2026 Volkswagen Environmental Mitigation Trust Eligible Mitigation Actions Request for Applications

2026 Volkswagen Environmental Mitigation Trust Eligible Mitigation Actions Request for Applications is sponsored by Vermont Department of Environmental Conservation. Funds replacement or repower of eligible older diesel vehicles/equipment (Class 4-8 trucks, buses, forklifts, etc.) with all-electric/zero-emission alternatives for fleets operating primarily in Vermont. Directly supports automotive fleet upgrades for small businesses.

VW Environmental Mitigation Funds | Department of Environmental Conservation Administration and Innovation Air Pollutants and Health Air Quality Data (Real-Time) Point Source Registration Publications and Resources Regional Greenhouse Gas Initiative VW Environmental Mitigation Funds Drinking Water and Groundwater Environmental Enforcement Waste Management and Prevention Permits and Certifications Village Wastewater Solutions Initiative Agency of Natural Resources VW Environmental Mitigation Funds The Vermont Department of Environmental Conservation (DEC) has issued a Request for Applications and is now accepting applications for vehicle and equipment electrification projects.

For more information, please visit the Request for Applications page . Vermont's Volkswagen Mitigation Trust Funds Welcome to Vermont's VW Mitigation Trust page. This page provides basic information about the VW Mitigation Trust and how Vermont's Trust allocation can be used.

Our Beneficiary Mitigation Plan (BMP), which includes project priorities, can be found below. Please check this page often for updates on the status of the Mitigation Trust, additional information, and specific areas where the State of Vermont is seeking input. Use the email contact, anr.

decvwmitigation@vermont. gov , to submit your contact information so that we can add your name to a distribution list for updates and information. Thank you for your interest and participation.

On June 28, 2016, the U.S. Department of Justice filed with the U.S. District Court, Northern District of California, a settlement that partially resolves claims that Volkswagen (VW) violated the Clean Air Act by the sale of approximately 500,000 vehicles containing 2. 0 liter diesel engines equipped with devices designed to defeat emission controls.

On October 25, 2016, the Court approved the partial settlement and entered a partial Consent Decree requiring VW to: buy back or modify emission controls on at least 85 percent of the subject vehicles, invest $2 billion to promote the use of zero emission vehicles and infrastructure, and establish and fund a $2. 7 billion environmental mitigation trust (EMT). In late December of 2016, a settlement involving similar claims for 83,000 3.

0 liter diesel engines equipped with defeat devices was reached, which includes an additional $225 million towards the environmental mitigation trust. Vermont’s allocation of the EMT is $18. 7 million.

The Trust Effective Date for the EMT occurred on October 2, 2017, triggering the requirement for all beneficiaries of the EMT, including Vermont, to submit a Beneficiary Certification Form. This requirement was completed on November 1, 2017 and the VW Trustee certified Vermont as a Beneficiary on January 31, 2018.

Beneficiary Mitigation Plan Availability of funds from the Volkswagen Mitigation Trust depends on the requirement that Vermont submit a Beneficiary Mitigation Plan to the Trustee.

Per the terms of the Mitigation Trust Agreement, the Vermont Agency of Natural Resources through the Department of Environmental Conservation (DEC) has sought public input on a draft Beneficiary Mitigation Plan that proposes how to best utilize the funds to meet the purpose of the Trust. Vermont's final Beneficiary Mitigation Plan is now available and was submitted to the VW Trustee on May 29, 2018.

Note that the BMP is subject to change, as described above, should goals or priorities need to change to adapt to eligible mitigation project interest, funding and feasibility. In the event that any major components of the finalized BMP are amended, those amendments will be submitted to the EMT Trustee and will be made available to the public. View Vermont's Revise d Beneficiary Mitigation Plan .

Overall goals for use of the Environmental Mitigation Trust allocation are as follows: REDUCE NOx emissions from mobile sources, eligible for replacement or repower, in the most cost-effective way possible; DEMONSTRATE the feasibility of all-electric or other NOx mitigating alternatively fueled heavy-duty and transit vehicles and begin to catalyze market transformation; and MAXIMIZE public and private investment in electric vehicle charging infrastructure.

The Partial Consent Decree requires public engagement in the development of the BMP prior to its submittal to the Trustee.

Therefore, DEC held a public comment period to seek comments related to the required elements of the BMP, including how to utilize Vermont’s funding allocation to meet the purpose of the EMT as stated in Appendix D, which is to be used to fund “environmental mitigation projects that reduce emissions of NOx” where affected VW vehicle were, are, or will be operated.

DEC also sought comments on the Proposed Funding Priorities listed in Section 1 of the proposed BMP, with the intent that these priorities may be used to inform the project prioritization and selection criteria for proposed projects to be funded from Vermont’s allocation of the EMT. On May 29, 2018, DEC released a Responsiveness Summary to address public written and verbal comments received during the public comment period.

Public Informational Meetings On December 13, 2017, DEC held a public meeting to provide information on the eligible mitigation projects and the process associated with Vermont’s allocation of the EMT, and to accept public comments on the Proposed BMP. For more information, please view the presentation provided during the public meeting and video of the public meeting provided by ORCA Media.

Although the formal public comment period is closed, you can always use the email contact, anr. decvwmitigation@vermont. gov , to submit your contact information so that we can add your name to a distribution list for updates and information.

NEW! The Vermont Department of Environmental Conservation (DEC) has issued a Request for Applications and is now accepting applications for vehicle and equipment electrification projects. For more information, please visit the Request for Applications page .

Details regarding past and ongoing projects are provided below. Vermont's Electric School & Transit Bus Pilot Program Based in part on input from the public, other state agencies and the legislature, DEC directed $4 million from Vermont’s allocation of the EMT to an electric school and transit bus pilot program.

The goals of the pilot were to evaluate: the feasibility and cost-effectiveness of electric buses and electric vehicle supply equipment (EVSE) operating under conditions comparable to conventional diesel-powered buses (i.e., year-round under a full range of route conditions and settings, such as rural and urban routes) in the state; as well as quantify the reduction in NOx and greenhouse gas emissions as described in the state’s BMP.

Findings from the pilot will be used to encourage and inform future electric bus purchases by Vermont transit agencies, school districts, and school bus contractors operating in Vermont. The Vermont DEC contracted with VEIC to administer the pilot program on behalf of the state.

Four Project Partners, participating in the pilot and listed below, sought proposals from prospective vendors for the purchase of 8 electric buses: 6 school buses and 2 transit buses during the summer/fall of 2020. The first electric buses began arriving in summer of 2021, and data collection for the pilot concluded in spring of 2023.

School District Project Partners: Barre Unified Union School District in partnership with Student Transportation of America: $511,900 towards 2 Electric Lion Type C School Buses and associated charging equipment Champlain Valley School District: $512,435 towards 2 Electric Lion Type C School Buses and associated charging equipment Franklin West Supervisory Union: $535,620 towards 2 Electric Blue Bird Type C School Buses and associated charging equipment Transit Agency Project Partner: Marble Valley Regional Transit District: $1,492,980 towards 2 Electric Gillig Transit Buses and associated charging equipment The final report is now available!

Vermont Electric School and Transit Bus Pilot Program Report June 12, 2019 Press Release December 19, 2019 Press Release April 18, 2022 Press Release July 7, 2020 Request for Proposals Pilot Program Frequently Asked Questions Document School Bus Emissions & Upgrades Fact Sheet For more information, please contact Leigh Martin at leigh. martin@vermont. gov .

2020 Request for Proposals The Vermont Department of Environmental Conservation (DEC) previously sought proposals in the fall of 2020 for electric replacement or repower (engine replacement) projects for all eligible mitigation actions under the EMT. Applications were due November 3, 2020, and grant agreements were negotiated with selected applicants, listed below. Replacement vehicle deliveries began in 2022 and are still ongoing.

Highland Electric Fleets in partnership with South Burlington School District: $965,000 towards 4 Electric Thomas Type C School Buses Casella Waste Services: $1,086,123 towards 1 Electric Mack Class 8 Refuse Hauler, 1 Electric Battle Motors Class 8 Refuse Hauler, and associated charging equipment Burlington Electric Department: $560,000 towards 1 Electric Terex Class 8 Bucket Truck and associated charging equipment Green Mountain Power: $914,556 towards 1 Electric Battle Motors Class 8 Bucket Truck and 1 Electric Lion Class 6 Stake Truck 2022 Memorandum of Agreement In December 2022, DEC entered into a Memorandum of Agreement with the Vermont Agency of Transportation (VTrans), allocating over $2 million towards the State’s transportation electrification efforts in the public transit sector.

VTrans has applied for federal assistance through the Federal Transit Administration’s Low or No Emission Bus and Bus Facility Grant Program to replace 17 diesel transit buses with electric models and intends to use Volkswagen EMT funding towards the required local cost share. More information will be provided as this project continues to develop.

2024 Request for Proposals In October 2024, DEC issued a Request for Proposals for eligible bus and truck electrification projects under the EMT. Applications were due December 9, 2024, and grant agreements were executed with selected applicants, listed below. Electric replacement projects are expected to occur over the next 1-2 years.

Burlington Electric Department: $563,917 towards a Class 8 electric bucket truck and associated charging equipment Church Hill Landscaping, Inc.: $244,794 towards a Class 6 electric box truck and associated charging equipment Food Connects, Inc.: $354,253 towards a Class 7 electric box truck and a associated charging equipment Green Mountain Power: $712,500 towards a Class 8 digger derrick truck and associated charging equipment Rhino Foods, Inc.: $279,381 towards an electric yard truck and its associated charging equipment Vermont's Electric Vehicle Supply Equipment Grant Program The Vermont Agency of Commerce and Community Development administers Vermont's Electric Vehicle Supply Equipment Grant Program and to support the purchase and installation of Level 2 and DC fast charging stations in Vermont, over $1 million in EMT funding was awarded in 2019 over two grant rounds.

In 2020, a third grant round, focusing on expanding Vermont's DC fast charging network, was announced in the Governor's February 22, 2021 Press Release . General information regarding the grant program can be found on the Vermont Electric Vehicle Supply Equipment Grant Program website .

The program is administered by the Vermont Department of Housing and Community Development in coordination with the Vermont Agency of Natural Resources, the Agency of Transportation, the Public Service Department, Department of Building and General Services, and the Department of Health.

​ For additional information including Vermont's semi-annual reports and funding requests as well as documentation from the Trustee, please visit Vermont's State Trust Overview page. What is the purpose of the VW Environmental Mitigation Trust?

The purpose of the environmental mitigation trust is to fund eligible mitigation actions that replace mobile diesel emission sources with cleaner technology to mitigate the harm caused by the excess nitrogen oxides (NOx) emitted by the affected VW vehicles. The partial settlement is structured to provide jurisdictions with the ability to select and implement eligible mitigation actions funded by the mitigation trust.

The trust will be administered by an independent trustee appointed by the court, Wilmington Trust. Vermont was certified as a beneficiary of the trust January 31, 2018. Beneficiaries will have 10 years to request their allocation and implement mitigation actions.

What is Vermont doing to prepare for its Mitigation Trust allocation? The Agency of Natural Resources (ANR), of behalf of Vermont, having jurisdiction over air quality and vehicle/equipment emissions, has been delegated the authority to administer the Trust on behalf of Vermont. Vermont is required to develop and submit a Beneficiary Mitigation Plan to the appointed Trustee of the Environmental Mitigation Trust.

ANR’s Air Quality and Climate Division has extensive experience providing technical assistance and incentive funding for projects that reduce diesel emissions from engines, vehicles, and equipment in Vermont with the goals of reducing public exposure to emissions from diesel-powered engines and the associated risks to public health and the environment.

As a beneficiary of the Trust, Vermont’s primary responsibility will be to ensure maximum NOx reductions with Vermont’s allocated share of the mitigation trust fund, approximately $18. 7 million. What actions are eligible for funding under the environmental mitigation trust?

The Mitigation Trust Agreement provides specific parameters for the beneficiaries’ use of the Mitigation Trust.

Eligible actions applicable to Vermont include repowering or replacing certain heavy duty diesel trucks, buses, and locomotives, repowering of certain vessels, repowering or replacing certain forklifts and airport ground support equipment, and installation of electric recharging and/or hydrogen refueling infrastructure for light-duty zero emission vehicles.

Vehicles or engines being replaced must be scrapped to achieve the intended emissions reductions, and are limited by type of use and model year range. Further detail on these eligible mitigation actions is provided in the Eligible Mitigation Actions Summary table. How will eligible projects be implemented?

The Environmental Mitigation Trust Agreement requires Vermont to develop and submit a Beneficiary Mitigation Plan that explains how Vermont will implement its Mitigation Trust Allocation.

The plan: explains the overall goal for the use of the trust funds, identifies the NOx reductions expected to be achieved, lists the categories of eligible projects intended for implementation, and explains how benefits to air quality in communities with a disproportionate air pollution burden will be considered.

Vermont has developed a Beneficiary Mitigation Plan, which describes the eligible potential uses of the mitigation funds as well as prioritizing mitigation project selection.

Project selection criteria will be developed for use in a future Request for Proposals (RFP) and will include consideration of the overall goals for use of Vermont’s Environmental Mitigation Trust Allocation, and several project priorities (e.g., project readiness, duration, cost, etc.) necessary to ensure effective and timely use of the mitigation trust funds.

Funding will be available for eligible mitigation actions in 2018, and will continue at least into 2027. Following is an estimated schedule of important milestones relating to the VW environmental mitigation trust. OCT.

2016 | Court Approval of Settlement - On October 25, 2016, the Court approved the partial settlement and entered a partial Consent Decree requiring VW to establish and fund the environmental mitigation trust. OCT. 2017 | Trust Effective Date - The Trust Effective Date occurred on October 2, 2017, when the final mitigation trust agreement was signed by the parties and filed with the court.

All subsequent dates are dependent on the Trust Effective Date. DEC. 2017 | Filing of Beneficiary Certification Form - Vermont filed a Beneficiary Certification Form on November 2, 2017.

JAN. 2018 | Trustee Designation of Beneficiaries - The Trustee designated Vermont as a beneficiary of the Trust on January 31, 2018. SPRING 2018 | Beneficiary Mitigation Plan - 30 days before submitting its first funding request, Vermont must submit a Beneficiary Mitigation Plan to the Trustee, detailing the intended uses of Vermont’s allocated share of the mitigation trust.

Vermont submitted the Beneficiary Mitigation Plan to the Trustee on May 29, 2018. MAY 2018 | Request for Information - ANR released an RFI on May 29, 2018 to seek information regarding an electric school and transit bus pilot program. Responses are due by June 26, 2018.

FALL 2018 | EVSE Grant Program - The State Interagency Working Group implements a funding program for eligible electric vehicle supply equipment to be administered by the Department of Housing and Community Development (DHCD). FALL 2018 | Request for Proposals - DEC sought proposals for the administration of an electric school and transit bus pilot program to be implemented in 2019.

JUNE 2019 | Electric School & Transit Bus Pilot - DEC announces details of an electric school and transit bus pilot program to be implemented in 2019. 2019 | EVSE Grant Program - DHCD, working with the State Interagency Working Group, issues over $1 million in EMT funds over two grant rounds for level 2 and DC fast charging stations across the state.

2020 | Electric School & Transit Bus Pilot - Schools and transit agency selected electric bus vehicle and equipment vendors and orders were placed. FEB. 2021 | EVSE Grant Program - DHCD, working with the State Interagency Working Group, awards $1.

7 million in EMT funds to Blink to install eleven (11) DC fast charging stations along highway corridors in Vermont. SPRING 2021 | Funding Available for Eligible Mitigation Actions - Following development of an application process, and solicitation and review of applications in 2020, approximately $3.

5 million in funding was awarded in 2021 for eligible mitigation actions to replace diesel-powered bucket trucks, a rack truck, refuse haulers, and school buses with electric models. Fall 2021 | Electric School & Transit Bus Pilot - Electric buses begin to arrive in Vermont and are put on the roads.

2022 | Electric Vehicles Arrive - As a result of the previous RFP in 2020/2021, electric refuse haulers, rack truck and additional school buses begin arriving and operating in Vermont. DEC. 2022 | Memorandum of Agreement on Electric Transit Buses - DEC and VTrans enter into an agreement to use approximately $2 million in EMT funds toward the replacement of 17 diesel-powered transit buses with electric buses.

July 2023 | Electric School & Transit Bus Pilot - The pilot wrapped up earlier in the spring and a final report detailing findings and best practices is issued. Life of Mitigation Trust - Vermont will have 10 years to spend at least 80% of the funds allocated to it under the Trust.

If Vermont does not meet this deadline, any remaining funds will revert to the Trust to be redistributed to beneficiaries that used 80% or more of their allocation within 10 years. If Vermont uses 80% or more of its allocation within 10 years, it will be eligible for redistributed funds from other states that did not meet this deadline. Vermont will then have 5 additional years to use this supplemental funding.