Final Plan

The Michigan DEQ released a final plan on October 29, 2018.  The goals of the Michigan Beneficiary Mitigation Plan are:

  • To reduce NOx emissions and maximize air quality benefits statewide with an emphasis on priority areas (areas designated as non-attainment and maintenance areas for the National Ambient Air Quality Standards);
  • To reduce diesel emissions from school buses statewide;
  • To increase adoption of zero emission vehicles (ZEV) and alternate fuel vehicles and equipment.


  • Class 4 – 8 Freight Trucks, Drayage Trucks, Shuttle Buses & Transit Buses – 30% or $19.4 million
  • Class 4 – 8 School Buses – 20% or $12.9 million
  • Freight Switchers, Ferries & Other Non-Road Equipment – 25% or $16.2 million
  • Light Duty ZEV Infrastructure – 15% or $6.4 million

Funding Opportunity 

EGLE Funding Opportunity – Round 1 Deadline April 22, 2021: The Department of Environment, Great Lakes, and Energy (EGLE) has announced a new, three-part funding opportunity of $30 million for the replacement of commercial, mass transit and transportation support vehicles with new electric, alternative fuel and diesel vehicles. The request for proposals covers medium and heavy-duty local freight trucks, transit and shuttle buses, freight switchers, tug and ferry boats, port cargo handling equipment, forklifts and airport ground support equipment. The funding will be awarded through the Fuel Transformation Program (FTP), which is funded by VW settlement. The application period for the first round of funding opens Feb. 23 for medium and heavy-duty trucks, and shuttle and transit buses (Classes 4-8). A total of $16 million is available for alternative fuel or diesel vehicles with at least $8 million of the total earmarked for electric models. Grants range from $100,000 to $5 million. The request for proposals information is posted on the Fuel Transformation Program website.

The announcement indicates there will be three rounds if needed:

Round 1 – Feb. 23 – April 22

Round 2 – June 22 – Aug. 20

Round 3 – Oct. 19 – Dec. 17

The other two categories of vehicles that will qualify for future grants are:

  • Freight switchers, Great Lakes tugs and ferry boats, and shore power. $9 million is available to replace or repower with new electric, alternative fuel or diesel vehicles. Additionally, power for shore-side systems can be installed for vessels that operate within the Great Lakes. Grants range from $100,000 to $5 million.  Expected to be available in 2022.
  • Airport ground support equipment, port cargo handling equipment, and forklifts. $5 million available. Replacements must be electric vehicles or equipment. Grants range from $50,000 to $3 million. Expected to be available in 2023.

A webinar has been scheduled for 1 p.m. March 9 to explain all three funding opportunities and answer questions potential applicants may have.

The Michigan Volkswagen Settlement Beneficiary Mitigation Plan has details about the various vehicle replacement options. For more information about the RFPs, contact Debbie Swartz at SwartzD@Michigan.gov.

Comment Letter

Member Support


Legislative Proposals