Volkswagen Settlement - Environmental Mitigation Trust for California

This page last updated February 16, 2018

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The Volkswagen (VW) Environmental Mitigation Trust provides about $423 million for California to mitigate the excess nitrogen oxide (NOx) emissions caused by VW's use of illegal defeat devices in certain diesel vehicles.  The Trust is a component of partial settlements with VW and is enumerated in the first of two Partial Consent Decrees as Appendix D.  The Trust 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.

California must develop and submit to the Trustee, Wilmington Trust, N.A., a Beneficiary Mitigation Plan before the State can expend any funds from its allocation of the Trust. The Plan will describe the eligible mitigation actions from the list specified in the Consent Decree that will be funded from the Trust.  Senate Bill (SB) 92, passed in June 2017, further directs how California’s Mitigation Trust funds in Appendix D are to be spent.  The legislation directs the designated Lead Agency for the Mitigation Trust to strive to ensure that at least 35 percent of California’s allocation benefit low-income or disadvantaged communities that are disproportionately impacted by air pollution.  It also requires the Lead Agency to strive to ensure that the expenditures align with the state’s priorities and provide for public transparency before approval.  The California Air Resources Board has been designated as Lead Agency to act on the State's behalf in implementing California's allocation of the VW Environmental Mitigation Trust.

The Beneficiary Mitigation Plan will be developed through a public process. Public meetings and documents will be posted here as they become available.

What's New

February 16, 2018

  • A Discussion Document has been posted in preparation for the upcoming workshops on developing California's Beneficiary Mitigation Plan. The document describes CARB staff's funding recommendations, estimated emission reductions, and implementation recommendations.

February 1, 2018

  • Wilmington Trust, N.A.., the Trustee for the national Volkswagen Environmental Mitigation Trust, filed a Notice of Beneficiary Designation with the federal court on January 29, 2018, officially designating the State of California as a Beneficiary of the Trust.

January 30, 2018

  • A public workshop will be held at six locations throughout the state between February 26, 2018, and March 8, 2018, on developing California's Beneficiary Mitigation Plan; see the workshop notice for details.

December 11, 2017

October 25, 2017

October 9, 2017

October 5, 2017

October 3, 2017

September 20, 2017

  • A public workshop will be held on October 9, 2017 on developing California's Beneficiary Mitigation Plan; see the workshop notice for details.  We want to hear your thoughts on how California should spend its allocation of VW Mitigation Trust funds:  a docket for submitting public comments is now available.

Join Our Email List Participate in Meetings
Be informed when meetings are scheduled or new information is posted.

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See our list of scheduled and past meetings and download meeting materials.

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Submit Comments
View the Eligible Mitigation Actions
Let us know your thoughts on how California should spend its Trust allocation.

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See what types of projects (Eligible Mitigation Actions) the State can choose to fund, as excerpted from Appendix D-2 of the first Partial Consent Decree.

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