Pennsylvania Laws and Incentives

Listed below are the summaries of all current Pennsylvania laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. You can go directly to summaries of:

State Incentives

Medium- and Heavy-Duty Vehicle Rebates

The Pennsylvania Department of Environmental Protection (DEP) offers rebates for the replacement or repower of Class 4-8 local freight trucks and port drayage trucks, school buses, transit buses, and shuttle buses with new diesel, electric, or alternative fuel vehicles or technologies. Vehicles or engines being replaced or repowered must be scrapped in accordance with program guidelines. Two funding options are available based on fleet size. DEP must approve all project applications and will process rebates on a first-come, first-served basis. This rebate program is funded by Pennsylvania's portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidelines, grant amounts, and application periods, see the Driving Pennsylvania Forward website.

Electric Vehicle Supply Equipment (EVSE) and Hydrogen Fuel Cell Infrastructure Grants

The Pennsylvania Department of Environmental Protection offers competitive grants for the acquisition, installation, operation, and maintenance of publicly available direct current (DC) fast EVSE and hydrogen fueling infrastructure. Grant reimbursements are awarded after project completion in the following amounts:

Project TypeMaximum ReimbursementMaximum per Award
DC Fast EVSEUp to 70% reimbursement$250,000
Hydrogen Fueling - at least 250 kg/dayUp to 33% reimbursement$500,000
Hydrogen Fueling - at least 100 kg/dayUp to 25% reimbursement$500,000

Eligible project locations are transportation corridors, destination locations, and locations that serve as community charging or fueling hubs. This program is funded by Pennsylvania's portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidelines, eligibility requirements, application deadlines, and instructions, see the Driving Pennsylvania Forward website.

Electric Vehicle Supply Equipment (EVSE) Rebate

The Pennsylvania Department of Environmental Protection (DEP) offers rebates for the acquisition, installation, operation, and maintenance of Level 2 EVSE. Eligible projects must be on publicly accessible government-owned or non-government-owned property, at workplaces, or at multi-unit dwellings that are not publicly accessible. Rebates are awarded in the following amounts:

Project TypeMaximum Reimbursement - Government Owned PropertyMaximum Reimbursement - Non-Government Owned Property
Public Access, Networked$4,500 per plug or up to 90% of total project costs$4,500 per plug or up to 70% of total project costs
Public Access, Non-Networked$4,500 per plug or up to 80% of total project costs$4,500 per plug or up to 60% of total project costs
No Public Access$3,500 per plug or up to 50% of total project costs$3,500 per plug or up to 50% of total project costs

DEP must approve all project applications and processes rebates on a first-come, first-served basis, until funds are exhausted. This program is funded by Pennsylvania's portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidelines, eligibility requirements, and instructions, see the Driving Pennsylvania Forward website.

Alternative Fuel Infrastructure Funding

The Alternative Fuels Incentive Grant (AFIG) Program provides reimbursement grants for the installation of new or existing alternative fuel infrastructure for fleet, workplace, residential, or public refueling sites. Grants are available for reimbursement of 50% of the cost, up to $600,000, to install electric, hydrogen, propane, and compressed natural gas fueling infrastructure. Eligible applicants include Pennsylvania municipal authorities, political subdivisions, non-profit entities, corporations, and limited liability companies or partnerships incorporated or registered in the Commonwealth. For more information, including grant guidelines and current application periods, see the AFIG Program website.

Point of Contact
Josh Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 783-8411
jdziubek@pa.gov

Alternative Fuel Vehicle (AFV) Rebate

The AFV Program offers rebates to assist eligible residents with the incremental cost of the purchase or lease of new or pre-owned AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), hydrogen fuel cell electric vehicles (FCEVs), compressed natural gas (CNG) vehicles, electric motorcycles, and propane vehicles. Eligible AFV purchase price not exceed $50,000. Rebates are available in the following amounts:

Vehicle TypeRebate Amount
FCEV$1,000
EV$750
CNG, PHEV, Propane, and Electric Motorcycle$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 AFV Rebates website.

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

Point of Contact
Josh Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 783-8411
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 as a bi-fuel, dual-fuel, or dedicated vehicle
  • Incremental cost expenses to purchase bi-fuel, dual-fuel, or dedicated vehicles
  • The cost to purchase and install the necessary fleet refueling or home-refueling equipment for bi-fuel, dual-fuel, or dedicated vehicles
  • The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.
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
Josh Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 783-8411
jdziubek@pa.gov

Michelle Ferguson
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (570) 327-3783
miferguson@pa.gov

Alternative Fuel and Idle Reduction Grants

The Small Business Advantage Grant Program provides matching grants of 50% of project costs, up to $7,000, to enable a Pennsylvania small business to adopt or acquire energy-efficient or pollution prevention processes or equipment. Pennsylvania trucking companies and independent truckers may use the funding to purchase U.S. Environmental Protection Agency SmartWay verified anti-idling technologies. Projects may not begin until after applications are approved. Funds are awarded on a first-come, first-served basis. For more information, refer to the Small Business Advantage Grant Program website.

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.

Idle Reduction and Natural Gas Vehicle (NGV) 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 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 and the weight of a comparable vehicle with a diesel tank and fueling system. Any NGV 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)

Utility/Private Incentives

Residential Plug-in Electric Vehicle (PEV) Rebate – Duquesne Light Company (DLC)

DLC offers residential customers a rebate at the point-of-sale for the purchase of a new, pre-owned, or leased PEV from select dealerships. New battery-electric vehicles (BEVs) may qualify for a rebate of up to $2,000 and new plug-in hybrid electric vehicles (PHEVs) may qualify for a rebate up to $1,000. Pre-owned or leased PEVs are eligible for a $1,000 rebate. For more information, including eligibility criteria, see the DLC Electric Vehicle Rebate website.

Plug-In Electric Vehicle (PEV) Rebate - PECO

PECO provides rebates of $50 to residential customers who purchase a new, qualified PEV. For more information, see the PECO Driver Rebate website.

Plug-In Electric Vehicle (PEV) Credit – Duquesne Light Company (DLC)

DLC offers a one-time bill credit of $60 to residential customers who purchase or lease a PEV. For more information, including how to apply, see the DLC Electric Vehicles website.

Laws and Regulations

Connected and Autonomous Vehicle (CAV) Committee and Regulations

The Pennsylvania Department of Transportation (PennDOT) established the Highly Automated Vehicle Advisory Committee (Committee) to advise and consult PennDOT on each aspect of connected and automated systems, including developing technical guidance, evaluating best practices, reviewing existing laws, regulations and policies, and engaging in continued research and evaluation of connected and automated systems technology necessary to ensure safe testing, deployment and continued innovation in the commonwealth. PennDOT will provide an annual report of the Committee activities.

A CAV is defined as a vehicle equipped with an automated driving system or connected by wireless communication or other technology to another vehicle allow for coordinated or controlled movement. PennDOT and Pennsylvania Turnpike Commission authorizes the locations to deploy and test CAVs.

(Reference Title 75 Pennsylvania Statues Chapter 1, Section 102, Chapter 33, Section 3317, and Chapter 85, Section 8501)

State Plug-In Electric Vehicle (PEV) Acquisition Requirements

Pennsylvania state agencies must replace 25% of their passenger car fleets with PEVs by 2025 and evaluate fleet utilization for vehicle miles traveled reductions. Agencies must collectively reduce all energy consumption by 3% annually, with a 21% reduction from a 2017 baseline by 2025. To meet these goals, the Governor's Green Government Council was reestablished to work with state agencies to oversee the development and implementation of procedures to reduce greenhouse gas emissions and energy usage. (Reference Executive Order 2019-01, 2019)

Medium- and Heavy-Duty Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

By January 2021, the Task Force will develop a multi-state action plan to support electrification of medium- and heavy-duty vehicles. The Task Force will consider actions to accomplish the goals of the MOU, including limiting all new medium- and heavy-duty vehicles sales in the signatory states to ZEVs by 2050. The signatory states will also seek to accelerate the deployment of medium- and heavy-duty ZEVs to benefit disadvantaged communities and explore opportunities to coordinate and partner with key stakeholders.

For more information, see the Multi-State Medium- and Heavy-Duty Zero Emission Vehicle MOU.

Regional Transportation and Climate Initiative (TCI)

Connecticut, Delaware, District of Columbia (D.C.), Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, and Virginia signed a Declaration of Intent to create the TCI, a regional initiative to improve transportation, develop a clean energy economy, and reduce carbon emissions and air pollutants from the transportation sector. The signatory states and D.C. agree to explore and develop policies and programs that result in greater energy efficiency of regional transportation systems and reduce emissions. Additionally, states support the deployment of clean vehicles and fueling infrastructure, such as electric vehicle supply equipment, to maximize the economic opportunities and emissions reductions. For more information, see the TCI website.

Public Utility Definition

A person, corporation, or entity that owns or operates electric vehicle supply equipment (EVSE) that is open to the public is not defined as a public utility. Each electric distribution company must address third-party owned and operated EVSE in its tariff. (Reference Title 52 Pennsylvania Code 69.101 and 69.3501)

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 specifications. 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)

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 motor vehicle emissions and compliance requirements specified 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. For more information, see the Pennsylvania Clean Vehicles Program website. (Reference Title 25 Pennsylvania Code 126.401-126.451)

Aftermarket Alternative Fuel Vehicle (AFV) Conversion Requirements

Conventional original equipment manufacturer passenger vehicles and light-duty trucks may be converted to operate on alternative fuels as a dedicated or bi-fuel AFV. Vehicles altered to operate on propane, natural gas, methane, ethanol, or electricity are classified as aftermarket AFV conversions. All vehicle conversions must meet current applicable U.S. Environmental Protection Agency or California Air Resources Board standards for aftermarket conversions. (Reference Pennsylvania Department of Environmental Protection Policy on Clean Alternative Fuel Conversion Systems)

Idle Reduction Requirement

Diesel vehicles with a gross vehicle weight rating over 10,000 pounds may not idle for more than five minutes in any continuous 60 minute period. Exemptions include: uncontrollable traffic conditions; prevention of safety or health emergencies; emergency or law enforcement purposes; verification that a vehicle is safe to operate; vehicle maintenance; power work-related operations; sampling, weighing, or loading; bus passenger comfort; vehicles actively engaged in solid waste or recyclable material collection; vehicles complying with manufacturer specifications; and vehicles meeting California Air Resources Board oxides of nitrogen idling emission standards. (Reference Title 35 Pennsylvania Statutes, Chapter 23B, Section 4603)

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)

Neighborhood Electric Vehicle (NEV) Definition

A NEV is defined as a four-wheeled electric vehicle that has a maximum speed greater than 20 miles per hour (mph) but not more than 25 mph. All vehicles must comply with the safety standards established in Title 49 of the U.S. Code of Federal Regulations, section 571.500. Drivers must maintain a defined level of insurance coverage for all registered vehicles. (Reference Title 75 Pennsylvania Statutes Part I, Chapter 1, Section 102 and Part II, Chapter 17, Subchapter H, Section 1788)