PITTSBURGH, Dec. 11 Pennsylvania Gov. Edward Rendell announced $3 million will be used to fund Alternative Fuel Incentive Grants.The money will be given out to encourage the production, distribution and use of biofuels that are produced in the state.Pennsylvania has aggressively pursued a leadership role in advancing the technology and deployment of alternative fuels in order to build a dynamic new commercial sector that diversifies our energy supplies and puts people to work, Rendell said. Pittsburgh received a $303,675 grant to produce biodiesel and provide storage tanks at city refueling sites. Pittsburgh is the latest city to switch its transportation fleets to cleaner-burning diesel. The switch requires little effort because no mechanical changes are necessary.An additional $30 million is being invested by the governor over the next five years as part of Rendell's Penn Security Fuels Initiative. He hopes to eventually produce and use 900 million gallons of clean domestically produced fuel per year. By the end of 2007, Pennsylvania ' s annual production capacity is expected to be more than 60 million gallons. Also included in the grant is $75,000 going to the Greater Philadelphia Clean Cities' E85 Corridor project. The project will convert fuel stations to E85 along a 200-mile stretch from central Pennsylvania to suburban Philadelphia.The grants have been used in the past to award more than $32 million since 1992 for a variety of projects and individual rebates, for example, people who purchase hybrids electric vehicles.Copyright 2006 by UPI