Gov. Tom Corbett Wednesday awarded $7.3 million in Act 13 funding to 18 companies, organizations and partnerships making the switch to natural gas for their heavy-duty fleet vehicles.

“Act 13 not only strengthened oversight of the drilling industry, it allows us to continue growing jobs while cleaning the air at the same time,” Corbett said.  “Natural gas, particularly from the shale formations here in Pennsylvania, is an abundant, affordable, domestic fuel that is putting this country on a path to energy independence.”

Act 13 of 2012 was the single largest step in modernizing the state’s Oil and Gas Law in nearly three decades. It increased protections for private water supplies, empowered the Department of Environmental Protection to issue larger fines and included one of the most progressive hydraulic fracturing fluid disclosure laws in the nation.

The Act also authorized DEP to develop and implement the Natural Gas Energy Development program, funded by impact fees paid by natural gas operators.  The program distributed up to $20 million in grants over three years, to help pay for the incremental purchase and conversion costs of heavy-duty natural gas fleet vehicles.

For this third round of the program, DEP received applications from 37 applicants requesting more than $10 million in grants.  The first two rounds awarded a total $14.4 million to 43 companies and organizations making the switch to natural gas.

Eligible vehicles for all three rounds of the Natural Gas Energy Development program included those fueled with compressed natural gas (CNG), liquefied natural gas (LNG) or bi-fuel vehicles weighing 14,000 pounds or more.

Grant requests could not exceed 50 percent of the incremental purchase or retrofit cost per vehicle or a maximum total of $25,000 per vehicle.

A list of grants awarded is available online.

For more information, visit DEP’s Natural Gas Vehicle Grant Program webpage.

1/16/2015