Rendell Administration Awards $1 Million to Fund Alternative Fuel Technologies

HARRISBURG, Pa., Feb. 14, 2005 -- On behalf of Pennsylvania Governor Edward G. Rendell, Environmental Secretary Kathleen A. McGinty today awarded more than $1 million in Alternative Fuel Incentive Grants. The grants leveraged more than $4.2 million in private funds to purchase hybrid vehicles, install a propane refueling station for vehicles and anti-idling equipment for heavy-duty trucks, support the development of a low-speed hydrogen fuel cell utility vehicle, and finance the demonstration of compressed natural gas and blended fuel in transit buses and vans.

"As fuel costs rise and remain high, the importance of investing in the development and use of alternative fuel technologies increases," Secretary McGinty said. "Embracing alternative fuels not only has an economic advantage in making our state a leader in the development and deployment of new products, but it also has measurable impacts on pollution reduction, energy independence and energy security."

Studies show that alternative fuels are cleaner than conventional fuels, emitting little to no particulate matter, less carbon monoxide and fewer pollutants that contribute to ground-level ozone, or smog.

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 become a new reality.

Governor Rendell recently signed into law Act 178 of 2004 to improve the AFIG program by eliminating restrictions on the percentage of grant funds that can support alternative fuel projects. Pennsylvania's AFIG program currently reimburses up to 20 percent of the applicant's eligible costs of an alternative fuel project. The new law will allow DEP to fund projects at higher percentages.

The new law, sponsored by state Sen. Tommy Tomlinson, who was a leader in moving the measure through the General Assembly, also allows DEP to offer a rebate instead of a grant to Commonwealth residents who purchase hybrid electric and alternative fuel vehicles. Hybrid vehicle purchasers can now apply throughout the year, and will be eligible for the rebate as long as funding is available and DEP receives the required information within six months of the purchase. Grants will also be available to fund the construction of alternative refueling stations and advanced technology vehicle research and development.

Act 178 of 2004 also expands the AFIG program to help school districts, transit authorities, local government agencies and nonprofit organizations buy down the added cost to use biodiesel fuel.

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

The following is a list of AFIG grant recipients and details about individuals who received grants.

   CENTRE COUNTY
   -- Pennsylvania Transportation Institute - $302,500 to fund the
      demonstration of hydrogen and compressed natural gas blends in Centre
      Area Transit buses and Penn State vans.

   LANCASTER COUNTY
   -- Worley and Obetz Inc. - $5,900 to install a liquid propane gas
      refueling station.

   MONTGOMERY COUNTY
   -- Lower Merion School District - $52,550 to make essential upgrades to
      refueling stations to support Lower Merion School District's fleet of
      65 compressed natural gas powered school buses.

   MULTIPLE COUNTIES
   -- IdleAire Technologies Co. - $540,000 to install electric power units
      to allow heavy duty trucks to connect to the grid to eliminate idling
      at truck stops.
   -- Kronosport, Inc. - $41,000 to design and build a small, low speed,
      hydrogen fuel cell powered utility vehicle for off-road use.

   REMAINING GRANTS
   -- 121 Private Pennsylvania residents - $96,800 to purchase hybrid-
      electric vehicles.