TDEC Announces Grants for Medium- and Heavy-Duty Vehicle Projects Under Volkswagen Environmental Mitigation Trust

The Tennessee Department of Environment and Conservation (TDEC) today announced that 22 entities will receive $18.9 million in total grant funding to replace eligible medium- and heavy-duty vehicles with alternate-fuel (e.g., propane, natural gas, hybrid) or all-electric vehicles (EVs).

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.

Selected grantees include:

Averitt Express, Inc
Bledsoe County Board of Education
Chattanooga Area Regional Transportation Authority
Clarksville Montgomery County School System
Crossroads Buslines, LLC
EPB of Chattanooga
City of Gruetli-Laager
Grundy County Board of Education
Hancock County School System
Hawkins County Schools
Henry Bus Lines
Hickman County School System
Highland Electric Fleets, Inc.
Jefferson County Government
Knoxville Utilities Board
City of McKenzie
City of Memphis
Nacarato Truck Centers
University of Tennessee, Knoxville
Washington County Department of Education
Waste Management of Tennessee, Inc.
Town of White Bluff

"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. Announcements on future funding programs under the EMT will be shared by the department.

For additional information on the VW Settlement, visit the TDEC website at tn.gov/environment/VWSettlement, which includes a link to sign up for emails on future announcements about the VW Settlement.