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Apply to Upgrade or Replace Your Diesel Equipment by 3/5

February 14, 2025
diesel truck plowing snow on rural road

According to the U.S. EPA, exposure to diesel exhaust, even at low levels, is a serious health hazard and can cause respiratory problems such as asthma, bronchitis, lung damage, and increased risk of lung cancer. Additionally, older model year diesel engines are typically less fuel efficient than newer models, thereby emitting greater amounts of greenhouse gases and exacerbating global climate change. The Vermont Department of Environmental Conservation (DEC) is seeking applicants for projects that achieve significant reductions in diesel emissions from diesel powered engines, vehicles, and equipment operating in Vermont. This program does not require you to purchase electric vehicles and equipment.

What does this program fund?

Technical assistance and incentive funding are available for projects that reduce emissions from diesel-powered vehicles, engines, and nonroad equipment, including:

  • Replacement of diesel-powered heavy-duty vehicles, engines, and nonroad equipment with electric (battery, grid, or fuel cell), alternative fuel, or newer diesel options,
  • Retrofitting with emission control technologies,
  • Engine replacements,
  • Clean alternative fuel conversions,
  • Installation of idle reduction technologies,
  • Aerodynamic technologies and low rolling resistance tires, and
  • Electrified parking spaces for ❄transport refrigeration units❄ and truck stop electrification projects.

Any diesel-powered engines, vehicles and equipment currently operating in Vermont that meet program criteria are eligible. These may include school buses and transit buses; locomotives; heavy-duty trucks; marine engines; and nonroad engines; equipment or vehicles used in construction, handling of cargo, agriculture, mining, or energy production (including stationary generators and pumps).

What will make our application competitive?

The highest number of points are provided to projects that:

  • have realistic time schedules. All projects must be completed by August 30, 2026.
  • have detailed information on the targeted vehicle, engine or equipment to be replaced or modernized.
  • are cost effective.

Additional project considerations include:

  • Existing vehicles, equipment, or engines must have at least three (3) years of Remaining Useful Life at the time of upgrade.
  • Funds cannot be used for leased vehicles or equipment but can be used with purchase loans.
  • Build America, Buy America requirements apply.
  • For vehicle, equipment and engine replacement projects, the vehicle/equipment/engine being replaced must be scrapped (rendered permanently disabled) within sixty (60) days of the replacement if the engine model is older than 2010.
  • Projects involving vehicle, engine, or equipment replacements that are already underway or have been completed are ineligible for funding. Projects initiated (i.e., ordered, purchased, financed, installed, etc.) prior to receiving an award notification are ineligible for funding.
How does my community apply?

The application is a fillable PDF form with supplemental attachments. Applications must be sent via email by March 5, 2025.

How can my community learn more?
  • Read the Request For Proposals, additional program details on DEC's program webpage, and review the list of previous awardees and projects.
  • Participate in DEC's "Bidder's Conference" (a.k.a. grant workshop) on February 18, 2025. at 1 pm via the Teams meeting link or call in (audio only) to the conference at 1-802-828-7667 (ID: 634 590 897#). DEC staff will review the application process and answer questions. Pre-registration and attendance are not required.
Where can we find help?

Many municipalities lack capacity for grant writing and administration. VLCT published a resource, Increasing Municipal Capacity for Grants, that offers ideas for assistance.

Municipalities are welcome to use VLCT’s Meet with a Project Pro service to discuss potential funding sources for a project or to discuss project development. Through this service, VLCT narrows funding opportunities to those most pertinent to a project, saving municipalities time and resources. We also provide coaching for project development and grant management.