Driving a Cleaner Illinois - Volkswagen

The Driving a Cleaner Illinois – Volkswagen grant program, administered by the Illinois Environmental Protection Agency (Illinois EPA), is part of the state's commitment to reduce air pollution and greenhouse gas emissions by replacing older diesel trucks with all-electric alternatives. The funding is provided through the Volkswagen Environmental Mitigation Trust, which was established as part of a legal settlement following violations of the Clean Air Act by Volkswagen. Illinois is a designated beneficiary under the Trust Agreement, and the Illinois EPA serves as the lead agency to implement projects under its Beneficiary Mitigation Plan (BMP). The program supports the state’s broader efforts toward a cleaner transportation sector and aims to improve air quality in regions disproportionately affected by diesel emissions. This specific opportunity supports the replacement—not repowering—of diesel Class 4-8 local freight trucks or Class 8 port drayage trucks that currently operate in designated priority areas. Eligible replacements must be licensed, all-electric trucks of the same type and class as the diesel trucks they replace. The program also offers funding for new Level 2 or DC Fast Charging (DCFC) infrastructure, if required for the electric vehicles. However, infrastructure must be necessary and not pre-existing. A range of local freight applications is considered eligible, including delivery/box trucks, waste haulers, dump trucks, freight and transport trucks, and landscape trucks, provided they haul freight or cargo. Vehicles not used in this capacity are excluded from eligibility. Eligible applicants include both business and government entities, provided the applicant is located within and operates in one of three defined priority areas in Illinois. These include a mix of counties and townships across the Chicago area, Metro-East region, and other central Illinois counties. Applications must be submitted by the entity that owns the vehicles; lessees are not eligible. Furthermore, existing diesel trucks to be replaced must be operational at the time of application, have an engine model year between 1992–2009, and be scrapped within 90 days of the new vehicle entering service. The replacement trucks must also operate at least 50% of their time within the same priority area. Applicants may purchase eligible diesel trucks from others within their region to meet the replacement criteria. Applicants are required to complete and submit a set of standardized documents: a Uniform Grant Application, General Application Form, specific Truck Application Forms for each vehicle, Charging Infrastructure Forms (if applicable), Conflict of Interest Disclosure, Uniform Grant Budget, and photographs of each diesel truck type. Applications are accepted electronically via email to the program inbox and will be processed on a first-come, first-served basis until the $18 million in available funding is exhausted. There is no fixed application deadline, making this an open opportunity with rolling review and award. The program offers 75% cost coverage for government applicants and 50% for non-government applicants, applying to both vehicles and infrastructure. Applicants cannot combine this grant with other state funding sources to exceed 100% cost coverage. In-kind contributions are not accepted for matching requirements. Applications are reviewed for administrative completeness and eligibility criteria; if errors in cost calculations are found, the agency may revise them and offer the applicant a chance to accept the adjusted award. No costs can be incurred before the grant agreement is signed, and final reimbursement occurs only after project completion. Each awarded project requires quarterly progress reports and a final close-out report. Additionally, for five years after project completion, grantees must submit annual certifications regarding the use and condition of funded vehicles and equipment. Appeals for denied applications are permitted and must be submitted within 14 calendar days of notice. With a substantial funding pool and defined regional priorities, this opportunity provides significant support for organizations aiming to transition to cleaner vehicle fleets in Illinois.