2024 Alternative Fuels Incentive Grant Program

The Pennsylvania Department of Environmental Protection (DEP) offers competitive grant funding for clean, alternative fuel transportation projects in Pennsylvania through the Alternative Fuels Incentive Grant Program (AFIG). Funded by a utilities gross receipts tax, the program aims to improve air quality, protect the environment, advance economic development, and reduce reliance on petroleum products. Projects must demonstrate innovative advanced fuel and vehicle technologies for a cleaner transportation sector. Eligible applicants include school districts, municipal authorities, political subdivisions, nonprofits, and corporations. Projects can include vehicle retrofits and purchases, refueling infrastructure, and innovative technology developments. The application periods end on June 28, 2024, and December 20, 2024, with a maximum grant request of $300,000 per application. The Alternative Fuels Incentive Grant (AFIG) program is now closed. Applications received for the second round of the 2024 program have been evaluated by program staff and awards will be announced soon. The AFIG program will reopen for 2025 later this spring.

AFIG has approximately $5 million in funding available to school districts, municipalities, nonprofit organizations, and businesses in Pennsylvania that want to transition to cleaner fuel transportation.

Supported alternative fuels include electricity, compressed natural gas, liquefied natural gas, propane, hydrogen, hythane, biodiesel, ethanol, methanol, and other advanced biofuels. Grant funding covers:

Incremental costs related to retrofitting vehicles to operate on alternative fuels;
Incremental costs to purchase alternative fuel vehicles;
Cost to purchase and install the necessary fleet-refueling or home-refueling equipment for alternative fuel vehicles;
Cost to perform research, training, development, and demonstration of new applications or next-phase technology related to alternative fuel vehicles.