The Indiana Department of Environmental Management (IDEM) and Volkswagen Committee announced they will be awarding almost $10 Million in grant funding for clean air projects. The Indiana Volkswagen Mitigation Trust Program publicized the grant opportunity for diesel vehicle and equipment replacement and repower projects with the goal of improving air quality across Indiana. The trust fund is supported with funds distributed to Indiana from the national Volkswagen Mitigation Trust Fund to reduce diesel emissions while enhancing the health and wellbeing of Indiana residents.

The first round of the program is focused on replacement or repower of diesel fleets. Both public and private diesel fleets are eligible to apply for a portion of the $9.83 Million that is available. The minimum amount for a single grant award is $50,000 and a maximum award is $2,000,000. Funding is distributed between A) on-road and B) non-road vehicles.

The two project routes are through 1) repowering or 2) replacing a portion of or an entire diesel fleet. A repower project would encompass the removal of the existing engine block and replacing it with a model year 2019 or newer, cleaner, engine. A replacement project involves the demolition of a vehicle which is replaced with a cleaner version of similar size and purpose.

Eligibility Requirements

Eligible replacement engines, vehicles and equipment must meet the following requirements:

• Replacements must perform the same function and have similar gross vehicle weight or horsepower of replaced vehicle/equipment.

• The replaced vehicle or engine must be scrapped, rendered permanently disabled, or returned to the original equipment manufacturer.

• Evidence of appropriate disposal or scrappage is required. Click here for the form.

• Applicants proposing alternative fuel, or all electric equipment or vehicle projects must identify the availability of fueling and charging infrastructure in the area that would be utilized for the project.

Eligible vehicles, engines, and equipment projects may include, but are not limited to:

• Class 4-8 medium duty or heavy-duty trucks (if the engine model is between 1992-2009)

• Class 4-8 buses (if the model year is 2009 or older)

• Pre-tier 3 ferry and tug boat marine engines (operated over 1,000 hours per year)

• Pre-tier 4 freight switcher locomotives (operated over 1,000 hours per year)

• Pre-tier 3 airport ground support equipment (electric replacements only)

• Forklifts and port cargo handling equipment (electric replacements only, located at an Indiana port with capacity to lift over 8,000 pounds)

A)    On-road vehicle project reimbursement

Class 4-8 medium-duty or heavy-duty trucks :

• Route 1: If the proposal is for truck repowering, funding covers either 40% of project costs if the replacement truck engines are non-electric, or 75% if the replacement truck engines are electric.

• Route 2: If the proposal is for truck replacement, funding covers either 25% of the project costs if the replacement trucks are non-electric, 50% of the project costs if non-replacement drayage trucks are non-electric, and 75% of project costs if the replacement trucks are electric.

Class 4-8 buses; school, shuttle, and transit, are eligible if the model year is 2009 or older: 

• Route 1: If the proposal is for bus repowering, funding covers 40% of project costs if the replacement bus engines are non-electric, or 75% if the replacement bus engines are electric.

• Route 2: If the proposal is for bus replacement, funding covers 25% of project costs if the replacement buses are non-electric, or 75% of project costs if the replacement buses are electric.

B) Non-road vehicle project reimbursement  

Pre-Tier 4 freight switcher locomotives:

• Route 1: If the proposal is for freight switcher locomotive repowering, funding covers 40% of project costs if the replacement freight switcher locomotive engines are non-electric, or 75% of project costs if the replacement freight switcher locomotive engines are electric.

• Route 2: If the proposal is for a freight switcher locomotive replacement, funding covers 25% of project costs if the freight switcher locomotive replacement is non-electric and 75% of project costs if the replacement freight switcher locomotive is electric.

Pre-Tier 3 ferry and tug boat marine engines: 

• Route 1: If the proposal is for ferry or tug boat repowering, funding covers 40% of project costs if the replacement ferry or tug boat engine is non-electric, or 75% of project costs if the replaced ferry or tug boat engine is electric.

• Route 2: If the proposal is for ferry or tug boat replacement, funding covers 25% of project costs if the replacement ferry or tug boats are non-electric or 75% of project costs if the replacement ferry or tug boat is electric.

Pre-Tier 3 airport ground support equipment:

• Route 1: If the proposal is for airport equipment repowering, funding covers 75% of project costs if replacement airport equipment engines are electric.

• Route 2: If the proposal is for airport equipment replacement, funding covers 75% of project costs if replacement airport equipment is electric.

Forklift and port cargo handling equipment:

• Route 1: If the proposal is for forklift or cargo handling equipment repowering, funding covers 75% of project costs if replacement equipment engines are electric.

• Route 2: If the proposal is for forklift or cargo handling equipment replacement, funding covers 75% of project costs if replacement equipment engines are electric.

How to apply:

Indiana parties are now eligible to submit applications. Solicitation details can be found here: www.in.gov/idem/airquality/files/vw_trust_round_1_rfp_final.pdf.

Applications are due June 17, 2019

• IDEM will review and recommend projects to the Volkswagen Committee for review and final selection. Funding proposals will be accepted, electronically until June 17, 2019 and should be submitted to VWTrust@idem.IN.Gov.

• Recipients of awards will be notified around July 29, 2019.

• Projects implemented as a result of award are expected to be completed and fully implemented by December 31, 2020 to qualify for reimbursement.

For more information on proposal guidelines visit: https://www.in.gov/idem/airquality/2712.htm

If you are not eligible for Indiana’s program, contact KERAMIDA to learn whether your state has a similar program. KERAMIDA’s talented team of grant writers has helped our clients win millions of dollars in grant funding. If you are an eligible entity and desire expert assistance with your application, please contact us.

Blog Author

Amber Greaney
Indiana Sustainability Development Program Extern
KERAMIDA Inc.

Contact Amber at agreaney@keramida.com.