Pennsylvania Law Will Encourage Use of Biodiesel, Alternative Fuels

November 30, 2004

A new state law will significantly increase demand for biodiesel in Pennsylvania. Governor Edward G. Rendell signed Senate Bill 255 into law on November 30 to establish the Alternative Fuels Incentive Act. The fund is made up of part of the revenues allocated from the utilities' gross receipts tax and will be expended by the Department of Environmental Protection for grants to school districts, municipal authorities, political subdivisions, nonprofit entities, corporations, LLCs, or partnerships for the incremental cost of biodiesel, among other alternative fuel provisions.

The Alternative Fuels Incentive Act establishes a $10 million Energy Development Fund to provide assistance for alternative energy research and the installation of stationary power facilities that use alternative fuels to generate electric power. The grant and rebate parts of the law will cover some of the cost difference between an alternative fuel vehicle and a conventional vehicle. This also applies to home fueling equipment and fuel. The fund may also be used to reimburse up to $0.05/gallon for as much as 12.5 million gallons per year of renewable fuels produced by a qualified renewable fuels producer.

For more information, read the entire bill (PDF 37 KB) Download Acrobat Reader.