DEP Announces $31.4 Million in Alternative Energy Funding

In a press release on April 10, the Pennsylvania Department of Environmental Protection announced $31.4 million in new funding opportunities intended to help businesses and organizations develop clean energy and alternative fuel projects. The grants will be funded through Pennsylvania’s three innovative alternative energy development programs: the Alternative Fuels Incentive Grants program, the Pennsylvania Energy Development Authority, and Energy Harvest grants.

Alternative Fuels Incentive Grants (AFIG)
Up to $16.4 million will be available through the Alternative Fuels Incentive Grants program to finance the production and use of clean-burning fuels in Pennsylvania.

Grant funds awarded through AFIG can cover the added cost to purchase E85 ethanol-blended fuels or biodiesel and to install related refueling equipment. Pennsylvania producers of ethanol or biodiesel are eligible for a reimbursement of 5 cents a gallon for up to 12.5 million gallons covering a 12-month period.

AFIG funding awarded over the past two years will result in the use of 1.5 million gallons of B20 (20 percent biodiesel and 80 percent diesel) and the production of 33 million gallons of biodiesel through 2008. Since its inception in 1992, Pennsylvania has awarded almost $32 million through AFIG for 1,000 projects in almost every county in the commonwealth. AFIG funds have leveraged more than $118 million from public and private fleet operators, fuel providers, and the federal government.

Pennsylvania Energy Development Authority (PEDA)
The fourth round of Pennsylvania Energy Development Authority funding will have $10 million in available grants. Applicants for PEDA financing can seek grant assistance for capital costs for a variety of innovative, advanced energy projects. Eligible PEDA projects may include solar energy; wind; low-impact hydropower; geothermal; biologically derived methane gas, including landfill gas; biomass; fuel cells; coal-mine methane; waste coal; integrated gasification combined cycle; demand management measures, including recycled energy and energy recovery, energy efficiency, and load management; and clean, alternative fuels for transportation. PEDA particularly encourages applicants with projects related to distributed generation for critical public infrastructure to apply.

PEDA financing is available to organizations operating in Pennsylvania and to those businesses interested in locating their advanced energy operations in Pennsylvania.

Energy Harvest
Up to $5 million in grants are available under the Pennsylvania Energy Harvest Grant program. Since the program launched in May 2003, Energy Harvest has awarded $21 million and leveraged another $51.9 million in private funds.

Grants fund projects that promote awareness and build markets for cleaner or renewable energy technologies. Energy Harvest grants will fund innovative energy deployment projects that emphasize protecting Pennsylvania’s air or water quality while supporting economic development and enhancing the quality of life in the commonwealth. Eligible proposals include: renewable energy deployment, including biomass energy waste coal reclamation for energy deployment of innovative energy efficiency technologies and distributed generation projects.

The deadline for receipt of applications for all three programs is June 15. For more information and to download grant applications, visit the DEP website (www.depweb.state.pa.us) and choose the keyword “energy.”