Pennsylvania Incentives and Laws
Listed below are the summaries of all current Pennsylvania incentives, laws, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:
State Incentives
Alternative Fuel and Idle Reduction Grants
The Small Business Advantage Grant Program provides matching grants of 50%, up to $7,500, to enable a Pennsylvania small business to adopt or acquire energy-efficient or pollution prevention equipment or processes. Pennsylvania trucking companies and independent truckers may use the funding to purchase auxiliary power units. Projects may not begin until after applications are approved. Funding is contingent upon annual legislative appropriations. As of October 2011, the annual grant application period is closed.
Alternative Fuel Production Tax Credits
The Alternative Energy Production Tax Credit Program provides a credit of 15%, up to $1 million per taxpayer, of the net cost of projects related to the production of alternative fuels and the research and development of technology to provide alternative fuels. An eligible applicant must develop or construct an alternative energy production project located in Pennsylvania that has a minimum useful life of four years. Funding is contingent upon annual legislative appropriations. As of October 2011, the program is closed but may reopen in the future. (Reference Title 73 Pennsylvania Statutes, Chapter 18G, Section 1649.701-1649.711)
Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Funding
The Alternative Fuels Incentive Grant (AFIG) Program provides financial assistance programs; information on alternative fuels, AFVs, HEVs, plug-in hybrid electric vehicles, and anti-idling technologies that use alternatives to diesel fuel for heavy-duty trucks; and advanced vehicle technology research, development, and demonstration. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process. As of October 2011, the annual AFIG Program application period is closed.
The AFIG Program also offers Alternative Fuel Vehicle Rebates to assist eligible residents with the incremental cost of the purchase of new AFVs, including electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), natural gas vehicles (NGVs), and propane vehicles. As of October 2011, rebates of $3,500 are available for qualified EVs and PHEVs, and rebates of $1,000 are available for NGVs and propane vehicles.(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)Point of Contact
Carmen La Rosa
Alternative Fuels Incentive Grant Program Manager
Pennsylvania Department of Environmental Protection, Office of Energy and Technology Deployment
Phone: (717) 783-9242
Fax: (717) 783-2703
clarosa@state.pa.us
Idle Reduction Loans
The Small Business Pollution Prevention Assistance Account Loan Program provides low interest rate loans to small businesses undertaking projects in Pennsylvania that reduce waste, pollution, or energy use, including the purchase of truck auxiliary power units. Loans are available for 75% of the total eligible project costs. The maximum loan amount is $100,000 within any 12-month period. The loan has a 2% fixed rate and a maximum term of 10 years.
Point of Contact
Gene DelVecchio
Program Manager
Pennsylvania Department of Environmental Protection
Phone: (717) 772-8951
Fax: (717) 783-2703
gdelvecchi@state.pa.us
Alternative Fuel Development and Deployment Grants
Pennsylvania Energy Development Authority (PEDA) provides grants of up to $1,000,000 for alternative energy projects and research related to deployment projects or manufacturing. PEDA funding is available for projects involving biomass, fuel cells, and clean and alternative fuels for transportation, and may be used for equipment purchases, construction, contractor expenses, and engineering design necessary for construction or installation. Pure research is not eligible for funding. As of October 2011, the PEDA grant program is closed and no longer accepting applications, but interested applicants may sign up for notifications about the program status via the PEDA website.
Alternative Fuel Project Grants
Pennsylvania Energy Harvest Grant seeks to deploy cleaner energy sources by providing funding for alternative energy projects, including those involving clean, alternative fuels for transportation. Projects must address both energy and environmental concerns; projects that are primarily education, outreach, feasibility, assessment, planning, or research and development are not eligible. Eligible applicants include an incorporated 501(c)(3) non-profit organizations that is also registered with the Pennsylvania Bureau of Charitable Organizations; county or municipal government; county conservation district; Council of Governments; a school, school district, college or university; or an incorporated watershed organization recognized by the Pennsylvania Department of Environmental Protection. As of October 2011, this grant program is closed but interested applicants may sign up for notifications about the program status via the Energy Harvest website.
Idle Reduction Weight Exemption
A vehicle equipped with qualified idle reduction technology may exceed the state's gross weight and axle weight limits by up to 400 pounds to compensate for the additional weight of the idle reduction technology. (Reference Title 35 Pennsylvania Statutes, Chapter 23B, Section 4604)
Utility/Private Incentives
Natural Gas Infrastructure Technical Assistance - Columbia Gas
Columbia Gas of Pennsylvania, Inc. provides natural gas infrastructure technical assistance.
Point of Contact
Mack Godfrey
Columbia Gas of Pennsylvania, Inc.
Phone: (724) 416-6324
mgodfre@nisource.com
Laws and Regulations
Renewable Fuels Mandate
One year after in-state production has reached 350 million gallons of cellulosic ethanol and sustained this volume for 3 months, all gasoline sold in Pennsylvania must contain at least 10% cellulosic ethanol. All diesel fuel sold in Pennsylvania must contain at least 2% biodiesel (B2) one year after in-state production of biodiesel reaches 40 million gallons. The mandated biodiesel blend level will continue to increase according to the following schedule:
- 5% biodiesel (B5) one year after in-state production of biodiesel reaches 100 million gallons;
- 10% biodiesel (B10) one year after in-state production of biodiesel reaches 200 million gallons; and
- 20% biodiesel (B20) one year after in-state production of biodiesel reaches 400 million gallons.
All biodiesel retailers in Pennsylvania must register with the Pennsylvania Department of Agriculture each year.
(Reference Title 73 Pennsylvania Statutes, Chapter 18H, Sections 1650.3 and 1650.4)
Low Emission Vehicle (LEV) Standards
The Pennsylvania Clean Vehicles Program requires that all new passenger cars and light-duty trucks sold, leased, titled, or registered in the Commonwealth must meet California vehicle emissions and compliance requirements, as set forth in Title 13 of the California Code of Regulations, with the exception of the Zero Emission Vehicle sales requirements and the emissions control system warranty statement. (Reference Title 25 Pennsylvania Code 126.401-126.451).
State Fleet Retrofit Feasibility Study
The Pennsylvania House of Representatives directs the Pennsylvania Department of General Services to conduct a study that will determine the associated costs and feasibility of modernizing the state fleet by retrofitting current state-owned vehicles with compressed or liquefied natural gas engines. (Reference House Resolution 631, 2010)
Idle Reduction Requirement
Diesel vehicles with a gross vehicle weight rating over 10,000 pounds may not idle for more than five minutes in any continuous 60 minute period. Exemptions include: uncontrollable traffic conditions; prevention of safety or health emergencies; emergency or law enforcement purposes; verification that a vehicle is safe to operate; vehicle maintenance; power work-related operations; sampling, weighing, or loading; bus passenger comfort; vehicles actively engaged in solid waste or recyclable material collection; vehicles complying with manufacturer specifications; and vehicles meeting California Air Resources Board nitrogen oxide idling emission standards. (Reference Title 35 Pennsylvania Statutes, Chapter 23B, Section 4603)
Alternative Fuels Tax
Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. The tax rates are posted in the Pennsylvania Bulletin. (Reference Title 75 Pennsylvania Statutes, Chapter 90, Section 9004)