TDEC OEP Requests Confirmation of Interest in Statewide Application to EPA Clean Heavy-Duty Vehicles Program |
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The School Bus Sub-Program is for applicants who are replacing school buses. Sub-Program applicants must request funding for a minimum of 10 zero-emission school buses.
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The Vocational Vehicles Sub-Program is for applicants replacing non-school bus class 6 and 7 vehicles – including box trucks, refuse haulers, dump trucks, street sweepers, delivery trucks, bucket trucks, utility trucks, and other heavy-duty vehicles. Sub-Program applicants must request a minimum of three zero-emission heavy-duty vehicles.
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EPA anticipates awarding approximately 70% of the total funding to projects under the School Bus Sub-Program and approximately 30% of the total funding to projects under the Vocational Vehicles Sub-Program. Given the minimum number of vehicles required under each Sub-Program, TDEC OEP is considering submitting a statewide application to allow multiple organizations to replace diesel heavy-duty vehicles with all-electric vehicles.
EPA will fund a percentage of the new vehicle up to the per-vehicle funding cap, as shown in the table below. Organizations interested in working with TDEC OEP are responsible for providing or securing any remaining project-related costs as non-federal cost share beyond the caps detailed below.
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Vehicle Type
| EPA Cost Share Percentage of New Vehicle Price | Per-Vehicle Funding Cap (Vehicle + Infrastructure) |
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School Bus
| 75% | $280,000* | | Straight/Box Truck | 65% | $190,000 | | Step Van | 65% | $160,000 | | Septic Truck or Bucket Truck | 65% | $330,000 | | Other Vocational Vehicle | 65% | $355,000 | | Refuse Hauler | 50% | $260,000 | | Street Sweeper | 50% | $315,000 | | Transit Bus | 33% | $265,000 |
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*ADA-compliant school buses are eligible for an additional $20,000 per-vehicle funding cap (i.e., a total per-vehicle funding cap of $300,000).
As an example of estimated cost share to be required by interested organizations, an all-electric school bus costs approximately $400,000, of which the Clean Heavy-Duty Vehicles Grant Program would cover a maximum of $280,000. The subrecipient organization would then have to cover $120,000, which would be eligible for the Commercial Clean Vehicle Tax Credit of up to $40,000. (Tax exempt entities can now take advantage of this tax credit through the elective pay or “direct pay” provision). Please also note that this estimate does not include the optional purchase and installation of electric vehicle charging infrastructure, which is also an eligible expense under the Program.
Vehicles to be replaced are also subject to certain eligibility conditions with regards to engine model year and prior usage requirements, which can be found starting on page 21 of the Notice of Funding Opportunity (NOFO).
You can find additional information in the NOFO linked above and on the Clean Heavy-Duty Vehicles Grant Program page. Applications are due to U.S. DOE by July 25.
Organizations interested in participating in a TDEC-led statewide application for funding should provide the following information via email to TDEC.OEP@tn.gov no later than June 7:
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- Organization name;
- County or counties where new vehicles would operate;
- Vehicle types to be replaced; and
- The number of each vehicle type to be replaced.
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Please indicate your organization’s interest via e-mail to TDEC OEP no later than June 7. Following this date, TDEC OEP will evaluate the level of interest to determine whether it will compile and submit a statewide application. If TDEC OEP moves forward with a statewide application, it will work directly with organizations that have expressed interest to secure letters of cost share commitment as well as other relevant details on vehicles to be replaced for purposes of the application to EPA.
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