Volkswagen Settlement Request For Information

This is your opportunity to tell us how you think the $92 million should be invested to improve air quality in North Carolina.

North Carolina has been allocated $92 million in Volkswagen settlement money to reduce air pollution from mobile sources. Through a Request for Information (RFI), the N.C. Division of Air Quality (DAQ) in the N.C. Department of Environmental Quality (DEQ) seeks public input on how the funds should be invited to reduce pollution.

What is the Volkswagen Settlement?

In 2015, Volkswagen admitted that it violated the Clean Air Act by installing illegal software on some of its diesel vehicles. The vehicles with the illegal software emit up to 40 times the allowable levels of nitrogen oxides (NOx). Settlement agreements of $14.7 billion nationally were agreed upon to resolve matters related to the violations.

The Volkswagen Settlement has three parts:

  • Consumer Relief: The automaker will provide buy-backs and/or repairs of affected vehicles for qualified owners
  • Mitigation Trust Fund: Investments will reduce air pollution caused by the affected vehicles
  • Zero Emission Vehicle Investment Fund: Support will increase use of zero-emission vehicle technology in the United States

The RFI focuses on the Mitigation Trust Fund. To learn more about how the mitigation trust funds can be invested, visit the N.C. Volkswagen Settlement page.

What is the state currently doing? North Carolina is eligible for $92 million

About 18,700 of the affected vehicles are registered in North Carolina, making the state eligible to receive $92 million to reduce air pollution from mobile sources.

States and tribes are required to develop plans that show how the funds will be used. As designated by Governor Roy Cooper on November 21, 2017, DEQ is developing the plan for North Carolina and is asking the public, tribes, local governments, state agencies, the business community, and public interest groups to weigh in on which of the eligible vehicle and equipment categories they think the state should invest in.

How the money can be used

The Volkswagen Settlement establishes specific requirements around the types of projects that states and tribes can fund to lessen the harm caused by the excess emissions.

The money can be used in a variety of ways but must meet the legal requirements of the consent decree, which identifies eligible vehicle and equipment categories. Plans also must consider reducing pollution in communities that have been disproportionately impacted by emissions.

North Carolina’s $92 million allocation from the Volkswagen Settlement will be invested in a variety of environmental mitigation projects. Potential projects included within the scope of the settlement include:

  1. Class 8 local freight trucks and port drayage trucks
  2. Class 4-8 school/shuttle/transit buses
  3. Freight switcher locomotives
  4. Ferries and tugboats
  5. Ocean going vessels shorepower
  6. Class 4-7 local trucks
  7. Airport ground support equipment
  8. Forklifts and cargo handling equipment at ports
  9. Light duty zero emission vehicle supply equipment (limited to 15% of funds)
  10. Matching funds for projects eligible under the Diesel Emission Reduction Act (DERA).

We want to know what you think

The Division of Air Quality requests public input regarding which of the above 10 eligible categories North Carolina should include for potential funding in the state’s mitigation plan. Comments are welcome from individuals, tribes, governments, and groups until 5 p.m. EDT, Dec. 31, 2017. Download the RFI.

To learn more about the settlement and mitigation trust, please visit the N.C. Volkswagen Settlement page

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

N.C. Volkswagen Settlement Contacts

Brian C. Phillips
Mobile Sources Compliance Branch Supervisor
Phone 919-707-8426

Phyllis D. Jones
Grants Administrator
Phone 919-707-8424

Associated Files