Biodiesel Laws and Incentives in Pennsylvania

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

State Incentives

Alternative Fuels Incentive Grant (AFIG) Program

The AFIG Program provides financial assistance for innovative, advanced fuel and vehicle technology projects. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process. Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth. Projects must support:

• Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels;
• Incremental cost expenses to purchase alternative fuel vehicles;
• The cost to purchase and install the necessary fleet- or home-refueling equipment for alternative fuel vehicles; or,
• The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.

Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth. Priority will be given to businesses located in Pennsylvania; zero emission vehicle projects; medium- and light-duty fleet refueling infrastructure projects; renewable natural gas and infrastructure projects; projects located in environmental justice areas; and minority-, veteran-, or woman-owned businesses. For more information, including forms and detailed requirements and restrictions, see the AFIG Program website.

(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Points of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@pa.gov
Michelle Ferguson
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (570) 327-3783
miferguson@pa.gov

Diesel Emission Reduction Grants

The Pennsylvania Department of Environmental Protection (DEP) administers the Pennsylvania State Clean Diesel Grant Program for diesel emission reduction projects. Projects are funded by Pennsylvania’s portion of the Volkswagen Environmental Mitigation Trust and the U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program. For more information, including funding availability, see the DEP Driving PA Forward website.

Heavy-Duty Emission Reduction Grants

The Pennsylvania Department of Environmental Protection (DEP) offers grants for the repower or replacement of ferries, tugboats, and freight switcher locomotives with any new U.S. Environmental Protection Agency or California Air and Resource Board-certified diesel, alternative fuel, or all-electric equivalent. For more information, see the DEP Driving Pennsylvania Forward website.

Laws and Regulations

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. For more information, including applicable tax rates, see the Pennsylvania Department of Revenue Motor and Alternative Fuel Taxes website. Certain exemptions apply.

(Reference Title 75 Pennsylvania Statutes, Part VI, Chapter 90, Section 9004)

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 and sustains 100 million gallons for three months;
• 10% biodiesel (B10) one year after in-state production of biodiesel reaches and sustains 200 million gallons for three months; and
• 20% biodiesel (B20) one year after in-state production of biodiesel reaches and sustains 400 million gallons for three months.

Biodiesel blends must comply with ASTM standards. 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, 1650.4, and 1650.4.1)

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