The Kansas Department of Health and Environment (KDHE) Clean Vehicles Program announced $10 million in grant funding to remove older, more polluting diesel engines from use in priority Kansas counties and replace or repower them with clean diesel, alternative fuel, or electric engines. Projects are funded with moneys allocated to Kansas from the Volkswagen Mitigation Trust Fund, as part of a court-ordered settlement to offset the excess air pollution emitted by some VW vehicles that violated the Clean Air Act.
This opportunity will allow for replacement for old diesel engines in favor of a new, more efficient, diesel or switch to other fuel.
Anyone interested in applying for funding should first review the application materials posted on KDHE’s website.
The awarded applicants shall receive funding between $50,000 and $2,000,000, to replace or repower diesel engines in certain eligible types of on-road vehicles.
Proposed projects should be completed before October 1st, 2027, but may request an extension and provide justification within the “Schedule Narrative” portion of the online application.
A local match of at least 25% is required for all projects. Applicants are strongly encouraged to provide a match greater than the minimum required, to improve the competitiveness of their applications.
Applications can be found on the KDHE Volkswagen Settlement – Environmental Mitigation Trust website and must be submitted via email to kdhe.ksvwsettlement@ks.gov no later than 5:00 p.m. May 11th, 2026.
Applicants who do not receive email confirmation of receipt of their application within one business day should email mary.vesel@ks.gov or email kdhe.ksvwsettlement@ks.gov.
Eligible buses include 2009 engine model year or older class 4-8 school buses, shuttle buses, or public transit buses with a Gross Vehicle Weight Rating (GVWR) greater than 14,001 pounds.
Used vehicle purchases are not eligible for funding under this program. A purchased vehicle must be a new vehicle purchased from an original equipment manufacturer (OEM) or automobile retailer. The purchased vehicle must have an odometer reading of 500 miles or less at the time of purchase, not including mileage incurred in delivery from the manufacturer or in transporting the vehicle between dealers for sale.
Applicants are required to include a price quote on letterhead from the Original Equipment Manufacturer. Kansas Truck Equipment Co., Inc. will assist a Kansas school district with their grant application. Contact Brian Linnens at Kansas Truck Equipment Co., Inc.