NC VW Settlement Phase 2 Grants to Fund Level 2 Charging Stations at State Government Sites

The Department of Environmental Quality’s Division of Air Quality (DAQ) has released the Request for Proposal (RFP) for State Agency Level 2 Charging Infastructure grants under Phase 2 of the Volkswagen Mitigation plan. 

The RFP details how to apply for the $1,000,684 available for funding to install new light-duty zero emission vehicle (ZEV) Level 2 charging stations at state agencies and state-managed attractions.

Applications can be submitted by NC state agencies and state-managed attractions including; departments, institutions, public universities, community colleges, state parks, aquariums, and museums. Public-private partnerships where the lead applicant represents a state agency or state-maintained attraction may also apply. Projects within the 37 counties identified as Historically Under-Resourced are eligible for bonus project scoring points & other additional technical support. 

The PDF version of the application is available on the program webpage for agency reference to prepare all required materials for the online application. The online application will be made available April 1, 2022 and must be submitted on May 31, 2022 via the  Grant Management System. 

The DAQ will hold an information session on this RFP for interested applicants on March 14.

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NC VW Settlement Phase 2 Transit & Shuttle Bus Replacement Applications Now Open

The Department of Environmental Quality’s Division of Air Quality (DAQ) is now accepting applications for the Transit and Shuttle Bus Program grants under Phase 2 of the Volkswagen Mitigation plan. The Request for Proposal (RFP) released yesterday details how to apply for the $13.5 million available to replace older, diesel transit or shuttle buses with cleaner low emission vehicles to significantly reduce NOx emissions and improve air quality.

Projects can be submitted by local, state, and tribal government organizations, public or private nonprofit organizations, and public-private partnerships where the lead applicant is a public sector, public or private nonprofit organization. In Phase 2, DAQ will prioritize electric vehicle replacement projects to maximize emission reductions and public health benefits. Projects within the 37 counties identified as Historically Under-Resourced (Appendix D of the RFP) are eligible for bonus project scoring points as well as additional technical support during the application process.

DAQ will accept applications for the Transit and Shuttle Bus Program until May 2, 2022 via the Grant Management System. Specific instructions on how to register for the Grant Management System and submit an application are detailed in the RFP. The Division will also hold additional information workshops during the application period. Information regarding applications, eligibility, and the registration for DAQ’s online RFP information sessions will all be located on the division’s website, at

If you have any questions about the RFP or application process, please contact NCDEQ at with the subject title: “Transit and Shuttle Bus_Program RFP” prior to submitting your application and in advance of the submission deadline.

Phase 2 of the VW Mitigation Plan covers the remaining $68 million of the state’s share of a national settlement with the automaker and includes programs for school bus replacement and zero emission vehicle (ZEV) infrastructure. The schedule for future RFP releases is available online.

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Centralina Clean Fuels Coordinator on Infrastructure Bill Latest

On Wednesday, 11/17, Jason Wager, Coordinator of the Centralina Clean Fuels Coalition was interviewed by Fox46’s Kaci Jones to talk about the large federal infrastructure bill President Biden has just signed into law. To watch the interview, press play on the viewer above. 

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2021 DERA Request for Proposals Now Open

The North Carolina Division of Air Quality will be accepting proposals to fund clean diesel projects beginning at 9:00 am September 15, 2021 through the North Carolina Division of Air Quality’s Grant Management System.  Approximately $861,000 is available for eligible projects through the Mobile Source Diesel Emission Reduction Grant program.  The grants can be used to cover a wide range of projects including repowering non-road construction or agricultural equipment with cleaner burning engines, converting vehicles to run on alternative fuels and replacing older diesel vehicles or eligible equipment with new cleaner vehicles or equipment.  

Businesses and organizations from the public and private sector are eligible to apply. The division will prioritize funding for non-road equipment projects, but proposals for on-road and other eligible projects will be considered if funding is available. 

Applications must be submitted through the North Carolina Division of Air Quality’s Grant Management System no later than 11:59 pm Eastern Time on November 30, 2021 to be considered.  More information on eligible projects and application instructions is available online at

The 2021 Diesel Emissions Reduction Grant program is funded by the U.S. Environmental Protection Agency’s Diesel Emissions Reduction Act (DERA) program. The purpose of DERA funding is to support projects designed to achieve significant diesel emissions reductions.

NC DAQ held a question and answer session on September 22, 2021  and October 27, 2021 to assist with the application process for this year’s grant.  The question and answer session provided information on eligibility and how to request access, log into and use the Division of Air Quality’s Grant Management System.  If you have any questions that you would specifically like to have addressed, please email them to

For information on the WebEx webinar and a link to view a recording, visit:

For more information about the Mobile Sources Diesel Emissions Reduction Grant program, please visit the state Division of Air Quality’s website at: or via e-mail at

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Grants to Replace Aging Diesel Vehicles (GRADE)

In 2007, Mecklenburg County Air Quality launched an innovated air quality improvement program called Grants to Replace Aging Diesel Engines or GRADE. GRADE is designed to reduce oxides of nitrogen (NOx), an ozone forming air pollutant, by providing businesses and organizations funding incentives to replace or repower heavy-duty non-road equipment with newer, cleaner, less polluting engines.

Since its inception, GRADE has funded over 318 projects and awarded $6.6 million. These projects have reduced over 1,059 tons of ozone-forming NOx in the Charlotte region. Watch the award-winning GRADE video for more information.
Seeking Electrification Projects
Please contact PJ McKenzie at 704-336-5430 if you are interested in pursuing the following types of projects:
  • Replacing old, diesel ground-support equipment (GSE) with new, fully electric GSE;
  • Replacing a diesel terminal tractor/yard hostler with a fully electric version; or
  • Adding a hybrid drive system to your Class 7/8 semi-truck, capable of hauling a full load up to 25+ mph without burning diesel.
For more information, visit Mecklenburg County LUESA GRADE. The video below is courtesy of their program and features one of the GRADE projects. 

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VW Settlement Phase 2 Webinar Recording & Comment Links

The N.C. Department of Environmental Quality’s Division of Air Quality invites public comment on the state’s plan to invest $67 million in Volkswagen Settlement funds. The Draft Phase 2 Mitigation plan focuses on efforts to reduce pollution impacts while incentivizing zero emission vehicles and increasing outreach to under-resourced communities.
The funds represent North Carolina’s share of the $2.9 billion federal settlement with Volkswagen due to its misrepresentation of diesel emission standards in certain vehicles. Governor Roy Cooper designated the Division of Air Quality as the lead agency to manage the project in November 2017. Wilmington Trust officially designed North Carolina as a State Beneficiary in January 2018.
In Phase 1 of the program, North Carolina awarded nearly $27 million to replace 111 school buses and 16 transit buses and to install 33 zero emission vehicle (ZEV) fast charging stations and 78 Level 2 charging stations across the state.
The Division of Air Quality held a series of public information sessions to explain the draft plan. Members of the public and entities interested in receiving funds for eligible projects are encouraged to review the recording and submit questions:
  • 10 a.m. – 12 p.m. Wednesday, July 14: Western NC Region
  • 2 p.m. – 4 p.m. Wednesday, July 14: Centralina/Triad Region-link to recorded webinar is here.
  • 10 a.m. – 12 p.m. Wednesday, July 21: Triangle Region
  • 2 p.m. – 4 p.m. Wednesday, July 21: Coastal NC Region
The Division of Air Quality will also hold a series of in-person public information sessions for counties eligible in the Historically Under-Resourced Counties Outreach Program. Additional meeting dates, locations and times will be posted on the DEQ Volkswagen Program webpage.
Comments may be submitted online via Microsoft Forms at or emailed to Voicemail comments will also be accepted at 919-707-8429. All comments will be accepted until September 7, 2021 at 5 p.m.
Additional information regarding Phase 2 can be found on

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