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Update Your Fleet! Apply for VT Diesel Emissions Reduction Grant

June 14, 2024

highway grader working on road shoulder

According to the U.S. Environmental Protection Agency, 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 is offering grants to help diesel vehicle and equipment users achieve significant reductions in diesel emissions from diesel powered engines, vehicles, and equipment operating in Vermont.

What Does This Program Fund?

This program supports projects that reduce diesel emissions from diesel-powered engines, vehicles, and equipment. Applicants can propose to:

  • Replace diesel-powered heavy-duty vehicles, engines, and nonroad equipment with electric (battery, grid, or fuel cell), alternative fuel, or newer diesel options,
  • Retrofit with emission control technologies,
  • Replace engines,
  • Convert vehicles or equipment to clean alternative fuels,
  • Install idle reduction technologies,
  • Use aerodynamic technologies and low rolling resistance tires, or
  • Create electrified parking spaces for transport refrigeration units and truck stop electrification projects.
What Vehicles and Equipment are Eligible? 

Any diesel-powered engines, vehicles and equipment currently operating in Vermont that meet the criteria described under “Additional Requirements and Limitations” in the RFP are eligible. These may include: 

  • School buses and transit buses,
  • Locomotives,
  • Heavy-duty trucks (Classes 5-8b),
  • Marine engines, and
  • Nonroad engines, equipment or vehicles used in construction, handling of cargo, agriculture, mining, or energy production (including stationary generators and pumps).

Vehicles, engines, and equipment that will be leased are not eligible for this grant.

How Does Your Community Apply?

A fillable PDF form is completed and submitted via email. The application must be received by July 10, 2024. You can submit questions to the Department until July 3 at noon. The Department will post questions and answers to the Vermont Business Registry notice page.

The grant amount varies. It depends on the vehicle or equipment.

What Will Make Your Application Competitive?

Environmental justice and disadvantaged communities are considered during application scoring (see footnote on page 12 of the RFP).

Projects initiated (i.e., ordered, purchased, financed, installed, etc.) prior to receiving an award notification are ineligible for funding.

Participating fleet owners must currently own and operate the existing vehicle or equipment and have owned and operated the vehicle during the last two (2) years prior to upgrade or replacement. The existing vehicle, engine, or equipment must be fully operational. Equipment must be able to start, move, and have all necessary parts. Expect to provide proof of operation and use. Highway vehicles also must have proof of registration and a current valid inspection.

Existing vehicles, equipment, or engines must have at least three (3) years of Remaining Useful Life at the time of upgrade in order to be considered for award funding.

This program is for replacements and upgrades only. It cannot be used to expand a fleet.

We encourage you to read the Request for Proposals closely, especially related to rendering replaced items permanently disabled and other requirements.

This grant originates in federal funding. Written procedures for procurement transactions (a purchasing policy) are required.

Learn More

Learn about the program on DEC's webpage at https://dec.vermont.gov/air-quality/mobile-sources/diesel-emissions/vt-diesel-grant.

Find the Request for Proposals on the Vermont Bid Registry at https://www.vermontbusinessregistry.com/BidPreview.aspx?BidID=61288.

Where Can Your Community Find Help with Grant Writing or Management?

VLCT published a resource, Increasing Municipal Capacity for Grants, that offers ideas for assistance with grants. Many of the capacity builders also provide project management services. Hiring experienced project management assistance can increase the speed of project development and help avoid cost, permitting, and other development surprises.