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Alternative Fuels Incentive Grant Program (AFIG)

Grants to Pennsylvania Nonprofits, Corporations, Agencies
and School Districts to Promote Alternative Fuel Vehicles

Agency Type:

State

Funding Source:

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Pennsylvania Department of Environmental Protection (DEP)

Deadline Date:

12/14/18 4:00 PM Receipt

Description:

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Grants to Pennsylvania nonprofits, corporations, government agencies, and school districts to purchase and promote alternative fuel vehicles. The purpose of this grant is to reduce the consumption of imported oil and improve air quality by promoting the use of domestic alternative fuels that will help the state's economy and the environment.

The Pennsylvania Department of Environmental Protection (DEP) is offering grant funding for clean, alternative fuel projects in Pennsylvania and investment in Pennsylvania’s energy sector. DEP receives approximately $6 million in 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. DEP is seeking applications for innovative, advanced fuel and vehicle technology projects resulting in a cleaner and greener transportation sector within the commonwealth. DEP will consider projects within the category areas listed under General Eligibility and anticipates awarding all funds received during each fiscal year for projects consistent with the Alternative Fuels Incentive Act.

An investment is being made not only in alternative fuels, but the deployment of alternative fuel vehicles, fleets, and technologies.

AFIG is currently offering three opportunities:
- The 2018 Alternative Fuels Incentive Grant
- The Pennsylvania FAST Act Corridor Infrastructure Grant
- The Alternative Fuels Technical Assistance Program

Grants are provided to support:
- Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels as a bi-fuel, dual-fuel, hybrid or dedicated vehicle.
- Incremental cost expenses to purchase bi-fuel, dual-fuel, hybrid or dedicated vehicles.
- The cost to purchase and install the necessary fleet refueling or home-refueling equipment for bi-fuel, dual-fuel, hybrid or dedicated vehicles.
- The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.

New this year, AFIG will give priority to projects that include the use of the funded vehicles by emergency personnel in emergency responses, rescues, and evacuations. Biodiesel refueling infrastructure projects must be dispensing a biodiesel blend greater than B5.

Priority will be given to refueling infrastructure projects located along Pennsylvania Interstate Highway corridors not currently designated as alternative fuel pending or ready FAST Act Corridors (https://www.fhwa.dot.gov/environment/alternative_fuel_corridors/). These interstates include but may not be limited to I-70, I-78, I-81, I-83, I-84, I-99, and I-180.

Vehicle purchasers/owners/lessees and lessors are eligible to receive a grant.
- For lessees, the application must include a signed letter or agreement from lessor approving the vehicle modification and agreeing to the use of the vehicle in Pennsylvania for no less than two years.
- For lessors, the application must include a signed letter from the lessee agreeing to the use of the vehicle in Pennsylvania for no less than two years.
- Vehicles must be registered to the applicant.

Eligible Project Categories:

Vehicle Retrofit or Purchase Project:
- New Vehicle Purchase - The incremental cost of purchase of new alternative fuel vehicles (any type or size).
- Vehicle Retrofit - The incremental cost to retrofit new or existing vehicles to operate on alternative fuels (any type or size).
- New refueling facilities and expansion of existing refueling facilities for both Fleet and Workplace, Home and Intermediary refueling projects will be considered. If the project is the expansion of an existing refueling facility, the applicant must show how the expansion would result in increased use of the facility and increased fuel displacement.

Alternative Fuel Refueling Infrastructure Projects:
- Fleet Refueling - The cost for the purchase of installation of refueling equipment servicing, at a minimum, one fleet of alternative fuel vehicles with a GVWR less than 26,000 lbs.
- Workplace, Home, or Intermediary Refueling Projects - The cost to purchase and install refueling equipment at a vehicle’s or vehicles’ home location servicing only 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.
- AFIG will only consider innovative technology and advanced research and development projects that are reasonably expected to directly result in the commercial application of the information gained or products produced.
- Manufacture of alternative transportation fuel and vehicle demonstration projects will only be considered for funding if they are shown to be the first deployment of this type of technology in Pennsylvania which has not had significant commercial success elsewhere.
- Retrofits or expansions of existing biofuel or alternative fuels manufacturing facilities which supply the transportation sector will only be considered under this category if the equipment or expansion of the facility tests or demonstrates an innovative technology in Pennsylvania.
- All projects proposed must be for the benefit of advancing technologies that will be incorporated into vehicles registered in PA.

Application Evaluation - All Projects:
Applications will be reviewed and evaluated by DEP using the criteria defined below and any other criteria that may be specifically referenced in each of the requirements sections included in this grant solicitation.
- Improvement of Pennsylvania’s air quality via environmental benefits, protection of the natural environment and avoided emissions.
- Reduction of conventional energy consumption (imported crude oil and other petroleum products) or increased energy production from indigenous alternative energy sources.
- Promotion of Pennsylvania’s energy resources, energy diversity and security.
- Economic benefits for the commonwealth, including jobs, savings to consumers and/or revenue generation.
- The amount of matching funds or in-kind services documented by letters of financial commitment; Note: letters supporting the project are not considered letters of financial commitment for matching funds or in-kind services. Letters of support are not required.
- The level of financial support needed by the applicant to complete the project.
- Promotion of the environmental benefits resultant of the project.
- Support of economically distressed Act 47 municipality.

Vehicle Retrofit and/or Purchase Project Requirements:
- All vehicles must be primarily operated and fueled in Pennsylvania.
- All identified refueling facilities to be utilized by vehicles receiving DEP funds must be properly permitted even if existing prior to the grant award.
- The vehicles receiving funding must be registered in Pennsylvania and remain registered in Pennsylvania for no less than 2 years after project completion.
- The applicant must identify a service technician or company that will service the alternative fuel system during the ownership of the proposed vehicles.
- All alternative fuel vehicles or conversion systems must be compliant with Environmental Protection Agency (EPA) or California Air Resource Board (CARB) requirements. Please refer to the conversion system requirements as described in DEP’s “Policy on Clean Alternative Fuel Conversion Systems” (www.elibrary.dep.state.pa.us/dsweb/Get/Document86214/PCV%20Conversion%20Policy%20Final%20Revised.pdf)

Alternative Fuel Refueling Infrastructure Project Requirements:
- All refueling project locations must be located in Pennsylvania.
- Refueling projects must service vehicles using at least one of these alternative fueling types: Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), liquid propane gas (LPG), alcohol (ethanol E-85 or Methanol M85), hydrogen, hythane (any combination of CNG and hydrogen), biofuels (greater than biodiesel B5) and electricity
- Supplies, whether DEP funded or cost share match, may not exceed 10 percent of the total project costs.

Innovative Technology Project Requirements:
- All Innovative Technology projects must include at least a 50 percent cost share. Additional cost share provided over 50 percent will be considered during the competitive application evaluation process.
- Personnel costs may not exceed 50 percent of the total grant funding requested.
- Supplies, whether DEP funded or cost share match may not exceed 10 percent of the total project costs.
- Project activities must ultimately result in a significant increase in effectiveness or efficiency of alternative fuel production or use and/or further the commercial success of an innovative technology as it is applied to alternative fuels or alternative fuel vehicle sector.

Vehicle Retrofit and/or Purchase Project Application Evaluation:
- amount of fossil fuel to be displaced;
- The number of vehicles purchased during the grant term;
- The use of funded vehicles by emergency personnel in emergency responses, rescues, and evacuations (to include police, fire, public safety, and ambulatory vehicles)
- The use by the vehicles purchased of a new station not previously supported by commonwealth grants for vehicles or infrastructure; • The level of public accessibility of the primary fueling station;
- The location of the primary fueling station within two miles of an interstate highway;
- The location of the primary fueling station relative to other existing alternative fueling stations; and
- The significance of the proposed education and outreach plan.

Alternative Fuel Refueling Infrastructure Project Evaluation:
- The level of public accessibility of the station to be constructed.
- The expected annual amount of alternative fuels dispensed by the station in GGE/Yr.
- The core competencies of the applicant and project partners.
- Priority will be given to refueling infrastructure projects located along Pennsylvania Interstate Highway corridors not currently designated as alternative fuel pending or ready FAST Act Corridors (https://www.fhwa.dot.gov/environment/alternative_fuel_corridors/). These interstates include but may not be limited to I-70, I-78, I-81, I-83, I-84, I-99, and I-180.

Innovative Technology Project Evaluation:
- The location of manufacture of equipment, and project component.
- Project readiness.
- The core competencies of the applicant and project partners.

GrantWatch ID#:

GrantWatch ID#: 170522

Estimated Total Program Funding:

$5,000,000

Estimated Size of Grant:

All Projects:
- If an applicant is applying under more than one project category for related projects (ex. Vehicle purchase and refueling infrastructure to support those vehicles), the total combined grant request of all applications from one applicant cannot exceed $600,000 per applicant, per project location.
- An applicant may receive no more than 10 percent or $600,000 of the money available under this grant program in any fiscal/calendar year.

Vehicle Retrofit and/or Purchase Projects:
A single application under this category may not exceed $300,000. Any AFIG application seeking funding to support the incremental cost to purchase alternative fuel fleet vehicles or convert vehicles to utilize alternative fuels may request the following:
- For new CNG, LNG, Biodiesel vehicles using a blend greater than B20, Electric Vehicles with a battery system capacity equal to or greater than 20 kWh, and Hydrogen Fuel Cell vehicles, applicants may request 100% of the incremental cost of the vehicle up to $40,000 per vehicle.
- For Electric Vehicles with a battery system capacity between 10 kWh and 20kWh, applicants may request 75% of the incremental cost of the vehicle up to $20,000 per vehicle.
- For Existing CNG, LNG, and Biodiesel vehicles using a blend of B20 or greater, and Electric Vehicles with a battery system capacity of less than 10 kWh, applicants may request 50% of the incremental cost up to $20,000 per vehicle.

Alternative Fuel Refueling Infrastructure Projects: A single application under this category may not exceed $500,000.

Term of Contract:

Vehicle Retrofit and/or Purchase Projects: Vehicles must be purchased or converted and delivered after January 1, 2018. Deposits to hold/order vehicles may occur prior to January 1, 2018. Vehicles must be purchased or converted within 12 months of the start of the period of performance.

Alternative Fuel Refueling Infrastructure Projects: The scope of work proposed in the application to be supported with grant funds must be completed within 24 months of the start of the period of performance.

Innovative Technology Projects: The scope of work to be supported must be completed within 24 months of the start of period of performance.

Additional Eligibility Criteria:

Grants are made available for school districts, municipal authorities, political subdivisions, nonprofit entities, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth.

Eligible Applicants:
- School districts
- Municipal authorities
- Political subdivisions
- Incorporated nonprofit entities
- Corporations
- Limited liability companies or partnerships

Vehicle Retrofit and/or Purchase Projects Eligibility:
- The purchase of a used vehicle already converted to alternative fuel is not eligible.
- Vehicles which have previously been awarded any AFIG or VW Mitigation Trust Funds incentives funds are not eligible.
- For purchase or retrofit of vehicles, DEP will not fund costs in excess of the requested grant amount or in excess of the percentage of incremental costs as documented on the Alternative Fuel Vehicle Summary Table, whichever is less.
- Note: This grant program does not fund the total vehicle purchase cost. Incremental cost is defined as: The difference in cost between the base price of a conventional model vehicle and its alternative fuel model related to use of the alternative fuel or the cost to retrofit a conventional model vehicle to operate using alternative fuels.

Projects that are solely feasibility studies will not be funded.

If an applicant has an active AFIG grant project the application will not be considered for funding unless DEP has received and approved a final report and statement of expenditures for the active project.

For vehicle purchase or conversion projects, vehicles cannot have been purchased, delivered or converted prior to January 1, 2018. Deposits to hold/order vehicles are excluded from this requirement.

Pre-Application Information:

It is highly recommended that all applicants contact one of the DEP AFIG staff members to discuss their project proposal via phone or email. It is highly recommended that applicants contact the DEP before application due date in order to insure that the application(s) is complete.

DEP will collect and review Applications received by 4 p.m. on Friday, July 13, 2018 and 4 p.m. on Friday, December 14, 2018. Hardcopy applications will not be accepted.

A written outreach and education plan for the project is encouraged to be submitted with the application to demonstrate how the applicant will promote the environmental benefits of alternative fuels. This plan could range from an educational press release to an “inaugural ride” of your new AFV bus that includes coverage by local media and engaging students in educating attendees. Other examples include but are not limited to educational signage on your new vehicle or within your building, as well as incorporating the outcomes of the grant project into a new or existing educational curriculum.

Vehicle Retrofit and/or Purchase Projects:
- For lessees, the application must include a signed letter or agreement from lessor approving the vehicle modification and agreeing to the use of the vehicle in Pennsylvania for no less than two years.
- For lessors, the application must include a signed letter from the lessee agreeing to the use of the vehicle in Pennsylvania for no less than two years.
- Vehicles must be registered to the applicant.

Alternative Fuel Refueling Infrastructure Projects: A minimum 50 percent cost share is required, additional cost share provided over 50 percent will be considered during the competitive application evaluation process.

Contact Information:

Before starting your grant application, please review the funding source's website listed below for updates/changes/addendums/conferences/LOIs.

Online application:
http://www.esa.dced.state.pa.us/,

For individual Location-specific project inquiries, please contact:

Michele Ferguson - 570-327-3783 or Josh Dziubek - 717-783-8411

Counties:
Bradford, Butler, Carbon, Cameron, Clarion, Clearfield, Centre, Clinton, Columbia, Crawford, Elk, Erie, Forest, Jefferson, Lackawanna, Lawrence, Lehigh, Luzerne, Lycoming, McKean, Mercer, Monroe Montour, Northampton, Northumberland, Pike, Potter, Schuylkill, Snyder, Susquehanna, Sullivan, Tioga, Union, Venango, Warren, Wayne, and Wyoming.

Mark Hand – 717-705-4797 or Walt Dinda 717-783-8411

Counties:
Adams, Allegheny, Armstrong, Bedford, Beaver, Berks, Blair, Bucks, Cambria, Chester, Cumberland, Dauphin, Delaware, Fayette, Franklin, Fulton, Greene, Huntingdon, Indiana, Juniata, Lancaster, Lebanon, Mifflin, Montgomery, Perry, Philadelphia, Somerset, Washington, Westmoreland and York.

For multiple location/state wide project inquiries, please contact:
Josh Dziubek 717-783-8411

For questions regarding the online application process, refer to the Help tab on the grant application website or contact:

PA Department of Community and Economic Development (DCED)
Customer Service
800-379-7448 8:30 am-5:00 pm
ra-dcedcs@state.pa.us

URL for Full Text (RFP):

Geographic Focus:

USA: Pennsylvania