Companies eligible to replace medium, large trucks under Volkswagen Diesel Settlement

NASHVILLE – The Tennessee Department of Environment and Conservation (TDEC) has released its third solicitation for projects under the Volkswagen Diesel Settlement Environmental Mitigation Trust (VW Settlement EMT). 

The purpose of the EMT is to execute environmental mitigation projects that reduce emissions of nitrogen oxides.

“We look forward to funding projects that will improve the air quality in Tennessee,” TDEC Commissioner David Salyers said. “This program allows us to replace older trucks with newer, more environmentally friendly vehicles and meet the goals of the settlement.” 

Under this solicitation, $6.1 million in EMT funding is available for eligible Class 4-7 local freight truck (medium truck) projects and $4.1million is available for eligible Class 8 local freight trucks and port drayage truck (large truck) projects.

Entities may apply for funds for medium truck projects, large truck projects or both within the same application. The grant programs, 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 medium and large trucks with new diesel, alternate fueled or all-electric trucks. Additionally, fleets may also apply to repower eligible medium and large trucks with new diesel, alternate fueled or all-electric engines or drivetrains.

Medium and large trucks eligible for replacement or repower include 1992–2009 engine model year Class 4-7 local freight trucks (Gross Vehicle Weight Rating between 14,001 pounds and 33,000 pounds) used to deliver cargo and freight and Class 8 local freight trucks and port drayage trucks (GVWR greater than 33,000 lbs.) used for port drayage and/or freight/cargo delivery.

“Cargo and freight” shall mean goods transported in bulk; raw materials, feedstocks and other commodities; heating and transportation fuels; construction materials; residential, commercial and industrial waste; residential, commercial and industrial goods transported via established moving services; mail and other packages; equipment that enables emergency response and other public services; and any other items that must be transported via truck to support commerce and safety. “Local” shall refer to vehicles that operate in Tennessee counties for 70% or more of the time.

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: Medium and Large Truck Grant Programs Application Manual.

Applications and supporting documentation must be submitted electronically via the TDEC online grants management system, which may be accessed here:

Applications must be received by 4 p.m. CDT Oct. 30, 2020. 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. For more information, click here.

TDEC will host an associated application workshop via webinar at 9 a.m. to 11 a.m. CDT on Sept. 10, 2020. This workshop will be recorded and posted on the TDEC website for applicant reference. Applicants will be required to attend the virtual application workshop prior to application submission, either by participating during the initial webinar session or watching the recording. The application workshop will provide guidance on the application process and program terms and conditions, including project eligibility, timelines for implementation, and reporting requirements.

For additional information on the VW Settlement, visit the TDEC website at 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.

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