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Pennsylvania Electric Laws and Incentives


State Incentives

Renewable Energy Grants

Pennsylvania Energy Development Authority (PEDA) provides grants and loan guarantees for alternative energy projects and related research referring to deployment projects, manufacturing or research. PEDA funding is available for projects involving clean, alternative fuels for transportation, biomass, and fuel cells. Another grant program, the Pennsylvania Energy Harvest Grant, seeks to deploy cleaner energy sources by providing funding for renewable energy technologies, such as biomass energy projects. For more information, see the Department of Environmental Protection Grant and Loan Programs Web site.

State Laws and Regulations

Plug-In Hybrid Electric Vehicle (PHEV) Promotion

The state of Pennsylvania urges auto manufacturers to develop and produce PHEVs for consumer use. (Reference House Resolution 106, 2007)

State Energy Plan

The PennSecurity Fuels Initiative, established in 2006, aims to reduce dependence on foreign oil by replacing 900 million gallons of the state's transportation fuels with alternative sources over the next decade. The initiative requires that a certain percentage of retail transportation fuel sales contain eligible fuels such as biodiesel and ethanol, and it also invests $30 million in existing funds from the state's Alternative Fuels Incentive Grant program to build alternative fuel fueling and production infrastructure over the next five years. The initiative also includes the creation of incentives that open new markets to Pennsylvania farmers who grow the feedstock to produce ethanol and biodiesel, and the creation of safeguards against alternative fuel price increases. For more information on the PennSecurity Fuels Initiative see the Pennsylvania Department of Environmental Protection Web site.

Alternative Fuels Tax

A tax is imposed on alternative fuels used to propel vehicles of any kind on public highways. The rate of tax is determined on a gasoline gallon equivalent basis. (Reference Pennsylvania Consolidated Statutes, Title 75, Section 9004)

Utilities/Private Incentives

Natural Gas and Electric Vehicle Technical Assistance and Natural Gas Fuel Rate Reduction

The PECO Energy Company offers assistance in finding incentives for the purchase of compressed natural gas (CNG), liquefied natural gas (LNG), electric vehicles, fuel supply for CNG and LNG vehicles, conversion of diesel engines for use with natural gas/diesel blends, and for the installation of fueling infrastructure. PECO also offers discounted rates for CNG and LNG used to fuel vehicles.