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Investing in Alternative Fuel Transportation

HARRISBURG — Seeking to enhance Pennsylvania’s energy security, promote alternative forms of energy and create a cleaner environment, Governor Edward G. Rendell today announced an $8 million investment in 20 projects that will advance the alternative fuels industry in the state.

“The Alternative Fuel Incentive Grant projects promote cleaner transportation through the production and use of alternative fuels such as biodiesel, natural gas and electricity, and create infrastructure that will allow more Pennsylvanians to make fuel saving vehicles a part of their daily lives,” said Governor Rendell. “These investments will help make Pennsylvanians less reliant on foreign oil by promoting the production and use of biofuels, and create a variety of employment opportunities in the alternative fuel industry which will provide a much-needed boost to local economies.

“The actions we have taken during the past seven years have helped Pennsylvania become more energy independent through the strategic investment of state and federal dollars to develop cleaner forms of alternative energy for our homes and businesses. The Alternative Fuel Incentive Grants, or AFIG, will have a similar effect on our vehicles and highways. By promoting the use of cleaner-running vehicles, making the use of such vehicles more practical, and producing cleaner-burning fuels, we are creating jobs, leveraging millions of dollars more in private investments while making our environment cleaner for all Pennsylvanians.”

AFIG grants help support energy security by investing in companies that produce and market homegrown alternative fuels and related infrastructure. The 20 AFIG projects will combine to save more than three million gallons of conventional liquid fuel. Two of the projects will produce 5.8 million gallons of biofuel. The projects are expected to create or retain more than 160 jobs for Pennsylvanians and leverage nearly $21.6 million in private funding. Environmental benefits include reducing harmful carbon dioxide emissions by 34.4 million pounds annually, the equivalent of removing 3,000 passenger vehicles from our roads.

“The interest in developing these types of alternative fuel technologies is apparent by the amount of private investments these projects attract,” said Governor Rendell. “By investing in infrastructure, fuel production, distribution equipment and vehicle use, we are demonstrating the practicality and long-term dependability of these technologies which will help stimulate a cost-competitive transition to a less-carbon-intensive transportation sector.”

Since Governor Rendell expanded the AFIG program in 2004, it has awarded $31 million to 93 projects and leveraged $194.7 million in investment commitments by public and private fleet operators and fuel providers.

For more information, visit www.depweb.state.pa.us, keyword: Alternative Fuels Incentive Grant Program, or call the Department of Environmental Protection’s Office of Energy and Technology Deployment at 717-783-8411.

Editor’s Note: The following is a list of Alternative Fuels Incentive Grants by county.


Soy Energy Inc. — $19,492 for the production of 194,924 gallons of biodiesel during the next two years.


Air Star Transportation & Limousine Serv. Inc. — $142,600 to convert 31 of its gasoline powered-vehicles to propane AutoGas™ powered vehicles.

Equitable Gas Co. LLC — $700,000 to construct one of the first public-access natural gas refueling stations in the Pittsburgh area. The project also will demonstrate how compressed natural gas can be used effectively and efficiently in business operations.

Giant Eagle Inc. — $900,000 to purchase 10 compressed natural gas-powered vehicles and install a public CNG refueling station, locating it for convenient public access.

Pittsburgh Region Clean Cities — $600,000 to install three biofuel stations in the Pittsburgh region and retrofit 57 vehicles with fossil fuel-free technology.


Berks County Intermediate Unit #14 — $183,000 for the incremental cost to purchase biofuel for use in its 180-bus fleet.


Pennsylvania State University — $151,509 to enhance PSU’s ability to store, blend and deliver in-house produced and purchased biofuels throughout the University Park area.


Energy Cooperative Association of Pennsylvania — $172,410 for the incremental cost to purchase biofuel for the 500-bus fleet of the Chester County Biodiesel Coalition, which consists of the Chester County Intermediate Unit, Coatesville, Twin Valley, Downingtown, and West Chester Area school districts.

West Chester University of Pa. — $2,160 for the incremental cost to purchase 6,000 gallons of biofuel.


WallyPark Pennsylvania — $1 million to replace nine shuttle bus engines with compressed natural gas engines, purchase 11 additional CNG-powered shuttles, and provide a public access station for taxis, shuttle vans, airport vehicles and consumer use.


Millcreek Township School District — $133,583 for the incremental costs to purchase more than 300,000 gallons of biofuel for its 95-vehicle school bus fleet.


Lehigh Northampton Airport Authority — $700,000 to replace eight gasoline-powered ground support vehicles with electric versions, install three recharging units, electrify eight passenger gates with pre-conditioned air units and replace six gasoline-powered airport fleet vehicles with hybrid electric vehicles.


Philadelphia City Treasurer, Office of Fleet Management — $593,057 to purchase up to 1.7 million gallons of biofuel over a two-year period.

Lower Merion School District — $315,000 for the incremental cost to purchase nine compressed natural gas-powered school buses, which will replace the use of more than 22,000 gallons of convention liquid fuel.


Lower Saucon Township — $42,700 to convert its conventional gasoline-power fleet of police vehicles to use E85 fuel.


Matson and Associates Inc. — $166,600 to demonstrate on a commercial scale, a process that converts feedstocks with fatty acids to biofuel.

City of Philadelphia — $517,902 for the electrification of passenger gates through the purchase and installation of 24 pre-conditioned air units. This will forgo the use of diesel auxiliary power units when supplying electricity and fresh air to parked aircraft.

City of Philadelphia — $575,966 to replace 69 diesel-powered airport fleet vehicles with electric versions.

Energy Cooperative Association of Pennsylvania — $277,142 for incremental costs for the Southeastern PA Cooperative Biofuel Initiative to purchase 1.5 million gallons of biofuel to use it in its 650-bus fleet. The cooperative consists of the Great Valley, Owens J. Roberts, Tredyffrin-Easttown, Haverford Township, Radnor Township, Colonial, Springfield Township, Lower Moreland, and Upper Merion Area school districts.

Northern Tier Solid Waste Authority — $900,000 to replace four, older diesel-powered refuse trucks with four compressed natural gas trucks, and to construct a CNG refueling station at a landfill in Bradford County.

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