The Government is making £5 million available to local authorities and other public bodies to convert their vehicles to run on cleaner fuels or fit pollution-busting technology to treat exhaust fumes.
The Clean Vehicle Technology Fund aims to improve air quality in towns and cities across England.
Each authority can apply for up to a maximum of £500,000 for vehicles that are used predominantly on local roads with poor air quality.
Transport Minister Baroness Kramer said: "This is our latest step in a major programme of measures to make our air cleaner.
“We are raising the bar and making sure that the ongoing trend of improving air quality continues.
“This £5 million will mean less harmful exhaust fumes from buses, and other vehicles, in some of our most polluted urban areas.
“This funding will also secure jobs and growth in the industries delivering the technology."
The scheme builds on the £7.3 million awarded last year across 26 local authorities through the Clean Bus Technology Fund, which helped modify more than 500 buses.
Reducing pollutant emissions from older buses, other heavy duty vehicles, and taxis, in particular oxides of nitrogen (NOx), demonstrates the Government's commitment to improved air quality in our towns and cities, and meeting EU air quality standards.