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Based on the related state and local contract opportunity, the Vermont Department of Environmental Conservation (DEC) is administering the Volkswagen Environmental Mitigation Trust allocation to fund electric vehicle and equipment replacement or repower projects. The RFA seeks proposals for all eligible mitigation actions that reduce nitrogen oxide (NOx) emissions from mobile sources in Vermont. Applications are being accepted on a rolling basis through December 31, 2026, with project work required to be completed by June 30, 2028. Up to $5,909,575 is available for eligible projects, with time extensions considered on a case-by-case basis. The initiative focuses on demonstrating the feasibility of all-electric heavy-duty vehicles and equipment while catalyzing market transformation toward zero-emission technologies.

Funding for this RFA derives from Vermont's allocation of the Volkswagen Environmental Mitigation Trust, established following the 2017 delegation of authority to the Agency of Natural Resources (ANR). Projects must achieve significant reductions in diesel emissions and demonstrate cost-effectiveness in offsetting NOx emissions from diesel-powered engines, vehicles, and equipment. The initiative prioritizes electric replacement or repower solutions that provide the greatest environmental impact while supporting the state's transition to all-electric heavy-duty transportation and equipment solutions.