School Bus Replacement Grant

The Tennessee Department of Environment and Conservation (TDEC) has announced 35 grantees to receive $8,205,276.94 in grant funding to support School Bus replacement projects across Tennessee. Click here to see a full list of the selected Grantees and their corresponding project information.

The competitive grant program, which is the State’s first grant program funded by the Volkswagen Diesel Settlement Environmental Mitigation Trust (VW Settlement EMT), will provide financial assistance to grantees to replace a minimum of one eligible School Bus with any new diesel, Alternate-Fueled, or All-Electric School Bus. The purpose of the EMT is to execute environmental mitigation projects that reduce emissions of nitrogen oxides (NOx).

After conducting a comprehensive review of all grant applications, TDEC selected the above-mentioned Grantees that will replace a total of 133 engine model year 2009 or older School Buses with 65 new diesel, one All-Electric, 64 propane, and three compressed natural gas school buses. These projects are expected to yield NOx emissions reductions of an estimated 111,542 pounds, or 55.77 tons, over the lifetime of the new vehicles.

Of the School Buses funded, 26 will operate 70% or more of the time in former nonattainment areas for ozone and/or fine particulates (PM2.5) National Ambient Air Quality Standards; 40 will operate in FY 2019 economically Distressed Counties, defined by the Appalachian Regional Commission as those counties that rank among the 10 percent most economically distressed counties in the nation based on a three-year average unemployment rate, per capita market income, and poverty rate.

School Bus Replacement Grant Program materials are available in the tabs below, including a full program description, an application manual, and a list of frequently asked questions (FAQ) regarding the funding opportunity.

For additional information on the VW Settlement, visit the TDEC website here: http://www.tn.gov/environment/VWSettlement. Interested persons and entities are advised to sign up for the TDEC VW email list here.

In October 2018, TDEC released its first solicitation for projects under the VW Settlement EMT. Under this solicitation, $8,710,353.78 in funding was made available for eligible Class 4-8 School Bus projects. The grant program provides financial assistance to public, non-profit, and private fleets in Tennessee that apply to receive funding to replace a minimum of one eligible School Bus with any new diesel, Alternate Fueled, or All-Electric School Bus. All terms and conditions of the program were outlined in an application manual, accessible here: School Bus Grant Application Manual.

  • Grants shall not exceed $750,000 per Grantee.
  • Eligible applicants include both Government and Non-Government entities. “Government” shall mean a State or local government agency (including a school district, municipality, city, county, special district, transit district, joint powers authority, or port authority, owning fleets purchased with government funds), and a tribal government or native village. More information on applicant eligibility can be found in the School Bus Replacement Grant Application Manual.
  • School Buses eligible for replacement include 2009 engine model year or older diesel Class 4-8 School Buses sold or introduced into interstate commerce for purposes that include carrying students to and from school or related events. Eligible School Buses may include Type A-D School Buses.
  • Applications may include a variety of eligible vehicle and/or fuel types.

Applications must have been submitted electronically through the online TDEC Grants Management System by 4:00 PM CST on December 14, 2018.

Grant Program Manual: The School Bus Replacement Grant Program Manual is a resource for grantees. It outlines all terms and conditions of the Program and provides information on contract compliance, reimbursement processes, reporting requirements and templates, monitoring requirements, and more.

Application Manual: All terms and conditions of the School Bus Replacement Grant Program are outlined in an application manual, accessible here: School Bus Grant Application Manual.

TDEC Grants Management System: Applications under the School Bus Replacement Grant Program must have been submitted electronically through the online TDEC Grants Management System by 4:00 PM CST on December 14, 2018. Please refer to TDEC’s “About the Online Grants System” webpage to learn more about the TDEC Grants Management System, including how to register and apply.

Application Workshop: On October 16, 2018, TDEC partnered with the Tennessee Department of Education to host an application workshop in Lebanon for the School Bus Replacement Grant Program. Staff from TDEC’s Office of Energy Programs, the Office of Policy and Sustainable Practices, the Division of Air Pollution Control, and the Grants and Contracts Administration team presented and fielded attendees’ questions. A video of the application workshop can be accessed here.

Disproportionate Burden Index (DBI): The VW Settlement State Trust Agreement requires Beneficiaries to include within their Beneficiary Mitigation Plans a “description of how the Beneficiary will consider the potential beneficial impact of the selected Eligible Mitigation Actions on air quality in areas that bear a disproportionate share of the air pollution burden within its jurisdiction.” To address these requirements, the State has developed a “Disproportionate Burden Index” (DBI), which combines environmental, economic, and demographic datasets in a geospatial format to determine geographic units in Tennessee that have the highest air quality burden. Given that disproportionate burden is relative to the location of a project, TDEC will utilize the DBI and its geospatial display during the proposal review phase to assist with project prioritization and selection, focusing on the location and/or service area of the proposed project. A DBI map of Tennessee by county, dated October 2018, is available below for reference. This map reflects the DBI data that TDEC utilized when evaluating projects under the School Bus Replacement Grant Program. 

DBI September map

In order to afford potential applicants the ability to determine the DBI for a prospective project proposal, TDEC will upload to the TDEC VW Settlement website specific instructions as to its use during future project solicitations. For more information on the DBI, refer to Section VI. Consideration of Disproportionate Burden and Appendix 7 – Identification of Areas that Bear a Disproportionate Share of Air Pollution of the State of Tennessee’s Beneficiary Mitigation Plan.

All terms that are both bolded and italicized in the FAQs below are defined in Appendix D-2 of the State Trust Agreement.

Alexa Voytek, Deputy Director of Programs, Innovation & Transportation, Communications, TDEC Office of Energy Programs, alexa.voytek@tn.gov, 615-613-1096.

School Buses eligible for replacement include 2009 engine model year or older diesel Class 4-8 School Buses sold or introduced into interstate commerce for purposes that include carrying students to and from school or related events. Eligible School Buses may include Type A-D School Buses.

Eligible projects must seek to replace a minimum of one eligible School Bus. Eligible School Buses may be replaced with any new diesel or Alternate Fueled or All-Electric School Bus, with the engine model year in which the Eligible Bus Mitigation Action occurs or one engine model year prior. “Alternate Fueled” shall mean an engine, or a vehicle or piece of equipment that is powered by an engine, which uses a fuel different from or in addition to gasoline fuel or diesel fuel (e.g., CNG, propane, diesel-electric Hybrid).  “All-Electric” shall mean powered exclusively by electricity provided by a battery, fuel cell, or the grid. More information on project eligibility can be found in the School Bus Replacement Grant Application Manual.

School Buses eligible for replacement include 2009 engine model year or older diesel Class 4-8 School Buses sold or introduced into interstate commerce for purposes that include carrying students to and from school or related events. Eligible School Buses may include Type A-D School Buses.

Noting that EPA emission standards for heavy-duty highway engines of a Gross Vehicle Weight Rating (GVWR) of 8,500 lbs. or more went into effect in vehicles with a model year of 2007 and later, the State will prioritize replacement of School Buses in Tennessee that are model year 2006 or older. Within this prioritized range, vehicles with more years of remaining useful life will be prioritized over vehicles that are nearing their requisite retirement under Tenn. Code Ann. § 49-6-2109 (b).  

No; eligible School Buses must be purchased new, from an original equipment manufacturer (OEM) or OEM-authorized dealer. If the new School Bus shall be Alternate Fueled or All-Electric, it shall be fully equipped by the manufacturer or by a third party at the direction of the manufacturer to operate on an alternative fuel or electricity prior to the initial purchase and registration of the vehicle.

  • If vehicles are expected to operate in multiple counties, applicants must detail the expected breakout in percentage of time that the vehicle(s) will operate in each county and must provide supporting documentation to justify this breakout (e.g., driving routes of the vehicles to be replaced).
  • The application must include a project description, which must contain:
    • The number, type, and model year of eligible School Buses to be replaced;
    • Supporting images of the VIN number and engine number for each vehicle to be replaced;
    • The number, type, and model year of new eligible School Buses to be purchased;
    • Information on the refueling infrastructure to be used and whether the project will involve construction and installation of a new refueling facility as well as whether the refueling facility is or will be accessible to the public;
    • A statement of the projected use of fuel in gallons or diesel gallon equivalents (DGEs) and the methodology utilized to determine the projected use;
    • Detail or documentation on prior annual fuel consumption by the vehicle(s) to be replaced;
    • A plan which demonstrates the financial viability of the project, the proposed project purchase schedule, and the expected payback (the expected length of time that it will take to recover the cost of the applicant’s anticipated investment, likely to be achieved through fuel and/or vehicle maintenance savings);
    • A description of the total purchase cost  of eligible School Buses and the amount requested as grant share;
    • A description of the cost to acquire and install associated infrastructure for All-Electric School Buses, if applicable, and the amount requested as grant share;
    • Information on the expected driving route of the School Buses (i.e., whether the vehicle will be in service on a daily, weekly, or monthly basis and the expected length of vehicle trips; where the vehicle is expected to travel (will it serve a local route, regional route, state-wide route), the highways/roadways that the vehicle is expected to travel on, etc.), supported by additional detail or documentation on the driving routes and previous annual mileage of the vehicle(s) to be replaced;
    • A statement on whether an idle reduction policy for or including School Buses has been adopted as of the date the application is submitted, and a copy of that policy, if one has been adopted; and
    • A description of the community benefits to be achieved as a result of the project, including whether the project will strengthen emergency preparedness and resiliency of the transportation sector through diversity of fuel and project types.
  • The application must contain an estimate of the expected lifetime NOx emissions reduction for each proposed School Bus replacement, calculated using the Argonne National Laboratory Heavy-Duty Vehicle Emissions Calculator (accessible at https://afleet-web.es.anl.gov/hdv-emissions-calculator/). The application must include each emissions calculation as a separate attachment.
  • The application must contain documentation confirming the existence of refueling infrastructure available in Tennessee to supply eligible vehicles to be supported with grant funds.
    • For existing refueling stations, the applicant must provide a letter from the owner or operator stating that the refueling station is or will be capable of supporting the projected fuel consumption within the grant period of performance.
    • For proposed new refueling stations, the applicant must provide a letter from the owner/operator stating that the refueling station will be online and will be capable of supporting the projected fuel consumption within the grant period of performance.
  • The application must include a budget justification and supporting documentation to detail the calculations or assumptions used to arrive at the total purchase cost of eligible vehicles, the total acquisition and installation costs of associated All-Electric infrastructure (if applicable), the total grant amount requested, cost share, and/or expected payback. Supporting documentation should include detailed cost estimates from potential vendors for each proposed expenditure.
  • The application must contain a letter of financial commitment from each expected cost share contributor. Each letter shall state the amount and source of funds to be contributed to the project.
  • The application must include the following supporting documentation related to Title VI compliance:
    • A completed Title VI Pre-Audit Survey;
    • The applicant’s Non-Discrimination Policy;
    • The applicant’s Limited English Proficiency Plan;
    • A copy of the applicant’s Title VI training program; and
    • A copy of the applicant’s procedures for reviewing Title VI complaints.

Note: For applicants that would like to view samples of the Title VI policies referenced above, TDEC has made samples available for the use of sub-contractors, sub-recipients, and Grantees on the TDEC Title VI page. 

For more information on supporting documentation requirements, please refer to the School Bus Replacement Grant Program Application Manual.

Only vehicles purchased within the period of performance of a fully executed and approved Grant Contract shall be eligible for reimbursement. No credit will be given for costs incurred prior to the grant period of performance.

Yes. However, eligible School Buses must be registered within the State of Tennessee.

Yes; all eligible School Buses to be replaced under this Program must be Scrapped within sixty (60) days of new vehicle delivery. “Scrapped” shall mean to render inoperable and available for recycle, and, at a minimum, to specifically cut a 3-inch hole in the engine block and to disable the chassis by cutting the vehicle’s frame rails completely in half. Scrappage of all replaced School Buses is required by the State Trust Agreement.

For selected, eligible School Bus projects, the program will provide:

  • Up to 25% of the cost of a replacement for Non-Government Owned projects;
  • Up to 50% of the cost of a replacement for Government Owned projects;
  • Up to 75% of the cost of a replacement for Government Owned projects that will operate 70% or more of the time in current or former nonattainment areas for Ozone and/or PM2.5 National Ambient Air Quality Standards (NAAQS) (please note that only portions of Roane and Cocke counties are designated as current or former nonattainment areas for Ozone and/or PM2.5 NAAQS. Within Roane County, this includes the area described by U.S. Census 2000 block group identifier 47-145-0307-2, and within Cocke County, this includes the area covering Great Smoky Mountain Park);
  • Up to 75% of the cost of a replacement for Government Owned projects that will operate 70% or more of the time in Distressed Counties.
  • For All-Electric replacement projects, up to 25% of the acquisition and installation costs for associated charging infrastructure (All-Electric infrastructure costs) for Non-Government Owned projects and up to 50% of the All-Electric infrastructure costs for Government Owned projects.

Note: Non-Government Owned School Buses under contract with a public school district shall be eligible for the same funding caps that are available to Government Owned projects. 

No. However, the School Bus Grant Program can fund up to 75% of the cost of an Eligible School Bus replacement for Government Owned projects that will operate 70% or more of the time in current or former nonattainment areas for Ozone and/or PM2.5 National Ambient Air Quality Standards (NAAQS). The School Bus Grant Program will fund up to 50% of the cost of an Eligible School Bus replacement for all other Government Owned projects. To see which counties qualify for the higher funding cap, please visit EPA’s “Tennessee Nonattainment/Maintenance Status for Each County by Year for All Criteria Pollutants” webpage.

The application must contain an estimate of the expected lifetime NOx emissions reduction for each proposed School Bus replacement, calculated using the Argonne National Laboratory Heavy-Duty Vehicle Emissions Calculator (accessible at https://afleet-web.es.anl.gov/hdv-emissions-calculator/). When utilizing the Heavy-Duty Vehicle Emissions Calculator, applicants must take the following steps:

  • For “Project Type,” select, “Environmental Mitigation with Scrappage.”
  • For “State,” select, “Tennessee.”
  • For “Vehicle Type,” select, “School Bus.”
  • For “Number of Vehicles,” insert “1."
  • For “Estimate Years for Early Retirement of Scrapped Vehicle,” assume that the useful life of the School Bus is 18 years (i.e., If a model year 2006 School Bus is to be Scrapped and retired in 2019, the School Bus will be retired 5 years early).
  • For “Estimate Lifetime of New Vehicle,” insert "18."
  • For “Annual Miles of Scrapped Vehicle,” insert the average annual mileage of the vehicle to be replaced.
  • For “Annual Miles of New Vehicle,” insert an appropriate estimate for the annual miles of the new vehicle, based on previous annual mileage of the vehicle to be replaced.
  • Do not select the option for the “Diesel In-Use Multiplier."
  • Only select and fill in the option for “Custom Fuel Economy” if you are proposing to replace a diesel School Bus with a Hybrid. After selecting the “Custom Fuel Economy” checkbox, insert the average fuel economy for the Hybrid School Bus as provided by the OEM within the “New Diesel (MPDGE)” field.
  • Only select the option for “Low NOx Engines” if you are proposing to purchase a new School Bus with this type of engine.
  • For “Funding Options,” insert the amount of grant funding that you are requesting for the specific School Bus replacement, based on your entity type and geographic location.
  • For “Natural Gas Feedstock Source,” select “North American NG,” unless the proposed project is to utilize natural gas from landfill gas, anaerobic digester (AD) gas of animal waste, AD gas of wastewater sludge, or AD gas of municipal solid waste.
  • If you are applying to purchase an All-Electric School Bus, for “Source of Electricity,” select “Custom Mix.” Within the Custom Mix section, insert the following: 
EIA data table - emissions inputs
  • Select “Calculate Results,” and then “Export Results.” Save the file and provide it as an attachment to the application.
  • Repeat this process for each proposed School Bus replacement.

Grantees will be required to submit annual reports for a period of five years following vehicle procurement, delivery, and the placement of vehicles into service. Such reporting shall include the demonstrated usage of fuel in purchased vehicles, the number of DGEs or gallons purchased, purchase price, refueling locations, miles driven, driving or route habits, metrics regarding emissions reductions, and savings or cost avoidance. Grantees must also submit a final project report within three months of the completion of the grant period. (Please note that this report may be combined with the annual report for the final year of the grant period.)

Information from these reports will be used to calculate emissions reductions as a result of the project. Additional information and instructions on how to calculate emissions reductions will be provided to Grantees within the Grant Program Manual.

Awarded Grantees must submit quarterly reports to include updates on procurement, vehicle operator training, and refueling infrastructure until the grant-funded School Buses are purchased, delivered, and put into service, and the School Buses to be replaced are Scrapped. Such reports shall include a complete description of the status of the project (including actual or projected termination date), development, implementation, and any modification. Quarterly reports shall be due no later than January 10, April 10, July 10, and October 10 of each year of the Grant Contract term.

Grantees must submit annual reports for a period of five years following vehicle procurement, delivery, and the placement of vehicles into service. Such reporting shall include the demonstrated usage of fuel in purchased vehicles, the number of diesel-gallon equivalents (DGEs) or gallons purchased, purchase price, refueling locations, miles driven, driving or route habits, metrics regarding emissions reductions, and savings or cost avoidance.

Grantees must submit a final project report within three months of the completion of the grant period. (Please note that this report may be combined with the annual report for the final year of the grant period.) In addition to the information requested for the annual report, the final project report must also include cumulative financial information to match the final reimbursement request as well as inventory documentation for all equipment or vehicles purchased with funding through the Grant Contract. The inventory documentation must include, at a minimum, the following:

a.     Description of the equipment or vehicles;

b.     Manufacturer’s serial number or other identification number, when applicable;

c.     Consecutive inventory equipment or vehicles tag identification;

d.     Acquisition date, cost, and check number;

e.     Fund source, State Grant number, or other applicable fund source identification;

f.      Percentage of state funds applied to the purchase;

g.     Location within the Grantee’s operations where the equipment or vehicles are used;

h.     Condition of the property or disposition date if Grantee no longer has possession;

i.      Depreciation method, if applicable; and

j.      Monthly depreciation amount, if applicable.

Failure to submit quarterly, annual, or final reports may result in the required refund of any and all payments made to the Grantee by the State.

Grantees will use quarterly, annual, and final report templates provided by TDEC. These templates will be referenced in the Grant Contract and will be attached to the corresponding Grant Program Manual.

Grantees will be responsible for providing all the information required to complete the reports.

Applicants must select the county/counties where the new vehicle(s) will operate. If vehicles are expected to operate in multiple counties, applicants must detail the expected breakout in percentage of time that the vehicle(s) will operate in each county and provide supporting documentation to justify this breakout (e.g., driving routes of vehicles to be replaced).

Mileage and routes for planned or potential field trips and/or school athletic or other activities mileage and routes can be noted. However, the purpose of this exercise is to determine the daily geographic operation of the eligible School Buses; therefore, the applicant should focus on the primary, expected day-to-day use of the vehicles.

During application evaluation, TDEC may select portions of a proposal for funding and may offer to fund less than the eligible grant amounts and/or a smaller amount than requested in the application. 

The Grantee will have 24 months from the effective date of the Grant Contract to complete the project. The Grantee may proceed with its project after it is notified by State that its Grant Contract has been fully approved. 

Yes. The Grantee can request multiple reimbursements from the State to accommodate School Bus purchases made over multiple fiscal years and/or as a result of multiple purchase orders. However, the Grantee will only have 24 months from the effective date of the Grant Contract to complete the project.

If an applicant plans to order School Buses over multiple fiscal years and/or through multiple purchase orders, please detail this information within the “Project Timeline” section of the online application under the “Applicant Project Information” tab.

In the instance that the contractor can place the School Buses within another school district in Tennessee, that contractor shall do so and shall continue to report on related metrics (e.g., actual fuel usage, mileage of the grant-funded vehicles) for the remainder of the five year reporting period. In the instance that the contractor is unable to continue to operate the School Buses within a Tennessee school district, that contractor shall reimburse the State for the pro rata amount of the residual value, based upon the State’s original contribution to the purchase price.

TDEC will pay correct and complete invoices within 30 (thirty) days of receipt. TDEC will work with Grantees to ensure that they are submitting correct and complete invoices along with all necessary supporting documentation.

Grantees will be required to submit photo documentation of scrappage, along with an executed scrappage certification form. Additional information on supporting documentation for scrappage will be provided to Grantees within the Grant Program Manual.

Scrappage of replaced vehicles is required within sixty (60) days of new vehicle delivery.

Please note that, under Appendix D-2 of the State Trust Agreement, “Scrapped” shall mean to render inoperable and available for recycle, and, at a minimum, to specifically cut a 3-inch hole in the engine block for all engines. If any Eligible Vehicle will be replaced as part of an Eligible project, Scrapped shall also include the disabling of the chassis by cutting the vehicle’s frame rails completely in half.

Scrappage of all replaced School Buses is required by the State Trust Agreement. Please refer to Appendix D-2 of the State Trust Agreement for more information on scrappage requirements.

Grantees may perform the required scrappage themselves if they have the facilities and means available to them to meet all scrappage requirements. Grantees may also utilize external services to comply with scrappage requirements. In either instance, required supporting documentation and proof of scrappage must still be submitted to the State before reimbursement can occur.

Please note that, under Appendix D-2 of the State Trust Agreement, “Scrapped” shall mean to render inoperable and available for recycle, and, at a minimum, to specifically cut a 3-inch hole in the engine block for all engines. If any Eligible Vehicle will be replaced as part of an Eligible project, Scrapped shall also include the disabling of the chassis by cutting the vehicle’s frame rails completely in half.

Grant funding shall not cover costs associated with scrappage of eligible School Buses to be replaced. If a Grantee receives money in return for scrapping a School Bus, they may apply said funds toward their required cost share.

Scrappage of all replaced School Buses is required by the State Trust Agreement. Please refer to Appendix D-2 of the State Trust Agreement for more information on scrappage requirements.

School Buses eligible for replacement include 2009 engine model year or older diesel Class 4-8 School Buses sold or introduced into interstate commerce for purposes that include carrying students to and from school. Eligible School Buses include Type A-D School Buses.

  • Noting that EPA emission standards for heavy-duty highway engines of a Gross Vehicle Weight Rating (GVWR) of 8,500 lbs. or more went into effect in vehicles with a model year of 2007 and later, the State will prioritize replacement of School Buses in Tennessee that are model year 2006 or older. Within this prioritized range, vehicles with more years of remaining useful life will be prioritized over vehicles that are nearing their requisite retirement under Tenn. Code Ann. § 49-6-2109 (b).  (See page 2 of the School Bus Replacement Grant Application Manual for more information.)
  • Due to expected NOx emissions reductions from Alternate Fueled and All-Electric projects being higher than expected NOx emissions reductions from new diesel projects, the State will prioritize funding for Alternate Fueled and All-Electric School Bus replacement projects. (See page 6 of the School Bus Replacement Grant Application Manual for more information.)
  • Disproportionate Burden Index: To consider the potential beneficial impact of selected projects on air quality in areas that bear a disproportionate share of the air pollution burden, the State has developed a “Disproportionate Burden Index” (DBI), which combines environmental, economic, and demographic datasets in a geospatial format to determine geographic units in Tennessee that have the highest air quality burden. Given that disproportionate burden is relative to the location of a project, TDEC will utilize the DBI and its geospatial display during the proposal review phase to assist with project prioritization and selection, focusing on the location and/or service area of the proposed project. For more information on the DBI, refer to Section VI. Consideration of Disproportionate Burden and Appendix 7 – Identification of Areas that Bear a Disproportionate Share of Air Pollution of the State of Tennessee’s Beneficiary Mitigation Plan. (See page 6 of the School Bus Replacement Grant Application Manual for more information.)
  • Idle Reduction: Considering that School Bus idling wastes fuel and financial resources while producing exhaust emissions that are harmful to human health and the environment, the State will prioritize eligible School Bus projects in school districts where an idle reduction policy for or including School Buses has been adopted as of the date a proposal is submitted. (Please refer to Appendix B of the School Bus Replacement Grant Application Manual to view a sample idle reduction policy). (See page 6 of the School Bus Replacement Grant Application Manual for more information.)

In addition to the above-mentioned criteria, projects will be evaluated, in part, on the following additional criteria (see page 7 of the School Bus Replacement Grant Application Manual for more information):

  • Expected NOx emission reductions from the proposed project;
  • Cost-effectiveness of the project;
  • Whether the vehicles will operate primarily in a former nonattainment area for Ozone and/or PM 2.5 NAAQS;
  • Whether the vehicles will operate primarily in a Distressed county;
  • Potential impact to vulnerable populations or populations affected by a disproportionate share of the air pollution burden, evaluated using the DBI and any additional information provided by the applicant;
  • Whether the project proposes use of eligible Alternate Fueled or All-Electric vehicles;
  • Community benefits to be achieved as a result of the project, including whether the project will strengthen emergency preparedness and resiliency of the transportation sector through diversity of fuel and project types; and
  • Whether the project will result in the establishment of a new refueling station or an expanded refueling station such that the station will have expanded fueling capacity installed during the period of performance, including expanded fuel storage, increased compressor capacity, or increased fueling rate.

Grantees will be required to obtain a vendor identification number (VIN) and will need to submit a Form W-9, Request for Taxpayer Identification Number and Certification. Grantees will also be required to submit bank information via an original Automated Clearing House (ACH) form, in order to receive grant reimbursements electronically. The ACH form must be signed by an authorized account representative and a representative of the associated financial institution.

The TDEC Online Grants System requires applicants to affiliate with an organization (on whose behalf an individual is submitting the request for funds) prior to opening a grant application. Grantees under this program will need to take legal title to all equipment or motor vehicles purchased totally or in part with funds provided under the corresponding Grant Contract. As such, the organization that the applicant affiliates with must be the organization that will oversee the implementation of the project and own the vehicles to be purchased under the Grant Contract.

If an applicant is trying to affiliate with an organization that is not currently registered within the State system, please follow the instructions on this page to register, and subsequently affiliate with, the entity.

Applicants must prepare a plan which demonstrates the financial viability of the project, the proposed project purchase schedule, and the expected payback (the expected length of time that it will take to recover the cost of the applicant’s anticipated investment, likely to be achieved through fuel and/or vehicle maintenance savings).

If a transportation supervisor or school director does not have the authority to institute an idle reduction policy, then yes, a policy would need to be adopted by the school board. To the extent that idle reduction is addressed in “bus driver handbooks” or “standard operations procedures” or the like, as opposed or in addition to a school board-adopted policy, school districts may make a note of this within their applications and upload a copy of the corresponding document.

The intent is for entities to replace vehicles with vehicles of a similar weight class, in order to ensure as much of a one-to-one NOx mitigation as possible. Scrappage of an identical number of similar vehicles or engines is required.  (If vehicles, engines, or equipment are added to a fleet without removing a dirtier, older engine of a similar size or larger, then the project would not result in NOx reductions.)

Vehicles of different weight classes may have different duty cycles and/or varying engine sizes. That being said, if an entity would like to propose to replace a vehicle with a similar vehicle of a different weight class, they will need to provide a justification as to why a vehicle of a different weight class is appropriate.

Please note that eligible School Buses must be replaced with any new diesel or Alternate Fueled or All-Electric School Bus (page 2 of the School Bus Replacement Application Manual). “Alternate Fueled” shall mean an engine, or a vehicle or piece of equipment that is powered by an engine, which uses a fuel different from or in addition to gasoline fuel or diesel fuel (e.g., CNG, propane, diesel-electric Hybrid). A replacement with a gasoline-electric Hybrid School Bus would be considered eligible under this grant program. A replacement with a bus that is able to operate on gasoline alone would not be considered eligible under this grant program.

No. Considering that School Bus idling wastes fuel and financial resources while producing exhaust emissions that are harmful to human health and the environment, the State will prioritize eligible School Bus projects in school districts where an idle reduction policy for or including School Buses has been adopted as of the date a proposal is submitted. However, adoption and implementation of an idle reduction policy for or including School Buses is not required under this funding opportunity. To learn more, please refer to the Application Evaluation section of the School Bus Replacement Grant Application Manual.

To view an example idle reduction policy for School Buses, refer to Appendix B of the School Bus Replacement Grant Application Manual.