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Volkswagen Settlement

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March 2019 Update: All existing application periods have closed. Please subscribe to our mailing list to receive updates and future announcements. The next Oklahoma Clean Diesel Grant Program request for proposals is expected for Fall 2019, subject to federal funding.

Oklahoma has been initially allocated approximately $21 million from the Volkswagen Environmental Mitigation Trust Agreement to reduce nitrogen oxide emissions from the transportation sector. View Allocations and Priorities Factsheet (July 2018)

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Grant Programs

Alternative Fuel School Bus Program - $4.1 Million toward projects that promote the use of alternative fuels in school buses for pre-Kindergarten through grade 12. The application period closed on December 20, 2018.

Oklahoma Clean Diesel (DERA) Program - An EPA-sponsored program funded by the Diesel Emissions Reduction Act (DERA) to retrofit or replace diesel vehicles and buses. Volkswagen funds are used to match federal funds. This program is expected to repeat annually, subject to federal funding. The FY18 application period closed on December 20, 2018.

ChargeOK - Oklahoma Electric Vehicle Charging Grant Program - $3.1 Million to install electric (EV) charging stations throughout Oklahoma. The application period closed March 1, 2019.

Beneficiary Mitigation Plan

In order to receive these funds, DEQ must submit a Beneficiary Mitigation Plan (BMP). On June 8, 2018, DEQ and the office of the Oklahoma Secretary of Energy and Environment (SOEE) submitted a final BMP to the Trust. The BMP is a high-level plan describing the State's intentions for utilizing Oklahoma's funding allocation, including estimated emissions reductions along with general project descriptions and locations.

Go to the Beneficiary Mitigation Plan page

The submittal of the BMP officially moves DEQ into the program planning and design process for Phase 1 of the mitigation projects. Phase 1 projects will include Alternative Fuel School Buses, Zero-Emission Vehicle Infrastructure, and DERA. Further updates will be posted on this web page.


In 2016, the United States settled claims against Volkswagen, et al., concerning the use of a "defeat device" installed on 2.0 and 3.0 L diesel vehicles which resulted in air pollution emissions from these vehicles exceeding federal guidelines. States are allocated a portion of the settlement based on their number of affected vehicles. Each of these vehicles can emit up to 40 times more than the legal limit for nitrogen oxides, air pollutants which negatively impact Oklahoma's air quality and the health of citizens. State Beneficiary Trust Agreement (goes to EPA)

On October 30, 2017, Oklahoma Governor Mary Fallin signed an executive order that designates DEQ as the lead agency for administration of Oklahoma's Volkswagen settlement trust funds. The Office of the SOEE is providing oversight and final approval of the mitigation plan.


Public Meetings

May 8, 2018 Proposed BMP Meeting

DEQ released a proposed BMP and held meeting on the proposal on May 8, 2018. The meeting included an informational presentation by DEQ staff, an opportunity for oral and/or written public comments, and a presentation on the anticipated future outlook. The public comment period for the proposed BMP closed May 24, 2018.

Proposed Beneficiary Mitigation Plan (BMP) - Posted April 24, 2018

Go to the Proposed BMP Meeting Page for presentation slides, audio, and submitted comments

December 5, 2017 Listening Session

On December 5, 2017 DEQ conducted a public meeting to collect information from stakeholders and receive comments concerning the BMP. The Department will refer to received comments as a resource in the development of the BMP. This comment period is now closed.

Go to the December 5th Meeting Page for presentation slides, audio, and written comments


For more information, contact us by

  • this online contact form
  • email ()
  • phone (405-702-4100)
  • Postal Mail:
    • Heather Lerch
      Air Quality Division
      PO Box 1677
      Oklahoma City, OK 73101

External Links

NASEO & NACAA VW Settlement Clearinghouse

EPA Environmental Mitigation Trust Page

Last Updated: March 29, 2019

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