Final Plan

The plan includes the following allocations:

  • 52% or $21.32 million - Onroad Equipment and Vehicles: Class 4-8 trucks and Class 4-8 school, shuttle, and transit buses
    • 40% or $8.53 million for school buses
    • 60% or $12.79 million for trucks and buses
  • 20% or $8.2 million - Nonroad Equipment and Vehicles: airport ground support equipment, forklifts and port cargo handling equipment, ferries and tugboats, and freight-switcher locomotives
  • 10% or $4.1 million - DERA Option: idle reduction technologies, diesel engine Repower and Replacements using fuel options not permitted under Volkswagen, diesel engine upgrades, and exhaust after treatments
  • 15% or $6.15 million -  Light-Duty Electric Infrastructure
  • 3% or $1.23 million - Administrative Costs

IDEM does not intend to fund any heavy duty electric vehicle infrastructure because this would create inequity with other alternative fuel and diesel projects.  In terms of funding specific project, IDEM intends follow the funding percentages set out in the Trust Agreement for non-government fleets and plans to reimburse government-owned fleets and equipment at the same level as nongovernment owned fleet and equipment owners, as opposed to the full cost reimbursement permitted.

Funding Opportunity - Deadline June 1, 2021

Round 3 funding opportunity now open includes grants for on-road and non-road projects.  The total available funding for this round is $12 million.  Applications are due June 1, 2021, at 5:00 PM EDT.  Details on this funding opportunity are available on the Indiana website and the notice is available HERE.  Round 3 will not provide funds for any diesel-to-diesel on-road repower or replacement projects. Non-road repower and replacement projects are still eligible for diesel-to-diesel funding through the program subject to certain.  The allocation for projects is as follows: 

  • Class 4-8 on-road vehicles (excluding school buses) - $4.27 million
  • School Buses (excluding electric) - $1.99 million
  • Electric School Buses - $0.86 million
  • Non-road vehicles - $2.74 million

An additional $2.14 million will be administered at the discretion of Indiana authorities for deserving projects included in the above categories.  The funding percentages for privately owned vehicles following the percentages allowed under the VW Settlement. Indiana also plans to limit government fleets to the same levels permitted for private vehicles and therefore does not plan to fund the full cost of government vehicles.


Final Plan

Where to Send Comments

Comment Letter

Member Support

Webinars, Meetings, Workshops


Legislative Proposals