Alternative Fuels Incentive Grants

The Alternative Fuels Incentive Grant (AFIG) program, administered by the Pennsylvania Department of Environmental Protection (DEP) through its Energy Programs Office, is a competitive grant initiative supporting clean, alternative fuel transportation solutions throughout Pennsylvania. Established under Act 166 of 1992 and revised in 2004, the program aims to improve the Commonwealth’s air quality, promote energy security, and reduce dependence on petroleum-based fuels. Approximately $5 million in funding is available annually, sourced from the utilities gross receipts tax. The AFIG program is intended to stimulate innovation, encourage the deployment of alternative fuel vehicles and infrastructure, and support environmentally responsible transportation initiatives with measurable benefits. The AFIG program supports a broad range of project types that fall under three primary categories: vehicle retrofit or purchase projects, alternative fuel refueling infrastructure projects, and innovative technology demonstration projects. Projects must advance the use of fuels such as electricity, compressed natural gas (CNG), liquefied natural gas (LNG), propane, hydrogen, hythane, biodiesel (above B20), ethanol, methanol, and other advanced biofuels. The funding covers incremental costs associated with vehicle retrofits or purchases, fleet or home refueling equipment installation, and technology demonstration efforts. In 2025, applicants may submit separate applications under each category but must not exceed a combined funding cap of $500,000, with each individual project application capped at $300,000. Key program updates for 2025 include revised requirements for electric vehicle and infrastructure projects. Class 1 and 2 BEVs must have a minimum battery capacity of 50 kWh and involve at least five vehicles, with grant awards of up to $3,000 per vehicle, or $4,000 if deployed in Environmental Justice (EJ) areas. Similarly, Level 2 EVSE projects must include a minimum of four plugs (two dual chargers), each capable of delivering 7.2 kW concurrently, using J1772 or NACS-compliant connectors. The program offers up to $5,000 per plug and an additional $1,000 per plug in EJ areas. DC Fast Chargers must support a minimum of 120 kW for a single vehicle and at least 60 kW when multiple vehicles are connected. Projects that support ZEV deployment, prioritize Environmental Justice communities, or serve minority-, women-, and veteran-owned businesses are prioritized for funding. Applicants must be school districts, municipalities, nonprofit organizations, or businesses registered in Pennsylvania. State and federal agencies are ineligible. Joint applications are allowed for non-profits, schools, and government entities with fleet operations, provided a lead applicant is acquiring at least one vehicle. All funded activities must occur in Pennsylvania, with funded vehicles domiciled and registered in-state for a minimum of two years post-project. Infrastructure projects must demonstrate that fueling stations are either owned, under agreement, or accessible to the grantee’s fleet. A 50% cost-share is mandatory for refueling and innovative technology projects. Applications must be submitted online through Pennsylvania’s Electronic Single Application (ESA) portal at http://www.esa.dced.state.pa.us/ by 11:59 PM ET on October 10, 2025. The application must include detailed project descriptions, financial documentation, environmental benefit estimates, and cost-sharing verification. Additionally, applicants must complete the Worker Protection and Investment Certification Form to comply with Executive Order 2021-06. Evaluation criteria include environmental benefit, emission reduction potential, diversity and inclusion considerations, Pennsylvania economic impact, and project readiness. Applications lacking required documentation or project readiness may be deemed ineligible. Questions about the program should be directed to Josh Dziubek at [email protected] or 717-705-0374. Technical questions about the ESA system should be directed to the Enterprise Help Desk at [email protected] or 833-448-0647. Projects must be completed within 24 months of the grant award date. The AFIG program is recurring annually, and the next anticipated application cycle is expected to open in Winter 2026.