Michigan Clean Diesel Program

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) administers the Michigan Clean Diesel Program, offering a funding opportunity designed to reduce diesel emissions by supporting the replacement of old diesel vehicles, engines, and equipment with all-electric or other cleaner alternatives. This initiative is part of the state’s broader environmental strategy aligned with the MI Healthy Climate Plan and Michigan's decarbonization goals. Through this program, EGLE aims to promote sustainable mobility, improve air quality, and increase the adoption of zero-emission technologies across various sectors, including local government fleets, recycling, composting, agriculture, and irrigation. In fiscal year 2024, EGLE is offering a total of $1,152,965 in funding, with individual grants ranging from $25,000 to $500,000. This is a reimbursement-based program, and all projects must be completed by August 31, 2026. Eligible activities include replacing diesel-powered vehicles and equipment with zero tailpipe emissions models or cleaner alternatives like hybrid or CARB-certified low NOx engines. Associated costs such as charging infrastructure for electric replacements may also be covered, though limitations apply. Importantly, grant funds cannot be used for fleet expansion, emissions testing, fueling infrastructure, or equipment mandated by federal law. The program is open to a wide array of applicants, including city and county governments, school districts, nonprofits focused on air quality or transportation, metropolitan planning organizations, and private businesses including agribusinesses. Applicants must operate in Michigan and submit a comprehensive proposal that includes a detailed project plan, approved budget, eligibility statement, and fleet description. Proposals are reviewed on a first-come, first-served basis until funds are depleted. Applications are evaluated based on their alignment with program objectives, including reductions in particulate matter and nitrogen oxides, promotion of zero-emission technology, cost-effectiveness, and benefits to environmental justice communities. Projects located in high-priority areas identified for air quality concerns, asthma burden, or underserved urban regions are favored. All submissions are reviewed using scoring criteria covering scope, feasibility, impact, priorities, and environmental justice considerations. Proposals must be submitted using the designated application form, which includes the cover sheet, eligibility statement, fleet data, and any required documentation such as organizational charts or audits. Reimbursement is contingent upon submission of appropriate receipts and proof of payment. Selected applicants are required to comply with federal requirements, including NEPA and the Build America, Buy America Act, and agree to the scrappage of old equipment as detailed in the RFP. Questions about the program must be submitted via email to Dan Zbozien at ZbozienD@Michigan.gov by December 31, 2024. Applications will continue to be accepted on a rolling basis until funds are exhausted. The program does not follow a fixed annual schedule but may recur depending on future funding availability.

Ensure strong emissions reduction outcomes and focus on disadvantaged or high diesel-impact areas for higher scoring. Cost-effectiveness and alignment with program objectives are key evaluation factors.