Natural Gas Laws and Incentives in Pennsylvania
The list below contains summaries of all Pennsylvania laws and incentives related to natural gas.
State Incentives
Alternative Fuel Infrastructure and Energy Production Grant Program
The Alternative and Clean Energy (ACE) Program provides grants and loans to eligible applicants for the utilization, development, and construction of compressed natural gas (CNG) and liquefied natural gas (LNG) fueling stations. Funds are also available for facilities that manufacture or produce alternative fuels, including, but not limited to, ethanol, biodiesel, CNG, and LNG. For more information, see the ACE Program website.
Alternative Fuel Vehicle (AFV) Rebate
The Pennsylvania Department of Environmental Protection (DEP) AFV Program offers rebates to assist eligible residents with the cost of the purchase or lease of new or qualifying pre-owned AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), compressed natural gas (CNG) vehicles, electric motorcycles, and propane vehicles. Applicants must meet income eligibility requirements for the program and eligible AFV purchase price not exceed $45,000. Rebates are available in the following amounts:
| Vehicle Type | Rebate Amount |
|---|---|
| EV (new or pre-owned) | $3,000 |
| PHEV (new or pre-owned) | $1,500 |
| CNG, Propane, and Electric Motorcycle (new or pre-owned) | $500 |
An additional rebate of $1,000 is available for all applicants that meet the low-income requirement, as defined by the U.S. Department of Health and Human Services. Applications much be received within six months of vehicle purchase. Rebates are awarded on a first-come, first-served basis. For more information, including forms and detailed requirements and restrictions, see the DEP AFV Rebates website.
(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)
Point of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@pa.gov
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.
(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.
Hydrogen and Natural Gas Tax Credit
Businesses may receive a tax credit for the purchase of hydrogen or natural gas from a Regional Clean Hydrogen Hub in Pennsylvania. Tax credits may be equal to $0.81 per kilogram of hydrogen and $0.47 per one thousand cubic feet of natural gas purchased for use in manufacturing at a facility that is part of a Regional Clean Hydrogen Hub. Additional requirements apply. For more information, see the Pennsylvania Department of Revenue Regional Clean Hydrogen Hubs Tax Credit website.
(Reference Title 72 Pennsylvania Statutes, Chapter 5, Article 17-L, Subarticle D)
Idle Reduction, Natural Gas Vehicle (NGV), and Electric Vehicle (EV) Weight Exemption
A vehicle equipped with qualified idle reduction technology may exceed the state’s gross and axle weight limits by up to 400 pounds (lbs.) to compensate for the additional weight of the idle reduction technology. A vehicle primarily powered by natural gas or electricity may exceed the state’s gross vehicle weight limits by a weight equal to the difference between the weight of the vehicle with the natural gas tank and fueling system, or EV battery, and the weight of a comparable vehicle with a diesel tank and fueling system. Any NGV and EV may exceed the limits by up to 2,000 lbs.
(Reference Title 35 Pennsylvania Statutes, Chapter 23B, Section 4604 and Title 75 Pennsylvania Statutes, Part IV, Chapter 49, Subchapter C, Section 4941)
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)
Automotive Fuel Testing Program and Labeling Requirement
The Pennsylvania Department of Agriculture may test automotive fuel, including alternative fuels, on a random, unannounced basis. For the purpose of this testing requirement, alternative fuels include, but are not limited to, methanol; mixtures of gasoline containing 85% or more by volume of methanol, denatured ethanol, and other alcohols; liquefied natural gas; liquefied petroleum gas; and coal-derived liquid fuels. Automotive fuel retailers must label fuel dispensers with the appropriate automotive fuel rating.
(Reference Title 3 Pennsylvania Statutes, Chapter 41, Sections 4187.2, 4187.3, 4187.5)
More Laws and Incentives
To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.