Reducing Reliance on Foreign Fuel

Act 78 of 2008

State-based fuel production will reduce our dependence on out-of-state fuels, help our farmers and promote job creation and innovation. The act mandates cellulosic ethanol production goals and standards. Cellulosic Ethanol is made from switchgrass – NOT corn

• Our climate is ideal for PA farmers to grow switchgrass
• Switchgrass production will not drive up the cost of food like traditional corn-based ethanol
• Processing facilities will be placed here and create jobs
• Gasoline made from switchgrass/cellulosic ethanol cuts greenhouse gas production by 85 percent over traditional gasoline

Once we reach 350 million gallons of cellulosic ethanol produced in-state, the strategy's new standards will kick in and 10 percent of every gallon of gasoline sold will have to be made from PA switchgrass.

The strategy sets up similar standards for biodiesel:

• 40 million gallons of in-state production equals 2 percent of every gallon of diesel must be PA biodiesel
• 200 million gallons produced equals 10 percent
• 400 million gallons produced equals 20 percent

Biodiesel isn’t just a good financial decision for our state and our farmers, it’s better for engines than traditional diesel because it burns cleaner and it provides a better lubricant, increasing engine and fuel injector life.

Biodiesel Production Incentive

Act 2 of 2008

To help incent biodiesel production in Pennsylvania, and to allow our producers to compete with other companies from around the country, the state will provide a $.75 per gallon subsidy for biodiesel that is produced and sold in Pennsylvania.