2024 PA Alternative Fuel Incentive Grant (AFIG) Program Now Open


The Alternative Fuels Incentive Grant (AFIG) program is now accepting application for the 2024 program year. AFIG has approximately $5 million in funding available to school districts, municipalities, nonprofit organizations, and businesses who seek to transition to alternative fuels.

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.

Important PPA Note: Certain AFIG biodiesel projects (state funded) can be complimented with the Higher Blends Infrastructure Incentive Program (federally funded)

Application deadlines: There are two application periods. The program will collect and review all applications submitted by 11:59 PM on June 28, 2024, and again by 11:59 PM on December 20, 2024.

2024 AFIG Details and Instructions

New This Round

Applicants will be eligible for a maximum grant award across all applications of $500,000. Individual application awards are still capped at $300,000.

2024 AFIG 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.

DEP will award at least 20% of AFIG funding to the following entities, depending on 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.