Volkswagen Settlement Fund (Updated): How to Apply

    Volkswagen Settlement Update: Louisiana

    Baton Rouge, LA - The state has announced that it will distribute the Mitigation Trust Fund dollars among lasting, sustainable solutions. In order to be considered, you must send in your project concepts directly to the lead agency, the Louisiana Department of Environmental Quality.

    • The state will give preference to projects proposed by public agencies that offer long-term benefits to the community at large and show a significant reduction in NOx.
    • The state is considering using a portion of the fund for the replacement of or repowering of publicly owned school buses as provided in the Consent Decree and the replacement of or repowering of aging state-owned heavy equipment fleet vehicles that are eligible under the mitigation trust. The vehicles will be replaced with new cleaner vehicles and or new cleaner burning engines.
    • Any funds remaining after these projects are implemented may be used for  projects proposed by other public or private entities as long as they meet the criteria outlined in Appendix D.
    • Funding is for vehicle REPLACEMENT or a repower, not to expand your fleet.

    Please note that the state has NOT finalized their mitigation plan so your project proposals are very important! You still have time to get your ideas before them and have some influence over the general plan. Also, the mitigation plan is NOT a list of the final approved projects. The state's mitigation plan is a guidance document that will be flexible and able to adapt to changes.

    No project will be considered unless you apply (and that includes school bus replacement projects).

    How to Apply

    Proposals may be submitted by email to Perry Theriot at [email protected]; faxed to 225-219-0000; mailed to the Department of Environmental Quality, Attn: Perry Theriot, P.O. Box 4303, Baton Rouge, LA 70821-4303; or it may be hand delivered to 602 N. Fifth Street, Baton Rouge, LA 70802.   

    Deadline: EXTENDED - All proposals must be received by the LDEQ no later than 4:30 p.m. Thursday, July 27, 2017

    Proposal should contain the following information:

    • What you want to do
    • How much it will cost
    • The amount of funding you are requesting
    • The associated NOx benefits of your project

    Helpful, but not required:

    • Any additional matching funds for your project, if applicable
    • Air quality in your area / Whether or not your parish is in attainment or close to being in non-attainment
    • Any other benefits that this funding would bring to your region
    • Your budgetary constraints or other information that would help the LDEQ to understand the financial need of the applicant

    If you have any questions about qualifying projects or what type of information to include in your letter, please refer back to Appendix D. Even though the LDEQ will continue to accept applications after the deadline, we urge you to send in your proposals sooner rather than later.

    View the Full Public Notice (Updated):  LDEQ's VW Settlement Notice  

    The full Partial Settlement, including Appendix D is available for review at:

    Related Links


    On Jan. 4, 2016, and as amended on Oct. 7, 2016, the United States, on behalf of the Environmental Protect Agency (EPA), filed a complaint against Volkswagen (VW) alleging violations of the Clean Air Act regarding approximately 500,000 model year 2009 to 2016 vehicles containing 2.0 liter diesel engines and approximately 80,000 model year 2009 to 2016 motor vehicles containing 3.0 liter diesel engines. The complaint alleges that each of these vehicles contains, as part of the computer control modules, certain algorithms and calibrations that cause the emissions control systems to perform differently during normal vehicle operation and use than when undergoing emissions testing. The use of these prohibited defeat devices caused the vehicles to produce NOx emissions significantly in excess of those allowed by law. On June 28, 2016, the State of California, the California Air Resources Board (CARB), filed a similar complaint against Volkswagen.

    Partial Consent Decree

    The consent decree provides for the establishment of an Environmental Mitigation Trust to provide funds to the states to remediate the air quality impacts of the 2.0 liter vehicle emissions. Louisiana’s initial share is approximately $18 million over a three-year period. The $18 million to be distributed from the trust fund will pay for defined eligible projects also known as eligible mitigation actions. These include projects to reduce NOx from heavy duty diesel sources near population centers, such as large trucks, school and transit buses. A complete list of eligible mitigation actions is found in Appendix D-2 of the Consent Decree. The goal of each Eligible Mitigation Action shall be to achieve reductions of NOx emissions in the United States.


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