The 22 projects will involve the replacement of a total of 81 vehicles with 35 all electric, 33 propane, 8 hybrid and 5 compressed natural gas vehicles and will also support the installation of associated charging infrastructure for vehicles replaced with EVs.
The competitive Medium and Heavy Duty Vehicle Grant Program comprises the State’s fifth 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.
“Grants from the Volkswagen Settlement will result in improved air quality in Tennessee,” said TDEC commissioner David Salyers. “Replacing older trucks and buses with alternative fuel options will reduce air pollutants, and we look forward to the results of these grants.”
Of the selected vehicle replacement projects, 10 projects will take place in former nonattainment areas for ozone and/or fine particulates (PM2.5) under National Ambient Air Quality Standards. Five projects will take place in counties recognized as economically distressed by the Appalachian Regional Commission for fiscal year 2026.
TDEC is the lead agency for administering the state’s VW Settlement EMT allocation.
Published June 2026