Transportation

This bill updates Pennsylvania's vehicle inspection rules by exempting the newest model year vehicles from emission testing for five years and removing the gas cap test requirement for cars manufactured without one. While these newer cars are waived from emission checks, they must still undergo visual inspections to ensure emissions control parts have not been tampered with. Additionally, the legislation directs the state to stop spending money on the enhanced emission inspection program in several specific counties and to submit a revised plan to the federal government proving those areas can still meet air quality standards without it.

Senate Bill 323 creates the Keystone National Finance Authority, a new public entity intended to promote economic development and job creation across Pennsylvania and the United States. This authority aims to provide additional financing for a wide range of projects, including industrial, commercial, and agricultural activities, as well as infrastructure, transportation, energy, and housing developments. It is designed to issue bonds and engage in conduit financing to fund these projects, supporting community revitalization and business opportunities. The authority is intended to serve as a public instrumentality of the Commonwealth, complementing existing agencies.

HB 416 establishes a new Child Care Staff Recruitment and Retention Program to support early childhood educators and creates a Rural Health Transformation Program to improve healthcare access in underserved areas. It also streamlines permit processes for economic development projects through the Streamlining Permits for Economic Expansion and Development Program. These provisions are integrated into the 2025 state budget implementation, alongside administrative updates to tax collection procedures, state fund management, and reporting requirements for agencies like the Department of Revenue and Treasury. The bill does not alter existing tax rates or create new funding streams but modifies how current state financial systems operate.

HB 1058 amends Pennsylvania's State Lottery Law to adjust the minimum percentage of lottery revenues dedicated to senior programs. It reduces the required allocation from 20% (for fiscal years 2019-2025) to 10% for fiscal years beginning after June 30, 2025. This directly affects seniors aged 65+ who receive property tax relief and reduced-fare transit services funded by lottery revenues. The change modifies Section 303(a)(11)(iv) of the law, specifying the new funding percentage starting in 2026. The bill became law on July 21, 2025, as Act No. 37 of 2025.

SB 35 removes seven specific Pennsylvania counties from the enhanced vehicle emission inspection program based on their population ranges (e.g., third-class counties with 215,000-216,000 residents). The bill requires the Department of Environmental Protection to initiate this removal within 60 days and submit revised state plans to the EPA by January 2026, proving these counties can maintain air quality standards without the inspection program. It also mandates notifying key legislative committees about the plan submissions. The bill directly affects vehicle owners in those counties by ending their requirement for annual emissions inspections under the enhanced program.