VW Mitigation Trust

Mississippi Volkswagen Environmental Mitigation Trust

The Volkswagen (VW) Diesel Settlement required VW to establish a $2.7 billion Environmental Mitigation Trust Fund to be distributed among states to fund eligible mitigation projects to replace diesel emission sources with cleaner technology to reduce excess nitrogen oxide (“NOx”) emissions. The Mitigation Trust Fund will be used for projects which will reduce pollution and improve air quality in Mississippi. VW has established the Mitigation Trust Fund in part to settle claims that it sold vehicles with “defeat devices” designed to cheat emissions tests. Mississippi has been initially allocated $9,874,414 to fund projects designed to reduce NOx emissions in the state.  The Trust Effective Date is October 2, 2017. Governor Bryant has identified MDEQ as the lead agency for purposes of administering the state’s trust allocation and has submitted the Beneficiary Certification Form to formally request beneficiary status and designate MDEQ as the lead agency. The Trustee certified Mississippi as a Beneficiary on January 29, 2018.  MDEQ is currently developing the Beneficiary Mitigation Plan (BMP).  The plan is available for public comment until March 26, 2019.  A copy of the plan can be found below.

Mitigation Plan and Types of Projects Eligible for Funding

As the lead agency, MDEQ must submit a Mitigation Plan summarizing how it plans to use the Mitigation Trust funds allocated to Mississippi 30 days prior to submitting any request for funds. The Mitigation Plan is intended to provide the public with insight into the high-level vision for use of the mitigation funds and information about the specific uses for which funding is expected to be requested.

The Mitigation Trust specifies the types of mitigation actions which may be funded. Examples of Mitigation Trust eligible mitigation projects are scraping and replacing or repowering the following types of vehicles and equipment:

  • Class 8 Local Freight Trucks and Port Drayage Trucks (Eligible Large Trucks)
  • Class 4-8 School Buses, Shuttle Buses, or Transit Buses
  • Freight Switchers
  • Ferries and tugs
  • Ocean going vessels shorepower
  • Class 4-7 Local Freight Trucks (Medium Trucks)
  • Airport ground support equipment
  • Forklifts and post cargo handling equipment
  • Diesel Emission Reduction Act non-federal match or overmatch payments (DERA Option).

The Mitigation Trust may fund government and non-government owned mitigation projects. The state may also use up to fifteen percent of its allocation to buy, operate, and maintain zero emission supply equipment (e.g., charging stations, hydrogen dispensing equipment) for certain projects.

Public Participation

Public Notice-Volkswagen Beneficiary Mitigation Plan

Proposed VW Mitigation Plan – 02-15-2019

MDEQ Releases Volkswagen Settlement Beneficiary Mitigation Plan for Public Comment

To receive notifications and updates, sign up for the MDEQ VW Environmental Mitigation Trust email list here.