VW Settlement and Clean Transportation

*VW FUNDING UPDATE: Schools in Cook County, IL can now apply for the $ 1million the Illinois EPA designated for electric school bus pilots this fall. Applications are due October 15. CLICK HERE for our step-by-step guide on how to apply for funding! 


Volkswagen (VW) violated the Clean Air Act by selling ~590,000 diesel cars model year 2009-2016 equipped with “defeat devices” designed to cheat on federal emissions tests. This resulted in over 40,400 tons of excess NOx emissions.

EPA and others sued Volkswagen for violating the Clean Air Act. The state-administered Environmental Mitigation Trust settlement provides $2.7 billion for air pollution mitigation projects.

Under the Environmental Mitigation Trust, Midwest states stand to receive more than $438 million for local air quality efforts, including electric vehicle infrastructure and air quality mitigation efforts (targeting vehicle and equipment upgrades). The Mitigation Trust creates a unique opportunity and obligation for Midwest states to modernize public vehicle fleets and infrastructure, reduce harmful air pollution, and stimulate economic development across the region.

ELPC is advocating for high-impact opportunities to use the Mitigation Trust money to drive the electric vehicle market forward in the Midwest. These include:

  • Maximizing the allowable 15% of funds for light-duty electric vehicle infrastructure and prioritizing investment in electric vehicle fast-chargers along the Midwest’s National Charging Corridor highways.
  • Investing the remaining 85% of funds in electric vehicle upgrades for large, public fleets that operate in densely-populated areas, such as school and transit buses

VW Mitigation Fund Allocations for the Midwest States

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