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of the Commonwealth of Pennsylvania

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    Overview

    Under Pennsylvania law (Act 48 of 2026), the PA Vehicle Code was amended to change the definition of alternative fuels. The definition now includes gasoline-ethanol mixtures containing between 51% and 85% ethanol by volume as specified by the ASTM International D5798 standard. As a result, E85 (also known as FlexFuel) now fits within the definition of alternative fuels. 

    Because of this legislative change, E85 (FlexFuel) is:

    • Taxable at the lesser Alternative Fuels Tax rate.
    • Reported by the alternative fuel dealer users at the retail/use level.
    • No longer reported by PA registered distributors regardless of ethanol content.

     These changes matter for:

    • Retail service stations that sell E85 (FlexFuel)
    • PA registered distributors
    • Alternative fuel dealer users
    • Businesses that need to accurately report fuel taxes to the state