Pennsylvania Incentives and Laws

Last Updated October 2008

Pennsylvania is the home of the Pittsburgh Region (www.pgh-cleancities.org/) and the Greater Philadelphia, Inc. (www.phillycleancities.org) Clean Cities Coalitions. Coordinator contact information is listed in the Points of Contact section.

State Incentives

Alternative Fuel and Idle Reduction Grants

The Small Business Advantage Grant Program provides 50% matching grants, up to a maximum of $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. All work under this grant program must be accomplished after applications are approved. Funding is contingent upon annual legislative appropriations. The grant program funding limit has been reached, and new applications are not currently being accepted. If funds become available, the program is expected to reopen in July 2009.

Point of Contact

David Barnes
Program Manager
Pennsylvania Department of Environmental Protection, Office of the Small Business Ombudsman
Phone (717) 772-5160
Fax (717) 783-2703
dbarnes@state.pa.us
http://www.depweb.state.pa.us

Alternative Fuel Vehicle (AFV), Hybrid Electric Vehicle (HEV), and Fueling Infrastructure Funding

The Alternative Fuels Incentive Grant (AFIG) program is administered by the Pennsylvania Department of Environmental Protection and provides financial assistance and information on alternative fuels, AFVs, HEVs, plug-in hybrid electric vehicles, anti-idling technologies that use alternatives to diesel fuel for heavy-duty trucks, and advanced vehicle technology research, development, and demonstration. The AFIG program provides grant funding to school and vocational school districts, municipal authorities, counties, cities, boroughs, incorporated towns, county institution districts, nonprofit entities, corporations, limited liability companies, or partnerships incorporated or registered in the Commonwealth of Pennsylvania. Projects that result in product commercialization and the expansion of Pennsylvania companies will be favored in the selection process.(Reference Pennsylvania General Acts 178, 2004, and Special Session Senate Bill 22, 2008)

Point of Contact

Carmen La Rosa
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Office of Energy and Technology Deployment
Phone (717) 783-9242
Fax (717) 783-2703
clarosa@state.pa.us
http://www.depweb.state.pa.us

Point of Contact

David Althoff
Director, Bureau of Energy Innovations and Technology Deployment
Pennsylvania Department of Environmental Protection, Office of Energy and Technology Deployment
Phone (717) 783-0542
Fax (717) 783-2703
dalthoff@state.pa.us
http://www.depweb.state.pa.us

Biodiesel Production Refund

Biodiesel producers with a production capacity of 25,000 gallons or more may apply for a $0.75 per gallon refund for biodiesel produced for commercial purposes between July 1, 2008, and June 30, 2011. Individual producers may not receive more than $1.9 million in incentives in any one fiscal year. Biodiesel must meet ASTM D6751 standards.(Reference Pennsylvania General Acts 178, 2004, and Special Session Senate Bill 22, 2008)

Idle Reduction Equipment Funding

The Mid-Atlantic Regional Small Business Anti-Idling Initiative provides funding to help independent truckers and small trucking companies purchase anti-idling technology. Participants must qualify as small businesses (with a fleet size of less than 50 trucks) and be located in Pennsylvania or Delaware. Program financing is available to help owners purchase and install auxiliary power units (APUs) that provide both heating and cooling; the maximum amount of funding available per applicant is $3,000. Disbursements will be made to awardees after the following tasks are completed: 1) submission of baseline data and installation of an APU, 2) submission of a six month data report, and 3) submission of a 12 month data report. The initiative is funded by a grant from the U.S. Environmental Protection Agency to the Mid-Atlantic Regional Air Management Association, and project approval is dependent on annual funding allocations.

Point of Contact

Susan Stephenson
Senior Policy Analyst
Mid-Atlantic Regional Air Management Association
Phone 410) 467-0170
sstephenson@marama.org
http://www.dieselmidatlantic.org/diesel/index.htm

Idle Reduction Loans

The Small Business Pollution Prevention Assistance Account (PPAA) Loan Program provides low interest 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 funding up to 75% of total eligible project cost, up to a maximum of $100,000. The loan interest rate is a 2% fixed rate and has a maximum term of 10 years.

Point of Contact

Gene DelVecchio
Program Manager
Pennsylvania Department of Environmental Protection
Phone (717) 772-8951
gdelvecchi@state.pa.us
http://www.depweb.state.pa.us

Renewable Energy Grants

Pennsylvania Energy Development Authority (PEDA) provides grants and loan guarantees for alternative energy projects and related research referring to deployment projects, manufacturing, or research. PEDA funding is available for projects involving clean, alternative fuels for transportation, biomass, and fuel cells. Another grant program, the Pennsylvania Energy Harvest Grant, seeks to deploy cleaner energy sources by providing funding for renewable energy technologies, such as biomass energy projects. For more information, see the Department of Environmental Protection Grant and Loan Programs Web site.

State Laws and Regulations

Renewable Fuels Mandate

All diesel fuel sold in Pennsylvania must contain biodiesel according to the following schedule:

• 2% biodiesel by volume one year after in-state production of biodiesel reaches 40 million gallons;
• 5% biodiesel by volume one year after in-state production reaches 100 million gallons;
• 10% biodiesel by volume one year after in-state production reaches 200 million gallons;
• and 20% biodiesel by volume one year after in-state production reaches 400 million gallons.

All gasoline sold in Pennsylvania must contain at least 10% cellulosic ethanol by volume one year after in-state production of cellulosic ethanol reaches 350 million gallons.

(Reference House Bill 1202, 2008)

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 emission 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. The program applies to Model Year (MY) 2008 and subsequent MY vehicles. (Reference Pennsylvania Code 126.401-126.451).

Establishment of Alternative Fuel Production Tax Credits

The Alternative Energy Production Tax Credit Program is established to provide incentives related to the production of alternative fuels, as well as the research and development of technology to provide alternative fuels. The Pennsylvania Department of Environmental Protection, in consultation with the Department of Revenue, will establish regulations necessary for the implementation of this program. (Reference Special Session House Bill 1, 2008)

Plug-In Hybrid Electric Vehicle (PHEV) Promotion

The Commonwealth of Pennsylvania urges auto manufacturers to develop and produce PHEVs for consumer use. (Reference House Resolution 106, 2007)

Energy Independence Strategy

The PennSecurity Fuels Initiative, established in 2006, aims to reduce dependence on foreign oil by replacing 900 million gallons of the Commonwealth's transportation fuels with alternative sources over the next decade. The initiative requires that retail transportation fuels contain a certain percentage of biodiesel or ethanol, and it also invests $30 million in existing funds from the Commonwealth's Alternative Fuels Incentive Grant program to build alternative fuel production and fueling infrastructure over the next five years. The initiative also includes the creation of incentives that open new markets to Pennsylvania farmers who grow the feedstocks used to produce ethanol and biodiesel, and the creation of safeguards against alternative fuel price increases. For more information on the PennSecurity Fuels Initiative see the Pennsylvania Department of Environmental Protection Web site.

Hybrid Electric Vehicle (HEV) Pilot Program

The Governor launched a pilot project in 2005 to explore the use of HEVs among the state fleet. Under this pilot program, the Commonwealth of Pennsylvania added 30 HEVs to its fleet in 2007, and plans to add an additional 75 HEVs by Model Year (MY) 2010. By MY 2011, at least 25% of all new passenger vehicles purchased for the Commonwealth’s fleet will be HEVs, as long as the total cost of ownership does not exceed the average total cost of ownership of the rest of the fleet. For more information, see the 2005 Office of the Governor press release.

Idle Reduction Requirement

Vehicles with a gross vehicle weight rating of 10,001 pounds or more are not allowed to idle for more than five minutes in any continuous 60 minute period. Exceptions apply for motor homes, vehicles used in farm operations, idling in on-highway traffic, and operations requiring the use of refrigeration or safety equipment. (Reference Senate Bill 295, 2008)

Idle Reduction Requirement - Allegheny County

The Allegheny County Board of Health limits idling of heavy-duty diesel vehicles. Heavy-duty diesel vehicles are not allowed to idle for more than five minutes; violators may be fined up to $500 for repeat offenses. The Board of Health plans to expand restrictions to construction equipment, locomotives and marine vessels. The County also has a school bus idle reduction regulation in place. (Reference Allegheny County Ordinance Number 16782, and Allegheny County Health Department Rules and Regulations, Article XXI, Sections 2105.91-92)

Idle Reduction Requirement - Philadelphia

The City of Philadelphia prohibits the idling of any heavy-duty diesel motor vehicle for more than two minutes. Vehicles may idle for up to five minutes if the ambient outside air temperature is less than 32 degrees Fahrenheit, or for up to 20 minutes if the ambient outside air temperature is less than 20 degrees Fahrenheit. Violators are subject to a penalty of up to $300. (Reference City of Philadelphia Air Management Regulation IX)

Renewable Fuels Committee

The Governor's Renewable Agricultural Energy Council was established to make recommendations to the Governor on policies, regulations, and legislation that will aid in the development of renewable energy. The Governor has appointed four experts in agricultural energy (including ethanol and biodiesel) to the Council. (Reference Title 4 Pennsylvania Code 6.231-6.240)

Alternative Fuels Tax

A tax is imposed on alternative fuels used to propel vehicles of any kind on public highways. The rate of tax is determined on a gasoline gallon equivalent basis. (Reference Pennsylvania Consolidated Statutes, Title 75, Section 9004)

Utilities/Private Incentives

Natural Gas Infrastructure Technical Assistance

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

Points of Contact:

NAME/EMAIL	AGENCY	TITLE	PHONE/FAX
Ryan Walsh coordinator@pgh-cleancities.org	Pittsburgh Region Clean Cities Coalition	Clean Cities Coordinator	Phone: (412) 241-9323 Fax: (412) 202-2888
Dennis Winters coordinator@phillycleancities.org	Greater Philadelphia Clean Cities Program	Clean Cities Coordinator	Phone: (215) 790-1894 Fax: (215) 790-1894
Kay Kelly kay.kelly@go.doe.gov	U.S. Department of Energy, Golden Office	Project Manager	Phone: (303) 275-6037 Fax:
Carmen La Rosa clarosa@state.pa.us	Pennsylvania Department of Environmental Protection, Office of Energy and Technology Deployment	Energy Program Specialist	Phone: (717) 783-9242 Fax: (717) 783-2703
David Althoff dalthoff@state.pa.us	Pennsylvania Department of Environmental Protection, Office of Energy and Technology Deployment	Director, Bureau of Energy Innovations and Technology Deployment	Phone: (717) 783-0542 Fax: (717) 783-2703
David Barnes dbarnes@state.pa.us	Pennsylvania Department of Environmental Protection, Office of the Small Business Ombudsman	Program Manager	Phone: (717) 772-5160 Fax: (717) 783-2703
Susan Stephenson sstephenson@marama.org	Mid-Atlantic Regional Air Management Association	Senior Policy Analyst	Phone: 410) 467-0170 Fax:
Gene DelVecchio gdelvecchi@state.pa.us	Pennsylvania Department of Environmental Protection	Program Manager	Phone: (717) 772-8951 Fax:
Mack Godfrey mgodfre@nisource.com	Columbia Gas of Pennsylvania, Inc.		Phone: (724) 416-6324 Fax:
Reynold L. Sanner reynold.sanner@gsa.gov	U.S. General Services Administration	Western Zone Manager, Region 3	Phone: (724) 693-2400 x4 Fax: (724) 693-2406
Sylvia McMillan sylvia.mcmillan@gsa.gov	U.S. General Services Administration	Alternative Fuels Specialist	Phone: (202) 619-8909 Fax: (202) 619-8929