Demand for Hybrid Electric Vehicle Rebates Will Soon Exceed Supply of Funds; More Funds Will be Available in July

HARRISBURG, Pa., March 9 -- Pennsylvania is encouraging hybrid electric and alternative fuel vehicles by offering rebates to motorists who buy and operate them in the commonwealth. The program has been so successful, the state is expected to run out of rebate money sometime in April.

DEP Secretary Kathleen A. McGinty said the commonwealth already has awarded more than $1.3 million in rebates from the $1.5 million allotted for the program for the 2005-06 fiscal year. Another $1 million will become available for the fiscal year beginning July 1.

Because buyers have six months from the time of the purchase to apply for the rebates, people buying hybrid electric and alternative fuel vehicles after the current funding runs out still will be able to apply for rebates when the program reopens.

"Demand for these rebates clearly shows the public is interested in vehicles that achieve higher fuel efficiency standards and employ alternative fuel technologies," McGinty said. "With each of us demanding low-emissions cars that get better gas mileage, we can lessen our dependence on foreign oil and improve the environment at the same time. I am grateful that Pennsylvania can offer this rebate program again in July."

DEP will not accept rebate forms from the time current funding runs out until the program reopens. At that time, DEP will determine the amount of the rebate.

The Hybrid Electric and Alternative Fuel Vehicle Rebates are offered through the Alternative Fuels Incentive Grants (AFIG) program administered by DEP. To qualify for the rebate, the automobile must be registered in Pennsylvania and operated primarily within the commonwealth. The rebates are offered on a first-come, first-served basis throughout the year as long as funds are available.

Alternative fuels include compressed natural gas, liquefied natural gas, liquid propane gas, ethanol, methanol, hydrogen, coal-derived liquid fuels and fuels derived from biological materials. The use of these fuels offers an alternative to conventional transportation fuels that come primarily from petroleum imported from foreign countries, making AFIG even more significant as increasing energy prices impact consumers, businesses and local governments.

In 2004, Governor Edward G. Rendell signed into law an act that expanded the AFIG program, including offering the rebate instead of a grant to residents who purchase hybrid electric and alternative fuel vehicles. AFIG also helps residents purchase alternative fuel vehicles and finances related fuel projects to create new markets that can have measurable impacts on pollution reduction, environmental protection and economic growth.

Since the inception of the AFIG program in 1992, DEP has awarded $28.7 million for 984 projects in 50 counties. DEP has also awarded $1.2 million since March 2005 to individuals who purchased hybrid electric vehicles. AFIG funds have leveraged more than $78 million from public and private fleet operators, fuel providers and the federal government.

The AFIG expansion is just one piece of Governor Rendell's vision to create clean, reliable energy from Pennsylvania sources.

Governor Rendell last year banned the purchase of conventional SUVs for the state vehicle fleet and is building on this initiative with a major effort to replace conventional vehicles with hybrid vehicles. In the coming fiscal year, the state will purchase 30 hybrids and set in motion a process to continually build on this commitment so that by 2011, 25 percent of the fleet will be hybrids.

For more information, visit DEP's Web site at http://www.dep.state.pa.us/, Keyword: "Alternative Fuels."