Draft plan for Phase 2 (2020-2023) of VW settlement funding now available

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Minnesota Pollution Control Agency

Phase 2 (2020-2023) draft plan now available

The draft plan for how the Minnesota Pollution Control Agency (MPCA) intends to spend Volkswagen settlement funding in Phase 2 (2020-2023) is now available on our website: Minnesota’s plan.

Over the next four years, the agency will invest $23.5 million in projects that will reduce harmful air pollution and move Minnesota towards a cleaner transportation future.

In Phase 2, MPCA has earmarked 65% of funds to support the electrification of Minnesota’s transportation sector. MPCA grant programs will fund eligible electric vehicles (EVs) and invest the maximum allowed on EV charging stations under the terms of the settlement, including:

  • $7 million for heavy-duty EVs
  • $4.7 million for electric school buses
  • $3.5 million for EV charging stations

MPCA will spend 90% of the EV charging station funds on an estimated 43 new direct current fast-charging stations along highway corridors in Greater Minnesota, which will expand the statewide EV charging network by more than 2400 miles.

DC fast-charging station

Approximately $8.23 million (35% of Phase 2 funds) will fund cleaner heavy-duty on-road vehicles, heavy-duty off-road equipment, and school buses. These grant programs will continue our commitment to achieve substantial emissions reductions by replacing older, more polluting diesel-powered vehicles and equipment with newer, cleaner technology that uses a variety of fuel types.