Search Federal and State Laws and Incentives

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.

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.

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)

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.

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.

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.