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    1. Bus
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    3. Hybrid, Hydrogen & Electric Vehicles

    Tennessee DEC announces awards for transit and shuttle bus grant program under Volkswagen Settlement

    May 26, 2020
    Three agencies will receive funding to replace diesel buses with all-electric and diesel-hybrid buses.

    The Tennessee Department of Environment and Conservation (TDEC) has awarded three agencies $5,690,845.53 in grant funding to support transit bus replacement projects across Tennessee.

    These projects will be funded under TDEC’s Transit and Shuttle Bus Grant Program, which is the state’s second grant program to be funded by the Volkswagen Diesel Settlement Environmental Mitigation Trust (VW Settlement EMT).

    “These grants will allow us to provide energy-efficient buses for transit systems in three of our largest communities, where mass transit is a key service,” said Tennessee Gov. Bill Lee. “These grants meet a need and meet the spirit of the settlement.”

    “These grants will support the adoption of all-electric and diesel-hybrid buses, so they will have a significant environmental impact,” TDEC Commissioner David Salyers said. “This will help reduce emissions and enhance quality of life in these communities.”

    The grants include:

    • Chattanooga Area Regional Transit Authority – Will be awarded $1,882,203.00 in funding to support the replacement of three diesel transit buses with three all-electric transit buses as well as the acquisition and installation of associated charging infrastructure.
    • City of Knoxville/Knoxville Area Transit – Will be awarded $1,695,907.53 in funding to support the replacement of three diesel transit buses with three diesel-hybrid transit buses.
    • Memphis Area Transit Authority – Will be awarded $2,112,750.00 in funding to support the replacement of three diesel transit buses with three all-electric transit buses as well as the acquisition and installation of associated charging infrastructure.

    The grantees will replace a total of nine engine model year 2009 or older diesel transit buses with six all-electric and three diesel-hybrid transit buses. TDEC says these projects are expected to yield NOx emissions reductions of an estimated 17,027.46 pounds, or 8.51 tons, over the lifetime of the new vehicles. All nine transit buses funded will operate 70 percent or more of the time in former nonattainment areas for ozone and/or fine particulate matter (PM2.5).

    In 2019, TDEC awarded more than $8,380,826.94 in VW Settlement EMT funding to 37 grantees to support school bus replacement projects across Tennessee. TDEC is the lead agency for administering the state’s VW Settlement EMT allocation. Announcements on future funding programs under the trust will be shared by the department.