Final Plan - Summary Details

On May 10, 2018, the Department of Environmental Protection issued a final Beneficiary Mitigation Plan (BMP).  The BMP allocates the state's $118.5 million in VW Settlement Funding as follows with anticipated timing of funding announcements:

* Ferries, Tugs, Freight Switchers - $34.1 million; Fall 2018
* Medium Duty Trucks, Port Drayage Trucks, School Buses and Shuttle Buses - $29.9 million; Summer 2018
* DERA - $8.9 million; Opened May 19, 2018
* Ground Service Equipment, Forklifts, Port Cargo - $5.9 million; Fall 2018
* Heavy Duty Trucks and Transit Buses - $16.1 million; Summer 2018
* Ocean Going Shorepower - $5.9 million; Summer 2018
* ZEV Supply Equipment Grants/Rebates - $17.7 million

Funding Opportunities 

The state’s VW Settlement funding effort is part of a new program called Driving PA Forward.  Information on funding opportunities can be found on the new website:  Details provided below. 

Class 8 Truck and Bus Grant Funding

$6,400,000 is available for reimbursement grants in 2018 and 2019 under the Class 8 Truck and Transit Bus Grant Program.  The application is available online through the Department of Community and Economic Development’s (DCED) Electronic Single Application website, eGrants, at  Application Submission Period – The Class 8 Truck and Transit Bus Grant Program application submission period will begin upon public notice of availability and will remain open continuously through the end of 2019, or until allotted funds are exhausted. DEP will review and score applications after each submission period end date. Submission period end dates are:

- January 11, 2019

- May 10, 2019

- September 23, 2019


Class 4 – 7 Trucks, Port, Drayage Trucks, School Buses, and Shuttle Bus Rebate Program

Approximately $30 million is being allocated over a 5-year period to fund rebates for class 4-7 local freight trucks, port drayage trucks, and class 4 – 8 school buses, and shuttle buses. Replacing or repowering vehicles containing older diesel engines with new technology can reduce emissions by up to 90%.  The calendar years (CYs) 2018-2019 funding available under the Program is $12,000,000. DEP will reevaluate the program requirements and rebate levels following the issue of $12 million in vouchers, or by December 31, 2019, whichever occurs first. Applications for rebates will be accepted, reviewed and approved on a first come, first served basis.  Guidelines:

Ferries, Tugs, and Freight Switchers

Approximately $34 million is being allocated over a 5-year period to fund a competitive grant program for ferries, tugs, and freight switchers. Large reductions in NOx emissions will occur in this category by repowering or replacing older diesel engines with new technology.

Ferries and Tugs: Unregulated, Tier 1, or Tier 2 ferries or tugs are eligible to apply for grant funding for: Repower with new diesel, electric, or alternative fuel; Replacement with new diesel, electric, or alternative fuel.

Freight Switches: Pre-Tier 4 freight switchers that operate at least 1,000 hours per year are eligible for grant funding for: Repower with new diesel, electric, or alternative fuel; Replacement with new diesel, electric, or alternative fuel.

This program is currently closed, but is anticipated to open in Spring 2019. 

PA Clean Diesel Grant Program

The Pennsylvania State Clean Diesel Grant Program is currently is offering $2,672,298 for this round of funding.  A portion of this funding, $2,154,310, is from the settlement of a lawsuit with Volkswagen and its subsidiaries, relating to diesel vehicle emission violations, and is being used as the Commonwealth’s voluntary match funding under the Diesel Emission Reduction Act (DERA) program. The project period end date is September 30, 2019. Submission Format – The application continues to be an online application. See the PA State Clean Diesel Grant Application Instructions document for details on applying for funding. The application submission period for this funding begins upon publication of the notice of availability of the program and ends February 28, 2019.

Emission Reduction Technologies include, but are not limited to:

  • Exhaust controls
  • Engine upgrades
  • Engine and vehicle replacement
  • Idle reduction technologies
  • Aerodynamic technologies

Vehicles or engines being replaced or repowered must be scrapped in accordance with program guidelines. 

This program opens for applications on January 18, 2019

Register here for the February 4 webinar.

Comment Letter

Member Support

Webinars, Meetings, Workshops


Legislative Proposals

SB 722. Directs how VW Settlement Funds are to be used: (1) majority of funding should go to optional low-NOx certified engines or vehicles and zero emission vehicles; (2) no more than 25 percent funding is to be provided for the cost of private fleet to purchase replacement vehicles, (3) cap of $50,000 for replacement costs; and, (4) no more than 20 percent of available funds are to be used for public or governmental fleets. Status: to Environmental Resources and Energy.