Transit and shuttle bus grant funding available

$16,000,000 in EMT funding for a transit and shuttle bus grant is available for eligible Class 4-8 Transit and Shuttle Bus projects.

bus grant

$16,000,000 in EMT funding for a transit and shuttle bus grant is available for eligible Class 4-8 Transit and Shuttle Bus projects.

The Tennessee Department of Environment and Conservation (TDEC) has released its second solicitation for projects under the Volkswagen Diesel Settlement Environmental Mitigation Trust (EMT).The purpose of the EMT is to execute environmental mitigation projects that reduce emissions of nitrogen oxides. All terms that are both bolded and italicized on this page are defined in Appendix D-2 of the State Trust Agreement.

Under this solicitation, $16,000,000 in EMT funding is available for eligible Class 4-8 Transit and Shuttle Bus projects. The grant program, managed by the TDEC Office of Energy Programs, will provide financial assistance to public, non-profit, and private fleets in Tennessee that apply to replace eligible Transit or Shuttle Buses with any new Alternate Fueled or All-Electric Transit or Shuttle Bus. Additionally, fleets may also apply to Repower Transit or Shuttle Buses with new All-Electric Transit or Shuttle Bus drivetrains.

Transit or Shuttle Buses eligible for replacement or Repower include 2009 engine model year or older Class 4-8 diesel buses used for transporting people. For purposes of this solicitation, “Transit Buses” shall include all vehicles that provide public transportation, which shall mean regular and continuing shared-ride surface transportation services that are open to the general public. “Shuttle Buses” shall include vehicles that provide transportation services for one or more specific entities, intra-terminal or intra-facility transportation services, or mobility-on-demand services.

Eligible applicants are limited to one application each. Applications may include a variety of vehicle and/or fuel types. All terms and conditions of the program, including maximum number of replacements or Repowers and associated funding caps, are outlined in an Application Manual, accessible here: Transit and Shuttle Bus Grant Application Manual.

Applications and supporting documentation must be submitted electronically via the TDEC Online Grants Management System, which may be accessed here: must be received by 4:00 pm CST on November 19, 2019. TDEC will announce awards after conducting a comprehensive review and evaluation of all complete and eligible grant applications. Grant contracting efforts will occur shortly thereafter.

TDEC will host an associated application workshop from 9:00 AM – 12:00 PM CT on Tuesday, September 17, 2019 at the William R. Snodgrass Tennessee Tower in Nashville; click here to registerRepresentatives of transit agencies, transit or shuttle bus contractors, and other interested persons are encouraged to attend and learn about the application process and program terms and conditions, including project eligibility, timelines for implementation, and reporting requirements. This workshop will be recorded and posted on the TDEC website for applicant reference.

TDEC will also release additional solicitations in the coming months for Class 4-7 Local Freight Truck projects, Class 8 Local Freight Truck and Port Drayage Truck projects, and Light Duty Zero Emission Vehicle Supply Equipment projects. Interested persons are advised to sign up for the TDEC VW Settlement email list at to be kept apprised of all future and related announcements. For additional information on the VW Settlement, visit the TDEC website here:

Read more about the Volkswagen Environmental Mitigation Trust here!



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