Volkswagen Settlement and Grant Funding for Clean Transportation Projects

A $14.7 billion settlement resulting from Volkswagen’s use of “defeat devices” in their 2.0 Liter diesel vehicles will be a boon for many types of cleaner vehicles and equipment, yet questions still abound:

  • What will the funds be used for?
  • When can I apply?
  • What types of projects will be eligible?
  • What can I do if my projects isn’t on the approved technologies list?

CleanFuture can answer these questions and provide insights on how to improve your chances of securing a portion of these funds.

What does the settlement cover?

Volkswagen must commit funds to three programs designed to remedy Volkswagen car owners and offset NOx emissions from the offending vehicles:

  • $10 billion to Volkswagen car owners and lessees to recall, replace, or repair their cars;
  • $2 billion to install ZEV infrastructure, increase public access, and create education programs; and
  • $2.7 billion to fund grants to mitgate diesel emissions for the purchase new trucks, buses, vessels, locomotives, and other non-road equipment.

When will the funds be available?

Many hurdles still remain to be cleared. This includes designation of the Trustee, who will be responsible for managing the $2.7 billion Environmental Mitigation Trust, and the selection of each state’s Beneficiary, the state-level agency to design the grant programs to distribute the settlement funds.

What types of projects are eligible?

The Department of Justice created a menu of options for states and tribes to choose from. This includes medium- and heavy-duty trucks, school and transit buses, locomotives, ferries and tugboats, marine shore power, airport equipment, large forklifts, and ZEV supply equipment.

What if my project of interest is not eligibile?

CleanFuture can help you with state agency and other Beneficiaries to get your preferred clean diesel technology included in your state’s mitigation plan.

How much funding can I get?

Each state decides funding levels and program criteria. Anyone hoping for funding should start now to work with state agencies. This is especially important because states will decide how much funding may be available for each type of vehicle or equipment.

Lean more about our Grant Writing & Funding Development services.

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