Final Plan - Summary Details

On May 10, 2018, the Department of Environmental Protection issued a final Beneficiary Mitigation Plan (BMP).  The BMP allocates the state's $118.5 million in VW Settlement Funding as follows with anticipated timing of funding announcements:

* Ferries, Tugs, Freight Switchers - $34.1 million; Fall 2018
* Medium Duty Trucks, Port Drayage Trucks, School Buses and Shuttle Buses - $29.9 million; Summer 2018
* DERA - $8.9 million; Opened May 19, 2018
* Ground Service Equipment, Forklifts, Port Cargo - $5.9 million; Fall 2018
* Heavy Duty Trucks and Transit Buses - $16.1 million; Summer 2018
* Ocean Going Shorepower - $5.9 million; Summer 2018
* ZEV Supply Equipment Grants/Rebates - $17.7 million

Funding Opportunities 

The state’s VW Settlement funding effort is part of a new program called Driving PA Forward.  Information on funding opportunities can be found on the new website:  Details provided below. 


Funding Opportunity Class 4 - 8 Local Freight Trucks and Bus $3 Million Grant Program $3 Million - Deadline 11/13/2020.  This grant program includes grant funding for local freight trucks and buses, specifically Model Years 1992 - 2009 Class 4-8 Local Freight Trucks (incl. drayage), and Model Year 2009 and older School Buses, Shuttle Buses, and Transit Buses.  The rebate program also highlighted below appears to be structured very similarly. However, the grant program appears to be limited to fleets that operate 6 or more vehicles.  The funding notice indicates that multiple projects may be funded from the total available and partial funding is possible. The maximum award per applicant is $1,500,000.  The Maximum reimbursement rates are defined in program guidelines.  The program opened for applications on October 2 and the deadline for applications is November 13, 2020.  For more information, view the Program Guidelines

Funding Opportunity Class 4 - 8 Truck & Bus $6.4 Million Rebate Program - Deadline 12/31/2020. The Department of Environmental Protection (Department) a $6.4 million first-come, first-served rebate funding opportunity for the Onroad Rebate Program (Program), one of the programs under the Driving PA Forward Initiative. This funding is available for diesel vehicle replacement and repower projects involving eligible diesel-powered Class 4-8 trucks, school buses, shuttle buses or transit buses. The new vehicles or engines may be powered by natural gas, clean diesel, full electric or other alternative fuels.  Eligible applicants include school districts, municipal authorities, political subdivisions, other State agencies, nonprofit entities, corporations, limited liability companies or partnerships incorporated or registered in this Commonwealth, air quality or transportation organizations, and metropolitan or rural planning organizations.  The Department will not reimburse rebate recipients for project costs incurred prior to the date of the rebate application, unless otherwise noted. The Program guidelines and application instructions are available on the Department's Driving PA Forward web site at  A recorded presentation providing an overview of the Program and application process will be available on the Department's Driving PA Forward web site during the application period. Applicants can contact the Bureau of Air Quality at or (717) 787-9495 with questions or to request clarification about the presentation or Program documents. All applications must be submitted online through the Commonwealth's Electronic Single Application web site at The Department is now accepting applications. The application period will not close, but the Department will reevaluate the Program requirements and rebate levels following the issuance of $ 6.4 million in vouchers, or by December 31, 2020, whichever occurs first. The Department will accept, review and approve applications for rebates on a first-come, first-served basis.

This program opened for applications on October 2, 2020. Application will remain open through December 2020 or until all funds have been committed.

Comment Letter

Member Support

Webinars, Meetings, Workshops


Legislative Proposals

SB 722. Directs how VW Settlement Funds are to be used: (1) majority of funding should go to optional low-NOx certified engines or vehicles and zero emission vehicles; (2) no more than 25 percent funding is to be provided for the cost of private fleet to purchase replacement vehicles, (3) cap of $50,000 for replacement costs; and, (4) no more than 20 percent of available funds are to be used for public or governmental fleets. Status: to Environmental Resources and Energy.