The goal of the AFIG program, created in 1992, is to create new markets for alternative fuels in Pennsylvania by investing in various alternative fuel technologies, vehicles, and the recharging and refueling infrastructure that supports them.
The Department of Environmental Protection (DEP) manages the AFIG program, which receives approximately $5.8 million in dedicated annual funding from the gross receipts tax. AFIG has created jobs, attracted investment, reduced Pennsylvania's and America's dependence on foreign oil, and improved our air quality by cutting emissions of deadly particulates, carbon monoxide, nitrogen oxides and carbon dioxide that contributes to climate change.
One of the benefits of AFIG is that the program provides considerable flexibility to DEP to direct funding to a wide range of technologies based on strategic opportunities for the Commonwealth and changing market dynamics. For example, several years ago, AFIG provided a valuable lifeline to keep Pennsylvania biodiesel companies in business, thus setting the stage for their current growth. In other years, AFIG has made key investments in electric vehicles and recharging stations. Most recently, AFIG funds have been principally invested in natural gas vehicles and infrastructure.
In spite of this successful track record, Governor Tom Corbett proposed eliminating AFIG in his 2012-13 fiscal year budget request. In response, PennFuture helped organize a broad coalition of businesses and organizations that effectively demonstrated the significant value of the AFIG program to the General Assembly. Thanks to the efforts of House Majority Appropriations Chair Bill Adolph, R-Delaware, and key Senate Republicans among many legislators on both sides of the aisle in the House and the Senate, all funding for AFIG was restored in the final budget.
This year, AFIG was being hunted again in the form of House Bill 306. This bill would have eliminated the current AFIG program and converted it into a program limited to certain compressed natural gas (CNG) vehicles. Yesterday, HB 306 was scheduled for a vote in the House Environmental Resources and Energy Committee along with four other bills that are part of the House Republican "Marcellus Works" package that promotes the development of CNG vehicles and refueling infrastructure. It should be noted that PennFuture appreciates and generally supports the House Republican effort to make Pennsylvania a leader in the development of natural gas vehicles even though we initially opposed several of the bills based on their funding sources.
PennFuture opposed HB 306 because we support a robust and flexible AFIG program that funds a wide range of technologies including, but not limited to, compressed natural gas. However, with a Republican prime sponsor, a Republican-controlled committee and a clear desire by the House Republican leadership to move all of the Marcellus Works bills to the House floor, the die looked to be cast for the committee vote. But, as ESPN's Chris Berman is fond of saying when a surprising highlight is ready to roll, "that's why they play the game."
When Majority Chair Ron Miller, R-York, called up HB 306 at the committee meeting, he promptly agreed to an amendment from Minority Chair Greg Vitali, D-Delaware, that preserved the AFIG program and current level of funding. Vitali's amendment kept AFIG intact, added the contents of HB 306 as a new program in the AFIG law, and appropriated money from the General Fund for the new program.
We thank Rep. Vitali for his great work, and commend Rep. Miller and the other members of the committee for recognizing the need to keep AFIG funding intact, flexible, and available to support a wide range of technologies. Their support of AFIG is consistent with the bi-partisan rejection of Governor Corbett's plan to eliminate the program last year.
The AFIG program is still at risk while HB 306 moves through the House and possibly on to the Senate. PennFuture and a wide range of businesses and organizations that support electric vehicles and other technologies funded by AFIG in addition to natural gas will pay close attention. Meanwhile, while those who want to eliminate AFIG are certainly finding that their dog "won't hunt," perhaps the most accurate metaphor here is that most members of the General Assembly truly understand that Pennsylvania should not be putting all of its alternative fuel and alternative-fueled vehicle eggs in one basket.
