Volkswagen Settlement Process

Under the Volkswagen Settlement Consent Decree, states are required to submit a plan to the trustee (Wilmington Trust) before they are eligible to receive allocated funds from the VW Settlement. 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. 

Settlement Timeline

• Court approved the partial settlement (October 25, 2016)
• Trust Effective Date  (October 2, 2017)
• North Carolina applies to become a beneficiary  (December 1, 2017)
• North Carolina named a beneficiary by Trustee  (January 29, 2018)
• Draft Mitigation Plan released for input  (March 2018)
• DAQ holds stakeholder meetings  (March/April 2018)
• Public comment period for Mitigation Plan ends (May 3, 2018)
• North Carolina submits its plan for using the funds  (August 2018)

EPA Volkswagen Page

Prior to submitting the Volkswagen Mitigation Plan to the trustee, the N.C. Department of Environmental Quality scheduled a series of stakeholder information sessions on the Draft State Mitigation Plan that will invest the first phase of $92 million in projects aimed at reducing pollution impacts from diesel emissions. DEQ accepted comments on the draft plan through May 3, 2018.

Phased program approach

DEQ plans a phased approach for North Carolina’s $92 million allocation, and will seek additional input and make changes as needed between phases. This plan addresses Phase 1 (2018-2020) only.

The first phase of funding represents the beginning step in achieving our multi-year goals for the program. The proposed three phases of funding are:

• Phase 1: $30.68 million (33% of overall funds) – 2018 – 2020
• Phase 2: $30.68 million (33% of overall funds) – 2020 – 2022
• Phase 3: $30.68 million (33% of overall funds) – 2022 – 2024

For Phase 1, eligible public projects include:

• projects submitted by local, state, and tribal government organizations,
• projects submitted by public or private nonprofit organizations,
• projects submitted by public-private partnerships where the lead applicant represents a public sector, public or private nonprofit entity, and
• both public and private projects will be eligible for the light-duty ZEV infrastructure program.

VW Town Hall Meetings 

The DEQ held five public stakeholders meetings across the state to discuss the VW Settlement and the draft Mitigation Plan and provide an opportunity for the public to provide input. The meetings were open to the public and were held in: Asheville (March 26), Kannapolis (March 27), Kinston (April 16), Durham (April 17), and Wilmington (April 20). The Durham meeting was video taped to allow those that could not attend to see what was presented.

Presentations:  
Volkswagen 101
Volkswagen Mitigation Draft Plan

 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.

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: