Phase 2 - Volkswagen Settlement North Carolina Volkswagen Phase 2 Mitigation Plan North Carolina’s Phase 2 beneficiary mitigation plan is the final phase of funding combining the previously proposed phases 2 and 3 into one final phase. This plan addresses Phase 2 (2022 - 2024) only. DEQ plans to invest the remaining funds ($66.5 million) during this period. DEQ will manage the Volkswagen Settlement funds through two main programs: the Diesel Bus & Vehicle Replacement Program, and the Zero-Emission Vehicle (ZEV) Infrastructure Program. Each program will have several funding opportunities. Diesel Bus & Vehicle Replacement Programs The Diesel Bus & Vehicle Replacement Programs target funding for the replacement of older diesel vehicles with new, cleaner alternatives. These programs will prioritize funding to electrification projects. School Bus Replacement Program Transit and Shuttle Bus Replacement Program Clean Heavy-Duty Equipment and Vehicle Replacement Program Diesel Emission Reduction Act Program Zero-Emission Vehicle Infrastructure Programs The ZEV Infrastructure Programs provide grants and rebates for the funding of two types of electric-vehicle charging infrastructure: DC Fast chargers and Level 2 chargers. Eligibility in each program depends on the location and purpose of the chargers. DC Fast Infrastructure Program Public Access Priority Corridors Program Public Access Existing Site Upgrades Level 2 Infrastructure Program State Agency Program Public Access Program Multi-Unit Dwelling Program Workplace Program Phase 2 Plan Goals DEQ solicited input from North Carolinians across the state on how the VW Phase 2 mitigation trust funds should be spent in the state. We used the public feedback to set goals to guide the DEQ on how to allocate the funds over the duration of the program. Phase 2 prioritizes vehicle electrification projects. DEQ will continue to use the funds to achieve significant NOx emissions reductions across the state. Based on the distribution of violating vehicles registered across the state, DEQ plans to allocate the funds between urban/suburban counties (68%) and rural counties (32%). DEQ will submit requests to the Trustee of the Environmental Mitigation Trust to use funds for eligible projects throughout the state that will reduce or eliminate emissions of NOx. Phase 2 Timeline DEQ released the Phase 2 Requests for Proposals (RFPs) from February through June 2022. For competitive grant programs, applications must be submitted within 90 days after the release of the RFP to be considered. For programs with a noncompetitive rebate process, applications open about 45 days after the release of the RFP and remain open until funds are exhausted. RFPs now available Program Timeline Awards Transit and Shuttle Bus Program Applications CLOSED: Awards announced July 2022 DC Fast Program: Priority Corridors Applications CLOSED: Awards announced Aug. 2022 Level 2 Program: State Agency Applications CLOSED: Awards announced Sept. 2022 School Bus Program Applications CLOSED: Awards announced Aug. 2022 Level 2 Program: Publicly Accessible Applications open now and will be accepted on first-come, first-served basis until funds exhausted July 11, 2022 DC Fast Program: Existing Site Upgrades Applications CLOSED: Awards announced Oct. 2022 Level 2 Program: Multi-Unit Dwellings Applications open now and will be accepted on first-come, first-served basis until funds exhausted Clean Heavy-Duty Equipment & Vehicle Replacement Program Applications due Aug. 15, 2022 Level 2 Program: Workplace Applications open July 25, 2022, and will be accepted on first-come, first-served basis until funds exhausted Phase 2 programs (2022 – 2024) NC Grant Programs (2022-2024) Eligible Mitigation Action Category Eligible Fuels Targeted Percentage* Targeted Funding Amount Diesel Bus & Vehicle Replacement Program School Bus Replacement Program Class 4-8 school buses** All (electric, diesel, propane, natural gas) Priority will be given to electric replacements 40% $27,196,866 Transit Bus Replacement Program Class 4-8 transit and shuttle buses 20% $13,598,433 Clean Heavy-Duty Equipment & Vehicle Replacement Program Class 4-8 equipment and vehicles such as local freight trucks, ferries, forklifts, and switcher locomotives 20% $12,918,511 Diesel Emission Reduction Act (DERA) Program $679,922 ZEV Infrastructure Program DC Fast Program Public Access – Priority Corridors Not Applicable 15% $4,997,424 Public Access – Existing Site Upgrades $1,642,927 Level 2 Program Public Access $1,070,877 Workplace $489,544 Multi-Unit Dwelling $489,544 State Government Level 2 – Fleet, Workplace & State Attractions Charging $1,009,684 DEQ Administrative Costs Not Applicable 5% $2,749,608 Total: $66,593,340 *Percentage of available settlement funds targeted in these eligible categories for 2022 – 2024. **DEQ is prioritizing electrification with the goal of awarding at least 50% to electric school bus replacements. Public Outreach DEQ has developing an outreach program to help counties that historically do not have the resources to effectively identify eligible vehicles and ZEV infrastructure opportunities for grant programs and submit quality applications. Applications from these counties may also receive scoring bonuses. As part of the Historically Under-Resourced County Outreach Program, DEQ staff will hold in-person outreach meetings in communities across North Carolina to discuss grant opportunities. Learn More Public Involvement DEQ is committed to using the Volkswagen Settlement funds in ways that reflect the input and interests of North Carolinians. DEQ will have an open and transparent process that includes the input of a wide range of citizens. DEQ released a draft of the state plan and gave North Carolinians the opportunity to provide input. We received 301 comments which helped shape the final plan and requests for proposals for Phase 2. During the draft mitigation plan comment period, DEQ held four virtual public stakeholder meetings to discuss the draft plan and answer questions. DEQ will also provide opportunities to receive input throughout the settlement program. A summary of the comments DEQ received on the draft Phase 2 mitigation plan is available here. Get Email Updates If you would like to receive email updates about this topic, please send an email with the word "Subscribe" in the subject line to daq.NC_VWGrants@ncdenr.gov. N.C. Volkswagen Settlement Program Contacts Brian C. Phillips Mobile Sources Compliance Branch Supervisor VW Mitigation Plan Phone 919-707-8426 Robin Barrows Allied Programs Supervisor VW Settlement Outreach Phone 919-707-8445 Sheila Blanchard School Bus Program Phone 919-707-8423 Matthew Hoskins Clean Heavy-Duty Equipment and Vehicle Program Phone 919-707-8424 Melanie Henderson Shuttle/Transit Bus Program Phone 919-707-8419 Dave Willis DC Fast Infrastructure Program Phone 919-733-1482 Steven Rice Level 2 Infrastructure Program Phone 919-715-7220 Files NC Phase 2 VW Mitigation Plan 062420222-final.pdf NC VW Phase 2 Mitigation Plan PDF • 14.58 MB - June 27, 2022 NC VW Phase 2 Migation Plan changes-rev.pdf PDF • 105.89 KB - December 17, 2021 North Carolina Volkswagen settlement plan Executive summary Phase 2-rev 2.pdf PDF • 219.67 KB - June 27, 2022 NC Phase 2 Mitigation Plan Comments Summary.pdf PDF • 143.83 KB - December 16, 2021 NC VW Phase 2 Mitigation Plan Comments.pdf PDF • 6.78 MB - December 16, 2021
Phase 2 - Volkswagen Settlement North Carolina Volkswagen Phase 2 Mitigation Plan North Carolina’s Phase 2 beneficiary mitigation plan is the final phase of funding combining the previously proposed phases 2 and 3 into one final phase. This plan addresses Phase 2 (2022 - 2024) only. DEQ plans to invest the remaining funds ($66.5 million) during this period. DEQ will manage the Volkswagen Settlement funds through two main programs: the Diesel Bus & Vehicle Replacement Program, and the Zero-Emission Vehicle (ZEV) Infrastructure Program. Each program will have several funding opportunities. Diesel Bus & Vehicle Replacement Programs The Diesel Bus & Vehicle Replacement Programs target funding for the replacement of older diesel vehicles with new, cleaner alternatives. These programs will prioritize funding to electrification projects. School Bus Replacement Program Transit and Shuttle Bus Replacement Program Clean Heavy-Duty Equipment and Vehicle Replacement Program Diesel Emission Reduction Act Program Zero-Emission Vehicle Infrastructure Programs The ZEV Infrastructure Programs provide grants and rebates for the funding of two types of electric-vehicle charging infrastructure: DC Fast chargers and Level 2 chargers. Eligibility in each program depends on the location and purpose of the chargers. DC Fast Infrastructure Program Public Access Priority Corridors Program Public Access Existing Site Upgrades Level 2 Infrastructure Program State Agency Program Public Access Program Multi-Unit Dwelling Program Workplace Program Phase 2 Plan Goals DEQ solicited input from North Carolinians across the state on how the VW Phase 2 mitigation trust funds should be spent in the state. We used the public feedback to set goals to guide the DEQ on how to allocate the funds over the duration of the program. Phase 2 prioritizes vehicle electrification projects. DEQ will continue to use the funds to achieve significant NOx emissions reductions across the state. Based on the distribution of violating vehicles registered across the state, DEQ plans to allocate the funds between urban/suburban counties (68%) and rural counties (32%). DEQ will submit requests to the Trustee of the Environmental Mitigation Trust to use funds for eligible projects throughout the state that will reduce or eliminate emissions of NOx. Phase 2 Timeline DEQ released the Phase 2 Requests for Proposals (RFPs) from February through June 2022. For competitive grant programs, applications must be submitted within 90 days after the release of the RFP to be considered. For programs with a noncompetitive rebate process, applications open about 45 days after the release of the RFP and remain open until funds are exhausted. RFPs now available Program Timeline Awards Transit and Shuttle Bus Program Applications CLOSED: Awards announced July 2022 DC Fast Program: Priority Corridors Applications CLOSED: Awards announced Aug. 2022 Level 2 Program: State Agency Applications CLOSED: Awards announced Sept. 2022 School Bus Program Applications CLOSED: Awards announced Aug. 2022 Level 2 Program: Publicly Accessible Applications open now and will be accepted on first-come, first-served basis until funds exhausted July 11, 2022 DC Fast Program: Existing Site Upgrades Applications CLOSED: Awards announced Oct. 2022 Level 2 Program: Multi-Unit Dwellings Applications open now and will be accepted on first-come, first-served basis until funds exhausted Clean Heavy-Duty Equipment & Vehicle Replacement Program Applications due Aug. 15, 2022 Level 2 Program: Workplace Applications open July 25, 2022, and will be accepted on first-come, first-served basis until funds exhausted Phase 2 programs (2022 – 2024) NC Grant Programs (2022-2024) Eligible Mitigation Action Category Eligible Fuels Targeted Percentage* Targeted Funding Amount Diesel Bus & Vehicle Replacement Program School Bus Replacement Program Class 4-8 school buses** All (electric, diesel, propane, natural gas) Priority will be given to electric replacements 40% $27,196,866 Transit Bus Replacement Program Class 4-8 transit and shuttle buses 20% $13,598,433 Clean Heavy-Duty Equipment & Vehicle Replacement Program Class 4-8 equipment and vehicles such as local freight trucks, ferries, forklifts, and switcher locomotives 20% $12,918,511 Diesel Emission Reduction Act (DERA) Program $679,922 ZEV Infrastructure Program DC Fast Program Public Access – Priority Corridors Not Applicable 15% $4,997,424 Public Access – Existing Site Upgrades $1,642,927 Level 2 Program Public Access $1,070,877 Workplace $489,544 Multi-Unit Dwelling $489,544 State Government Level 2 – Fleet, Workplace & State Attractions Charging $1,009,684 DEQ Administrative Costs Not Applicable 5% $2,749,608 Total: $66,593,340 *Percentage of available settlement funds targeted in these eligible categories for 2022 – 2024. **DEQ is prioritizing electrification with the goal of awarding at least 50% to electric school bus replacements. Public Outreach DEQ has developing an outreach program to help counties that historically do not have the resources to effectively identify eligible vehicles and ZEV infrastructure opportunities for grant programs and submit quality applications. Applications from these counties may also receive scoring bonuses. As part of the Historically Under-Resourced County Outreach Program, DEQ staff will hold in-person outreach meetings in communities across North Carolina to discuss grant opportunities. Learn More Public Involvement DEQ is committed to using the Volkswagen Settlement funds in ways that reflect the input and interests of North Carolinians. DEQ will have an open and transparent process that includes the input of a wide range of citizens. DEQ released a draft of the state plan and gave North Carolinians the opportunity to provide input. We received 301 comments which helped shape the final plan and requests for proposals for Phase 2. During the draft mitigation plan comment period, DEQ held four virtual public stakeholder meetings to discuss the draft plan and answer questions. DEQ will also provide opportunities to receive input throughout the settlement program. A summary of the comments DEQ received on the draft Phase 2 mitigation plan is available here. Get Email Updates If you would like to receive email updates about this topic, please send an email with the word "Subscribe" in the subject line to daq.NC_VWGrants@ncdenr.gov. N.C. Volkswagen Settlement Program Contacts Brian C. Phillips Mobile Sources Compliance Branch Supervisor VW Mitigation Plan Phone 919-707-8426 Robin Barrows Allied Programs Supervisor VW Settlement Outreach Phone 919-707-8445 Sheila Blanchard School Bus Program Phone 919-707-8423 Matthew Hoskins Clean Heavy-Duty Equipment and Vehicle Program Phone 919-707-8424 Melanie Henderson Shuttle/Transit Bus Program Phone 919-707-8419 Dave Willis DC Fast Infrastructure Program Phone 919-733-1482 Steven Rice Level 2 Infrastructure Program Phone 919-715-7220 Files NC Phase 2 VW Mitigation Plan 062420222-final.pdf NC VW Phase 2 Mitigation Plan PDF • 14.58 MB - June 27, 2022 NC VW Phase 2 Migation Plan changes-rev.pdf PDF • 105.89 KB - December 17, 2021 North Carolina Volkswagen settlement plan Executive summary Phase 2-rev 2.pdf PDF • 219.67 KB - June 27, 2022 NC Phase 2 Mitigation Plan Comments Summary.pdf PDF • 143.83 KB - December 16, 2021 NC VW Phase 2 Mitigation Plan Comments.pdf PDF • 6.78 MB - December 16, 2021
NC Phase 2 VW Mitigation Plan 062420222-final.pdf NC VW Phase 2 Mitigation Plan PDF • 14.58 MB - June 27, 2022
North Carolina Volkswagen settlement plan Executive summary Phase 2-rev 2.pdf PDF • 219.67 KB - June 27, 2022
