VW Funding of Propane Buses

UPDATE - The Kentucky Environment & Energy Council has released a draft plan for expenditure of the VW Settlement funds.  The plan includes NO provision for use to purchase school buses.  There will be a hearing for public comments on September 5 from 4-6PM at the Cabinet offices at 300 Sower Boulevard, Frankfort, KY. 40601.  Written comments can be sent to ky.vwsettlement@ky.gov

Regardless of the plan's current form, it must be approved by passage of a bill in the 2019 General Assembly.  Interested parties should begin contacting their elected Senators and Representatives now to share their opinions.   



On October 26, 2016 the federal courts approved a settlement with VW over the diesel emissions scandal.  VW will establish and fund a $2.7 Billion environmental mitigation trust.

Kentucky will receive a pool of over $20 Million to lower the maximum amount of  NOx pollution at the most efficient cost by removing older diesels from the roads of the Commonwealth.  Propane buses emit 85% less NOx that the targeted diesel buses and have lower fuel and maintenance costs than new diesel buses. 

These funds will be received by the Commonwealth in late 2017.  The grant program will be operated by the Kentucky Division of Air Quality. 

Sign up HERE to receive updates and notifications on the progress of the grant program development and when applications are open.

One of the projects specifically eligible under the settlement is the replacement of pre-2008 diesel school buses with new propane buses.  Under the settlement, states may grant funds of 100% of the cost to replace a Class 4-8 diesel bus built between 1992-2012.  Eligible buses school buses, shuttle buses, or transit buses.

Now you may get up to 100% funding of a new propane powered vehicle.  You will enjoy the fuel cost savings, lower maintenance costs and clean power that propane delivers.  Join the 12 Kentucky districts that have already added propane buses to their fleets and the thousands of propane buses operating today across the country.

The buses to be replaced MUST be scrapped and cannot be resold as running vehicles.  This is similar to the "Cash for Clunkers" program 8 years ago.

Eligible Propane powered buses are available from all four major manufacturers today. 

The Kentucky Environment & Energy Cabinet will be administering the program.  They are in the process of developing the guidelines now.  They are accepting public comments on how the funds should be used.  All interested school districts are encouraged to contact the Cabinet with written comments stating that the funds should be used for bus replacement with propane buses. 

Address comments to: Cabinet at: Kentucky Environment & Energy Cabinet, ATTN: VW Settlement Comments, 300 Sower Avenue, 3rd Floor, Frankfort, KY   40601.

After the program is designed and grant procedures developed, the General Assembly must consent to the program.

Kentucky school systems having eligible buses to replace in their fleets should begin contacting their State Senators and State Representatives now. 

Click Each Link Below for More Information on the Settlement




Click on logo below for Manufacturer's' Information on Propane Buses