Iowa DOT News Release

Iowa DOT awards funding for Volkswagen Settlement Environmental Mitigation Trust program

Posted on: July 09, 2021

AMES, Iowa – July 9, 2021 – The Iowa Department of Transportation has awarded $5,308,286 in funding for 59 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 third funding cycle for categories 1, 2, and 3 were received in March 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. In addition, $1.1 million was available for the second funding cycle of Zero Emission Vehicle (ZEV) Supply Equipment toward two types of electric vehicle charging sites.

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


ZEV Type 1 - Direct Current (DC) Fast Charger Corridor sites


ZEV Type 2 - Level 2 Community Charging sites




A full listing of applications received and awarded projects for each application type is available on the program website at  A solicitation for the next cycle of funding is planned for fall 2021 with applications due in early 2022.



Iowa highway in the evening