Volkswagen Settlement

Recent Developments

On May 8, 2019, the TCEQ released the first funding round for school buses, transit buses, and shuttle buses. Funds are available on a first-come, first-served basis until May 2020. View grant program details at under the "Grants" tab, and click the “Learn More” tab.  Approximately $11.7 million is available for bus projects in the DFW area.

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In 2016, courts determined that Volkswagen had violated the Clean Air Act by deliberately selling diesel vehicles equipped with technologies that tricked emissions testing. These vehicles violated federal emissions requirements, polluting up to 40 times as much as regulations allowed.

This ruling resulted in a settlement totaling $14.7 billion, which included the following major components:
  • $10 billion set aside for consumer and dealer compensation
  • $4.7 billion to implement new projects that reduce Nitrogen Oxides (NOx) emissions. This will be done through two initiatives
    • Zero Emission Vehicle (ZEV) Investment Program, managed through Electrify America.
    • Environmental Mitigation Trust (Trust), to be used primarily for projects that reduce emissions from older, heavy-duty diesel engines. Funds will be distributed through the states in proportion to the number of polluting vehicles sold in each area

Key Resources  

Environmental Mitigation Trust (Trust)

Texas filed as a beneficiary to claim approximately $209 million; funds will be used for projects to replace or repower diesel vehicles and equipment. The TCEQ was named the Lead Agency and will be responsible for administering these funds in Texas. Appendix D-2 of the Amended 2.0L Partial Consent Decree outlines eligible projects and reimbursement levels.

On January 28, the Trustee filed a list of designated beneficiaries. The TCEQ published the Draft Beneficiary Mitigation Plan for Texas on August 8, 2018, and accepted public comments until October 8, 2018.

On November 16, 2018, the TCEQ published the Final Beneficiary Mitigation Plan for Texas.

Key Resources for Trust:  

Zero-Emission Vehicle (ZEV) Investment

Electrify America plans to invest $2 billion in ZEV infrastructure and education outreach over the next nine years. For Cycle 1 of the project, Electrify America has selected 11 metropolitan areas for the installation of new community charging infrastructure to be located in high-traffic, publicly accessible locations. Additional funds will be allocated to installing new DC fast-charging infrastructure along interstate highways nationwide. Cycle 2 is slated for July 2019 - December 2021.

Key Resources for ZEV Investment:  

Role of NCTCOG

Over 10,000 violating VW vehicles were registered in North Texas. The extra pollution from these cars undermines ongoing efforts to attain the Ozone Standard. NCTCOG is participating in efforts to maximize the benefits of any funding received in Texas, especially for the Dallas-Fort Worth area. NCTCOG efforts included:

Environmental Mitigation Trust
Zero Emission Vehicle Investment

For more information, please contact Lori Clark.