Pennsylvania DEP Offering $7 Million in Grants for Alt-Fuels


The Pennsylvania Department of Environmental Protection (DEP) is offering incentives for the purchase and use of alternative fuels and alternative fuel vehicles. DEP’s Alternative Fuels Incentive Grant (AFIG) Program offers funding for advanced fuel and vehicle technology projects for cleaner alternative transportation within the commonwealth.

“The use of alternative fuels and deployment of advanced alternative transportation technologies is a key component to making Pennsylvania the country’s energy leader in the use of domestic alternative fuels – and in cleaning the air we breathe and protecting our climate,” says DEP Secretary John Quigley.

The AFIG Program will assist school districts, municipal authorities, nonprofits, corporations, LLCs and partnerships registered to do business in Pennsylvania in offsetting the costs of implementing alternative fuel using transportation projects. The AFIG is funded by annual gross receipts tax on utilities.

DEP is offering grants in the following project categories:

  • 50% of incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels as a bi-fuel, dual-fuel, hybrid or dedicated vehicle;
  • 50% of 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; and
  • Reimbursement incentives for school districts, municipal authorities, political subdivisions and nonprofit entities that purchase and use biofuel blends, including e-85 and biodiesel blends of 5% biofuel content and higher.

In response to feedback from prior applicants, the AFIG Program will remain open to receive applications throughout 2016. Applications will only be accepted online through the eGrants System. Hardcopy applications will not be accepted.

For program guidelines, application instructions, and more information on the AFIG, click here.

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