Iowa DOT News Release

Iowa DOT accepting applications through Feb. 17 for two Volkswagen Settlement Environmental Mitigation Trust funding programs

Posted on: December 16, 2019

AMES, Iowa – Dec. 16, 2019 – The Iowa Department of Transportation is now accepting grant applications for two separate Volkswagen Settlement Environmental Mitigation Trust funding programs.

Applications will be accepted for two separate programs. The first funding program will offer $4.9 million across the three eligible project categories listed below. Private organizations, public transit system operators, cities, counties, and schools that own and operate diesel fleets and equipment in Iowa are eligible to sponsor projects for these projects. State agencies are not eligible for this program, with the exception of those that may serve as public transit system operators for projects eligible under Category 1.

Mitigation Category

Funding Available

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




The second program will offer $1.1 million for Zero Emission Vehicle (ZEV) Supply Equipment.  Applications will be accepted for two project types. A total of $900,000 will be available for publicly accessible Direct Current (DC) Fast Charger Corridor sites along I-80 and I-35 which are no more than one road mile off these corridors and will help to fill in gaps in the developing charging equipment infrastructure network. The remaining $200,000 offered in this program will fund applications for conveniently located and publicly accessible Level 2 Community Charging sites across the state. The ZEV Supply Equipment program is available to a wide variety of applicants including for-profit businesses, incorporated non-profit organizations, government agencies of all types, and metropolitan or regional transportation planning organizations. All projects shall meet the site and equipment requirements for each project type listed in the program guidance, as applicable. 

ZEV Supply Equipment Project Type

Funding Available

Type 1 – Direct Current (DC) Fast Charger Corridor sites


Type 2 – Level 2 Community Charging sites




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 are being distributed through competitive application programs such as these over the next several years.

To learn more about these funding opportunities and how to apply, visit the program website at Questions must be submitted in writing via email to and responses will be posted on the website for all applicants to review. Completed applications must be received by 5 p.m. CST, Feb. 17, 2020.




Iowa highway in the evening