Volkswagen Settlement

Update for March 26, 2021:

The North Carolina Department of Environmental Quality’s (DEQ) Division of Air Quality (DAQ) has awarded the second round of rebates for Level 2 charging projects to be funded by the NC Volkswagen Mitigation Settlement Program. This group of rebates includes twenty-nine projects totaling $496,000.00. To date, DEQ has awarded $918,000.00 in Level 2 rebates for fifty-nine projects from the $1.1 million available for the program.

Contracts for Phase 1 DC Fast and Diesel Bus & Vehicle Program awards are continuing to be processed. 

We have received over $1.6 million in requests for the $1.1 million in available funds for the Level 2 EV Infrastructure Program. The Level 2 Application is currently closed for new applications to allow the Team to process the applications received. If funds are still available, we will reopen the application in the DAQ Grants Management System. Additional funds for Level 2 EV Infrastructure projects will be available in Phase 2.

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

VW Settlement Level 2 Charge Rebate Program

Approximately $1.15 million will be available in Phase 1 for the Zero Emission Vehicle Level 2 Charging Infrastructure Rebate Program. This program is designed to expand the state's ZEV charging infrastructure network.

Level 2 Charge Rebate Program Timeline

  • Release of RFP:                                                                     November 17, 2020
  • RFP webinar for applicants                                                      December 11, 2020
  • Application open in Grants Management System:                       January 25, 2021
  • Rebate recipients announced                                                   As awarded in 2021

Learn more about the RFP application process 

Click here to view the RFP

July 29, 2020: Phase 1 Awards Announced

The competitive application process resulted in 116 proposals for two grant programs: the Diesel Bus and Vehicle Program and the ZEV Infrastructure Program. The awards include:
  • $12.2 million for school bus replacements
  • $6.1 million for transit bus replacements
  • $4.2 million for on-road heavy duty equipment, including refuse haulers, dump trucks and debris trucks
  • $3.4 million for ZEV DC Fast Charge stations

Diesel Bus and Vehicle Program Awards 

DC Fast Charge Awards

Phase 1 Report

Phase 2 timeline for the next rounds of applications to be announced. To be notified for future Phase 2 announcements, please send an email with "Subscribe" in the subject line to

Urban and Rural NOx Reductions