Volkswagen Settlement Mitigation Spending Plan Released for Public Comment

FRANKFORT, Ky. (Aug. 20, 2018) – The Kentucky Energy and Environment Cabinet (EEC) today released a draft plan for spending $20.3 million awarded to the Commonwealth under the national Volkswagen Settlement Mitigation Trust Agreement.  The plan is designed to reduce transportation-sector nitrogen oxide (NOx) emissions, which contribute to the formation of ozone and fine particulate matter in Kentucky.

Kentucky’s proposed Beneficiary Mitigation Plan (BMP) and other resources associated with the Settlement and Trust can be accessed at:

A public meeting to receive comments on the draft BMP will be held on Sept. 5, 2018, from 4:00 – 6:00 p.m., at the Kentucky Energy and Environment Cabinet, 300 Sower Blvd., Frankfort, Kentucky  40601.

The public is encouraged to review the proposed BMP and submit comments. Interested parties may also provide them electronically through an on-line form or send email comments directly to: The public comment period on Kentucky’s plan will remain open through September 17, 2018.

In 2016, the United States settled claims against Volkswagen concerning the use of defeat devices installed in certain Volkswagen diesel vehicles in model years 2009-2016. These devices allowed the vehicles to emit up to 40 percent more NOx than allowed under the Clean Air Act.  As part of that settlement, Kentucky has access to the $20.3 million to be spent over 10 years to mitigate those emissions.

In December 2016, Governor Matt Bevin designated the EEC as the lead agency to administer Kentucky’s portion of the Volkswagen settlement funds.

“These funds represent an opportunity in Kentucky to reduce mobile-source NOx emissions across the state, thereby providing cleaner air, more energy efficient alternatives, and economic development opportunities for the Commonwealth,” said Charles Snavely, Secretary of the Energy and Environment Cabinet.

After the BMP is finalized, the EEC will release funding opportunity announcements and/or solicitations for projects to receive funding.