North Carolina


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 July 1 - Sept. 30, 2019

Approximately $24.5 million of the $30.7 million will be available in Phase 1 for Diesel Bus and Vehicle Programs as shown below: 

  • 40% (approx. $12.2 million) to be spent on school bus replacements
  • 20% (approx. $6 million) designated for transit bus replacements  
  • 10% for heavy-duty on-road equipment replacement projects
  • 10% for heavy-duty off-road equipment replacement projects

Eligibility:  Phase 1 funding will focus on public sector needs.  Eligible projects can be submitted by:

  • local, state and tribal government organizations,
  • public or private nonprofit organizations, and
  • public/private partnerships where the lead applicant represents a public sector or a public or private non-profit. 

The full details of the RFP are available: HERE.  Applications will be available on July 1, 2019 when the funding opportunity opens.

Comment Letter

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