Pennsylvania Laws and Incentives for Ethanol

The list below contains summaries of all Pennsylvania laws and incentives related to Ethanol.

State Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle (HEV) Funding

The Alternative Fuels Incentive Grant (AFIG) Program provides financial assistance for qualified projects; 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. The annual AFIG Program application period will reopen in 2014 (verified November 2013).

The AFIG Program also offers 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. Rebates of $3,000 are available for qualified EVs and PHEVs, and rebates of $1,000 are available for NGVs and propane vehicles.

For more information, including forms and detailed requirements, see the AFIG Program and Alternative Fuel Vehicle Rebates websites. (Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Point of Contact
David Althoff, Jr.
Program Manager
Pennsylvania Department of Environmental Protection, Pollution Prevention & Energy Assistance Office
Phone: (717) 783-0542
dalthoff@pa.gov

Alternative Fuel Development and Deployment Grants

The 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. The PEDA grant program is currently closed and no longer accepting applications, but interested applicants may sign up for notifications about the program status via the PEDA website (verified November 2013). For more information, refer to the PEDA website.

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 three 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. Additional compliance and blending standards, in-state registration requirements, and certification and enforcement guidelines apply.

(Reference Title 73 Pennsylvania Statutes, Chapter 18H, Sections 1650.3 and 1650.4)

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)