(a) Establishment and purpose.--The Natural Gas Energy Development Program is established. The purpose of the program is to fund projects under this chapter.(b) Eligible projects.--Funds transferred to the department under Chapter 23 (relating to unconventional gas well fee) shall be utilized for competitive grants to eligible applicants for eligible projects as provided in this subsection. In order to be eligible to receive a grant, an eligible applicant must provide or demonstrate all of the following to the department:(1) A plan to convert five or more fleet vehicles into eligible vehicles or purchase five or more eligible vehicles. The plan must be financially viable within four years of the start date and must include the construction and utilization of a natural gas fueling station in this Commonwealth or the utilization of an existing natural gas fueling station.(2) A statement of the projected usage of natural gas stated in gasoline or diesel gallon equivalents accompanied by the methodology utilized and how the project will increase use of domestic natural gas in this Commonwealth.(3) The cost of the project.(4) The source and amount of any funds to be contributed by the eligible applicant.(5) The intent to maintain operations in this Commonwealth for a period of not less than six years from the start date.(6) That all of the eligible vehicles purchased with the grant will be registered in this Commonwealth.(7) The utilization of Federal funds on the project to the extent that Federal funds are available.(8) Whether or not the project includes the utilization of a natural gas fueling facility that is accessible to the public.(c) Guidelines.--Funds under this section shall be used in accordance with guidelines adopted by the department. The guidelines shall do all of the following:(1) Restrict each grant for an eligible vehicle to cover no more than 50% of the incremental purchase cost.(2) Limit the amount of the grant so that it shall not exceed $25,000 for each fleet vehicle.(3) In the case of grants awarded for eligible vehicles which are bi-fuel vehicles, provide for annual reporting to the department by the eligible applicant demonstrating the usage of compressed natural gas for a period not to exceed four years after the start date.(4) Require each eligible vehicle for which a grant is awarded to comply with all Federal and State safety requirements, including rules and regulations promulgated by the Environmental Protection Agency.(d) Application.--An applicant shall submit an application including supporting information as required by the department.(e) Project review.--The department shall review and prepare an assessment of each application and determine which projects will best utilize and promote the use of domestically produced natural gas in this Commonwealth.(f) Administrative costs.--No more than 1% of the funds appropriated to the department shall be used for administrative costs.(g) Report.--The department shall provide a report to the chairman and minority chairman of the Appropriations Committee of the Senate and the chairman and minority chairman of the Appropriations Committee of the House of Representatives by October 1, 2013, and each October 1 thereafter. The report shall be maintained on the department's official Internet website and shall include:(1) A list of all grants approved during the previous fiscal year, including the amount of the grant and a description of each approved project.(2) The estimated domestic energy benefits to date for all projects receiving funding during the fiscal year and the method used to determine estimated benefits.Added by P.L. 87 2012 No. 13, § 1, eff. 4/14/2012.