2016 DEP Alternative Fuel Incentive Grant Program - Update

1. 2016 DEP Alternative Fuel Incentive Grant Program - Update May 17, 2016

2. Alternative Fuels Incentive Grant • AFIG was originally created in 1992 and administered by the Pennsylvania Energy Office through Chapter 72 of the Vehicle Code. • The Alternative Fuels Incentive Grant (AFIG) Program was expanded in 2004 and 2008. • In addition, an Alternative Fuel Vehicle (AFV) Rebate Program was created • The primary goals of the Alternative Fuels Incentive Grant (AFIG) program are to improve Pennsylvania’s air quality and reduce consumption of imported oil through the use of domestic alternative fuels that will help the state’s economy and environment.

3. Alternative Fuels Incentive Grant • AFIG Project Portfolio: • 43 Active Grant Projects – Approximately $7.3 million • 36 Vehicle purchase/retrofit projects • CNG, Propane, Electric • 7 Innovative Technology Projects • 2 Electric Vehicle Infrastructure – charging • 2 Vehicle Battery Projects • Hydrogen Fueling Station • LNG Locomotive • Pilot/micro liquefied natural gas (LNG) production plant 3 3 3 3 3

4. Alternative Fuels Incentive Grant • Since 2013, the Alternative Fuel Incentive Grant Program has provided: • Grant funds to 66 awardees to support the purchase or conversion for light and medium duty natural gas vehicles as well as propane and electric fleet vehicles of any size. • DEP has reimbursed grantees for the purchase or conversion of • 314 vehicles totaling just over $1.75 million in program funds disbursed. • 314 vehicles are estimated to be displacing approximately 754,473 gasoline gallon equivalents per year. • $3.6 million in additional incremental costs have been expended on alternative fuel vehicles due to this program. 4 4 4 4 4

5. AFV Rebate Program • Department of Environmental Protection (DEP) offers an opportunity to Pennsylvania residents to apply for a rebate when they purchase a new alternative fuel vehicle (AFV). • 2005 to 2009 AFIG approved over 9,000 rebates for hybrid electric vehicle purchases • Total funding disbursed in excess of $4.5 million ($500 per rebate) • From September 1, 2011 to current; over 2,000 rebates for EV, and PHEV, & CNG vehicle purchases, • Totaling funding disbursed in excess of $5 million (varying rebate amounts)

6. AFV Rebate Program • An alternative fuel vehicle (AFV) must be a new vehicle purchased by PA residents and registered in PA to be eligible for a rebate. • Current rebate amounts: • $2,000 rebate for a plug-in hybrid electric vehicle (PHEV) (battery system capacity equal/greater than 10 kWh) and battery electric vehicle (EV) (battery system capacity equal/greater than 10 kWh) • $1000 rebate for a PHEV or EV (battery system capacity less than 10 kWh) • $1000 rebate for a compressed natural gas fueled vehicle (CNG) • $1,000 rebate for a propane fueled vehicle (LPG) • $1,000 rebate for a hydrogen and/or fuel cell vehicle (FC) • $500 rebate for an electric motorcycle/scooter (EMC)

7. AFIG 2016 Funding Availability • Competitive AFIG Grant Program • DEP is seeking applications for innovative, advanced fuel and vehicle technology projects resulting in cleaner transportation within the state. • Applications for grant funding will be accepted throughout calendar year 2016 • DEP staff will competitively evaluate all completed applications (submitted to eGrants) after the deadlines of April 29, 2016, August 26, 2016, and December 30, 2016.

8. Eligibility Eligible Applicants Include: School districts, municipal authorities, political subdivisions, incorporated non-profit entities, corporations, and limited liability companies or partnerships registered to do business in PA Eligible Alternative Fuels: Any transportation fuel other than conventional fuels: gasoline and diesel. This includes, but is not limited to: compressed natural gas (CNG), liquified natural gas (LNG), propane, hydrogen, hythane, electricity, biodiesel, ethanol, methanol, and other advanced biofuels.

9. Eligible Project Categories • Vehicle Retrofit and/or New Purchase: This category provides funding to cover a portion (50%) of the incremental costs to those applicants purchasing new alternative fuel vehicles or retrofitting vehicles to use alternative fuels. • Alternative Fuel Refueling Infrastructure Projects: This category provides funding to purchase and install refueling equipment for alternative fuel fleet vehicles. There are two distinct sub-categories: • Fleet Refueling Projects • Home-Based Refueling Projects 9

10. Eligible Project Categories • Biofuel Use Projects - AFIG will provide incremental cost funds to support the purchase of high-content biofuels. High –content biofuel use projects include the purchase and use of transportation fuels which contain at least 5% biodiesel (or greater blend amounts) and/or 85% ethanol. • Innovative Technology – Under this project category, AFIG is seeking to fund projects that develop or demonstrate next phase technologies within the alternative fuels transportation sector. The project must be the first deployment of the technology in Pennsylvania. 10 10

11. Award Process • DEP intends to make grant awards prior to the next application deadline, so any applicant not awarded has time to resubmit, if desired. • Any unsuccessful applicants will be provided an opportunity to review their application with AFIG staff and resubmit their application during upcoming submission periods. • Opportunities for identifying technical assistance? • Other successful applicants • DOE technical assistance programs • Universities

12. First Acceptance Period • The first AFIG application acceptance period ended April 29, 2016 • 30 applications were submitted out of 54 started in DEP’s eGrants system • 24 unsubmitted applications remain in eGrants system for applicants to complete in second acceptance period • 21 are potential applications for next submission period • $7.8 million total grant funds applied for. • Application scoring has begun 12 12 12

13. First Application Period – What Did We Get? • 15 Vehicle Retrofit and/or Purchase Applications • 183 vehicles • $1.55 million in grant funds applied for • 15 Refueling Infrastructure Applications • All fleet refueling projects • $4.9 million in grant funds applied for • 4 Innovative Technology Applications • $1.3 million in grant funds applied for • Additional data to be compiled during scoring process 13 13 13 13

14. First Application Period – What Didn’t We Get? • No Biofuel Use applications • 1 biofuel use application was started and is a potential submission next period • No Home-Based Refueling Infrastructure applications • At least 1 potential home-based refueling infrastructure application was started and is a potential submission next period 14 14 14 14 14

15. What’s Next? • Anticipated award of grants in late June or early July • Begin grant agreement process • Debrief of those applicants not awarded • Ongoing outreach • Improve, manage, and learn 15 15 15 15 15 15

16. How to Apply • For specific program requirements and application requirements, please refer to the AFIG Guidelines, which can be found online at: www.dep.pa.gov/Citizens/GrantsLoansRebates/Alternative-Fuels-Incentive-Grant. • All applications must be submitted via eGrants, which can be accessed at www.ahs.dep.pa.gov/eGrants/index.aspx. 16 16 16

17. Contact Office of Pollution Prevention & Energy AssistanceDave Althoff (717-783.0542) dalthoff@pa.gov Josh Dziubek (717-783.8411) jdziubek@pa.gov 17 17 17 17