Montpelier, Vt. – The Vermont Department of Environmental Conservation (DEC) is pleased to announce $5,909,575 in funding to reduce diesel emissions by supporting the replacement of medium- and heavy-duty vehicles and certain nonroad equipment with electric options.

Applications are being accepted on a rolling basis over the next six months or until all funding has been awarded, whichever comes first. Applications are due on the last day of each month with the first round of applications due on July 31, 2026.

All interested public entities, private businesses, and institutions may apply.

“This critical funding supports the reduction of harmful diesel emissions in Vermont, improves our air quality, and helps address climate change,” said DEC Commissioner Misty Sinsigalli. “Connecting Vermonters with these dollars not only helps us transition to cleaner alternatives but also gain significant benefits for the environment and public health.”

To be eligible for project funding, applicants must:

• Own and operate diesel-powered Class 4-8 vehicle(s) and / or nonroad equipment (such as diesel-powered forklifts, railway freight switchers, airport support equipment, ferries, and tug boats) that meet the eligibility requirements in the Request-for-Applications, and
• Operate eligible vehicles or equipment in Vermont at least 80% of the time.

The application process includes filling out and submitting an application form via email to ANR.DECGrantsContracts@Vermont.gov. For links to all application materials and more information about this opportunity, please visit the Request-for-Applications webpage. For help filling out the form, email ANR.DECGrantsContracts@Vermont.gov or call 802-636-7577.

DEC will prioritize funding projects that demonstrate significant emissions reductions and cost-effectiveness. DEC plans to issue awards for projects on a rolling basis starting in August 2026 for six months or until funding runs out. Awardees must complete their projects and spend the funding by June 30, 2028. After replacement with electric options, awardees will need to properly scrap their diesel-powered vehicles or equipment.

Previously awarded projects have included electric bucket trucks, waste haulers, school buses, and more. Together, it is estimated that these projects will reduce harmful nitrogen oxide (NOx) emissions by almost 5 tons, which is about the same as removing more than 370 cars from Vermont’s roads.

This funding comes from Vermont’s $18.7 million allocation of the Volkswagen (VW) Environmental Mitigation Trust fund. The settlement fund was created with the goal of achieving reductions in NOx emissions after claims that VW violated the federal Clean Air Act.

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The Department of Environmental Conservation is responsible for protecting Vermont’s natural resources and safeguarding human health for the benefit of this and future generations. Visit dec.vermont.gov and follow the Department of Environmental Conservation on Facebook and Instagram.

This institution is an equal opportunity provider. To file a discrimination complaint, for questions, free language services, or requests for reasonable accommodations, please contact ANR’s Nondiscrimination Coordinator at ANR.CivilRights@vermont.gov or visit ANR’s online Notice of Nondiscrimination.