Final Beneficiary Plan Overview
The beneficiary mitigation plan is structured in three phases, so DEQ can seek additional input and make changes as needed along the way. This plan addresses Phase 1 (2018 - 2020) only. DEQ plans to invest 33% of the overall funds ($30.68 million) during this period. Based on the distribution of violating vehicles registered across the state, DEQ plans to allocate the funds between urban/suburban counties (68%) and rural counties (32%). DEQ will submit requests to the Trustee of the Environmental Mitigation Trust to use funds for eligible projects throughout the state that will reduce or eliminate emissions of NOx focusing on the most cost-effective projects, the quantity of NOx emission reductions and other factors. Project funding will be awarded through a competitive process in accordance with North Carolina General Statutes.
DEQ will manage the VW settlement funds through five programs:
* School Bus Replacement Program 40% or $12.3 million
* Transit Bus Replacement Program 20% or $6.1 million
* Clean Heavy Duty On-Road Equipment Program 10% or $3 million
* Clean Heavy Duty Off Road Equipment Program 10% or $3 million
* EV Light Duty Infrastructure 15% or $4.6 million
* Administrative Costs 5% or $1.5 million
Funding Opportunity Deadline May 2, 2022
The North Carolina Department of Environmental Quality plans to award $13.5 million in Volkswagen funds for the Transit & Shuttle Bus Program to replace older diesel transit and shuttle buses. Additionally, approximately $6 million has been allocated by the North Carolina Department of Transportation (NCDOT) for electric buses in Congestion Mitigation and Air Quality (CMAQ) Improvement Program eligible counties. CMAQ funding will be limited to 80% of the incremental cost of an electric replacement bus over the equivalent diesel replacement bus, with the remaining 20% of the incremental cost covered by NC VW Settlement Phase 2 funding. All applications must be submitted on the DAQ Grant Management System (GMS) website, at https://www.ebs.nc.gov/irj/portal, no later than 11:59 p.m. Eastern Daylight Time on May 2, 2022.
Transit & Shuttle Bus Program Applicant Webinar: A webinar on the Transit & Shuttle Bus Program Request for Proposals is scheduled for February 17, 2022, from 10AM to 12PM, for interested stakeholders and applicants. During this webinar, staff will discuss the RFP and the requirements, answer and questions regarding the Transit & Shuttle Bus Program Request for Proposals and the application. This webinar is for applicants interested in submitting applications for the Transit & Shuttle Bus Program only. Registration is required to participate in this webinar. Click the following WebEx link to complete the necessary registration for the event: Webinar Registration.
DAQ Grants Management System Webinar: A webinar on how to request access the DAQ Grants Management System is scheduled for February 8, 2022, from 9AM to 11AM, for applicants who do not have access to the system. During this webinar, staff will discuss the documents required to request access to the DAQ Grants Management System, how to use the built-in tutorials once access is granted and how to submit an application. Registration is required to participate in this webinar. Current users with access are not required to attend but may attend for a refresher on the system. Click the following WebEx link to complete the necessary registration for the event: DAQ Webinar
For more details on this funding opportunity go HERE.
SB99 (2018) requires legislative appropriations before VW Settlement Funds can be used to fund projects. Status: Conference Committee Report agreed to by both Houses as of 6/1/18.
SB257 (2017) requires coordination by agencies and submission of Environmental Mitigation Plan to legislature before any funds can be expended; both houses agree to Conference Report as of 6/22/17; Vetoed 6/27/17; veto overridden by legislature 6/28/17.