Alternative Fuel Incentive Grants
Can you apply?
This grant is for organizations and entities in Pennsylvania seeking to invest in alternative fuel projects. Eligible applicants include vehicle fleet operators, municipalities, nonprofits, and businesses purchasing or retrofitting vehicles for alternative fuels. Projects must be located in Pennsylvania and focus on clean fuel vehicles (CNG, RNG, LNG, propane, hydrogen, biodiesel blends, or electric). The program funds the incremental cost difference between standard and alternative fuel vehicles.
Eligible vehicle types include dedicated alternative fuel vehicles from original equipment manufacturers and retrofitted vehicles of any size without GVWR limits. Projects must align with Pennsylvania's goals to improve air quality and reduce imported oil consumption. Contact DEP for detailed guidance before applying.
This grant is for organizations and entities in Pennsylvania seeking to invest in alternative fuel projects. Eligible applicants include vehicle fleet operators, municipalities, nonprofits, and businesses purchasing or retrofitting vehicles for alternative fuels. Projects must be located in Pennsylvania and focus on clean fuel vehicles (CNG, RNG, LNG, propane, hydrogen, biodiesel blends, or electric). The program funds the incremental cost difference between standard and alternative fuel vehicles.
Eligible vehicle types include dedicated alternative fuel vehicles from original equipment manufacturers and retrofitted vehicles of any size without GVWR limits. Projects must align with Pennsylvania's goals to improve air quality and reduce imported oil consumption. Contact DEP for detailed guidance before applying.
Program description
The Pennsylvania Department of Environmental Protection is offering funding for clean, alternative fuel projects in Pennsylvania and investment in Pennsylvania’s energy sector. DEP receives funding each year through the utilities gross receipts tax collected during each fiscal year to carry out the provisions of the Alternative Fuels Incentive Act. The primary goals of the Alternative Fuels Incentive Grant Program (AFIG) are to improve Pennsylvania’s air quality and reduce consumption of imported oil through the use of homegrown alternative fuels that will help the Commonwealth’s economy and environment. Vehicle Retrofit and Purchase projects include the incremental cost of purchase of new alternative fuel vehicles (any type or size). The new vehicles must be manufactured by the original equipment manufacturer to operate dedicated on alternative fuel. Vehicle Retrofit and Purchase also includes the incremental cost of retrofit of new or existing vehicles to operate on alternative fuels (any type or size) and can be operated on alternative fuel as dedicated. Eligible vehicles include but are not limited to: Dedicated RNG, LNG or CNG vehicles, liquid propane gas, hydrogen, biodiesel (blends greater than B20), and electricity (Battery Electric Vehicles only, including Neighborhood Electric Vehicles, and yard trucks); no GVWR limits. For further information on the program, see program guidance and review application instructions prior to applying.
Who can apply
Eligible applicants
- City / Municipal Government
- County Government
- Nonprofits
- Public Authority
- Public K-12 School
- Small Business (SBA-defined)
Details
This grant is for organizations and entities in Pennsylvania seeking to invest in alternative fuel projects. Eligible applicants include vehicle fleet operators, municipalities, nonprofits, and businesses purchasing or retrofitting vehicles for alternative fuels. Projects must be located in Pennsylvania and focus on clean fuel vehicles (CNG, RNG, LNG, propane, hydrogen, biodiesel blends, or electric). The program funds the incremental cost difference between standard and alternative fuel vehicles.
Eligible vehicle types include dedicated alternative fuel vehicles from original equipment manufacturers and retrofitted vehicles of any size without GVWR limits. Projects must align with Pennsylvania's goals to improve air quality and reduce imported oil consumption. Contact DEP for detailed guidance before applying.
How to apply
Application links
Required documents
- Application form (DEP-specific)
- Vehicle specifications and cost documentation
- OEM certification of alternative fuel capability
- Project narrative describing air quality and energy benefits
- Organizational eligibility documentation
FAQ
What types of vehicles qualify for funding?
Dedicated CNG, RNG, LNG, propane, hydrogen, biodiesel (B20+), and battery electric vehicles qualify. Any vehicle size is eligible with no GVWR limits.
Can I retrofit an existing vehicle?
Yes, retrofitting existing vehicles to operate on alternative fuels is eligible. Vehicles can be dedicated to alternative fuel or capable of dual-fuel operation.
Is this grant available statewide in Pennsylvania?
Yes, the Alternative Fuels Incentive Grant Program funds projects throughout Pennsylvania using annual utility gross receipts tax revenue.
What costs are eligible for reimbursement?
The grant covers the incremental cost difference between purchasing or retrofitting a standard vehicle versus an alternative fuel vehicle.
When is the application deadline?
The deadline is October 7, 2026. Check the DEP website for rolling deadlines or multiple funding cycles within the year.
💡 Tips for applicants
- Contact Pennsylvania DEP early to clarify which alternative fuel types qualify and any regional priorities for your specific project type.
- Calculate the incremental cost difference accurately between your standard vehicle baseline and the alternative fuel option to maximize eligible reimbursement.
- Gather documentation showing the vehicles are manufactured or certified for dedicated alternative fuel operation by the original equipment manufacturer.
- Plan your application timeline around the October deadline and budget any required matching funds or administrative costs separately from eligible project costs.
- Review the full program guidance document before drafting your application to understand all allowable fuel types and vehicle classifications.
⚠️ Common mistakes
Submitting vehicle purchase quotes without clearly documenting the incremental cost difference between standard and alternative fuel versions. Proposing vehicles that cannot operate dedicatedly on alternative fuels or lack OEM certification. Failing to demonstrate how the project aligns with Pennsylvania's air quality or energy independence goals.
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