VW Settlement Phase 1-Diesel Program

Diesel Bus and Vehicle Programs

The application deadline has passed for the North Carolina Volkswagen Settlement Program Phase 1 Diesel Bus and Vehicle Programs and the Zero Emission Vehicle Infrastructure Program - DC Fast Charging Stations.

NC DEQ solicited applications for two grant programs the Diesel Bus and Vehicle Program and Zero Emissions Vehicle Infrastructure Program. These programs were part of the North Carolina VW Settlement Phase 1 Program using the state’s allocation of the Volkswagen Mitigation Settlement.

In Phase 1 of the program, $24.5 million in funds was allocated to the Diesel Bus and Vehicle Program to assist interested parties to mitigate NOx emissions by replacing or repowering older diesel heavy-duty vehicles and equipment. Additionally, $3.4 million in funds was allocated to the Zero Emissions Vehicle Infrastructure Program to increase the installation of direct current fast-charging stations for electric vehicles primarily along identified priority corridors on North Carolina interstates and pending interstates. Applications for both programs were accepted until September 30, 2019

The table below shows the number of applications accepted and evaluated for eligibility and completeness.

NC VW Phase 1 Application Summary


Number of Applications Received

VW Funds Available

Total VW Funds Requested

Total Project Costs for all Applications

DC Fast Charging Program





Off-Road Program

DERA Program








On-Road Program





School Bus Program





Transit/Shuttle Bus Program















Approximately $24.5 million of the $30.7 million will be available in Phase 1 for Diesel Bus and Vehicle Programs. These programs are designed to achieve significant reductions in diesel emissions. 

  • 40% (approx. $12.2 million) to be spent on school bus replacements
  • 20% (approx. $6 million) designated for transit bus replacements  
  • 10% for heavy-duty on-road equipment replacement projects
  • 10% for heavy-duty off-road equipment replacement projects. 

To be notified for future Phase 2 announcements, please send an email with "Subscribe" in the subject line to daq.nc_vwgrants@deq.nc.gov.


Phase 1 funding focused on public sector needs.  Eligible projects were submitted by:

  • Local, state and tribal government organizations,
  • Public or private nonprofit organizations, and
  • Public/private partnerships where the lead applicant represents a public sector or a public or private non-profit. 

For Full details, read the

Request for Proposal

Frequently Asked Questions

Documents and Workshops

Tab/Accordion Items

Tab/Accordion Paragraph

Application Video Tutorial

Before you download the application, check your eligibility in the RFP

Download the Application 

For projects with buses, vehicles or equipment operating in more than one county, please download and use the Multi-County Fleet Application.

Download the Multi-County Fleet Application

When the application opens in your browser, download and save to your computer using the name format: YourOrganization_ProjectTitle_VWDiesel_Application.

Download the Spreadsheet

When the spreadsheet opens in your browser, download and save to your computer using the name format: YourOrganization_ProjectTitle_VWDiesel_Application.

Download Required Attachments Checklist

This checklist includes all the required attachments for applications.

Helpful Documents

Application Checklist

Location of Project Score

Register for an NCID

How to create a digital signature 

Additional Resources

Send Questions to DAQ VW Grants

The Division of Air Quality (DAQ) conducted several technical workshops across the state to facilitate grant applications for the Request for Projects (RFP) under the VW Mitigation Plan. 

Diesel Workshop Presentation

Example Diesel Application

Example Diesel Application Spreadsheet

Tab/Accordion Paragraph

Diesel Bus and Vehicle Awardee Webinar

Tab/Accordion Paragraph

March 30, 2021, Claims Webinar Recording

The Division of Air Quality (DAQ) conducted a technical workshop to facilitate reimbursement claims for the Diesel Bus & Vehicle Program awardees.

March 30, 2021 - Diesel Bus & Vehicle Program Claims Webinar Presentation

Claims Documentation Checklist

March 30, 2021 Claims Webinar Recording