "Licensed dealer."   A vehicle dealer licensed under the Board
29   of Vehicles Act.
30      "Near zero emission truck."     A diesel truck manufactured in

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 1   2010 or later which meets the emission standards under 40 CFR
 2   86.007-11 (relating to emission standards and supplemental
 3   requirements for 2007 and later model year diesel heavy-duty
 4   engines and vehicles) on the effective date of this definition.
 5      "Program."     The Near Zero Emission Truck Incentive Program
 6   established under section 4.
 7      "Salvage vehicle."     As defined in 75 Pa.C.S. § 102 (relating
 8   to definitions).
 9      "Truck."     As defined in 75 Pa.C.S. § 102.
10   Section 4.     Near Zero Emission Truck Incentive Program.
11      (a)   Establishment.--The Near Zero Emission Truck Incentive
12   Program is established in the department to award grants to
13   eligible applicants on a first-come, first-served basis to the
14   extent that money is available for this purpose. The General
15   Assembly may appropriate additional money to the program for the
16   administrative costs to administer the program and to extend the
17   department's ability to provide grants for the purpose of
18   reducing emissions from diesel trucks in this Commonwealth.
19      (b)   Use.--A grant awarded under this section shall be used
20   by the eligible applicant for eligible costs.
21      (c)   Criteria and application.--An eligible applicant shall
22   submit an application on a form and in a manner as determined by
23   the department. The following apply:
24            (1)   Proof that the near zero emission truck has been
25      registered for at least two years and titled and insured in
26      this Commonwealth must be included in the application.
27            (2)   The vehicle identification number of a pre-2010
28      diesel truck traded-in for a new or used near zero emission
29      truck must be included in the application. The trade-in may
30      not be titled as a salvage vehicle.

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 1      (d)   Limits.--
 2            (1)   An eligible applicant may receive a grant equal to
 3      the amount attributable to the Federal excise tax imposed on
 4      the purchase of the newest model year available or the
 5      immediate prior model year if there has not been a previous
 6      owner.
 7            (2)   An eligible applicant may receive a grant equal to
 8      the value of 6% of the secondary sale price or $5,000,
 9      whichever is greater, on the purchase of a used near zero
10      emission truck.
11      (e)   Awards.--
12            (1)   The department shall award grants for applications
13      made by eligible applicants when sufficient money has been
14      appropriated to the fund.
15            (2)   Eligible applicants may apply for a grant under this
16      act for the purchase of a near zero emission truck when the
17      department begins the application process and shall remain
18      eligible to apply for a grant award for a period of two years
19      following the purchase of a near zero emission truck or until
20      funding becomes available.
21            (3)   The department shall only award grants for the
22      purchase of a new or used near zero emission truck if
23      accompanied by a trade-in of a pre-2010 diesel truck that is
24      titled, registered and insured in this Commonwealth.
25      (f)   Prohibition.--A diesel truck traded in under the program
26   may not be titled or registered again in this Commonwealth
27   unless a waiver has been obtained from the department verifying
28   that an engine manufactured in 2010 or later has been installed.
29   Nothing in this act shall be construed to prevent a licensed
30   dealer from reselling a pre-2010 diesel truck out of State.

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 1      (g)   Audits.--The department may randomly audit and monitor
 2   grant recipients to ensure the appropriate use of grant money
 3   and compliance with the provisions of this act and the
 4   department's guidelines and regulations.
 5      (h)   Administrative fee.--The department may use money from
 6   the fund to pay for the direct costs associated with the
 7   administration of the program.
 8   Section 5.     Near Zero Emission Truck Incentive Fund.
 9      The Near Zero Emission Truck Incentive Fund is established as
10   a separate fund in the State Treasury. Money in the fund shall
11   be appropriated to the department on a continuing basis for the
12   purpose of awarding grants to eligible applicants under this
13   act. The following shall apply:
14            (1)   The interest and income earned on the money in the
15      fund must, after deducting any applicable charges to
16      administer the program, be credited to the fund.
17            (2)   Except as otherwise provided, money remaining in the
18      fund at the end of the fiscal year shall not revert to the
19      General Fund and the balance in the fund must be carried
20      forward to the next fiscal year.
21            (3)   Money that is deposited or paid into the fund must
22      be used by the department to carry out the program.
23   Section 6.     Duties.
24      The department and the Department of Environmental Protection
25   shall have the following powers and duties:
26            (1)   The department, in consultation with the Department
27      of Environmental Protection, shall establish guidelines or
28      promulgate regulations necessary to implement this act,
29      including standards to prevent pre-2010 diesel trucks traded-
30      in under the program from being titled and registered again

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 1    in this Commonwealth under section 4(e)(3).
 2        (2)   The department shall establish the process through
 3    which eligible applicants may apply for grants.
 4        (3)   The department and the Department of Environmental
 5    Protection shall apply for any Federal funding suitable for
 6    the purpose of carrying out the program, which shall be
 7    deposited into the fund. The department and the Department of
 8    Environmental Protection shall request and obtain any waivers
 9    from the Federal Highway Administration that are necessary to
10    comply with Federal law and any conditions for Federal money.
11        (4)   The department and the Department of Environmental
12    Protection may enter into agreements with third-party
13    entities to carry out the provisions of this act, including,
14    but not limited to, reviewing applications and providing
15    technical assistance.
16        (5)   The department shall establish a program web page on
17    its publicly accessible Internet website that includes
18    information such as a summary of available Federal funding
19    opportunities and the status of the progress of the
20    Commonwealth's funding applications.
21        (6)   On or before December 31, 2026, and each December 31
22    thereafter:
23              (i)   The department, in consultation with the
24        Department of Environmental Protection, shall submit to
25        the chairperson and minority chairperson of the
26        Transportation Committee of the Senate and the
27        chairperson and minority chairperson of the
28        Transportation Committee of the House of Representatives
29        a report summarizing the fiscal activity of the program
30        and the number of vehicles participating.

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1                (ii)   The department shall submit to the chairperson
2          and minority chairperson of the Environmental Resources
3          and Energy Committee of the Senate and the chairperson
4          and minority chairperson of the Environmental Resources
5          and Energy Committee of the House of Representatives a
6          report summarizing the estimated avoided air pollution
7          captured as a result of the program.
8   Section 7.   Effective date.
9      This act shall take effect immediately.




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