What the Volkswagen Settlement Means for PA

In 2014 it emerged that Volkswagen had installed illegal software on millions of diesel vehicles to cheat emissions tests. While the cars met federal standards during testing, on the road they emitted up to 40 times more smog‑forming nitrogen oxides. The scandal resulted in criminal charges and billions of dollars in settlements; part of those payments created an Environmental Mitigation Trust to offset the damage.

Pennsylvania will receive about $118.5 million from the trust, administered by the Department of Environmental Protection. This pool is separate from the $30.4 million settlement that was diverted to the state’s General Fund and has no clear environmental benefit. Under the mitigation trust, DEP will evaluate and fund projects in ten categories—from replacing heavy‑duty trucks, school buses and freight switchers to installing shore power for vessels and zero‑emission vehicle infrastructure—based on cost‑effectiveness and nitrogen‑oxide reductions.

PennFuture urges DEP to prioritize projects that advance clean‑energy infrastructure, such as electric vehicles, rather than simply switching diesel engines to natural gas. The trust is a one‑time opportunity to reduce air pollution and accelerate the shift to cleaner transportation. Individuals and companies interested in electric vehicle projects should prepare to apply as soon as the program opens. PennFuture will continue to share updates as the process unfolds.