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Funding available for electric, hybrid or hydrogen fuel cell commercial vehicles


June 22, 2021

In support of Governor Whitmer's priorities for a just transition to a low carbon transportation sector, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) announced today it is offering a second round of funding for electric, hydrogen fuel cell or diesel-electric hybrid commercial and mass transit vehicles to replace older, diesel-fueled models. Grants can also be used to buy charging stations for the electric vehicles.

The application window opens today and runs through Aug. 20, 2021. A webinar has been scheduled for 1 p.m. July 13 to explain the funding opportunity and to answer questions from potential applicants.

A total of $16 million through EGLE's Fuel Transformation Program (FTP) has been allocated to replace medium and heavy-duty diesel trucks, shuttle and transit buses (Classes 4-8) and port drayage vehicles. School buses are not eligible for funding. Individual grants range from $50,000 to $3 million. 

The request for proposals information is posted on the Fuel Transformation Program website.

Individuals needing language assistance or accommodations for effective participation at the webinar should contact Joel Roseberry at 517-599-9494 by June 29 to request language, mobility, visual, hearing, translation and/or other assistance.

EGLE's Fuel Transformation Program has among its goals reducing nitrogen oxide emissions to improve air quality and increasing the adoption of zero emission vehicles and equipment by removing financial obstacles to replacing older diesel vehicles. The transportation grants help EGLE to leverage available funding for an equitable and clean transportation sector that reduces greenhouse gas emissions and helps businesses transition to a low-carbon future of economywide carbon-neutrality by 2050.

Future rounds of grants will allocate up to $9 million to replace freight switchers, Great Lakes ferries and tugs and install shore power and offer up to $5 million to replace airport ground support equipment, port cargo handling equipment and forklifts. Funding details will be announced in 2022 and 2023.

All the grants are supported with Volkswagen diesel settlement funds allocated to Michigan. The Michigan Volkswagen Settlement Beneficiary Mitigation Plan has details about the various vehicle and equipment replacement options. The settlement money must be distributed by October 2027, a decade after the money was allocated to the states.

For more information about the RFPs, contact Debbie Swartz at

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