Transit & Shuttle Bus Program

Transit & Shuttle Bus Program

DAQ announced the grant awardees on Aug. 15, 2022. The 61 funded transit and shuttle bus replacements included 25 electric buses and all together will reduce more than 35.5 tons of NOx emissions over their lifetimes.

View award list

In Phase 2 of the Volkswagen Settlement program, $13.5 million in Volkswagen funds were allocated to the Transit & Shuttle Bus Program to assist interested parties to mitigate NOx emissions by replacing older diesel transit and shuttle buses. Additionally, approximately $6 million was allocated by the North Carolina Department of Transportation (NCDOT) for electric buses in Congestion Mitigation and Air Quality (CMAQ) Improvement Program eligible counties. CMAQ funding was limited to 80% of the incremental cost of an electric replacement bus over the equivalent diesel replacement bus, with the remaining 20% of the incremental cost covered by NC VW Settlement Phase 2 funding.  


NC VW Phase 2 Transit & Shuttle Bus Program Summary


Eligible Action Category

Eligible Fuel*

Program Funding Amount**

Transit/Shuttle Bus Program

Class 4-8 transit and shuttle buses

All (diesel, propane, natural gas, electric)




*Electrification projects are a priority in Phase 2.

**Infrastructure cost will be funded at a maximum amount of $75,000 per all-electric bus.


Funding Levels - Class 4-8 Transit and Shuttle Buses
Applicant Type Diesel Alternative Fuel All-Electric
Government 100% 100% 100%
Non-Government 25% 25% 75%

***Eligible buses include 2009 engine model year or older class 4-8 transit buses and shuttle buses. Eligible buses may be repowered with any new diesel or alternate fuel or all-electric engine or may be replaced with any new diesel or alternate fuel or all-electric vehicle, with the engine model year in which the eligible trucks mitigation action occurs or one engine model year prior.


To be notified for future Phase 2 announcements, please send an email with "Subscribe" in the subject line to


Activity Date
Release of RFP February 1, 2022
Application open in DAQ Grants Management System February 1, 2022
Webinar for new DAQ Grants Management System Users February 8, 2022
First Program RFP information session February 17, 2022
Information sessions will be online and registration is required. Dates and times will be posted on our website,
Proposal application must be submitted in DAQ Grants Management System May 2, 2022
Proposal application evaluations May - June 2022
Phase 2 project selections July 2022
Grant awards announced August 15, 2022


Phase 2 funding will focus on public sector needs.  Eligible projects can be submitted by:

  • Local, state and tribal government organizations,
  • Public or private nonprofit organizations, and
  • Public/private partnerships where the lead applicant represents a public sector or a public or private non-profit. 

For full details, read the

Request for Proposal

Transit and Shuttle Bus Program Contact

Brian Phillips, Transit and Shuttle Bus Program Manager (interim), NC DEQ

CMAQ Program Contact

Heather Hildebrandt, Statewide Initiatives Group Supervisor, NC DOT


Documents and Workshops

Tab/Accordion Items

Before you submit your application, check your eligibility in the RFP

When the spreadsheet opens in your browser, download and save to your computer using the name format: YourOrganization_ProjectTitle_VWTransit_Application.

Download the Spreadsheet

The checklist link below includes all the required attachments for applications.

Download Required Attachments Checklist


Helpful Documents

Application Checklist

Additional Resources

Send Questions to DAQ VW Grants

A sample application from data entered into the DAQ Grants Management System and Vehicle spreadsheet are provided below.

Example Transit Bus Application

Example Transit Bus Vehicle Spreadsheet

Tab/Accordion Paragraph

View the recording of the Transit and Shuttle Bus Program webinar held on February 17, 2022.

Can the one charger per grant be one charger with 2 connection ports?

After further team discussion, dual port chargers will be allowed up to the maximum reimbursement amount of $75,000, if required by the electric bus or is the only option available from the bus vendor.

If you have gasoline powered buses, can you apply for this funding?

No. VW funding requires replacement of diesel buses only.

If we have a contract with vehicle manufacturer with options, will buses purchased under these option (not yet executed) be eligible under the VW program?

​​​​​​​If you have ordered the bus already, then no. If the buses themselves have not yet been ordered, then yes.

What companies are recommended?

​​​​​​​DAQ cannot recommend specific companies. Consider reaching out to partner agencies or other local entities for potential recommendations. See additional resources on our website,

Are federal government entities eligible to apply for this grant?

No, only state, local, and tribal government entities.

If we have never had a transit bus and looking to buy new, can we use these funds?

No. This program requires that you replace an existing diesel bus in your fleet.

Can you use this funding to pay for bus chargers only?

No. The charger must be included with an electric bus purchase.​​​​​​​

Can the charger be a DC Fast instead of a Level 2 charger?

Yes. We have not specified the type of charger that can be purchased. The amount of award for charging infrastructure is limited to $75,000 per bus.

Where is the language found on the grant for the charger?

​​​​​​​Specific charger types are not included in the RFP.  

Are we responsible for the cost to scrap the old bus? Is that cost covered?

Scrappage costs are not covered in this funding.

Is a non-profit federally-funded agency eligible to apply?

Yes. Public and nonprofit agencies are eligible to apply.

Why are dual port chargers not allowed?

​​​​​​​Dual port chargers will be allowed up to the maximum reimbursement amount of $75,000, if required by the electric bus or is the only option available from the bus vendor.

Does the $75K for the charger included conduit, etc.?

​​​​​​​Yes. These are eligible costs.

Can you anticipate what might be done in case of delays in manufacturing?

​​​​​​​Contracts will be for 2 years. If you are awarded a contract and there are delays in manufacturing near the end of the contract, we will work with you.

Can an applicant combine their own funds with grant funds if they wanted to install a dual port charger?

​​​​​​​Yes. Make sure to include that information in your budget information.