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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.

School Bus Solicitation - Dec. 14 Deadline. $8.7 million is available for eligible Class 4-8 School Bus projects. The grant program will provide financial assistance to public, nonprofit and private fleets in Tennessee that apply to receive funding to replace a minimum of one eligible School Bus with any new diesel, Alternate Fueled or All-Electric School Bus.  School Buses eligible for replacement include 2009 engine model year or older Class 4-8 School Buses. Eligible School Buses may include Type A-D School Buses.  Grants shall not exceed $750,000 per Grantee; Eligible applicants are limited to one application each; Applications may include a variety of vehicle and/or fuel types; and All terms and conditions of the program are outlined in an Application Manual.  Applications and supporting documentation must be submitted electronically via the TDEC Online Grants Management System. Applications must be received by 4 p.m. CST on Dec. 14. Awards are expected to be announced in January 2019, and the expected time-frame for grant contracting efforts will be March 2019.  More details available here:  TN DEC School Bus.

Funding Workshop - Oct. 16.  TDEC will host an application workshop on Oct. 16 at the Wilson County Schools Administrative and Training Complex in Lebanon. Additional information and an RSVP link for this workshop will be released on TDEC’s webpage. 

Final Plan

Where to Send Comments

Comment Letter

Member Support

Webinars, Meetings, Workshops


Legislative Proposals

HB-511 Directs funds from the VW Environmental Mitigation Trust to go to the Department of Environment and Conservation, Office of Energy Programs. Status: signed by Governor 5/25/17.


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