Volkswagen (VW) Environmental Mitigation Trust (CA) Grant

Volkswagen (VW) Environmental Mitigation Trust (CA) Grant

Status: ACTIVE
Funder: California Air Resources Board
Last Updated: April 02, 2026

Summary

The Volkswagen (VW) Environmental Mitigation Trust provides approximately $423 million to California for reducing excess nitrogen oxide (NOX) emissions from VW diesel vehicles. This initiative includes funding for various projects aimed at replacing older, polluting vehicles with cleaner alternatives, particularly in low-income communities. Key categories for funding include zero-emission buses, freight trucks, and marine projects, all aimed at improving air quality and public health.

Overview

NOTE: Applications are processed on a first come, first served basis and will be considered for funding if eligible and while project funds are available Funding is still available today, however, program changes were needed to increase participation by better aligning VW incentives with other programs and, ultimately, expedite our ability to achieve NOx reductions. These changes are documented in an April 24 memo to the CARB Board and were developed based on lessons learned during the first years of implementation, feedback from stakeholders, and ongoing coordination with the implementing air districts. Volkswagen (VW) Environmental Mitigation Trust (CA) The Volkswagen (VW) Environmental Mitigation Trust (Trust) provides about $423 million for California to mitigate the excess nitrogen oxide (NOX) emissions caused by VW's use of illegal emissions testing defeat devices in certain VW diesel vehicles. The Trust is a component of partial settlements with VW and is enumerated in the first Partial Consent Decree as Appendix D. As required by the Consent Decree, California developed a Beneficiary Mitigation Plan (Plan) through an extensive public process, and that plan was approved by the Board in May 2018. The Consent Decree provides funding opportunities for specified eligible actions that are focused mostly on "scrap and replace" projects for the heavy-duty sector, including on-road freight trucks, transit and shuttle buses, school buses, forklifts and port cargo handling equipment, commercial marine vessels, and freight switcher locomotives. CARB entered into agreements with Bay Area AQMD, San Joaquin APCD and South Coast AQMD to administer specific funding categories defined in the Beneficiary Mitigation Plan, each on a statewide basis with the goal of ensuring that 50 percent of the total funding benefit low-income or disadvantaged communities. Project Categories Five categories of vehicles and equipment are eligible for funding. Select below to apply for funding or get information on when funding will be available: Zero-Emission Transit, School, and Shuttle BusesZero-Emission Class 8 Freight and Port Drayage TrucksZero-Emission Freight and Marine Projectsheavy-lift forklifts and port cargo handling equipment airport ground support equipment ocean-going vessel shore power ferry, tugboat, and towboat zero-emission repowersCombustion Freight and Marine ProjectsLow NOx Class 7-8 freight trucks (including waste haulers, dump trucks, and concrete mixers) or engine repowers Tier 4 freight switcher locomotives or engine repowers Tier 4 or hybrid ferry, tugboat, and towboat repowersLight-Duty Zero-Emission Vehicle InfrastructureHydrogen Stations Charging Stations In all cases except ocean-going vessel shore power and light-duty zero-emission vehicle infrastructure, funding can only be provided to replace existing internal combustion engines or vehicles. The existing vehicle, equipment, or engine in the owner's fleet must be scrapped.

Eligibility

You can learn more about this opportunity by visiting the funder's website.