Energy

This bill updates Pennsylvania's definitions for "alternative fuels" and "liquid fuels" under vehicle tax law. It specifically adds gasoline-ethanol blends with 51% to 85% ethanol (per industry standards) to the "alternative fuels" category and clarifies that certain fuels like diesel, kerosene, and industrial solvents are excluded from "liquid fuels" for tax purposes. These changes directly affect fuel producers, retailers, and tax authorities by defining which products are subject to fuel taxes. The bill does not alter tax rates or create new requirements - only refines existing definitions. It takes effect 60 days after enactment.

This bill allocates state and federal funding to the Pennsylvania Public Utility Commission for the 2026-2027 fiscal year to support its operations and regulatory activities. It provides $98.1 million from state funds and $5.383 million in federal funds specifically for salaries, administrative expenses, and the enforcement of natural gas pipeline safety regulations. The legislation ensures that federal funds received by the commission cannot be reimbursed by utility companies, while the funding takes effect on July 1, 2026, or immediately if that date arrives later.

SB 704, also known as the Grid Stabilization and Security Act, directs the Pennsylvania Department of Community and Economic Development (DCED) to identify economically viable sites for natural gas electric generation projects. These sites must be located near natural gas sources and existing electricity transmission infrastructure to benefit end-user consumers. The DCED is required to prepare a list of these suitable sites, submit it to the Department of Environmental Protection, and publish it on their website. Additionally, the bill mandates that DCED collaborate with the Department of Environmental Protection's Bureau of Air Quality to identify necessary air quality permits for each listed site.