Volkswagen Settlement Third Round Funding Recipients

The New Mexico Environment Department (NMED) is excited to announce that $7.3 million dollars has been awarded for seven diesel emission reduction replacement projects across New Mexico from the VW Settlement fund. Eligible projects included the re-power or replacement of Class 8 local freight trucks and drayage trucks; Class 4 – 8 school buses, shuttle buses, or transit buses; freight switcher locomotives; and Class 4 – 7 local freight trucks.

The successful recipients will share $7.3 million to purchase 29 new vehicles including electric transit buses, electric and alternate-fueled school buses and shuttle buses, and alternate-fueled and clean diesel solid waste and public works vehicles. The applications were evaluated based on several criteria including reduction of emissions, environmental justice and impacted population, and cost effectiveness.

The primary goal of the Volkswagen Environmental Mitigation Trust Program is to offset excess emissions of nitrogen oxides (NOx) emitted by affected Volkswagen vehicles registered within New Mexico. The selected projects will reduce emissions of NOx by more than 15 tons in urban, rural, and Native communities in New Mexico. These projects will efficiently and cost-effectively reduce NOx emissions in areas of New Mexico that are nearing the 2015 National Ambient Air Quality Standard for ground-level ozone.

NMED considered applications for projects as listed in the Eligible Mitigation Actions found in Appendix D-2 of the State Mitigation Trust Agreement.

Applications for this funding period were accepted from December 3, 2021, through March 15, 2022.

Volkswagen Settlement Second Round Funding Recipients

NMED is proud to announce that $4.6 million was awarded across 43 projects throughout state from the Volkswagen Settlement fund. Projects included electric vehicles (EV), alternate-fueled vehicles, and light-duty zero emission vehicle (LDZEV) supply equipment.

The selected projects will reduce emissions of nitrogen oxides (NOx) by more than 40 tons in urban, rural, and Native communities in New Mexico. These projects will efficiently and cost-effectively reduce NOx emissions in areas of New Mexico where residents bear a disproportionate share of NOx pollution and in areas that are nearing the 2015 National Ambient Air Quality Standard for ground-level ozone.

VW Project Selection_22Apr20_AltFuel

VW Project Selection_22Apr20_LDZEV

VW Settlement Revised Beneficiary Mitigation Plan

NMED is pleased to release our Revised Beneficiary Mitigation Plan (BMP) that summarizes how the State plans to use the $17,982,660.90 allocated to New Mexico under the Volkswagen Environmental Mitigation Trust Agreement. The BMP was revised based on our review and consideration of public comments on the draft document.

The Revised BMP directs unallocated funds toward the replacement of diesel-fueled vehicles with alternate-fueled and all-electric vehicles. The State remains committed to allocating 15% of the total funding (approximately $2.7 million) towards light duty zero-emission vehicle (LDZEV) infrastructure, and has added a goal to focus efforts on a complete statewide electric vehicle charging network. Based upon comments received, the amount of funding available through the Diesel Emissions Reduction Act (DERA) Option will be reduced from 3% to approximately 1.8% ($317,553).

VW Revised BMP 07.12.19 Final

NMED Response to Comments Final 071219

Draft VW-Revised-BMP-5.30.19

NMED Approves First Round Funding for Seven Projects Related to Volkswagen Settlement Allocation

NMED is pleased to announce the Volkswagen Steering Committee has approved funding for seven projects in the first funding cycle of New Mexico’s Volkswagen Settlement Allocation. The selected projects will reduce nitrogen oxide (NOX) emissions by 117.8 tons in urban, rural and Native communities in New Mexico.

The projects include: 74 new school buses in the Gallup-McKinley and Albuquerque School Districts; a new Public Works Vehicle for San Juan County; electric ground support equipment and associated infrastructure for Southwest Airlines and the Albuquerque International Sunport; as well as compressed natural gas-powered refuse vehicles. As a result of these projects, 113 vehicles in New Mexico will be replaced or repowered.

The projects will significantly reduce the release of harmful NOX from both on-road and off-road diesel-fueled vehicles and equipment. With $5.9 million from the Volkswagen Environmental Mitigation Trust, NMED will leverage more than $13.5 million in matching funding from project award partners to efficiently and cost-effectively reduce NOX emissions in New Mexico.

As part of stakeholder outreach, the NMED’s Air Quality Bureau hosted six public meetings around the state and received valuable feedback from the public throughout the development of the Beneficiary Mitigation Plan and application documents. The NMED received 55 complete applications for projects totaling $24 million for the competitive funding cycle and expects disbursement of funds to begin in 2019.

El Departamento del Medio Ambiente de Nuevo México Aprueba la Financiación de Siete Proyectos Relacionados con la Asignación Acordada con Volkswagen

El Departamento de Medio Ambiente de Nuevo México (NMED, por su sigla en inglés), bajo la dirección de la Gobernadora Susana Martínez, se complace en anunciar que el Comité Directivo de Volkswagen aprobó la financiación de siete proyectos en el primer ciclo de financiamiento de la Asignación de Asentamientos Volkswagen de Nuevo México. Los proyectos seleccionados reducirán las emisiones de óxido de nitrógeno (NOX) en 117.8 toneladas en las comunidades urbanas, rurales y nativas de Nuevo México.

Los proyectos incluyen: nuevos autobuses escolares en los distritos escolares de Gallup-McKinley y Albuquerque; un nuevo vehículo para trabajo público para el condado de San Juan; equipos eléctricos de apoyo en tierra e infraestructura asociada para Southwest Airlines y Albuquerque International Sunport; así como vehículos para basura con motores de gas natural. Como resultado de estos proyectos, 113 vehículos en Nuevo México serán reemplazados o repotenciados.

Los proyectos reducirán significativamente la liberación de NOX dañinos procedente de los vehículos y equipos que funcionan con diésel tanto en carretera como fuera de ella. Con 5,9 millones de dólares del Volkswagen Environmental Mitigation Trust, NMED aprovechará más de 13,5 millones de dólares en fondos de contrapartida de los socios de adjudicación del proyecto para reducir de manera eficiente y rentable las emisiones de NOX en Nuevo México.

Como parte de la divulgación de las partes interesadas, la Oficina de Calidad del Aire de NMED organizó seis reuniones públicas en todo el estado y recibió valiosos comentarios del público a lo largo del desarrollo del Plan de Mitigación de Beneficiarios y los documentos de solicitud. NMED recibió 55 solicitudes completas para proyectos por un total de 24 millones de dólares para el ciclo de financiamiento competitivo y espera que el desembolso de fondos comience en 2019.

Funding Requests for 2018 Funding Cycle

2018 Funding Cycle Awardees

NMED Final Beneficiary Mitigation Plan

Volkswagen Settlement

On September 25, 2016 partial Consent Decree in the lawsuit entitled In re: Volkswagen “Clean Diesel” Marketing, Sales Practices, and Product Liability Litigation was finalized.

On October 2, 2017, the Trust Effective Date was set with the approval of the United States District Court, Northern District of California, San Francisco Division of the finalized trust agreement. The New Mexico Certification of Beneficiary Status, revised with the Attorney General’s signature, were submitted to U.S. District Court of Northern California on November 28, 2017, and to the Trustee (Wilmington Trust, N.A.) on November 29, 2017. The Trustee published the Notice of Beneficial Designation on January 29, 2018.

The lawsuit addressed Volkswagen’s admission of purposely, and over a sustained period of time, employing prohibited emissions defeat devices on their diesel passenger vehicles that resulted in excess emissions of nitrogen oxides (NOX).

NOX emissions are responsible for increased ozone as well as increased nitrogen dioxide levels, both of which are covered by National Ambient Air Quality Standards because of their effect on human health and welfare, including environmental effects.

Under the Consent Decree, New Mexico is eligible to receive over $18,000,000 to implement projects that reduce emissions of NOX from vehicles. Eligible mitigation projects include projects that reduce NOX emissions in freight trucks; school, shuttle, or transit buses; ferries and tugs; forklifts; electric or hydrogen vehicle charging stations; and airport ground support equipment.

This page serves as a conduit between the New Mexico VW Settlement Team and the public. The Team is led by the New Mexico Environment Department and includes multiple partner agencies:

The state’s plan to use the funding is available in the VW Beneficiary Mitigation Plan for the State of New Mexico. Contact NMED at or 505-476-4300 for more information.

NM Documents

New Mexico Beneficiary Certification (Appendix D-3) – revised with Attorney General’s signature, submitted to the U.S. District Court for the Northern District of California on November 28, 2017 and to the Trustee – Wilmington Trust on November 29, 2017.

Notice of Beneficiary Designation – as filed with the U.S. District Court for the Northern District of California on January 29, 2018.

VW Settlement in Brief – updated November 2017

EPA Documents

About the Settlement

Frequently Asked Questions

Partial Consent Decree

NMED does not discriminate on the basis of race, color, national origin, disability, age or sex in the administration of its programs or activities, as required by applicable laws and regulations. NMED is responsible for coordination of compliance efforts and receipt of inquiries concerning non-discrimination requirements implemented by 40 C.F.R. Part 7, including Title VI of the Civil Rights Act of 1964, as amended; Section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975, Title IX of the Education Amendments of 1972, and Section 13 of the Federal Water Pollution Control Act Amendments of 1972. If you have any questions about this notice or any of NMED’s non-discrimination programs, policies or procedures, or if you believe that you have been discriminated against with respect to a NMED program or activity, you may contact: Kathryn Becker, Non-Discrimination Coordinator, NMED, 1190 St. Francis Dr., Suite N4050, P.O. Box 5469, Santa Fe, NM 87502, (505) 827-2855, You may also visit our website at /non-employee-discrimination-complaint-page/ to learn how and where to file a complaint of discrimination.

El Departamento de Medio Ambiente de Nuevo México (NMED) no discrimina por motivos de raza, color, origen nacional, discapacidad, edad o sexo en la administración de sus programas o actividades, según lo exigido por las leyes y los reglamentos correspondientes. NMED es responsable de la coordinación de los esfuerzos de cumplimiento y la recepción de consultas relativas a los requisitos de no discriminación implementados por 40 C.F.R. Partes 5 y 7, incluido el Título VI de la Ley de Derechos Civiles de 1964, según enmendada; Sección 504 de la Ley de Rehabilitación de 1973; la Ley de Discriminación por Edad de 1975, Título IX de las Enmiendas de Educación de 1972 y la Sección 13 de las Enmiendas a la Ley Federal de Control de Contaminación del Agua de 1972. Si tiene alguna pregunta sobre este aviso o alguno de los programas, políticas o procedimientos de no discriminación de NMED, puede comunicarse con:  Kathryn Becker, coordinadora de no discriminación, NMED, 1190 St. Francis Dr., Suite N4050, P.O. Box 5469, Santa Fe, NM 87502, (505) 827-2855,

Si cree que ha sido discriminado/a con respecto a un programa o actividad de NMED, puede comunicarse con la coordinadora de no discriminación identificada anteriormente.

Contact Information

Please contact Neal Butt at (505) 629-2972 or by email at  for additional information regarding potential funding for qualified projects.

Air Quality Bureau contacts

Find a list of Air Quality Bureau contacts below:

Air Quality Bureau contacts
Ph: 505-476-4300
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