Pennsylvania Incentives and Laws

Last Updated October 2009

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 matching grants of up to 50%, for 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 is current closed for new applications; the program is expected to reopen should funds become available.

Alternative Fuel Production Tax Credits

The Alternative Energy Production Tax Credit Program provides a credit of 15% of the net cost of projects related to the production of alternative fuels, as well as the research and development of technology to provide alternative fuels, for up to $1 million per taxpayer. An eligible applicant must develop or construct an alternative energy production project located in Pennsylvania that has a useful life of at least four years. (Reference Title 73 Pennsylvania Statutes 1649.701-1649.711)

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. Projects that result in product commercialization and the expansion of Pennsylvania companies will be favored in the selection process. (Reference Title 73 Pennsylvania Statutes 1647.3)

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

Biodiesel Production Refund

Biodiesel producers with a production capacity of at least 25,000 gallons may apply for a $0.75 per gallon refund for biodiesel produced for commercial purposes, through 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 Title 73 Pennsylvania Statutes 1647.3.1)

Idle Reduction Loans

The Small Business Pollution Prevention Assistance Account (PPAA) 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 funding up to 75% of the total eligible project costs, 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.

State Laws and Regulations

Renewable Fuels Mandate

As of January 1, 2010, all diesel fuel sold in Pennsylvania must contain 2% biodiesel (B2) by volume. The mandated biodiesel blend level will increase according to the following schedule:

• 5% biodiesel by volume one year after in-state production of biodiesel reaches 100 million gallons;
• 10% biodiesel by volume one year after in-state production of biodiesel reaches 200 million gallons;
• and 20% biodiesel by volume one year after in-state production of biodiesel 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 Title 73 Pennsylvania Statutes 1650.3)

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. (Reference Title 25 Pennsylvania Code 126.401-126.451).

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 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 by 2011. 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 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 added idle reduction technology. (Reference Title 35 Pennsylvania Statutes 4604)

Idle Reduction Requirement

Diesel 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. Certain exceptions apply, including vehicles complying with manufacturer specifications and vehicles meeting California Air Resources Board nitrogen oxide idling emission standards. An exemption is also allowed for sleeper berth climate control during rest or sleep periods when outside ambient air temperatures are below 40 degrees Fahrenheit or above 75 degrees Fahrenheit; this exemption expires May 1, 2010. (Reference Title 35 Pennsylvania Statutes 4603)

Renewable Agricultural Energy Council

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. The tax rates are posted in the Pennsylvania Bulletin. (Reference Title 75 Pennsylvania Statutes, Section 9004)

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)

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/TITLE	AGENCY	PHONE/FAX
Ryan Walsh Clean Cities Coordinator	Pittsburgh Region Clean Cities Coalition	Phone:(412) 241-9323 Fax:(412) 202-2888
Tony Bandiero Clean Cities Coordinator	Greater Philadelphia Clean Cities Program	Phone:(215) 990-5192 Fax:
Erin Russell-Story Project Manager	U.S. Department of Energy, National Energy Technology Laboratory	Phone:(412) 386-7334 Fax:
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
David Barnes Program Manager	Pennsylvania Department of Environmental Protection, Office of the Small Business Ombudsman	Phone:(717) 772-5160 Fax:(717) 783-2703
Susan Stephenson Senior Policy Analyst	Mid-Atlantic Regional Air Management Association	Phone:410) 467-0170 Fax:
Gene DelVecchio Program Manager	Pennsylvania Department of Environmental Protection	Phone:(717) 772-8951 Fax:
Mack Godfrey	Columbia Gas of Pennsylvania, Inc.	Phone:(724) 416-6324 Fax:
Reynold L. Sanner Western Zone Manager, Region 3	U.S. General Services Administration	Phone:(412) 294-4005 Fax:(412) 294-4010
Sylvia McMillan Alternative Fuels Specialist	U.S. General Services Administration	Phone:(202) 619-8909 Fax:(202) 619-8929