The Alabama Department of Community Affairs is accepting applications for $5.7 million distributed under the Volkswagen emissions settlement to fund projects aimed at reducing nitrogen oxides (NOx) emissions across the state. Applications from government and non-government entities will be accepted through Oct. 6, ADECA said.
Funds target diesel emissions, with preference for economic development
The money represents the third component of the national Volkswagen settlement that resolved accusations the automaker had installed software in certain diesel vehicles to evade emissions tests. Testing at the time showed on-road NOx emissions from affected vehicles exceeded federal limits by between nine and 38 times, depending on driving conditions.
ADECA said the Alabama allocation will fund projects specifically intended to reduce diesel emissions. The agency will give additional consideration to applications that "demonstrate the potential to advance economic development in addition to the other major goals of the Volkswagen Program," according to the announcement.
"demonstrating the potential to advance economic development in addition to the other major goals of the Volkswagen Program."
Who can apply and where to submit
Applications are open to both governmental and non-governmental entities. ADECA will host an application workshop webinar on Tuesday, Sept. 1, at 1:30 p.m. Interested applicants are asked to register for the webinar and to submit completed applications via email to vwsettlement@adeca.alabama.gov. ADECA has posted additional guidance and application materials on its website.
Projects that typically qualify for these funds include diesel engine replacements, electrification of transportation and equipment, retrofits that reduce NOx emissions, and infrastructure improvements that support cleaner fuels or lower-emission vehicles. ADECA’s selection criteria will prioritize projects that produce verifiable emissions reductions and demonstrate community benefit.
Background: the Volkswagen settlement and its components
In 2016, Volkswagen agreed to spend more than $14.7 billion to settle federal and state claims arising from the company’s installation of software that disabled emission controls in certain 2.0-liter diesel vehicles. The settlement included multiple components: consumer remediation, zero-emission vehicle investments, and funds allocated to states to reduce diesel emissions.
| Item | Figure / Date |
|---|---|
| Total Volkswagen settlement | $14.7 billion |
| Alabama allocation (third component) | $5.7 million |
| Application deadline | Oct. 6 |
| Application webinar | Sept. 1, 1:30 p.m. |
Local implications and examples of eligible projects
For Alabama communities, the funds can be used to target sources that contribute disproportionately to air pollution. That includes older diesel school buses, transit buses, heavy-duty trucks and port or freight-handling equipment. Replacing or retrofitting such equipment can both cut NOx emissions and improve public health in neighborhoods near highways, warehouses and industrial hubs.
Applicants should detail expected emissions reductions, project cost and timelines, and how the project aligns with state priorities. Because ADECA will favor projects with an economic-development component, proposals that also create local jobs or enhance commercial activity may score higher in the competitive review.
- Application deadline: Oct. 6 — submit materials to vwsettlement@adeca.alabama.gov
- Webinar: Sept. 1 at 1:30 p.m. — registration required through ADECA
- Eligible applicants: government and non-governmental entities
Next steps for prospective applicants
Organizations interested in applying should review ADECA’s guidance materials, register for the Sept. 1 webinar to hear program details and clarifying instructions, and prepare documentation of project scope, cost estimates and anticipated emissions reductions. ADECA’s application materials will include submission requirements and evaluation criteria.
The Volkswagen settlement funds represent a targeted opportunity to reduce NOx emissions in Alabama while potentially supporting job creation and local economic activity. Entities with projects that meet both environmental and economic objectives are encouraged to apply before the Oct. 6 deadline.
For registration and application materials, see ADECA’s website or contact the agency at vwsettlement@adeca.alabama.gov.
