The Volkswagen Settlement
The Volkswagen Settlement comprised a series of legal settlements involving various federal agencies, the State of California, and multiple entities linked to VW. The final settlement addressed the repercussions of the company's manipulated emissions tests, resulting in vehicle emissions exceeding the limits set by the Clean Air Act. Notably, $2.7 billion of this settlement was allocated to an Environmental Mitigation Trust. These funds were then divided among the states to finance projects targeting the reduction of Nitrogen Oxide (NOx) emissions at the local level.
The Kentucky General Assembly directed the state's $20.3 million share towards the replacement of school and transit buses, and light-duty electric vehicle infastructure throughout the Commonwealth.
Light-Duty Zero-Emission Vehicle (ZEV) Infrastructure Program
Kentucky has $3,498,638 of unspent funds through the Volkswagen Environmental Mitigation Settlement for Light Duty ZEV Infrastructure funding. The Office of Energy Policy is seeking applications for the installation and operation of level 2 and level 3 electric vehicle charging infrastructure under two separate rebate programs.
The costs of implementing the full project are reimbursable and at a 50% cost reimbursement of eligible expenses. Eligible expenses are costs necessary for, and directly connected to, the acquisition, installation, operation and maintenance of new light duty zero emission vehicle supply equipment, including:
- Design costs
- Labor
- New charging station units and associated equipment
- Conduit, signage at the parking spot, bollards, cable/wiring and electrical service box disconnects
- Concrete or asphalt addition or replacement
- Paint striping and stenciling of the charging station parking spaces
- Annual network and maintenance fees for up to 3 years
The details of eligibility, equipment requirements, and more can be found in the application instruction manual and should be utilized as a guide for completing the application form. Any questions regarding the application instructions or process should be sent to hailey.mullins@ky.gov.
The application portals for these programs will open on April 13th, 2026 and will remain open until all funding is exhausted.
Level 2 Rebate Program
The Kentucky Energy and Environment Cabinet is seeking applications for installation and operation of level 2 electric vehicle (EV) charging equipment at public places, workplaces, or multi-unit dwellings across the Commonwealth. An eligible entity may submit one application to this program.
This program will support up to 15 projects with a total funding amount of $375,000. Each project can receive a reimbursement of up to $25,000.
Funding will be awarded on a first come-first served basis for complete applications submitted and will be available until the funds are exhausted.
Level 3 Rebate Program
The Kentucky Energy and Environment Cabinet is seeking applications for the installation and operation of level 3 (DC fast) EV charging equipment at Public Commercial and General Aviation airports located within the Commonwealth of Kentucky. Each eligible airport may only submit one application to this program.
Funding for these projects is available through the Volkswagen Environmental Mitigation Settlement Funding allocated to Kentucky. Total funding for this initiative will be $3,123,638.
Approved projects will receive funds on a reimbursable basis. Funding will be awarded on a first-come, first-served basis for complete applications and will remain available until funds are exhausted.
School and Transit Bus Replacement Program
School districts received a 50% reimbursement for the purchase cost, allowing for the replacement of up to five school buses per district. Details on approved school bus replacements can be found in our archived resources.
The following transit agencies received authorization for reimbursement for replacement transit buses:
- Transit Authority of River City (TARK) - $4,768,281
- Transit Authority of Northern Kentucky (TANK) - $2,104,672
- Lex Tran - $1,492,344
- Owensboro Transit System - $156,403
Archived Resources
The
following information is being maintained for reference, research, or
recordkeeping only, and meets the Americans with Disabilities Act (ADA)
compliance exemption per U.S. Department of Justice regulations 28 C.F.R. Part
35.