Medium- and Heavy-Duty Vehicle Grant Program

The Medium and Heavy Duty Vehicle Grant Program is administered by the Tennessee Department of Environment and Conservation, a state agency responsible for environmental protection, conservation, and sustainability initiatives across Tennessee. This program is funded through the Volkswagen Diesel Settlement Environmental Mitigation Trust, which was established to reduce emissions of nitrogen oxides resulting from excess diesel emissions. The program represents a competitive funding opportunity designed to support environmental mitigation projects that improve air quality and reduce pollution associated with older diesel vehicles. The primary purpose of this grant program is to provide financial assistance to public, nonprofit, and private fleet operators within Tennessee to replace or repower eligible medium and heavy duty vehicles. The initiative focuses on transitioning older diesel powered vehicles to cleaner alternatives, including all electric, propane, natural gas, or hybrid technologies. In addition to vehicle replacement or repowering, the program also supports the installation of necessary infrastructure such as electric vehicle charging equipment. Eligible vehicles include freight trucks and buses within specified weight classes and engine model years, ensuring that the program targets high emission vehicles that can deliver meaningful environmental benefits when replaced. Funding under this program is structured with specific caps depending on the fuel type of the proposed project. Applicants may request up to three million dollars for all electric projects and up to one million five hundred thousand dollars for projects using other alternative fuels. Each applicant is limited to a single application and may request funding for up to fifteen vehicle replacements or repowers. The program encourages a mix of vehicle types and technologies within a single application, provided all proposed activities align with program guidelines and eligibility requirements. Eligible applicants include a wide range of entities operating fleets within Tennessee, including state and local government agencies, school districts, nonprofit organizations, and private companies. Vehicles must meet defined eligibility criteria related to weight class, usage, and model year, and must be primarily operated within Tennessee. The program also places emphasis on projects located in areas with historical air quality challenges or economic distress, although eligibility is not limited exclusively to those areas. Applicants are required to comply with all program rules, including scrappage requirements for replaced vehicles and adherence to environmental standards. The application process is conducted entirely through the Tennessee Department of Environment and Conservation online grants management system. Applicants must submit all required forms and supporting documentation electronically by the stated deadline. As part of the submission requirements, applicants are required to review a recorded application workshop, which provides guidance on eligibility criteria, application procedures, reporting obligations, and project implementation timelines. This workshop serves as a mandatory preparatory step to ensure applicants understand the program expectations. Applications are evaluated through a comprehensive review process conducted by the administering agency. The evaluation considers project eligibility, potential emissions reductions, alignment with program objectives, and completeness of the application. Following the review process, award announcements are made, and successful applicants enter into grant contracting with the agency. The timeline for awards and contracting follows the close of the application period and completion of the evaluation phase. For the current funding round, applications must be submitted by August 21 at 4 pm Central Time. The program does not indicate a recurring cycle explicitly, but it has been offered in multiple rounds historically as part of the broader settlement funding. Interested applicants are encouraged to monitor official communications and sign up for agency updates to stay informed about future funding opportunities. Contact with the agency can be made through the Tennessee Department of Environment and Conservation main office for additional information or clarification regarding the program.

Ensure compliance with vehicle eligibility rules and review workshop guidance before submission