VW Environmental Mitigation Funds
VW Environmental Mitigation Funds support Vermont agencies, institutions and businesses replacing or repowering diesel vehicles and equipment with all-electric alternatives to reduce emissions.
Funder: Vermont Agency of Natural Resources
Due Dates: September 30, 2026 (September) | October 31, 2026 (October) | November 30, 2026 (November) | December 31, 2026 (December; final monthly deadline)
Funding Amounts: $3,329,677 available; up to 85% of eligible project costs for government-owned fleets and 75% for privately owned fleets
Summary: Funds all-electric replacement or repower of eligible diesel vehicles and equipment to reduce emissions in Vermont.
Key Information: Vehicles must operate primarily in Vermont (at least 80% of the time, with case-by-case exceptions).
Description
The Vermont Agency of Natural Resources administers Vermont’s Volkswagen Environmental Mitigation Trust allocation through its Department of Environmental Conservation (DEC). The trust was established to mitigate excess nitrogen oxide emissions from affected Volkswagen vehicles. Vermont’s goals include reducing emissions cost-effectively, demonstrating cleaner heavy-duty vehicle technologies, and encouraging investment in electric vehicle charging infrastructure.
DEC’s current Request for Applications funds all-electric replacement or repower of eligible diesel trucks, buses, freight switchers, airport ground support equipment, and forklifts, as well as all-electric repower of eligible ferries and tugboats. Vermont’s broader Beneficiary Mitigation Plan also addresses light-duty charging infrastructure, which has a separate grant program.
