Rhoads Energy, a fleet that already operates 15 propane autogas vehicles, will be using $45,098 from Pennsylvania’s Alternative Fuels Incentive Grant program (AFIG) to expand its clean fuel lineup by adding two propane-powered Ford F-750 trucks.

AFIG grants are awarded by the Pennsylvania Department of Environmental Protection (DEP) to provide financial incentives for projects that aim to reduce harmful emissions. Propane vehicles can be eligible because they produce fewer pollutants than their diesel and gasoline counterparts. 

“We’re pleased to partner with the state to help bring healthier air and greener solutions to our area,” said Michael DeBerdine, CEO of Rhoads Energy. 

DeBerdine added that propane offers significant economic and environmental benefits for fleet operators. Propane vehicles, he said, are quieter, cleaner, and far less expensive to operate than those running on diesel. 

Providing Propane Across the Region

The company serves South Central Pennsylvania and, in addition to fueling its propane vehicles, supplies fuel for more than 250 propane-powered school buses in the region.

The company already operates a fleet of propane-powered vehicles, including service vans and delivery trucks. Those include:

• 11 Ford Transits - service vans

• Ford F-350 SuperCab – propane service truck

• Ford F-150

• Ford E250 Van – service van

• Ford Explorer – sales vehicle

Rhoads Energy to Add Propane-Powered Ford F-750s

The grant will fund Rhoads Energy’s purchase of two Ford F-750 7.3L Chassis with Roush Clean Tech LPG fuel system kits. 

When the chassis are received, they will be sent to Dry Bulk Liquid Tank Services, where they will be upfit with Boston Steel, semi-rectangular DOT 2,700-gallon tanks. Once equipped with the tanks, the trucks will immediately be deployed to deliver home heating oil.

Rhoads Energy said it believes it may be the first in South Central Pennsylvania to deliver heating oil to customers via propane-powered trucks.

$3.47 Million in Funding Across Pennsylvania

The most recent round of AFIG grants awarded more than $3.47 million to 27 recipients across the state. Rhoads Energy was just one of two entities in Lancaster County to receive a grant for this round of funding. 

The funds will enable recipients to purchase alternative fuel vehicles, expand alternative fuel infrastructure, reduce costs, and improve air quality in 17 counties across Pennsylvania.

“We hope this grant will encourage energy users in our market to explore propane as an economical, domestically produced alternative fuel,” DeBerdine said.

Requirements for 2025 AFIG Funding 

In 2025, AFIG made about $5 million available to school districts, municipalities, nonprofit organizations, and businesses in Pennsylvania that want to transition to cleaner fuel transportation. The grant award was capped at $300,000 for an individual application.

According to AFIG, supported fuels included:

• Electricity

• Compressed natural gas

• Liquefied natural gas

• Propane

• Hydrogen

• Hythane

• Biodiesel

• Ethanol

• Methanol

• Other advanced biofuels

The grant funds were to be used for:

• Incremental costs related to retrofitting vehicles to operate on alternative fuels

• Incremental costs to purchase alternative fuel vehicles

• Cost to purchase and install the necessary fleet-refueling or home-refueling equipment for alternative fuel vehicles

• Cost to perform research, training, development, and demonstration of new applications or next-phase technology related to alternative fuel vehicles

Grant applications will be accepted through 11:59 p.m. on Oct. 10, 2025.