Iowa DOT News

Iowa DOT awards funding for Volkswagen Settlement Environmental Mitigation Trust program

AMES, Iowa – June 6, 2019 – The Iowa Department of Transportation has awarded $4,628,072 in funding for 54 Volkswagen Settlement Environmental Mitigation Trust program projects.

In 2016, the Environmental Protection Agency (EPA) filed a complaint alleging Volkswagen violated the Clean Air Act with the sale of motor vehicles between 2009 and 2016 equipped with “defeat devices” designed to perform differently during normal vehicle operation than during emissions tests. This meant that vehicles exceeded the EPA compliant levels of nitrogen oxides during normal use. Volkswagen agreed to settle some of the allegations with the creation of an Environmental Mitigation Trust (Trust) to fund strategies that will reduce the emission of nitrogen oxides. Iowa will receive approximately $21 million in Trust funds for mitigation projects which will be distributed through competitive application programs over the next several years.

Applications for the first funding cycle were received in January from private organizations, public transit system operators, cities, counties, and schools that own and operate diesel fleets and equipment in Iowa for $4.9 million in funding available across the three eligible project categories listed below.

Mitigation Category

Funding Awarded

Category 1 - Class 4-8 School Bus, Shuttle Bus, or Transit Bus


Category 2 - Freight Trucks and Port Drayage Trucks


Category 3 - Non-Road Transport and Equipment




“Iowans ultimately are the winners from the trust funds resulting from the Volkswagen settlement,” said Gov. Reynolds. “The first funding cycle recipients span local businesses, public transit system operators, local jurisdictions, and schools. This new investment strengthens our renewable biofuels strategy and further implement the Iowa Energy Plan at the local and state level.”

A full listing of applications received and awarded projects is available on the program website at  The next cycle of funding is intended to be targeted toward zero emission vehicles.  A solicitation for applications for these projects is planned for later in 2019.


Contact: [email protected]


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