Provider
PA Department of Environmental Protection
Application Deadline
There will be two application acceptance periods for the 2026 program. The first acceptance period ends on April 1, 2026, at 12:00 PM. The second acceptance period ends on October 7, 2026, at 12:00 PM.
Summary
The Alternative Fuels Incentive Grant Program (AFIG) was established under Act 166 of 1992 to help create new markets for alternative fuels in Pennsylvania, increasing energy security and improving air quality.
The program invests in the deployment of alternative fuel vehicles, fleets, refueling infrastructure, and technologies, as funded projects build markets for advanced, renewable, and alternative energy transportation technologies. The intent is to provide a stimulus for opportunities that better manage Pennsylvania's fuel resources in a way that also improves the environment, supports economic development, and enhances quality of life in Pennsylvania.
AFIG has approximately $5 million in funding per year available to school districts, municipalities, nonprofit organizations, and businesses in Pennsylvania that want to transition to cleaner fuel transportation. Applicants will be eligible for a maximum grant award across all applications of $500,000. Individual application awards are capped at $300,000.
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.
Common Eligible Projects
- Zero emission vehicle (ZEV) projects
- Renewable natural gas (RNG) vehicle and infrastructure projects
- Projects located in or predominantly serving environmental justice (EJ) areas
- Publicly accessible alternative fuel refueling infrastructure projects
