Volkswagen Settlement

 

Background

The Volkswagen Settlement is a combination of three partial settlements the EPA has resolved in a civil enforcement case against Volkswagen (VW). The settlements resolve allegations that Volkswagen violated the Clean Air Act by the sale of approximately 590,000 model year 2009 to 2016 diesel motor vehicles equipped with “defeat devices.” VW has agreed to spend up to $14.73 billion to settle allegations of cheating emissions tests and deceiving customers. The automaker will spend $10.03 billion to compensate customers who purchased affected 2.0 liter diesel engines, and $4.7 billion to mitigate pollution from these vehicles and invest in zero emission vehicle (ZEV) technology and infrastructure. The settlement contains investment to three main pools of funding: funds dedicated to individual customers, nationwide investment in zero electric vehicles and infrastructure, and environmental mitigation trust fund to be distributed to states.

The Settlement

The Volkswagen Settlement comprised a series of legal settlements involving various federal agencies, the State of California, and multiple entities linked to VW. The final settlement addressed the repercussions of the company’s manipulated emissions tests, resulting in vehicle emissions exceeding the limits set by the Clean Air Act. Notably, $2.7 billion of this settlement was allocated to an Environmental Mitigation Trust. These funds were then divided among the states to finance projects targeting the reduction of Nitrogen Oxide (NOx) emissions at the local level.
The Kentucky General Assembly directed the state’s $20.3 million share towards the replacement of school and transit buses, and light-duty electric vehicle infastructure throughout the Commonwealth.
Light-Duty Zero-Emission Vehicle (ZEV) Infrastructure Program
​​The Office of Energy Policy is seeking applications for the installation and operation of level 2 and level 3 electric vehicle charging infrastructure under two separate rebate programs.
The costs of implementing the full project are reimbursable and at a 50% cost reimbursement of eligible expenses. Eligible expenses are costs necessary for, and directly connected to, the acquisition, installation, operation and maintenance of new light duty zero emission vehicle supply equipment, including:
  • Design costs
  • Labor
  • New charging station units and associated equipment
  • Conduit, signage at the parking spot, bollards, cable/wiring and electrical service box disconnects
  • Concrete or asphalt addition or replacement
  • Paint striping and stenciling of the charging station parking spaces
  • Annual network and maintenance fees for up to 3 years
The details of eligibility, equipment requirements, and more can be found in the application instruction manual, which can be located on the official Kentucky and the Volkswagen Settlement website(opens in new tab). Any questions regarding the application instructions or process should be sent to hailey.mullins@ky.gov(opens in new tab).
​The application portals for these programs will open on April 13th, 2026, and will remain open until all funding is exhausted.

The Volkswagen Settlement aims to reduce NOx emissions. Need help calculating your potential emissions reductions? The Department of Energy has phenomenal tools that can help.

Click on the below image to access the Argonne National Laboratory’s GREET Model.

Click on the below image to access the Argonne National Laboratory’s AFLEET Tool and Heavy-Duty Emissions Calculator.

Update as of 08/18/2026.

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