A portal website bringing together vital information about natural gas and natural gas vehicles.
Pennsylvania Policy Data
Pennsylvania offers several tax credits and grant programs for alternative vehicles and vehicle infrastructure each year. Funding and availability varies.
In 2009, the Pennsylvania House passed a resolution commissioning a feasibility study for retrofitting state-owned vehicles with natural gas. The resolution was referred to House committees and has not yet been approved.
The Legislature also passed a law creating tax for alternative fuels and establishing a gallon equivalent structure.
Pennsylvania charges a fuel tax and an oil company franchise tax. The two combined equal the total state fuel tax. Alternative fuels are taxed on an energy equivalency basis - Reference.
IFTA - IFTA taxes are applied to vehicles of 3+ axles, or weighing more than 26,000 pounds. IFTA tax tables can be found here.
Natural Gas Vehicle (NGV) Grants
The Pennsylvania Department of Environmental Protection administers the Natural Gas Vehicle Grant Program, which provides funding to eligible municipal and commercial fleets for the purchase or conversion of dedicated or bi-fuel NGVs. Eligible vehicles must have gross vehicle weight ratings of at least 14,000 pounds. Competitive grants are capped at 50% of the incremental or conversion cost, up to $25,000 per vehicle. Grants may not be used for project development, fueling stations, or other fueling infrastructure. Eligible applicants include Commonwealth or municipal authorities, the Pennsylvania Turnpike Commission, non-profit entities, for-profit companies, local transportation organizations, and state-owned or state-related universities. Funding for grants has been allocated to the program for fiscal years 2012-2015 with portions set aside specifically for local transportation agencies. (Reference House Bill 1950, 2012, and Title 58 Pennsylvania Statutes, Chapter 27, Sections 2701-2704)
Alternative Fuel Development and Deployment Grants
Pennsylvania Energy Development Authority (PEDA) provides grants of up to $1,000,000 for alternative energy projects and research related to deployment projects or manufacturing. PEDA funding is available for projects involving biomass, fuel cells, and clean and alternative fuels for transportation, and may be used for equipment purchases, construction, contractor expenses, and engineering design necessary for construction or installation. Pure research is not eligible for funding. As of October 2011, the PEDA grant program is closed and no longer accepting applications, but interested applicants may sign up for notifications about the program status via the PEDA website.
Natural Gas Vehicle (NGV) Production Support and Procurement
In 2012, Pennsylvania joined Arkansas, Colorado, Kentucky, Louisiana, Maine, Mississippi, New Mexico, Ohio, Oklahoma, Tennessee, Texas, Utah, Virginia, West Virginia, and Wyoming in signing a memorandum of understanding (MOU) to stimulate the production and demand for original equipment manufacturer (OEM) NGVs. The MOU aims to encourage OEMs to offer functional and affordable light- and medium-duty NGVs, aggregate state vehicle procurement through a joint request for proposals (RFP), boost private investment in natural gas fueling infrastructure, and encourage greater coordination between state and local agencies. In July 2012, National Association of State Procurement Officials coordinated the solicitation of a joint RFP, which the Department of Central Services (DCS) issued on behalf of the MOU signatories, as well as additional states. As a result, state fleets have access to more affordable NGVs through dealerships now included in state vehicle purchasing bids. For more information, including awarded vehicles by state and vehicle purchase information for state fleets, see the DCS Statewide Contract for NGVs solicitation page. )
Transportation services bill that includes longer service life of 12 years instead of 10 for alternative fuel vehicles. Reference - SB984 Bill History, Reference - SB984 Bill Text Status: passed Senate last year; in House laid on table 5/4/16; removed from table 10/17/16, amended in House and passed on 10/18/16; Senate concurs with House amendments 10/24/16; signed by governor 11/4/16.
2015 Session - Proposed Legislation
Exempts new vehicles from emission inspection for first five years. Permanently exempts alternative fuel vehicles from emission inspection. However, requires visual inspection of vehicles to ensure the emission systems have not been tampered with. The anti-tampering provision applies to new or newer vehicles and also to alternative fuel vehicles. Reference - HB265 Bill History, Reference - HB265 Bill Text
Transportation services bill that includes longer service life of 12 years instead of 10 for alternative fuel vehicles. Reference - SB984 Bill History, Reference - SB984 Bill Text Status: amended 10/27 and read first time in Senate 10/27 (amendments do not appear to impact alternative fuel treatment).
Amends state fleet provisions intended to encourage greater use of alternative fuel and natural gas vehicles to include propane vehicles in provisions that specifically singled out natural gas vehicles for preference. Reference - HB2036 Bill History, Reference - HB2036 Bill Text Pending: House Transportation Committee
2013 Session - Proposed Legislation
Creates new Natural Gas Fleet Vehicle Tax Credit. Applicant must be a company that owns 5 or more vehicles. The tax credits are available on a competitive basis to companies that demonstrate they will convert large portion of their fleet to natural gas (CNG and LNG), and will use a large amount of fuel with at least 900 GGE per day. NGVs must be dedicated or 90/10 LNG/diesel/gasoline. Only open to vehicles at or above 14,000 GVWR. Credits values are: 60% of incremental cost of vehicles 14,000 - 26,000 lbs. with maximum incremental cost of $25,000 (credit max. $15K); and 50% of incremental cost of vehicles at 26,001 lbs. or more with maximum incremental cost of $50,000 (credit max. $25K). Credits may be sold or assigned with permission. Funding is $25 million each FY. No tax credits are available after 2016. Reference - HB301 Bill History, Reference - HB301 Bill TextAction: 2013-04-24 - Referred to FINANCE
Keystone Transit Act for SMALL transit authorities - less than 245,000 vehicle revenue hours. Very similar to HB 303 but this is a GRANT program not loan program. Authorizes $5 million for grants from the Oil and Gas Lease Fund. Grants for federally assisted buses may equal the full incremental cost, and for non-federally assisted purchases, 50% of incremental cost. Includes incremental cost cap of $50,000 for buses over 26,000 lbs. and $25,000 for buses of 26,000 lbs. or less; no funding for buses at or below 14,000 lbs. Transit authorities must contract with a private entity to provide fueling for buses and priority given to projects that provide public access to CNG stations. Reference - HB302 Bill History, Reference - HB302 Bill TextAction: 2013-12-18 - Laid on the table
Clean Transit Act - for LARGE transit agencies (i.e., 245,000 revenue vehicle hours). Authorize transfer or $7.5 million from the Oil and Gas Lease Fund to be used for the purpose of providing LOANS to funding for the incremental cost of purchasing CNG transit buses. Loans are at rate of 2% and limited to full incremental cost for federally assisted purchases and, for non-federally assisted purchases, 50% of incremental cost. Includes incremental cost cap of $50,000 for buses over 26,000 lbs. and $25,000 for buses of 26,000 lbs. or less; no funding for buses at or below 14,000 lbs. Loans must be paid within 5 years of disbursement and before Jan. 1, 2023. Program ends June 30, 2023. Transit authorities must contract with a private entity to provide fueling for buses and priority given to projects that provide public access to CNG stations. Reference - HB303 Bill History, Reference - HB303 Bill TextAction: 2013-12-18 - Laid on the table
Public Transportation and Natural Gas Act. Mandates. Requires large transit agencies (defined as 245,000 revenue vehicle hours) to begin to phase in larger percentage of NG buses into fleets. Phase-in requirement: 2013 - 2017 - 25% of new bus purchases, 2018 - 2022 - 50%, 2023 - 2027 - 75%, 2028 and later - 100%. Includes CNG and LNG buses. Reference - HB304 Bill History, Reference - HB304 Bill TextAction: 2013-12-18 - Laid on the table
Amends the state AFV Incentive Fund and changes it to the Keystone Incentive Fund. In future, only CNG would qualify for this program. Funding would go to: 10% to taxicabs; 65% to businesses, government and non-profit entities; and 23% to individuals for purchase new CNG vehicles or conversions. Bi-fuel vehicles would have to have at least 5 GGE CNG storage to qualify. Dedicated definition includes 90NG/10 petroleum operation. Changes fleet definition from 10 to 5 vehicles. For grants, a $10,000 incremental cap applies to taxis and bi-fuel vehicles purchased by individuals. For businesses and government agencies it appears they can only get grants for HD vehicles - 14,000 lbs. GVWR or more. Other caps apply to how much an individual school district or county may receive. Reference - HB306 Bill History, Reference - HB306 Bill TextAction: 2013-12-18 - Laid on the table
Creates the Keystone Vehicle Grants for CNG and LNG dedicated vehicles to be administered by PA DEP. Dedicated includes 90/10 CNG/diesel-gasoline or 901/10 LNG/diesel-gasoline vehicle. Must be a company that owns 5 or more vehicles. Requires companies have a plan to convert fleet to natural gas. Authorizes funding of $6 million for FYs 2013-2014 through FYs 2018-2019 to be made available annually from the Clean Air Fund. Requirements - conversion plan, minimum fuel usage of 324,000 GGE per year or a agreement with natural gas provider to provide fueling; only for HD at or above 33,000 lbs.; grants are for vehicles and worth 50% of the incremental cost with cap of $50,000 or maximum credit of $25,000 Reference - HB308 Bill History, Reference - HB308 Bill TextAction: 2013-12-18 - Laid on the table
Creates new Natural Gas Vehicle Tax Credit. Open to taxpayers who purchase heavy-duty CNG or LNG dedicated vehicles at or above 33,000 GVWR. Dedicated includes 90 percent LNG and 10% gasoline or diesel fuel. Only extends to OEM NGVs. Credits are worth lesser of 50% of the incremental cost or $12,500. Taxpayers have to apply for credits and may also apply for permission to sell or transfer credits. Funding for credits is as follows: FY 2013 - 2014, $30 million; FY 2014 - 2015, $30 million; FY 2015 - 2016 $30 million. Pro rate distribution shall be used if the applications for credits exceed the amount available in any year. Reference - HB309 Bill History, Reference - HB309 Bill TextAction: 2013-04-24 - Referred to FINANCE
Modifies the current tax on alternative fuels so that it now includes diesel fuel; both are to be taxed on gallon equivalent basis - PA already taxes NG on gasoline gallon equivalent basis. It appears this would tax diesel on a GGE basis but not certain. Also says that the rate is to be reduced by 6 cents per gallon. Reference - HB628 Bill History, Reference - HB628 Bill TextAction: 2013-02-08 - Referred to TRANSPORTATION
Provides a tax credit for the conversion of farm equipment to operate on natural gas. The definition section refers to dedicated LNG equipment and proceeds to define this as equipment that operates 90% or more on CNG fuel and 10% or less on gasoline or diesel. Credits are worth 75% of the cost of conversion or purchase, or maximum of $75,000 to a single taxpayer in a fiscal year. Also establishes limit of $25 million in tax credit certificates per fiscal year. Requires conversion plan , application to state authorities., and issuance of tax certificates. Credits may be sold or transferred to others. Reference - HB1015 Bill History, Reference - HB1015 Bill TextAction: 2013-03-18 - Referred to FINANCE
Directs the Department of General Services to conduct a study to determine the associated costs and feasibility of converting and retrofitting State-owned vehicles with compressed natural gas and liquefied natural gas engines for the purpose of modernizing the State fleet. Reference - SR38 Bill History, Reference - SR38 Bill TextAction: 2013-03-01 - Referred to STATE GOVERNMENT
Exempts new vehicles from emission inspection requirements for 10 years. Exempts electric vehicles and CNG vehicles are exempt from the emission inspection requirement also. But it does require visual inspection to ensure that conversions comply with anti-tampering requirements. Reference - SB-332 Bill History, Reference - SB-332 Bill TextAction: 2013-07-03 - Laid on the table
This state was last examined and updated in November, 2016.