Alternative Fuels Incentive Grant Fund (AFIG)

June 08, 2004


The Pennsylvania Department of Environmental Protection (DEP) administers this program which provides financial assistance and information on alternative fuels and vehicles. The Alternative Fuels Incentive Grant Fund (AFIG) was created in 1992 and is maintained by $3.4 to $4 million annually from a tax on the state's utilities. Eligible applicants for incentive grants are school districts, municipal authorities, political subdivisions, nonprofit entities and corporations or partnerships, and Pennsylvania residents. Eligible alternative motor fuels and fuel systems are compressed and liquefied natural gas, ethanol (E85), methanol (M85), hydrogen, hythane, electricity, fuels from biological materials or coal, and other fuels considered eligible under the Energy Policy Act of 1992. The grant will pay 20% of eligible project costs for the following types of projects:. 1. Purchasing alternative fuel vehicles, including hybrid electric vehicles. 2. Converting or repowering existing vehicles to operate on an alternative fuel. 3. Purchasing and installing alternative fuel refueling facilities. 4. Purchasing and installing recharging facilities. 5. Developing and evaluating innovative alternative fuel vehicles and developing refueling or recharging facilities. According to the program's December 2002 report to the Pennsylvania General Assemply, during an eight-year period beginning in October 1994, the program received 439 applications, requesting $34 million dollars for projects. DEP awarded close to $20 million dollars for 291 projects covering 35 counties in the state (97 percent of these awards were accepted by the grant recipients). AFIG funds have leveraged more than $60 million from public and private fleet operators, fuel providers and the federal government. Each year DEP offers an opportunity to apply for a grant by October 1. Sometimes, a second opportunity to apply is offered in the beginning of the year with a mid-April deadline. The AFIG program will be announced annually in the Pennsylvania Bulletin and the Weekly DEP Newsletter. The most recent funding cycle closed on October 1, 2003.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Pennsylvania
Incentive Type: Grant Program
Web Site:
Administrator: Pennsylvania Department of Environmental Protection
Start Date:
Eligible Renewable/Other Technologies:
  • Renewable Fuel Vehicles
  • Renewable Fuels
  • Refueling Stations
Incentive Amount: 20% of eligible costs
Maximum Incentive: Up to 15% of total fund


Name: Karen Miller
Organization: Pennsylvania Department of Environmental Prot
Address: P.O. Box 8468
Harrisburg PA 17105-8468
Phone: (717) 772-3359

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.