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Volkswagen Settlement Information

DEQ administers over $93 million in the Volkswagen Environmental Mitigation Trust (Trust) to reduce air pollution in Virginia. The Trust is the result of settlements resolving allegations that Volkswagen violated the Clean Air Act through the use of emission testing defeat devices designed to cheat on federal emissions tests. Under the settlement, Volkswagen is required to establish a $2.95 billion environmental mitigation trust that is administered by states, territories, and the District of Columbia.

Over 500,000 excessively polluting vehicles were sold in the U.S. More than t 16,000 were sold in Virginia, and produced over 2,000 tons of excess nitrogen oxides (NOx) in violation of federal pollution standards.

DEQ administers the Trust through a state Beneficiary Mitigation Plan (Plan). The overall goal of the Plan is to protect human health and the environment by mitigating the excessive NOx and other are pollutants caused by the defeat devices.

Implementation of Eligible Mitigation Actions

Virginia VW Mitigation Expenditures

piggy bank Eligible Mitigation Action Administrative Expenditures

Virginia may use Trust funds for actual administrative expenditures associated with implementing any eligible mitigation action, but not to exceed 15% of the total cost of such action. The 15% cap includes the aggregated amount of eligible administrative expenditures incurred by Virginia and any third-party.

Virginia has capped administrative expenditures at 5% allowing more Trust funds to be spent on actual mitigation actions.

EV_charger Statewide Public EV Charging Network

In August 2018, DEQ awarded a contract to EVgo to develop a statewide public electric vehicle (EV) charging network to accelerate EV adoption.  This network will:

  • Complement existing and other large-scale deployments of charging infrastructure underway maximizing the Commonwealth’s investment.
  • Prioritize high-powered direct current (DC) fast charger deployment along heavily traveled corridors and metropolitan areas, while ensuring charging accessibility across the entire state.
  • Ensure redundancy and will be designed to accommodate additional chargers and/or power.
  • Be developed over three (3) one (1)-year investment cycles.
  • Increase the number of fast charging ports by more than 370% and level two (L2) ports by more than 30%. 


green_bus All-Electric Public Transit Buses

$14 million of the Trust has been allocated to replace older diesel public transit buses with all-electric transit buses through a new Clean Transportation Voucher Program implemented through the Department of Rail and Public Transportation’s annual public transportation capital grant cycle known as MERIT. The goal of the program is to provide funding to cover the incremental cost of transitioning from diesel buses to all-electric buses.

During the fiscal year 2020 grant cycle 9, $9 million of VW Trust funds were awarded to Alexandria, Blacksburg, and Hampton Roads for the replacement of old diesel public transit buses with all-electric buses. The $9 million from the VW Trust will be augmented by $3.5 million from the statewide transit capital program, as well as another $6.5 million in federal and local funds.

The remaining $5 million will be made available for all-electric public transit buses through next fiscal year’s transit grant cycle, which will open on December 1, 2019.

Clean School Bus ProgramClean School Bus Program

Approximately 99 percent of the Virginia’s public school bus fleet is diesel; of which: More than 3,500 diesel buses operating in Virginia are model year 2006 or older, and more than 500 of these buses run on the dirtiest unregulated engines prior to the first EPA diesel standards (pre-1998 MY). These pollutants contribute to climate change and a variety of known health impacts, including, lung cancer, asthma and even autism. Children, including children riding on school busses, are among the most vulnerable to the health effects of diesel pollution. Concerns about the effects of diesel exhaust on children’s health are particularly troubling since millions of children spend considerable time each day on diesel buses, and many more attend schools where diesel buses pick up and drop off passengers and often idle with their engines running.

Virginia has dedicated $20 million in VW Trust funds to accelerate the deployment of cleaner school buses across Virginia’s public school districts. This funding allocation will prioritize electric school buses with a small reserve set aside to be used for propane school buses under certain conditions to replace the oldest and most pollution buses and where an electric school bus is not practicable as a replacement. Funding will be distributed by DEQ through a competitive application process administered in partnership with the Department of Education and which will open in February or early March, 2020.

question_mark To Be Determined

Allocation of the remaining Trust funding for the implementation of additional eligible mitigation actions will be informed by the public process undertaken during the development of Virginia’s Plan.  If future revisions to the Plan are necessary, DEQ intends to seek public input on them. Questions and suggestions can be submitted to vwmitigation@deq.virginia.gov.

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Virginia Department of
Environmental Quality
P.O. Box 1105
Richmond, VA 23218
(804) 698-4000


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