2025 Private Fleet Diesel Electrification and Low-NOx Grant

The District of Columbia’s Department of Energy and Environment (DOEE) has released a competitive grant opportunity titled “Private Fleet Diesel Electrification and Low-NOx” (PF DEAL), with funding available through RFA-FY25-AQD-873. The objective of this funding initiative is to reduce harmful diesel emissions in the District by supporting the replacement of class 4 or larger diesel-powered medium- or heavy-duty vehicles with zero-emissions vehicle (ZEV) equivalents. The primary intent is to improve public health outcomes by decreasing the amount of nitrogen oxides (NOx), particulate matter (PM2.5), and other air toxins released into the environment, which contribute to respiratory and cardiac issues, particularly in vulnerable populations such as children. The program will rebate a portion of the cost for eligible vehicles replaced within non-governmental fleets, including those owned by nonprofit organizations, faith-based institutions, universities, or private enterprises. The vehicles must be registered in the District to qualify. Importantly, this grant does not fund fleet additions or vehicle repairs—only replacements of existing qualifying diesel vehicles. DOEE has allocated a total of $2,396,457 to support the program, with potential adjustments depending on performance and the availability of funds. This grant is backed by the U.S. Environmental Protection Agency’s Diesel Emissions Reduction Act (DERA) and the Volkswagen Settlement Fund. Eligibility for funding depends on several factors including the type and age of the vehicle and its gross vehicle weight rating (GVWR). There are two primary funding tracks: Source 1 supports replacement of pre-2010 model year class 4-8 diesel trucks and buses with a rebate of up to 75% for an electric equivalent; Source 2 applies to class 5-8 vehicles newer than 2009 and covers the cost difference between a new diesel and a new ZEV, up to 45% of the ZEV’s cost. All replaced vehicles must be permanently scrapped, with compliance demonstrated by specific destruction methods including cutting the engine block and frame rails. Rebates may also cover up to 45% of the cost to purchase and install one charging unit per vehicle. Applicants are required to submit a comprehensive vehicle replacement plan that includes the number and type of vehicles being replaced, their operating locations and mileage, quotes for both diesel and ZEV alternatives, and an estimate of expected emissions reductions, preferably using the EPA Diesel Emissions Quantifier. Additionally, DOEE recommends detailing project timelines and including manufacturer purchase orders and scrappage verification as deliverables. Applications must be submitted via DOEE’s Grants Management System no later than August 1, 2025 at 11:59 p.m. The RFA was published on June 13, 2025, and applications will be reviewed competitively. Evaluations will be based on a scoring rubric totaling 100 points, with specific emphasis on vehicle eligibility, community benefit, cost-effectiveness, and scrappage plans. DOEE will provide award notifications within six to twelve weeks following the deadline. Questions about the RFA can be submitted to 2025PFDEAL.grant@dc.gov, with “RE: RFA-FY25-AQD-873” in the subject line. Applicants can also request to be added to the email update list. Required documents include a project summary, detailed budget and narrative, certificate of good standing, certificate of clean hands, IRS W-9, tax-exempt affirmation (if applicable), separation of duties policy, current fiscal budget and financials, and registration in the System for Award Management (SAM). Letters of support are necessary if the project involves public or private land or partnership with DC agencies or schools. The grant period begins upon award and runs through September 30, 2026, with possible extensions based on performance.

DOEE suggests registering in the GMS system early and reviewing the scoring rubric in Section 7 carefully.