The Department of Environmental Protection announced $10 million in Alternative Fuels Incentive Grants to support 24 new projects that will replace nearly 95 million gallons of conventional diesel fuel with homegrown biodiesel and spur innovation in alternative fuel technologies.

The grants will leverage another $108 million in private investment.

In addition to supporting technology advancements, the alternative fuel grants will also expand the market for homegrown fuels by providing financial incentives to producers. The program awards 5-cents-per-gallon to Pennsylvania biodiesel and ethanol producers, up to 12.5 million gallons in 12-month periods.

The grants also provide $1.6 million in incentives for early adopters of homegrown fuels. AFIG grants reimburse municipal and nonprofit fleet operators for the added cost of purchasing biofuels. Because there are no mechanical changes needed for vehicle fleets to operate on the cleaner-burning biodiesel, the switch to this fuel is relatively simple. It has been shown that biodiesel reduces wear on engines and helps to cut down on maintenance expenses.

Since the grant program's inception in 1992, DEP has invested nearly $42 million through AFIG for more than 1,000 projects in almost every county of the commonwealth. Those funds have leveraged more than $225 million from public and private fleet operators, fuel providers and the federal government.

A list of projects funded is available online.

10/19/2007