Michigan Clean Diesel Program

The Michigan Clean Diesel Program, offered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) Energy Unit, provides grant funding to reduce diesel emissions by replacing older diesel vehicles, engines, and equipment with all-electric and clean alternative technologies. Funded via the U.S. Environmental Protection Agency's Diesel Emissions Reduction Act (DERA), the program supports the MI Healthy Climate Plan and state decarbonization goals by reducing particulate matter (PM), nitrogen oxides (NOx), and greenhouse gas emissions, with an emphasis on local government fleets, recycling vehicles, compost and food waste recovery vehicles, agriculture, and irrigation equipment.

Eligible applicants include Michigan cities, townships, villages, county government agencies, port authorities, transit agencies, public school districts, private schools with 501(c)(3) status, non-profit organizations focused on transportation or air quality with 501(c)(3) status, Metropolitan Planning Organizations, and private business and industry, including agribusiness. A single applicant may submit only one application, though applications may include partner entities. All applicants and partners must have continuous, ongoing business operations with a physical location in Michigan and obtain an active Unique Entity Identifier (UEI) in SAM.gov. Recipients must also be registered in Michigan's SIGMA Vendor Self Service (VSS). Scoring prioritizes projects in environmental justice communities and areas with poor air quality, high population density, or high asthma burden.

Eligible projects focus on replacing existing heavy-duty diesel emission sources (Class 5-8 medium- and heavy-duty trucks, transit and school buses, locomotives, marine engines, and nonroad equipment used in construction, cargo handling, agriculture, mining, or energy production) with zero-tailpipe emission, hybrid, or CARB-certified low-NOx technologies. Eligible costs for electric replacements may include one charging unit per vehicle. Replaced equipment must be fully operational, owned and operated for at least two years prior, meet minimum usage thresholds (such as 7,000 miles/year for highway or 250 hours/year for ag pumps), have at least three years of remaining service life, and be scrapped or permanently disabled within 90 days. Fleet expansion, administrative costs, emissions testing, and federally mandated emissions reductions are ineligible.

Applications are accepted and processed on a first-come, first-served basis until all available grant funds are exhausted. Applicants must complete and submit the Proposal Worksheet, Approved Budget Form, Eligibility Statement, Fleet Description Spreadsheet, audit reports or financial statements, and letters of partner commitment. When applicable, submittals must include SHPO Section 106 review forms, NEPA review forms, or Build America, Buy America Act (BABA) waiver requests.