Final Beneficiary Plan Overview
North Carolina's beneficiary mitigation plan is structured in three phases, so DEQ can seek additional input and make changes as needed along the way. This plan addresses Phase 1 (2018 - 2020) only. DEQ plans to invest 33% of the overall funds ($30.68 million) during this period. Based on the distribution of violating vehicles registered across the state, DEQ plans to allocate the funds between urban/suburban counties (68%) and rural counties (32%). DEQ will submit requests to the Trustee of the Environmental Mitigation Trust to use funds for eligible projects throughout the state that will reduce or eliminate emissions of NOx focusing on the most cost-effective projects, the quantity of NOx emission reductions and other factors. Project funding will be awarded through a competitive process in accordance with North Carolina General Statutes.
DEQ will manage the VW settlement funds through five programs:
* School Bus Replacement Program 40% or $12.3 million
* Transit Bus Replacement Program 20% or $6.1 million
* Clean Heavy Duty On-Road Equipment Program 10% or $3 million
* Clean Heavy Duty Off Road Equipment Program 10% or $3 million
* EV Light Duty Infrastructure 15% or $4.6 million
* Administrative Costs 5% or $1.5 million
SB99 (2018) requires legislative appropriations before VW Settlement Funds can be used to fund projects. Status: Conference Committee Report agreed to by both Houses as of 6/1/18.
SB257 (2017) requires coordination by agencies and submission of Environmental Mitigation Plan to legislature before any funds can be expended; both houses agree to Conference Report as of 6/22/17; Vetoed 6/27/17; veto overridden by legislature 6/28/17.