Alternative Fuels Incentive Grant

The Alternative Fuels Incentive Grant (AFIG) Program is a competitive reimbursement grant administered by the Pennsylvania Department of Environmental Protection (DEP) through its Energy Programs Office. Established under Act 166 of 1992 and revised by Act 178 of 2004, the program receives approximately $5 million annually through the state’s utilities gross receipts tax. The AFIG program is designed to advance the use of alternative fuels in Pennsylvania’s transportation sector, reduce dependence on foreign energy sources, support environmental justice, and promote cleaner air statewide. It aims to foster economic development while helping to reduce greenhouse gas emissions and improve air quality across Pennsylvania. For the 2026 grant cycle, AFIG provides funding in three primary categories: (1) the purchase or retrofit of alternative fuel vehicles, (2) the installation of alternative fuel refueling infrastructure, and (3) innovative technology projects that develop or demonstrate advanced applications in alternative fuel use. Vehicle purchase or retrofit projects may include electric vehicles with battery capacities above 50 kWh, compressed natural gas, liquefied natural gas, propane, hydrogen, biodiesel, and renewable natural gas vehicles. Individual applicants may submit multiple applications but are capped at a combined maximum award amount of $500,000 per fiscal year. However, each individual application has a maximum request limit of $300,000. The 2026 AFIG cycle includes two submission windows: the first ending April 1, 2026, and the second closing on October 7, 2026, both at 12:00 PM Eastern Time. All applications must be submitted through Pennsylvania’s Electronic Single Application (ESA) eGrants portal. Funded projects must be conducted in Pennsylvania, and vehicles must be registered and operated primarily within the state for at least two years following project completion. Applications are subject to thorough competitive evaluation based on criteria including environmental benefits, energy reduction, equity considerations, and alignment with state alternative energy goals. AFIG funding is structured as a reimbursement grant; applicants must first pay project costs and then submit documentation for reimbursement. Eligible expenses include incremental costs for new vehicle purchases, retrofit costs, and costs for installing new refueling infrastructure or upgrading existing facilities. A 50% cost share is mandatory for refueling infrastructure and innovative technology projects. Ineligible expenses include application preparation, pre-construction activities, travel, indirect costs, and other administrative expenses. Grant priorities for 2026 include first-time applicants, projects that primarily serve Environmental Justice (EJ) areas, public entities such as municipalities and school districts, and organizations that serve vulnerable populations such as seniors, individuals with disabilities, veterans, and low-income households. Additionally, electric vehicle charger projects must meet specific requirements regarding plug count, power output, and connector type. For example, Level 2 charging stations must support concurrent charging with a minimum of 7.2 kW per plug and must use SAE J1772 or North American Charging Standard (NACS) plugs. Applicants are strongly encouraged to contact the DEP program specialist listed in the application materials prior to submitting their applications. Contact information and application guides are provided within the official guidelines. Awardees will enter into a formal grant agreement with the Commonwealth of Pennsylvania, and a project advisor from DEP will be assigned to monitor the progress. Upon completion, grantees must submit a final report and a one-year follow-up report documenting performance and outcomes. Additional compliance requirements include proof of vehicle emissions certification, Pennsylvania vehicle registration, and fiscal documentation verifying expenditures.

Submit complete applications with match proof and technical documentation. Incomplete or unsupported submissions are ineligible.