Funding for Vehicle Replacements

MI Clean Diesel Program

ATTENTION FLEET OWNERS!

There are grant funds available to replace diesel vehicles, engines, equipment!

The State of Michigan has opened its annual call for proposals for grant funding to modernize aging diesel vehicles and equipment. I’m reaching out to make sure you know about this grant opportunity that is available to replace diesel vehicles and equipment with new vehicles/equipment or new engines. As you know, Southwest Detroit Environmental Vision promotes (and helps folks access) resources that cut emissions from vehicles. We are here to help!

The State of Michigan's Clean Diesel Grant Program is open for application through February 18, 2022. Here are a few short details:

  1. Proposals for funding must ask for at least $25K in grant funds and can request up to $325K. Grant funds can cover between 35% to 60% of the cost of eligible vehicle replacements or engine upgrades.

  2. Projects must be completed by August 2023, but cannot begin ‘til a grant contract is finalized (no orders prior to grant award, though production schedule slots can be reserved ahead).

  3. Vehicle conversion/powertrain conversion is eligible as the "engine replacement" category of eligible activities in this grant program. Applicants can ask for 50% reimbursement for the conversion costs from this grant. Engines must be certified under CARB Optional Low-NOx standard. Info to clarify this is at: https://www.epa.gov/sites/default/files/2021-01/documents/420f21002.pdf
    "The eligible cost of engine replacement includes the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the equipment functional, including related labor expenses." (page 4 of request for proposals).

  4. Eligible vehicle replacements for highway on-road vehicles are Class 5 - 8. (16,001 to 19,500 gross vehicle weight rating). Vehicle must meet CARB Optional Low-NOx standard to get the 35% rebate. Zero emission (electric) can get higher rebate percentage. Info to clarify CARB Optional Low-NOx is at: https://www.epa.gov/sites/default/files/2021-01/documents/420f21002.pdf NOTE: there is no model year restriction for old vehicles if they are replaced with CARB Optional Low-NOx powertrains/vehicles. Meaning that even a 2014 could be replaced.)

  5. Nonroad equipment, like forklifts are also eligible.

MI Clean Diesel Grant Program webpage lists all forms and info (our team is happy to meet with you and help with accessing or understanding the application process).

Next steps: Southwest Detroit Environmental Vision will be promoting this grant opportunity to fleets across metro Detroit. If you're interested in our help in pursuing this grant, please fill out this form and a member of our Healthy Business & Institutions Initiative/Clean Diesel Initiative team will reach out to you. Please fill out the interest form by 02/04/2022. You may also reach us by phone or email at healthyair@sdevweb.org or 313-241-6211.

 
 
“Our new trucks are doing awesome and using less fuel, like 20-30 gallons a day less. They also have a ton of safety features and less soot, so the trailers don’t have black spots on them anymore.”
— Jason Foreman, Foreman Brothers, Inc.
 

For more information about the Michigan Clean Diesel Grant Proposal CLICK HERE.