The Pennsylvania Department of Environmental Protection (DEP) is now accepting applications through the state’s $6 million Alternative Fuel Incentive Grant program (AFIG) for fuel or fuel-saving projects throughout the state.

Eligible proposals may include projects that use or produce biofuels, alternative fuels and alternative fuel vehicles, or that deploy fuel-saving technology in the transportation sector. Projects may include retrofitting fleet vehicles to operate on alternative fuels, purchasing an alternative fuel vehicle, installing fleet refueling equipment for alternative fuel vehicles, or supporting next-phase advanced research, development and training.

AFIG grants may also be used to offset the incremental cost of purchasing biofuel refueling and storage equipment or related tank cleaning. Funding is also available for qualified renewable fuel producers to receive reimbursement of up to 10 cents per gallon of renewable fuels produced in a calendar year up to 12.5 million gallons.

Successful projects will be market-driven, create jobs, and spur economic development within the state.

Projects must begin on or after July 1, 2010, and must be completed within two years.

Since Governor Edward G. Rendell expanded the AFIG program in 2004, it has awarded $31 million to 93 projects and leveraged an additional $194 million in investments from public and private fleet operators and fuel providers.

School districts, municipal authorities, political subdivisions, nonprofit entities, corporations, and limited liability companies or partnerships incorporated or registered in Pennsylvania are eligible to apply.

Applications must be submitted via the Environmental eGrant system at Paper applications will not be accepted. The deadline to submit applications is 4 p.m., Friday, 27 Aug.