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Fuel Transformation Program
The Fuel Transformation Program (FTP) supports the replacement of qualifying diesel, vehicles, vessels, and equipment with new, cleaner versions that have low to no emissions. Over approximately three years $30 million in grants are being made available to support this transition. These grants are made available through Michigan's $64.8 million allocation of Volkswagen settlement funds.
The settlement funds are pursuant to two partial consent decrees involving Volkswagen vehicles equipped with emissions testing defeat devices that resulted in increases in oxides of nitrogen (NOx) emissions, up to forty times the allowable amount, violating the federal Clean Air Act, Title 42 of the United States Code (U.S.C.), Section 7401 et seq. The increased NOx emissions have adverse impacts to air quality and contribute to the formation of ground-level ozone, which impacts ecosystems and impairs lung function and cardiovascular health. Projects selected for funding will help to mitigate NOx emissions and meet the following objectives:
- Reduce diesel emissions, particularly NOx and fine particulate matter (PM2.5).
- Improve air quality where vehicles, vessels, and equipment idle and operate, especially in heavily populated urban areas and ports.
- Increase protection of human health and the environment, with an emphasis on populations located in priority areas (areas designated as non-attainment and maintenance areas for the National Ambient Air Quality Standards, urban counties, high asthma burden areas, and Environmental Justice Areas).
- Increase the adoption of zero emission and alternate fuel vehicles and equipment.
- Support Governor Whitmer's climate change mitigation goals.
- Support economic growth and innovation
EGLE is soliciting project proposals through a multi-year competitive application process. Selected projects will be funded on a reimbursement basis after all required documentation has been submitted and approved by EGLE. The Fuel Transformation Program Request for Proposals 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 (CLOSED)
Part 2 - $9 million is allocated for freight switchers, Great Lakes ferries and tugs, and shore power.
EGLE will accept applications for these projects February 23, 2022, through September 23, 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 will accept applications for these projects in early 2023. Application materials will be posted on this page when Part 3 opens.