Volkswagen Settlement

North Carolina's Mitigation Plan

Governor Roy Cooper has designated the N.C. Department of Environmental Quality (DEQ) to manage North Carolina’s share of the VW Settlement, an agreement between the German automaker and the U.S. Department of Justice on behalf of the U.S. Environmental Protection Agency (EPA). North Carolina’s beneficiary mitigation plan is structured in three phases, so DEQ can seek additional input and make changes as needed along the way. This plan addresses Phase 1 (2018 - 2020) only. DEQ plans to invest 33% of the overall funds ($30.68 million) during this period.

Learn More about the Plan

Update - March 30, 2020

The NC Volkswagen Team has completed scoring of each application based on the criteria established in the RFPs.  With these scores, the Program Selection Committees are currently meeting to determine which applications under each program will be funded and at what funding level.  Each committee has been tasked with coming to consensus on which applications to fund and is working through that process.

The Program Selection Committees will have their recommendations presented to the Secretary of the North Carolina Department of Environmental Quality by Spring of 2020.  Our anticipated Phase 1 timeline is below.  Please note these timeframes are subject to change.

Phase 1 Timeline –

  • Proposal applications due date                   September 30, 2019
  • Proposal application evaluations                 Fall 2019
  • Phase 1 project selections                          Fall 2019/Winter 2020
  • Grant awards announced                            Spring 2020
  • Phase 2 planning                                       Spring/Summer 2020


A Zero Emissions Vehicle Infrastructure Program solicitation for Level 2 charging infrastructure will be released at a later date.  To be notified for future Phase 2 announcements, please send an email with “Subscribe” in the subject line to

Phase 1 Applications

The application deadline has passed for the North Carolina Volkswagen Settlement Program Phase 1 Diesel Bus and Vehicle Programs and the Zero Emission Vehicle Infrastructure Program - DC Fast Charging Stations.

NC DEQ solicited applications for two grant programs the Diesel Bus and Vehicle Program and Zero Emissions Vehicle Infrastructure Program. These programs are part of the North Carolina VW Settlement Program using the state’s allocation of the Volkswagen Mitigation Settlement.

In Phase 1 of the program, $24.5 million in funds was allocated to the Diesel Bus and Vehicle Program to assist interested parties to mitigate NOx emissions by replacing or repowering older diesel heavy duty vehicles and equipment. Additionally, $3.4 million in funds was allocated to the Zero Emissions Vehicle Infrastructure Program to increase the installation of direct current fast charging stations for electric vehicles primarily along identified priority corridors on North Carolina interstates and pending interstates. Applications for both programs were accepted until September 30, 2019

The table below shows the number of applications accepted and are currently under evaluation for eligibility and completeness.

NC VW Phase 1 Application Summary


Number of Applications Received

VW Funds Available

Total VW Funds Requested

Total Project Costs for all Applications

DC Fast Charging Program





Off-Road Program

DERA Program








On-Road Program





School Bus Program





Transit/Shuttle Bus Program