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The final project funding application opportunity from the Volkswagen Environmental Mitigation Trust program closed on September 13, 2024.

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On October 25, 2016, a Partial Settlement and Consent Decree was finalized between the US Department of Justice and the Volkswagen Corporation (VW) regarding the installation and use of emissions testing defeat devices in over 500,000 VW vehicles sold and operated in the United States beginning in 2009. These devices violated the federal Clean Air Act and increased air emissions of the pollutant nitrogen oxide (NO_x).

An environmental mitigation trust (trust) has been established as part of the consent decree to provide funds to the states to mitigate the negative air quality impacts of the violations. With the addition of the 3.0 liter vehicle settlement funds, North Dakota’s share of the trust will be up to $8.1 million dollars. The trust establishes a process for states to receive the funds and develop environmental mitigation plans. The trust also identifies the mitigation “actions” or projects that will be eligible for funding.

The Governor’s Office has appointed the North Dakota Department of Environmental Quality (NDDEQ) as the lead agency for the purposes of administrating the Volkswagen Settlement's environmental mitigation trust for the State of North Dakota.

Please Note: In order to receive news releases related to the Volkswagen Settlement, you may sign up for email notifications: here.

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The NDDEQ received 6 applications for Volkswagen Settlement funding during the fourth application period (Year 4)—all for school bus replacement projects. Awards have been accepted by 4 applicants for the replacement of 4 school buses.

The NDDEQ received 34 applications for Volkswagen Settlement funding during the third application period (Year 3)—all for vehicle replacement projects. Awards have been accepted by 28 applicants for the replacement of 6 large trucks, 20 school buses, and 2 medium trucks.

The NDDEQ received 23 applications for Volkswagen Settlement funding during the second application period (Year 2)—all for vehicle replacement projects. Awards have been accepted by 20 applicants for the replacement of 15 school buses and 10 medium/large trucks.

The NDDEQ received 36 applications for Volkswagen Settlement funding during the first application period -- 17 for vehicle replacement projects and 19 for electric vehicle charging station projects. Awards have been accepted by 12 applicants for vehicle replacement projects and 10 applicants for electric vehicle charging station projects.

On August 9, 2019, the NDDEQ submitted North Dakota’s environmental mitigation plan to Wilmington Trust (Trustee) for the Volkswagen Settlement. The plan incorporated the input received during the prior public comment periods and meetings. As outlined in the settlement, the mitigation plan is non-binding and may be revised as necessary to meet a state’s needs. Revisions to the plan may be accomplished through required public notification and communication with the Trustee.

The North Dakota Department of Environmental Quality (NDDEQ) was officially established effective April 29, 2019. During the 2017 legislative session, lawmakers passed Senate Bill 2327, separating the Environmental Health Section from the North Dakota Department of Health (NDDoH) to create the NDDEQ. Due to the change, the NDDEQ has submitted a revised Certification for Beneficiary Status form (D–3) and completed the steps needed to be named the beneficiary for North Dakota. The form is posted in the Documents Section below.

The NDDoH held a public comment period to help finalize the mitigation plan. The 45-day comment period began July 17 and ended August 31, 2018.

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In addition to the public comment period, public meetings were held in Fargo on July 30, 2018 and in Bismarck on July 31, 2018.

On January 29, 2018, the Trustee for the Volkswagen Settlement (Wilmington Trust) filed a Notice of Beneficiary Designation for North Dakota and all other entities that submitted a Certification for Beneficiary Status form to the Trustee. The Notice of Beneficiary Designation is posted in the Documents Section below.

The NDDoH has submitted the information to the Court and settlement Trustee to officially be named the beneficiary for the State of North Dakota. The Certification for Beneficiary Status form (D-3) signed by the Governor, Attorney General and State Health Officer, was submitted on November 21, 2017. The form is posted in the Documents Section below.

The final version of the state environmental mitigation trust was filed with the Court on October 2, 2017, establishing October 2, 2017 as the Trust Effective Date for the trust. This date is important as it starts the timeline for the actions a beneficiary (state designee) must complete to receive trust funds. The final trust agreement is posted in the Documents Section below.

During the March 1 to March 31, 2017 public comment period, the NDDoH sought public input on drafting North Dakota’s VW settlement environmental mitigation plan. Interested parties were encouraged to provide comments by following the requirements outlined in the partial consent decree. The comment period was not a solicitation for project proposals, but rather an opportunity for the public to provide comments to help guide the development of the mitigation plan.

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• Wilmington Trust’s VW Website
• EPA's Volkswagen Settlement Site
• Partial Consent Decree
• EPA's Presentation: Prospective Beneficiaries to the Mitigation Trust Under the Volkswagen Partial Settlement
• EPA's FAQ for Beneficiaries to the Volkswagen Mitigation Trust Agreement

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Last Updated: 04/01/2022