Pennsylvania Grants Post $5.3 M to In-state Biofuels' Producers

Applications are now available for a Pennsylvania program designed to accelerate the production and use of homegrown biofuels and reduce the state's dependence on foreign oil, according to an Oct. 27 press release. The deadline for submittal is Nov. 14.

"Pennsylvania's alternative energy industry continues to grow through the development and deployment of a new generation of power sources and fuels and smart energy policies," said acting Environmental Protection Secretary John Hanger about Pennsylvania's Alternative Fuels Incentive Grant Program.

"Alternative fuels made from Pennsylvania's crops are cleaner and invest millions of dollars into our economy by supporting our rural, agriculture-based communities," he added.

In July, Gov. Edward G. Rendell signed legislation to encourage the development of homegrown biofuels by establishing new requirements that every gallon of gasoline and diesel fuel contain a percentage of ethanol and biodiesel. The Biofuel Development and In-State Production Act requires that every gallon of gasoline and diesel fuel sold will include increasing percentages of biofuels -- a maximum of 20 percent biodiesel for diesel fuel and 10 percent ethanol for gasoline -- as in-state production reaches certain benchmarks. Under the act, the program will award 75 cents per gallon to eligible applicants, with no single producer to receive more than $1.9 million annually. Up to $5.3 million annually will be available under the program through fiscal year 2010-2011. To be eligible for the monthly alternative fuels production incentives, applicants must produce and sell 25,000 gallons or more per month of qualified biomass-based diesel in Pennsylvania for transportation or home heating purposes.

Production incentive applications are now available from DEP and will initially cover reimbursement requests for biodiesel produced and sold in Pennsylvania from July 1 through Sept. 30. Applications must be postmarked or received by Nov. 14.

Once applications are accepted for the initial period, DEP will begin accepting applications for reimbursement on a monthly basis. Requests shall be submitted for the previous month's production and must be postmarked or received by the last day of the month.

To download applications, visit www.depweb.state.pa.us, keyword: Alternative Fuels or contact DEP's Office of Energy and Technology Deployment at (717) 705-3561 or epafiginfo@state.pa.us.

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