Section 1753.2-E. Commonwealth Financing Authority.
(a) Establishment.--The Public School Facility Improvement Grant Program is established within the authority to support school entity improvement projects. The authority shall administer and act as the fiscal agent for the program and shall be responsible for receiving and approving all grant applications and awarding grants.
(b) Eligibility.--The following improvement projects shall be eligible for grants under this section:
(1) Roof repairs and roof replacement.
(2) Heating, ventilation and air conditioning equipment.
(3) Boilers and controls.
(4) Plumbing systems.
(5) Energy saving projects.
(6) Health and safety upgrades, including lead and asbestos abatement or remediation and the purchase and maintenance of automated external defibrillators.
(7) Emergencies.
(8) Accessibility projects in accordance with standards under 42 U.S.C. Ch. 126 (relating to equal opportunity for individuals with disabilities).
(9) Internet connectivity, not including purchasing educational technology hardware or software.
(10) Demolition projects.
(11) Window repairs and window replacement.
(12) Other projects approved by the authority.
(13) For applications for grant awards received after July 1, 2025, projects that abate or remediate environmental hazards, including the abatement or remediation of lead in water sources, asbestos and mold in accordance with the guidelines of a school entity.
((b) amended July 11, 2024, P.L.550, No.54)
(b.1) Solar for schools eligibility.--
(1) Beginning in fiscal year 2024-2025, a project approved by the department under the Solar for Schools Grant Program shall be an eligible project. The board shall approve funding from funds available for the Solar for Schools Grant Program. The Department of Community and Economic Development shall use up to 3% of the money available for the Solar for Schools Grant Program to pay direct administrative costs, including providing technical assistance to eligible applicants.
(2) The following shall apply:
(i) Notwithstanding section 2 of the act of July 17, 2024 (P.L.813, No.68), known as the Solar for Schools Act, the term "eligible project costs" shall include costs related to a power purchase agreement and technical assistance provided by third-party entities.
(ii) Notwithstanding section 2 of the Solar for Schools Act, the term "school facility" shall include support buildings, including bus garages and district offices, owned by an eligible applicant.
(iii) Notwithstanding section 3(g) of the Solar for Schools Act, an eligible applicant may receive a grant of up to 75% of the eligible project costs for the solar energy project.
(iv) Notwithstanding section 3(i)(1) of the Solar for Schools Act, after an application period has been open for six months, the geographic dispersal requirement shall not apply and the department may allocate funds on a first-come, first-served basis to eligible applicants.
((b.1) amended July 12, 2026, P.L.265, No.21)
(c) Application process.--
(1) The authority shall develop a process through which school entities may submit applications for grant awards and post the application on its publicly accessible Internet website.
(2) An application for an improvement project shall either:
(i) fall under a single eligibility type identified in subsection (b) and involve one or more school buildings; or
(ii) encompass one or more eligibility types identified in subsection (b) and be confined to one school building.
(3) A qualifying application shall have costs related to the eligible improvement project of at least $500,000. The authority may waive this paragraph for the purchase of automated external defibrillators under subsection (b)(6).
(4) ((4) expired June 30, 2025. See Act 54 of 2024.)
(5) There shall be no limitation on the number of applications for different improvement projects a school entity may submit in a fiscal year.
((c) amended July 11, 2024, P.L.550, No.54)
(d) Funding rubric.--((d) deleted by amendment July 11, 2024, P.L.550, No.54)
(e) Local match required.--
(1) A school entity shall provide a 25% match for each grant awarded.
(2) No matching funds shall be required for a project that is determined by the authority to be an emergency.
(3) The authority may waive or reduce the match requirement for a school district that is in either financial watch or financial recovery status under Article VI-A of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949.
(f) Limitations.--
(1) No grant award for an improvement project may exceed $5,000,000.
(2) No school entity may receive an annual allocation of grants that exceeds 20% of the funds available under the program.
(3) The total allocation to area career and technical schools shall not exceed 20% of the funds allocated by the authority under the program in a fiscal year.
(4) Subject to paragraph (2), there is no limitation on a school entity receiving multiple awards under the program in a single fiscal year.
(g) Review of improvement projects.--The department shall provide the authority with technical assistance in reviewing applications upon request of the authority.
(h) Funding.--
(1) No later than 60 days after the effective date of this paragraph, the Secretary of the Budget shall transfer to the authority $100,000,000 appropriated under the act of August 3, 2023 (P.L.471, No.1A), known as the General Appropriation Act of 2023, to the Department of Education for a Level-Up Supplement.
(2) Except in the case of an emergency improvement project, the authority shall conduct a single vote to approve or disapprove the recommended slate of improvement projects.
(3) The authority shall ensure a geographic distribution of grants in the recommended slate of improvement projects.
(4) From money transferred to the authority in fiscal year 2024-2025 for Transfer to Public School Facility Improvement Grant Program - Commonwealth Financing Authority, the following shall apply:
(i) $75,000,000 shall be used in addition to the money appropriated in fiscal year 2023-2024 to make awards from applications received during the fiscal year 2023-2024.
(ii) $25,000,000 shall be used to fund projects recommended by the department under subsection (b.1).
(5) From money transferred to the authority in fiscal year 2025-2026 for Transfer to Public School Facility Improvement Grant Program - Commonwealth Financing Authority, no less than $25,000,000 shall be used to fund projects recommended by the department under subsection (b.1). ((5) added Nov. 12, 2025, P.L.156, No.45)
(6) From money transferred to the authority in fiscal year 2026-2027 for transfer to Public School Facility Improvement Grant Program - Commonwealth Financing Authority:
(i) $100,000,000 shall be used in addition to the money appropriated in fiscal year 2025-2026 to make awards from applications received during the 2025-2026 fiscal year. The authority shall provide a supplemental application period of at least 10 days during which a school entity may submit additional applications; and
(ii) $25,000,000 shall be used to fund projects recommended by the department under subsection (b.1).
((6) added July 12, 2026, P.L.265, No.21)
((h) amended July 11, 2024, P.L.550, No.54)
(i) Grant awards.--
(1) Grant money may only be awarded for new projects approved by the authority.
(2) Grant money may not be used for any of the following:
(i) Paying fees for securing financing.
(ii) Paying interest on borrowed money.
(iii) Refinancing existing debt.
(iv) Paying for lobbying services.
(v) Paying fines.
(vi) Application preparation fees.
(3) The authority shall execute a grant agreement between the authority and a grant recipient before the payment of a grant award.
(4) A grant recipient may not make a substantial change to an approved improvement project without first obtaining authority consent in writing.
(5) A grant recipient shall maintain full and accurate records for the improvement project.
(6) A grant recipient shall submit to the authority copies of all canceled checks or other records verifying expenditures of grant money.
(7) Any unused portion of a grant award shall be returned to the authority.
(8) A grant recipient shall submit to the authority a final report of the eligible improvement project, including any information as required by the authority.
(9) The authority may establish additional restrictions and limitations as the authority deems necessary to administer the program.
(j) Guidelines.--Within 60 days of the effective date of this subsection, the authority, in consultation with the department, shall adopt guidelines to implement this section. The guidelines shall include provisions for submission, review and approval of applications, award of grants and administration of improvement projects funded under the program, including a provision for reasonable oversight and reporting to ensure that improvement project grant awards are used as intended.
(k) Quorum.--A vote of the authority to adopt guidelines under subsection (j) and to approve projects under this section shall be made in accordance with 64 Pa.C.S. § 1512(d)(1) (relating to board). ((k) amended July 11, 2024, P.L.550, No.54)
(l) (Reserved).
(m) Transmission of information to General Assembly.--The authority shall annually transmit grant award information to the chairperson and minority chairperson of the Appropriations Committee of the Senate and the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives, including grant amounts.
(m.1) Transfer.--
(1) Within 30 days of the effective date of this subsection, the Secretary of the Budget shall transfer $25,000,000 from the following funds or programs to the restricted account established by section 1705-E.2:
(i) $15,851,838 from the Alternative and Clean Energy Program.
(ii) $438,540 from the Renewable Energy Program.
(iii) $5,346,332 from the Solar Energy Program.
(iv) $3,363,290 from the Building PA Program.
(2) Upon deposit in the restricted account, the funds under paragraph (1) are appropriated to the Department of Education to be expended for the purpose of paying costs due to school districts for a PlanCon project as defined in section 1701-E.2.
((m.1) added Nov. 12, 2025, P.L.156, No.45)
(n) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:
"Authority." The Commonwealth Financing Authority.
"Department." The Department of Education of the Commonwealth.
"Emergency." A deficiency in a school building that prohibits the school building or a portion of the building from being occupied.
"School entity." A school district or area career and technical school.
(1753.2-E added Dec. 13, 2023, P.L.251, No.34)
Compiler's Note: See section 36(2) of Act 21 of 2026 in the appendix to this act for special provisions relating to retroactivity.