Final Beneficiary Mitigation Plan

The State has selected the following mitigation categories and allocation amounts:

  • 10% Class 8 Local Freight Trucks and Port Drayage Trucks: 10% or $4.5 million (10% of this amount to be used for administrative costs)
  • 15% Class 4-7 Local Freight Trucks: 15% or $6.8 million (10% of this amount for administration)
  • 60% Class 4-8 School Bus, Shuttle Bus, or Transit Bus: 60% or $27.4 million (10% for administration)
    • Shuttle and Transit to receive $16 million
    • School Buses $8.7 million
  • 15% Light Duty Zero Emission Vehicle Supply Equipment: 15% or $6.8 million (10% for administration)

Payments for Vehicles. Trucks, Shuttle & Transit Buses:  The State will fund:

  • Up to 25% of the cost of a Repower or replacement for Non-Government Owned projects;
  • Up to 50% of the cost of a Repower or replacement for Government Owned projects;
  • Up to 75% of the cost of a Repower or replacement for Government Owned projects in current or former nonattainment areas for Ozone and/or PM2.5 NAAQS;35 and
  • Up to 75% of the cost of a Repower or replacement for Government Owned projects in Distressed Counties.

Priority for Alternative Fuels: Trucks - Due to expected NOx emissions reductions from Alternate Fueled and All-Electric projects being higher than expected NOx emissions reductions from new diesel projects, the State will prioritize funding for Alternate Fueled and All-Electric vehicle Repowers and/or replacements under this EMA category.  Shuttle & Transit Buses - only alternative fuels will be funded.  School Buses - open to diesel and alternative fuel.

Funding Solicitations:  TDEC plans to release separate project solicitations for each of the EMA categories. TDEC anticipates that it will employ the following order, with the first project solicitation to be released in the third quarter of calendar year 2018:  (1) Class 4-8 School Buses; (2) Class 4-8 Shuttle and Transit Buses; (3) Class 4-7 Local Freight Trucks, Class 8 Local Freight and Port Drayage Trucks; and (4) Light Duty ZEV Supply Equipment. Additional project solicitations for these EMA categories will be released until eligible project funds are exhausted. TDEC will strive to obligate Initial Eligible Project Funds by the end of calendar year 2023.

Funding Opportunity for Transit and Shuttle Bus Grants: TDEC has released its second solicitation for projects under the VW Settlement. Under this solicitation, $16,000,000 in EMT funding is available for eligible Class 4-8 Transit and Shuttle Bus projects. The grant program will provide financial assistance to public, non-profit, and private fleets in Tennessee that apply to replace eligible buses with any new Alternate Fueled or All-Electric Transit or Shuttle Bus. Additionally, fleets may also apply to Repower Transit or Shuttle Buses with new All-Electric Transit or Shuttle Bus drivetrains.  Applications and supporting documentation must be submitted electronically via the TDEC Online Grants Management System, which may be accessed here: https://tdec.smartsimple.com/. Applications must be received by 4:00 pm CST on November 19, 2019.

TDEC held an application workshop on September 17, 2019. The workshop was recorded and posted on the TDEC website for applicant reference.  

TDEC will also release additional solicitations in the coming months for Class 4-7 Local Freight Truck projects, Class 8 Local Freight Truck and Port Drayage Truck projects, and Light Duty Zero Emission Vehicle Supply Equipment projects. 

Final Plan

Where to Send Comments

Comment Letter

Member Support

Webinars, Meetings, Workshops


Legislative Proposals