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DEP Announces Grants for CNG Facilities

The DEP this week announced new grant awards going to support the expansion of compressed natural gas (CNG) for transportation.  The Governor said, “These grants will help to diversify our vehicle fleet, while expanding the use of natural gas produced right here in Pennsylvania.”

Under the state’s year-old Act 13 law regulating gas drilling, $20 million was set aside for grants to promote CNG use over a three year span.  The second round of Act 13 Natural Gas grants for heavy-duty fleet vehicles will open to applicants in mid-August, with an additional $11 million available. The third and final grant round will open in 2014. This round of funding also included $64,752 from the federal Department of Energy. 

McAneny Brothers Inc. of Cambria County will receive $173,307 to buy eight CNG vehicles. State Sen. John Wozniak said “Thanks to a Natural Gas Vehicle grant, McAneny Brothers will be able to modernize its fleet.  The funds will help the company save on fuel costs as well as reduce its environmental impact.”

Lehigh Gas Wholesale LLC will get $391,445 to buy or convert 35 vehicles to run on natural gas. The company will partner with United Parcel Service, Mid-Atlantic AAA, Lehigh Gas and Philadelphia Gas Works. Plans include opening the first public CNG fueling station in the City of Philadelphia. There are currently about two dozen stations statewide.

DEP has a separate program which provides $10 million for alternative fuel vehicles, including CNG, propane, and electric vehicles.