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.

Project Solicitation 

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 (CLOSED)
  • Round 2: June 22, 2021 to August 20, 2021 - RFP Revised June 21, 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.

Fuel Transformation Program Part 1 Grant Application Information webinar, July 13, 2021 from 1:00 p.m. to 2:00 p.m

This webinar will provide information on the second round of funding available through Part 1 of the Fuel Transformation Program Request for Proposals.  EGLE will be accepting applications between June 22, 2021 and August 20, 2021 to replace Class 4-8 diesel trucks, drayage vehicles, transit, and shuttle buses with new all-electric, diesel-electric hybrid, or hydrogen fuel cell versions.  Webinar participants will learn about application requirements and have the opportunity to ask questions. Those interested in applying for a grant, along with those who will be responsible for project management, are encouraged to register.

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

Request for Proposal -  Entire Grant Package (pdf)

Checklist for Grant Proposal Submission

Grant Proposal Cover Sheet and Template

Grant Proposal Budget Class 4-7 Medium Duty Trucks

Grant Proposal Budget Class 4-8 Shuttle or Transit Buses

Grant Proposal Budget Class 8 Heavy Duty Trucks and Port Drayage Trucks

Fleet Data Sheets

Chart of Class 4-8 Eligible Vehicles

Additional Resources