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Grants to Pennsylvania Agencies, School Districts, Nonprofits, and For-Profits to Promote Alternative Transportation Fuels

Alternative Fuels Incentive Grant Program (AFIG)


GrantWatch ID#

Funding Source
Pennsylvania Department of Environmental Protection (DEP)
Array ( )

Geographic Focus
USA: Pennsylvania

Important Dates
Deadline: 12/15/23 11:59 PM Save

Grant Description
Grants to Pennsylvania municipal authorities, political subdivisions, school districts, nonprofit organizations, and businesses for projects that promote clean energy use. Funding is intended for projects focused on innovative technology, vehicle retrofit, and refueling infrastructure.

The primary goals of the Alternative Fuels Incentive Grant Program (AFIG) are to improve Pennsylvania’s air quality and protect Pennsylvania’s environment through the use of alternative fuels that will advance economic development in the commonwealth and reduce dependence on petroleum products. DEP is seeking applications for innovative, advanced fuel and vehicle technology projects resulting in a cleaner and greener transportation sector within the Commonwealth.

The Alternative Fuels Incentive Grant (AFIG) program has funding available to school districts, municipalities, nonprofit organizations, and businesses in Pennsylvania that want to transition to cleaner fuel transportation.  

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.

Priorities for grant funding:

  • Businesses whose headquarters or principal place of business are located in Pennsylvania;
  • Zero emission vehicle projects;
  • Medium-duty and light-duty fleet refueling infrastructure projects;
  • Renewable natural gas vehicle and infrastructure projects;
  • Projects located in or predominantly serving environmental justice areas;  
  • Minority-, veteran-, or woman-owned businesses.

For a list of eligible project categories, see


Additional Eligibility Criteria
Eligible Applicants:

- School districts
- Municipal authorities
- Political subdivisions
- Incorporated nonprofit entities
- Corporations
- Limited liability companies or partnerships registered to do business in the Commonwealth

DEP will endeavor to award a minimum 20% of available AFIG funding for the program year to the following entities, dependent upon applications received:
- Counties, townships, municipalities, or municipal authorities;
- Public school districts, including brick and mortar charter schools;
- Organizations registered as a 501(c)3 that provide services to seniors, low-income individuals and families, individuals with disabilities, veterans, or medical services of any type;
- Businesses that are registered with the Commonwealth as a Small Diverse Business or registered with one of the - Pennsylvania Department of General Services approved third-party certifications; and
- Organizations that are county/local government supported or contracted to provide services to seniors, low-income individuals and families, individuals with disabilities, veterans, or medical services of any type.

Vehicle purchasers/owners are eligible to receive a grant.

- Vehicles must be registered in Pennsylvania for on-road use and must be registered to the applicant. The registration requirement is not applicable to yard trucks.
- Nonprofit organizations, including schools, and local government entities may apply jointly.

Ineligible entities include but are not limited to: state and federal agencies, and institutions that are part of the PA State System of Higher Education.

Ineligible vehicles include:
- Plug-in Hybrid Electric Vehicles and Standard Hybrid Vehicles
- Used or pre-owned vehicles.
- Off-road vehicles including construction vehicles (excluding yard trucks).
- Vehicles which have previously been awarded any AFIG or VW Mitigation Trust Fund (Driving PA Forward) incentives.
- Vehicles which are replacing existing alternative fuel vehicles including vehicles of the same fuel type are not eligible.
- Leased vehicles

Pre-Application Information
There are two application periods. The program will collect and review all applications submitted by 4:00 PM on August 25, 2023, and again by 11:59 PM on December 15, 2023.

An applicant may submit more than one application; however, no business or businesses with ownership in common will be awarded more than the maximum project category amount from the program during the fiscal year.

AFIG is a reimbursement grant program. Payment requests may begin only after the grantee has received a fully executed grant agreement.

Watch the webinar recording:

Additional Funding Information

Estimated Total Program Funding:


Estimated Size of Grant
The total combined grant request of all applications from one applicant cannot exceed $300,000 per applicant, per project location.

Term of Contract
Vehicles must be purchased or converted and delivered after January 1, 2023.

Contact Information
For the online application portal, see:

For project and funding inquiries, please contact Josh Dziubek, Energy Programs Office, at or (717) 705-0374.

For individual location-specific project inquiries, please contact:

DEP contacts by region:

Enterprise Help Desk, PA Office of Administration
Phone Number: 833.448.0647

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