Can Your Company Benefit From Grant Funding for Fleet or Equipment Repower or Replacement?

Our Transportation and Logistics Industry Group is closely monitoring the progress of the Environmental Mitigation Trust that was created as a result of litigation with the U.S. Environmental Protection Agency and Volkswagen. The total grant funding is $ 2.9 billion that will be available beginning in fall 2017. The grants will be administered by each of the 50 States’ Department of Environmental Protection or their environmental agency.

The grants will cover eligible expenditures to replace or repower existing vehicles or equipment with new diesel, alternative fuel or electric vehicles, engines or equipment. The grants are expected to cover between 25% to 75% of the costs.

Eligible Mitigation Expenditures repower or replacements include:

  • On-road vehicles Fleet Project
    • Class 8 local freight trucks and port drayage trucks
    • Class 4-8 school bus, shuttle bus or transit bus
    • Class 4-7 local freight trucks
  • Non-road / off- road equipment
    • Forklifts and port cargo handling equipment
    • Freight switchers
    • Ferries /Tugs
    • Ocean going vessels shore power
    • Airport ground support equipment
  • Diesel Emission Reduction Act Fleet Projects
    • Additional projects under the DERA may be eligible
  • Light-duty, zero emission vehicle supply equipment

There are significant amounts of money for each of the states’ trust funds that will be available. For example:

  • Pennsylvania - $110 million
  • Ohio - $71 million
  • West Virginia - $11 million
  • New York - $117 million
  • Indiana - $38 million

The formal requirements, funding and procedures will become more clear as each state gets approval for their Beneficiary Mitigation Plan and the grant application process is established.

We will provide updates as the information becomes available into the fall of 2017. For information, you can contact a member of the Transportation and Logistics Team listed below to discuss the opportunity:

  • John Popies –  Shareholder (412) 697-5201
  • Dan Phillips – Shareholder (412) 697-5299
  • Mike Renzelman – Shareholder (614) 586-7203
  • Jim Gilboy – Senior Manager (412) 697-5249

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The Schneider Downs Our Thoughts On blog exists to create a dialogue on issues that are important to organizations and individuals. While we enjoy sharing our ideas and insights, we’re especially interested in what you may have to say. If you have a question or a comment about this article – or any article from the Our Thoughts On blog – we hope you’ll share it with us. After all, a dialogue is an exchange of ideas, and we’d like to hear from you. Email us at

Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax, or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice.

© 2020 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.

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