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

Pennsylvania's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Pennsylvania Department of Transportation (PennDOT) to submit an EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office by August 1, 2022, describing how the state intends to distribute NEVI funds. Plans must be established according to NEVI guidance.

For more information about Pennsylvania’s NEVI planning process, see the PennDOT Plan website. For more information about Pennsylvania’s NEVI plan, see the Joint Office’s State Plans for EV Charging website.

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 (EV) Charging Station 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 fast charging (DCFC) stations and hydrogen fueling infrastructure. Grant reimbursements are awarded after project completion in the following amounts:

Project Type Maximum Reimbursement Maximum per Award
DCFC Stations Up to 60% reimbursement $250,000
DCFC Stations Corridor Expansion Projects Up to 65% reimbursement $250,000
Hydrogen Fueling - at least 250 kg/day Up to 33% reimbursement $500,000
Hydrogen Fueling - at least 100 kg/day Up 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 (EV) Charging Station Rebate

The Pennsylvania Department of Environmental Protection (DEP) offers rebates for the acquisition, installation, operation, and maintenance of Level 2 EV charging stations. 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 Type Maximum Reimbursement
Public Access, Government Owned Property $4,000 per port or up to 80% of total project costs
Public Access, Non-Government Property $4,000 per port or up to 70% of total project costs
Multi-Unit Dwelling $3,500 per port or up to 50% of total project costs
Other Eligible Projects $3,000 per port 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 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 $50,000. Rebates are available in the following amounts:

Vehicle Type Rebate Amount
EV (new or pre-owned) $2,000
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 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
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

Alternative Fuel and Idle Reduction Grants

The Small Business Advantage Grant Program provides matching grants of 50% of project costs, up to $5,000, 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. Grants are available 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

Fleet Electrification Assessment – Duquesne Light Company (DLC)

DLC offers advisory services to fleets to analyze fleet electrification opportunities. Eligible applicants must be DLC customers and include any commercial, municipal, or non-profit organization with light-, medium-, or heavy-duty fleet vehicles. For more information, see the DLC Fleet Electrification website.

Electric Vehicle (EV) Rebate - PECO

PECO provides rebates of $50 to residential customers who purchase a new, qualified EV. For more information, see the PECO Electric Vehicles website.

Commercial Electric Vehicle (EV) Rebate - PECO

PECO offers commercial customers a rebate of for the purchase and installation of Level 2 EV charging stations. Rebate awards are $500 per port, up to $1,500, and available on a first-come, first-served basis. Rebate recipients must share EV charging station utilization data upon request for three years after project completion. For more information, see the PECO Electric Vehicles website.

Electric Vehicle (EV) Credit – Duquesne Light Company (DLC)

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

Electric Vehicle (EV) Infrastructure Support

Pennsylvania utilities joined the National Electric Highway Coalition (NEHC), committing to create a network of direct current fast charging (DCFC) stations connecting major highway systems from the Atlantic Coast to the Pacific of the United States. NEHC utility members agree to ensure efficient and effective fast charging deployment plans that enable long distance EV travel, avoiding duplication among coalition utilities, and complement existing corridor DCFC sites. For more information, including a list of participating utilities and states, see the NEHC website.

Workplace Electric Vehicle (EV) Time-Of-Use (TOU) Rate – Duquesne Light Company (DLC)

DLC offers a TOU rate to small and medium-sized businesses that have an EV charging station at their location. Eligible businesses may not exceed a monthly metered demand of 200 megawatts. For more information, including eligibility requirements and how to enroll, see the DLC Business EV Rate webpage.

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 Electric Vehicle (EV) Acquisition Requirements

Pennsylvania state agencies must replace 25% of their passenger car fleets with EVs 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, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of medium- and heavy-duty (MHD) ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the Medium- and Heavy-Duty ZEVs: Action Plan Development Process website.

Public Utility Definition

A person, corporation, or entity that owns or operates electric vehicle (EV) charging station that is open to the public is not defined as a public utility. Each electric distribution company must address third-party owned and operated EV charging stations 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 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)

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 270-0810-007, 2011)

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)