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 two phases, so DEQ can seek additional input and make changes as needed along the way. In Phase 1, nearly $30 million was awarded for projects across North Carolina. In Phase 2, the state plans to invest the remaining $67 million in additional projects. Vehicle.