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Fuel Transformation Program

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Environment, Great Lakes, and Energy

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.


Dan Zbozien

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
Preview of the Fuel Transformation Program interactive dashboard
Preview of the Fuel Transformation Program interactive dashboard

Fuel Transformation Program Project Dashboard

Projects in this program mitigate diesel emissions such as oxides of nitrogen (NOx), fine particulate matter (PM2.5), and Greenhouse Gases (CO2e). This dashboard displays the locations of projects selected for funding and their estimated emission reduction benefits. To view project data, click on a point on the map. 

Open dashboard

View the interactive dashboard to view the fuel transformation program.

Access data

The data used in this dashboard is available to download and to view as a table.

Maps and data portal

Find all of EGLE's data and maps in one centralized location.

Project Solicitation

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 3 - Closed

$5 million is allocated for airport ground support equipment, port cargo handling equipment, and forklifts.

Applications were accepted March 1, 2023, through November 1, 2023.

Application Materials:


Dan Zbozien
(517) 290-5722

Part 2 - CLOSED

$9 million is allocated for freight switchers, Great Lakes ferries and tugs, and shore power.

EGLE accepted applications for these projects February 23, 2022, through September 23, 2022. 

Freight Switchers, Ferry Boats, Tugs, and Shore Power - (CLOSED)

Part 1 - CLOSED

$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 accepted 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)

Additional Resources

  • Funding Awarded

    The EGLE Fuel Transportation Program has awarded $12.9 million of the VW settlement to schools committed to reducing diesel emissions from school buses. The following briefly summarizes the grants awarded to date.

    Michigan Association for Pupil Transportation Electric School Bus Pilot Project

    The Michigan Association for Pupil Transportation Electric School Bus Pilot Project was awarded over $4.2 million to replace 17 diesel school buses with 17 all-electric school buses and charging stations. Zeeland Public Schools was the grantee and is overseeing the project which involves a total of seven school districts including: Gaylord Community Schools, Kalamazoo Public Schools, Oxford Community Schools, Three Rivers Community Schools, Zeeland Public Schools, Ann Arbor Public Schools and Roseville Community Schools. For more information contact David Meeuwsen, Zeeland Public Schools at

    Diesel and Propane School Bus Projects

    Sixty-two Michigan school districts were awarded a total of 8.7M for 25 projects that will replace 300 older diesel buses with models powered by clean diesel and propane engines.

    The new buses will operate in 36 counties, including all 10 counties that are in non-attainment for the 2015 National Ambient Air Quality Standard for ozone. The new buses will reduce oxides of nitrogen, greenhouse gases, particulate matter, and other harmful emissions.

    The 25 individual and group grantees include the following:

    School District or Consortium

    Grant Total


    Propane Buses

    Brown City Community Schools1




    Chippewa Valley Schools



    Corunna Public Schools



    Dexter Community Schools



    Dundee Community Schools



    Durand Area Schools



    Fennville Public Schools



    First Student Incorporated2



    Genesee Intermediate School District3



    Grand Ledge Public Schools



    Gwinn Area Community Schools



    Harbor Springs Public Schools



    Hillsdale Community Schools



    Ionia Public Schools



    Iosco Regional Education Service Agency4




    Lenawee Intermediate School District5




    Livingston Educational Service Industry



    Meridian Public Schools



    Oakland Schools6



    Riverview Community Schools



    Thornapple Kellogg School District



    Utica Community Schools



    Wayland Union Schools



    Wayne Regional Education Services Agency7




    Whitmore Lake Public Schools







    1 Includes Berrien Springs Public Schools, Byron Center Public Schools, Capac Community Schools, Cass City Public Schools, Croswell-Lexington Community Schools, Decatur Public Schools, Edwardsburg Public Schools, Fruitport Community Schools, Holt Public Schools, Hudsonville Public Schools, Lakeshore Public Schools, North Branch Public Schools, Northview Public Schools, Plainwell Community Schools, Saline Area Schools, Unionville Sebewaing Area School District, Van Buren Intermediate School District, and Yale Public Schools.

    2 Includes Nile Community Schools, Adrian Public Schools, Benton Harbor Area Schools, and Harrison Community Schools.

    3 Includes Carman-Ainsworth Community Schools.

    4 Includes Alcona Community Schools, Oscoda Area Schools, West Branch-Rose City Area Schools, Alpena Public Schools, Crawford AuSable School District, and Hillman Community Schools.

    5 Includes Onsted Community Schools, Madison School District, Hudson Area Schools, and Morenci Area Schools.

    6 Includes Walled Lake Community School District and West Bloomfield School District.

    7 Includes Huron School District, Livonia Public Schools, Melvindale-Northern Allen Park Public Schools, Romulus Community Schools, and Wayne-Westland Community Schools.

  • Volkswagen Settlement Background

    In the fall of 2015, Volkswagen admitted it had installed emissions control defeat devices - software designed to cheat emissions tests and deceive federal and state regulators - in certain Volkswagen-, Porsche-, and Audi-branded 2.0-liter and 3.0-liter diesel engine vehicles.  The vehicles equipped with emission testing defeat devices resulted in increases in oxides of nitrogen (NOx) emissions, up to forty times the allowable amount, violating the federal Clean Air Act.  The increased NOx emissions had adverse impacts to air quality and contributed to the formation of ground-level ozone, which has harmful effects on ecosystems and impairs lung function and cardiovascular health.

    As a result of the litigation, an Environmental Mitigation Trust (Trust) was established as part of two partial consent decrees to resolve, among other things, claims of the United States' concerning excess oxides of nitrogen (NOx) from Volkswagen's 2.0-liter and 3.0-liter diesel engine vehicles equipped with defeat devices.  The Trust allocated more than $2.8 billion to the U.S., Puerto Rico, and the District of Columbia to fund environmental mitigation actions that reduce NOx emissions. 

    The State of Michigan (Michigan), a certified as a beneficiary of the Trust, was allocated $64,807,014.63 of the approximate $2.8 billion.

    The Michigan Department of Environment Great Lakes and Energy (EGLE), previously the Michigan Department of Environmental Quality, is the lead agency responsible for administering Michigan's settlement allocation. 

    EGLE must adhere to requirements in the Environmental Trust Agreement for State Beneficiaries, established pursuant to the partial consent decrees.  Those requirements include provisions for Eligible Mitigation Actions and Expenditures specified in Appendix D-2 of the State Trust Agreement.  Approximately 18,000 vehicles equipped with defeat devices were registered in Michigan.

    Additional Resources: