The Vermont Department of Environmental Conservation (DEC) is accepting applications for technical assistance and incentive funding through the Vermont Diesel Emissions Reduction Financial Assistance Program for projects that reduce emissions from diesel-powered vehicles, engines, and non-road equipment. This grant can be used to replace or upgrade municipal highway maintenance equipment and to reduce idling emissions from emergency response vehicles! Apply by June 23, 2025.
What does this program fund?
Eligible diesel emission reduction projects include:
- certified vehicle or equipment replacement with all-electric (battery, grid, or fuel cell), alternative fuel, or newer diesel options;
- certified engine replacements;
- clean alternative fuel conversions;
- verified emission control technologies such as exhaust controls, cleaner fuels, and engine upgrades;
- verified idle reduction technologies such as auxiliary power units, fuel operated heaters, shore connection systems, transport refrigeration unit (TRU) electrified parking spaces, and truck stop electrification technologies; and/or
- verified aerodynamic technologies and low rolling resistance tires.
Diesel-powered engines, vehicles and equipment currently operating in Vermont are eligible. These may include: buses, locomotives, heavy-duty trucks, defined as Class 5 through Class 8: Class 5 (16,001 -19,500 lbs gross vehicle weight rating [GVWR]); Class 6 (19,501 - 26,000 lbs GVWR); Class 7 (26,001 - 33,000 lbs GVWR); Class 8a (33,001 - 60,000 lbs GVWR); Class 8b (60,001 lbs GVWR and over), marine engines, and nonroad engines, equipment or vehicles used in construction (backhoes, graders, loaders, etc.), handling of cargo, agriculture, mining or energy production (stationary generators and pumps).
Cost share (match) requirements and award amounts differ based on the category in which your project fits.
How does my community apply?
View the Request for Proposals and application forms on the Vermont Business Assistance Network website. The application deadline is June 23, 2025.
What will make our application competitive?
This grant originates in Federal funds. Competitive purchasing, Buy America, and other federal requirements apply.
Requirements of the program include:
- Projects that are already underway (ordered, purchased, financed, installed, etc.) are not eligible. Leased vehicles, engines, and equipment are not eligible. Vehicles financed with a conventional loan ARE eligible.
- You must have owned and operated the equipment for at least two years, vehicles must be registered and have a valid Vermont inspection, and equipment must be operational and in normal use. Minimum mileage requirements for highway vehicles and minimum use thresholds for nonroad equipment apply.
- If replacing a highway vehicle or on road engine with a newer diesel vehicle/engine, the engine model year of the unit being replaced must be 2009 or earlier.
- The equipment being replaced must be permanently disabled within 60 days of receiving the new equipment following defined Scrappage requirements.
- Applicants must make a pledge and adopt a companywide policy to reduce idling. If a pledge and commitment to reduce idling are made, DEC will provide the pledge (printed on high quality paper) and an anti-idling sign for posting at the applicant’s business/office.
Competitive applications will:
- have projects that can be completed by August 30, 2026.
- provide robust information about the current vehicle.
- be cost effective.
- be committed to implementing idle-reduction policies.
Additional evaluation points are given to projects related to environmental justice and those in disadvantaged communities. Contact DEC to determine whether your community qualifies for these points as the maps noted in the application guidance/RFP have been removed from Federal agency websites.
How can my community learn more?
DEC has published a list of previously funded projects.
For more information, please review DEC's Request for Proposals (a.k.a. the grant guidance) and the 2023/2024 DERA State Program Guide. We recommend discussing your project's eligibility with DEC prior to submitting an application.
Prospective applicants can contact Jean Nicolai at (802) 585-4888 or at anr.decgms@vermont.gov with any questions.
Where can my community find help with grant writing or management?
VLCT published a resource, Increasing Municipal Capacity for Grants, that offers ideas for assistance with grants. Many of the capacity builders also provide project management services. Hiring experienced project management assistance can increase the speed of project development and help avoid cost, permitting, and other development surprises.