Pennsylvania

POPULATION (2015): 12,802,500

REGISTERED CARS & LIGHT TRUCKS: 10,053,676

ANNUAL GAS CONSUMPTION (2014): 4.9 Billion GPY

TOTAL RETAIL STATIONS: 3,847

Maximum E85 use:615 Million GPY
FFVs in use:1,004,956
E85 stations:122
Flex Station implied demand:+340
Maximum E15 use:3.9 Billion GPY
EPA approved E15 vehicles:8,042,940
E15 Station implied demand:+3,078

Fuel specifications

Gasoline:

Retailers in the Philadelphia metro area (Bucks, Chester, Delaware, Montgomery, and Philadelphia) are required to sell Northern-grade RFG.

Reid Vapor Pressure:

Retailers in the following counties have a 7.8 psi RVP designation for June 1-September 15: Allegheny, Armstrong, Beaver, Butler, Fayette, Washington and Westmoreland. Retailers in those counties do not allow for a 1.0 psi waiver for ethanol blending. The rest of the state, except for the Philadelphia RFG area, sells 9.0 psi RVP gasoline during the summer.

Contact information for key state regulatory agencies

Bureau of Ride and Measurement Standards, 717-787-9089

State Laws & Incentives

 

ALTERNATIVE FUELS INCENTIVE GRANT PROGRAM (AFIG)

The Alternative Fuels Incentive Grant (AFIG) Program was established in 1992 under Act 166.

The AFIG Program helps to create new markets for alternative fuels in Pennsylvania which enhances energy security. An investment is being made not only in alternative fuels, but the deployment of alternative fuel vehicles, fleets and technologies.

Alternative Fuel Incentive Grant projects promote and build markets for advanced, renewable and alternative energy transportation technologies. The intent is to provide a stimulus for opportunities that better manage Pennsylvania's fuel resources in a way that also improves the environment, supports economic development and enhances the quality of life.

AFIG is currently offering three opportunities:

  • The 2018 Alternative Fuels Incentive Grant
  • The Pennsylvania FAST Act Corridor Infrastructure Grant
  • The Alternative Fuels Technical Assistance Program

THE 2018 ALTERNATIVE FUELS INCENTIVE GRANT IS NOW OPEN!

Applications will be only accepted online through the DCED Electronic Single Application system. Click here to apply for the 2018 Alternative Fuels Incentive Grant.

AFIG 2018 Guidelines
AFIG 2018 Electronic Single Application Step-by-Step Guide: Instructions for the On-Line Application (Word)
AFIG 2018 Project Specific Step-by-Step Guide (Word)

The primary goals of the Alternative Fuels Incentive Grant (AFIG) Program are to improve Pennsylvania’s air quality and reduce consumption of imported oil through the use of homegrown alternative fuels that will help the Commonwealth’s economy and environment. Through the program, DEP solicits for applications for innovative, advanced fuel and vehicle technology projects resulting in cleaner advanced alternative transportation within the Commonwealth.

Approximately $5 million in grants is made available for school districts, municipal authorities, political subdivisions, nonprofit entities, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth to support:

  • Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels as a bi-fuel, dual-fuel, hybrid or dedicated vehicle.
  • Incremental cost expenses to purchase bi-fuel, dual-fuel, hybrid or dedicated vehicles.
  • The cost to purchase and install the necessary fleet refueling or home-refueling equipment for bi-fuel, dual-fuel, hybrid or dedicated vehicles.
  • The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.

New this year, AFIG will give priority to projects that include the use of the funded vehicles by emergency personnel in emergency responses, rescues, and evacuations. Biodiesel refueling infrastructure projects must be dispensing a biodiesel blend greater than B5.

Changes for Vehicle Purchase and Retrofit projects include:

  • For new CNG, LNG, Propane, Biodiesel vehicles using a blend greater than B20, Electric Vehicles with a battery system capacity equal to or greater than 20 kWh, and Hydrogen Fuel Cell vehicles, applicants may request 100% of the incremental cost of the vehicle up to $40,000 per vehicle.
  • For Electric Vehicles with a battery system capacity between 10 kWh and 20kWh, applicants may request 75% of the incremental cost of the vehicle up to $20,000 per vehicle.
  • For Existing CNG, LNG, and Biodiesel vehicles using a blend of B20 or greater, and Electric Vehicles with a battery system capacity of less than 10 kWh, applicants may request 50% of the incremental cost up to $20,000 per vehicle.

APPLICATIONS

The application period opened on May 4, 2018 and will remain open throughout 2018. DEP will collect and review Applications received by 4 p.m. on Friday, July 13, 2018 and 4 p.m. on Friday, December 14, 2018. Hardcopy applications will not be accepted.

 

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 website. Certain exemptions apply. (Reference Title 75 Pennsylvania Statutes, Chapter 90, Section 9004)

 

Federal Incentives

Alternative Fuel Infrastructure Tax Credit
(Originally expired 12/31/13 - retroactively extended through 12/31/16, by H.R. 2029) Fueling equipment for E85 installed between January 1, 2014, and December 31, 2016, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Station owners with multiple locations can use the credit towards each site. For more information about claiming the credit, see IRS Form 8911.

Ethanol Infrastructure Grants and Loan Guarantees
The Rural Energy for America Program (REAP) provides grants and loan guarantees to rural (population less than 50K) small businesses to purchase renewable energy systems or make energy efficiency improvements. Eligible renewable energy systems include equipment used to distribute flexible fuels. The maximum grant funding is 25% of project costs and the maximum loan guarantee is $25 million. The program is funded through fiscal year 2018 but is subject to congressional appropriations thereafter. For more information, see the REAP website.

Point of Contact
Office of Rural Development, Business and Cooperative Programs
U.S. Department of Agriculture
Phone: (202) 690-4730
http://www.rurdev.usda.gov/

Ethanol plant direct E85/ethanol sales

Click here for a complete list of domestic ethanol producers and sales contacts for E85/direct ethanol sales

E15/Flex Fuel Profit Estimate
line
Pennsylvania
AVG STATION (107,000 GPM)
Average Retailer:
New gallons/$$/Mo E15 & Flex: 19,700 $3,300
New Customers/Mo:+2,187 
Additional Merch. Margin from above:$6,400
RINs not applied to reduce price:$950
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TOTAL NEW PROFIT/MO  $10,650
Top Performing Retailer:
New gallons/$$/Mo E15 & Flex:46,700$7,800
New Customers/Mo:+5,187 
Additional Merch. Margin from above:$15,100
RINs not applied to reduce price:$2,700
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TOTAL NEW PROFIT/MO  $25,600

Want to see what E15/Flex fuels could do for your operation?

Try out the E15/Flex fuel profit Estimator
A Roadmap for Ethanol cover

a roadmap for ethanol

You’re thinking about adding or switching to a new fuel grade on your product slate, and you’ve considered premium and diesel, because those are the fuels all station owners consider. But today, the market is different, and you’re curious about what E15, E85, and other flex fuels could do for your business. Good move.

Download the Full Guide