Volkswagen Partial Settlement Funding Opportunity

In late 2015, the U.S. EPA found Volkswagen was purposely cheating emission standards on a number of their light duty diesel vehicles.  Volkswagen was eventually required to pay $15 billion to buy back these vehicles and provide funding for diesel emission mitigation projects throughout the United States.  This created a funding opportunity (under the Environmental Mitigation Trust) for interested parties to seek partial to full funding for the replacement or retrofit of various medium and heavy duty diesel vehicles.  Funding also exists for electric vehicle charging for light duty vehicles.

In Ohio, the Ohio EPA serves as the state's beneficiary in overseeing the funding award to local fleets and organizations, with priority on low air quality areas.


Eligible Projects

What's Covered

Funding Allocation

  • Class 8 local freight trucks and port drayage trucks

  • Class 4-8 school buses, shuttle buses or transit buses

  • Class 4-7 local freight trucks

  • Pre-Tier 4 diesel switcher locomotives

  • Repower or upgrade of eligible diesel-powered ferries and tugs

  • Shorepower equipment for oceangoing vessels and vessels operating within the Great Lakes

  • Repower or replacement of eligible diesel-powered airport ground support equipment with all-electric forms

  • Repower or replacement of eligible forklifts and port cargo handling equipment with all-electric forms

  • Light duty zero emission vehicle supply equipment

  • Matching funds for Ohio EPA’s state allocation of funding under the Diesel Emission Reduction Act (DERA).


Q & A's

Q: Am I eligible to apply if I have received previous federal or state grant fund?

A: Yes, all eligible parties are welcome to apply to the VW Settlement Grant.

Q: Are alternative fuels eligible for application?

A: Yes. New diesel and alternative fuel engines/vehicles are eligible for respective projects.

Q: How soon will funding be available?

A: Anticipated Q1 2018

Q: Do I need to be located in a CMAQ area?

A: While technically not, the Ohio EPA anticipates prioritizing low air quality areas, such as CMAQ-eligible areas.

Q: What vehicle class do I have?

A: Vehicle class is based on gross vehicle weight rating (GVWR).  Click here for a chart description.


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