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. Supported alternative fuels include electricity, compressed natural gas, liquefied natural gas, propane, hydrogen, hythane, biodiesel, ethanol, methanol, and other advanced biofuels.
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.
Eligible applicants include: school districts, municipal authorities, political subdivision, incorporated nonprofit entities, corporations, limited liability companies or partnerships registered to do business in the Commonwealth.
Common Eligible Projects
- Vehicle Retrofit or Purchase Projects:
- New Vehicle Purchase – The incremental cost of purchase of new alternative fuel vehicles (any type or size/class).
- Vehicle Retrofit – The incremental cost to retrofit new vehicles to operate on alternative fuels (any type or size/class).
- Alternative Fuel Refueling Infrastructure Projects:
- Medium-duty Fleet Refueling – The cost to purchase and install refueling equipment servicing, at a minimum, one fleet of 10 or more Class 3-6 alternative fuel vehicles with a GVWR of greater than 10,000 lbs. and less than 26,000 lbs.
- Light-duty Fleet Refueling Projects – The cost to purchase and install refueling equipment servicing at least two Class 1 or 2 alternative fuel vehicles with a GVWR less than 10,000 lbs.
- Innovative Technology Projects:
- Projects that include research, training, development and demonstration of new applications or next phase technology related to alternative transportation fuels and alternative fuel vehicles.
- Note: For each specific project type described above, please see the individual requirements section to obtain detailed information for each project type.
- Any applicant who begins a project and incurs costs before receiving a fully executed grant agreement does so at their own risk.
