Search Federal and State Laws and Incentives

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. (Re

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

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:

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)

Alternative Fuel and Idle Reduction Grants

The Small Business Advantage Grant Program provides matching grants of 80% of project costs, up to $8,000, 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 applications are approved. Grants are available on a first-come, first-served basis. For more information, see the Small Business Advantage Grant Program website.

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)

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.

(Reference Title 74 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)

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)

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 EVsmart website.

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)

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)

Electric Vehicle (EV) Charging Station and Hydrogen Fuel Cell Infrastructure Grants

The Pennsylvania Department of Environmental Protection (DEP) 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:

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 DEP 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:

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 DEP Driving Pennsylvania Forward 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.

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)

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; and Chapter 85, Section 8501)

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)

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)

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

DLC offers a $50 gift card or direct deposit to residential customers who purchase or lease an EV. For more information, including how to apply, see the DLC EVs 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.

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

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, 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.

Commercial Electric Vehicle (EV) Charging Station Rebate - PECO

PECO offers rebates of up to $2,000 to commercial customers for the purchase and installation of Level 2 EV charging stations. Projects located within environmental justice communities may receive a rebate of up to $3,000. Rebates are available on a first-come, first-served basis, and applicants may receive a maximum of 20 rebates per non-residential account. Recipients must share EV charging station utilization data upon request for two years after project completion. For more information, see the PECO EVsmart 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.

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 annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office) beginning August 1, 2022, describing how the state intends to distribute NEVI funds. The submitted plan must be established according to NEVI guidance.

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

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.

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.

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Grant

The Pennsylvania Department of Environmental Protection (DEP) offers grants for the replacement of Class 4-8 local freight trucks with new zero-emission trucks through the MHD ZEV Fleet Pilot Grant Program. Eligible zero-emission technologies include all-electric and hydrogen fuel cell electric vehicles. Grants are available in the following amounts:

Eligible applicants include businesses, non-profits, government entities, tribal entities, planning organizations, and air quality and transportation organizations. Priority will be given to projects located in environmental justice communities. This program is funded by Pennsylvania’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including program guidelines, see the DEP Driving Pennsylvania Forward website.

Off-Road Electric Equipment Grants

The Pennsylvania Department of Environmental Protection (DEP) offers grants for the replacement of airport ground support equipment, forklifts, and port cargo handling equipment with an all-electric equivalent. For more information, see the DEP Driving Pennsylvania 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 Drive 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.

(Reference House Bill 1059, 2021)

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)

Direct Current Fast Charging (DCFC) Station Incentive – PECO

PECO offers commercial customers a 50% discount on electricity distribution charges for DCFC stations enrolled in the Pilot Discount for Fast Charging Infrastructure Program. Participation in the program is available on a first-come, first-served basis. For more information, see the PECO EVsmart website.

Fleet Electric Vehicle (EV) Charging Station Rebate – Duquesne Light Company (DLC)

DLC offers a rebate to commercial, municipal, and non-profit fleets for up to 50% of the cost to purchase eligible Level 2 or direct current fast charging (DCFC) stations. Eligible EV charging stations must be networked, and participants must share charging station utilization data with DLC. For more information, including a list of eligible equipment, see the DLC Fleet Electrification website.

Community Charging Assessment and Rebate – Duquesne Light Company (DLC)

DLC offers a rebate to multi-family dwellings, municipal governments, non-profit organizations, and businesses of up to $5,000 for the purchase of each dual-port Level 2 charging station. Eligible projects must be located within an environmental justice community. Eligible EV charging stations must also be networked, and participants must share charging station utilization data with DLC. For more information, including eligible equipment, see the DLC Community Charging website.