Volkswagen Settlement

What is the Volkswagen Settlement? 

Governor Roy Cooper has designated the N.C. Department of Environmental Quality (DEQ) to manage North Carolina’s share of the Volkswagen (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). DEQ has released a request for information (RFI) to accept public comment. The RFI closes on Dec. 31, 2017

VW accepted the $14.9 billion penalty after acknowledging that it installed devices on certain diesel vehicles to make them appear to meet strict emissions standards when in fact they did not. Funds will be used by states to buy back affected vehicles as well as fund environmental mitigation and investment to promote the use of zero-emission vehicles (ZEV) and infrastructure.

North Carolina will receive approximately $92 million, based on the number of affected 2.0- and 3.0-liter diesel engine vehicles registered here. The sum is part of the $2.9 billion designed for projects through the EPA’s Environmental Mitigation Trust.

If you have questions regarding the VW Settlement, or wish to be added to our VW Settlement Contact List, please contact us at daq.NC_VWGrants@ncdenr.gov. Be sure to add the address to your SPAM email filter. 

EPA Volkswagen Page

Settlement Breakdown

Of the $2.9 billion allocated to environmental mitigation projects, North Carolina will receive approximately $92 million. The amount awarded was based on the approximately 16,000 affected 2.0-and 3.0-liter diesel engine vehicles registered in North Carolina.

Heat map of the concentrations of affected Volkswagen vehicles by county

Timeline

Beneficiaries will have up to 10 years to spend 80 percent of their allocated funds, and at most 15 years to spend 100 percent of their funds. Beneficiaries can request up to one-third of their allocated funding in the first year or two-thirds during the first two years.

Event Approximate time frame
Court approved the partial settlement  October 25, 2016
Trust Effective Date October 2, 2017
States will apply to become a beneficiary By December 1, 2017
States notified of beneficiary designation By February 1, 2018
North Carolina submits its plan for using the funds 2018

 

Mitigation Projects

North Carolina’s $92 million allocation from the VW Settlement will be invested in a variety of environmental mitigation projects. Appendix D-2 of the Consent Decree outlines specific details of how trust funds may be used. Overall, money from the settlement may be used to pay some or all of the cost to repower (change the engine) or replace eligible diesel-powered vehicles with new diesel or alternative fuel, or all-electric engines or vehicles for these 10 project types:

Class 8 Local Freight or Port Drayage Trucks

Class 8 Local Freight or Port Drayage Trucks

Model year 1992 – 2006 Class 8 local freight trucks are eligible.

Percentage of project that can be funded through the trust:

  Government-Owned Eligible Large Trucks Non-government Owned Eligible Large Trucks
Repower with new diesel or AFV Engine Up to 100% Up to 40%
Purchase new diesel or AFV engine Up to 100% Up to 25% 
Repower with all-electric engine Up to 100% Up to 75%
Purchase new all-electric vehicle  Up to 100% Up to 75%

 

Class 4 – 8 School Bus, Shuttle Bus or Transit Bus

Class 4 – 8 School Bus, Shuttle Bus or Transit Bus

2006 model year or older buses are eligible.

Percentage of project that can be funded through the trust:

  Government-Owned Buses and Buses Under Public School District Contract Non-Government Owned Buses
Repower with new diesel or AFV engine Up to 100% Up to 40%
Purchase new diesel or AFV vehicle Up to 100% Up to 25%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric vehicle (includes infrastructure)  Up to 100% Up to 75%

 

Freight Switchers

Freight Switchers

Pre-Tier 4 switcher locomotives that operate 1,000 hours or more per year are eligible.

Percentage of project that can be funded through the trust:

  Government-Owned Freight Switchers Non-Government Owned Freight Switchers
Repowering with new diesel, AFV engine or Generator sets Up to 100% Up to 40%
Purchase new diesel or AFV Freight Switcher Up to 100% Up to 25%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric Freight Switcher (includes infrastructure)  Up to 100% Up to 75%

 

Ferries and Tugboats

Ferries and Tugboats

Tier 1 or Tier 2 marine engines are eligible.

Percentage of project that can be funded by the trust:

  Government-Owned Ferried and Tugboats Non-Government Owned Ferries and Tugboats
Repower with new diesel or AFV engine Up to 100% Up to 40%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%

 

Ocean Going Vessels Shorepower

Ocean Going Vessels Shorepower

Components eligible for reimbursement include cables, cable management systems, shore power coupler systems distribution control systems and power distribution components.

Percentage of projects that can be funded by the trust:

  Government-Owned Marine Shorepower Non-Government Owned Marine Shorepower
Cost associated with shore-side systems Up to 100% Up to 25%

 

Class 4 – 7 Local Freight Trucks (Medium Trucks)

Class 4 – 7 Local Freight Trucks (Medium Trucks)

1992 – 2006 model year local freight trucks are eligible.

Percentage of projects that can be funded through the trust:

  Government-Owned Medium Trucks Non-Government Owned Medium Trucks
Repower with new diesel or AFV engine Up to 100% Up to 40%
Purchase new diesel or AFV vehicle Up to 100% Up to 25%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric vehicle (includes infrastructure) Up to 100% Up to 75%

 

Airport Ground Support Equipment

Airport Ground Support Equipment

Tier 0 – 2 diesel powered airport ground support equipment are eligible.

Percentage of projects that can be funded through the trust:

  Government-Owned Airport Ground Support Equipment Non-Government Owned Airport Ground Support Equipment
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric equipment (includes infrastructure) Up to 100% Up to 75%

 

Forklifts and Port Cargo Handling Equipment

Forklifts and Port Cargo Handling Equipment

Forklifts with greater than 8,000-pound lift capacity are eligible.

Percentage of projects that can be funded through the trust:

  Government-Owned Forklift Non-Government Owned Forklift
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all electric equipment (including infrastructure) Up to 100% Up to 75%

 

Light Duty Zero Emission Vehicle Supply Equipment

Light Duty Zero Emission Vehicle Supply Equipment

•    Limited to 15 percent of funds
•    Funds can be used for acquisition, installation, operations and maintenance of light duty ZEV equipment. These include level 1 and 2 DC fast chargers in public spaces, workplaces and multi-unit dwellings as well as hydrogen fuel cell supply equipment in public spaces.
 

Diesel Emission Reduction Act (DERA) Option

Diesel Emission Reduction Act (DERA) Option

Associated Files