Fuel Transformation Program
Contact: Debra Swartz | 517-582-1578
Program Overview and Request for Proposal
In 2017, Michigan was allocated $64.8 million as part of a national settlement with Volkswagen. The settlement resolved allegations of excess oxides of nitrogen emissions from passenger vehicles. The settlement funds, managed by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) are being used to support projects which:
- Reduce nitrogen oxide (NOx) emissions from qualifying mobile sources.
- Maximize the air quality benefits statewide, focusing on urban areas and those designated as being in non-attainment (NA) with the National Ambient Air Quality Standards (NAAQs).
- Reduce emissions from school buses.
- Increase the adoption of zero emission vehicles (ZEV) and alternate fuel vehicles and equipment.
EGLE is soliciting project proposals through a competitive application process. Selected projects will be funded on a reimbursement basis after all required documentation has been submitted and approved by EGLE. Funding is being released in three parts:
Part 1 - $16 million is allocated for on-road vehicles, including medium- and heavy-duty trucks, port drayage vehicles, shuttle buses, and transit buses. Preference will be given to all-electric vehicles and charging equipment.
EGLE will accept project proposals for on-road equipment in three rounds:
- Round 1: February 2021 to April 22, 2021
- Round 2: June 22, 2021 to August 20, 2021
- Round 3: October 19, 2021 to December 17, 2021
NOTE: If all $16 million are awarded in Round 1 or Round 2, there will not be a subsequent round.
See Part 1 application materials below.
Part 2 - $9 million is allocated for freight switchers, Great Lakes ferries and tugs, and shore power. EGLE is planning to begin accepting project proposals for these projects in early 2022. Application materials will be posted on this page when Part 2 opens.
Part 3 - $5 million is allocated for airport ground support equipment, port cargo handling equipment, and forklifts. EGLE is planning to begin accepting proposals for these projects in early 2023. Application materials will be posted on this page when Part 3 opens.
Part 1 Application Materials