DEP Offers Grants to Support Alternative Fuel Transportation Projects in Pennsylvania

The Pennsylvania Department of Environmental Protection is encouraging Pennsylvanian business and community leaders to be better caretakers of the environment by 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 innovative, 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,” said 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 Alternative Fuels Incentive Grant Program is funded by annual gross receipts tax on utilities.

DEP is offering grants in the following project categories:

  • Vehicle Retrofit or Purchase – To offset the incremental cost of purchasing alternative fuel vehicles or retrofitting existing vehicles to operate on alternative fuels.
  • Alternative Fuel Refueling Infrastructure–To assist in the costs to purchase and install refueling equipment for fleet or home-based refueling.
  • Biofuel Use–To support a portion of the cost to purchase high content biofuels.
  • Innovative Technology–To support research, training, development, and demonstration of new alternative fuels and alternative fuel vehicles.

New this year, and 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.

Individuals are not eligible to apply for the AFIG program. The Alternative Fuel Rebate Program offers rebates to Pennsylvania residents to assist with the cost of purchasing an alternative fuel vehicle. For more information on that program, click here.

For program guidelines, application instructions, and more information on the Alternative Fuels Incentive Grant Program, visit:

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