Governor Lamont Announces $15 Million in Available Funding To Support Clean Air Projects

(HARTFORD, CT) - Governor Ned Lamont today announced that the State of Connecticut is making available $15 million dollars from the national legal settlement in the Volkswagen (VW) Corporation emissions cheating scandal to fund clean air projects in the state.

Administered through the Connecticut Department of Energy and Environmental Protection (DEEP), eligible projects must reduce nitrogen oxide (NOx) emissions across the state and meet other program requirements. NOx emissions contribute to unhealthy levels of ozone (smog) during the warmer months in Connecticut.

The transportation sector is responsible for approximately 70% of smog-forming air pollution and 40% of greenhouse gas emissions in Connecticut. The VW funding will help reduce more NOx and greenhouse gas (GHG) emissions from mobile sources in Connecticut and move the state closer to meeting health-based air quality standards and long-term GHG reduction targets, while at the same time creating economic development opportunities.

"Climate change and smoggy air pollution are hurting the folks who live and work in Connecticut and cannot be ignored," Governor Lamont said. "Our efforts to fight this pollution are all the more important as long as government leaders in Washington seem intent to give polluters a free pass."

Older diesel engines emit large amounts of pollutants, such as nitrogen oxides and fine particulate matter, which are linked to instances of aggravated asthma, lung damage, and other serious health problems. The fine particles in diesel exhaust, as small as a fraction of the diameter of a human hair, pose serious health risks by aggravating asthma and other respiratory illnesses. Children are especially vulnerable to these effects. The Northeast has some of the highest asthma rates in the nation. A recent Connecticut Department of Public Health report indicated that during the 2022-23 school year, the asthma prevalence among Connecticut public school students was 12.3% and students of color were disproportionately affected at up to 18.8%, while overall, 7.9% of all children and 10.8% of adults suffered from asthma.

"With the federal government determined to weaken emission standards for cars and trucks, grant programs such as the Volkswagen settlement program are playing an increasingly important role in our ability to reduce diesel pollution that's harming our health, and encourage companies to choose cleaner options," DEEP Commissioner Katie Dykes said. "Over the years, these settlement funds have helped spur investment in clean vehicles and equipment that are reducing pollution in communities most impacted by poor air quality."

The funds will - on a reimbursement basis - finance projects that replace, repower, or retrofit an array of aging diesel mobile sources and/or non-road equipment. Some of the projects eligible for funding include on-road heavy-duty vehicles such as school buses, off-road equipment such as cargo handling equipment or the repowering of marine engines. Eligible source categories and funding criteria are specified in the State of Connecticut Beneficiary Mitigation Planand limited by the Environmental Mitigation Trust Agreement for State Beneficiaries. Both non-government and government entities are eligible to apply. DEEP will ensure that projects ultimately funded by this program support the goals of the plan.

For information on applying for a grant through this program, visit DEEP's website at portal.ct.gov/deep/air/mobile-sources/vw/vw-settlement---home. Additionally, DEEP has scheduled a webinar for 1:00 p.m. on April 21, 2026, to review the application forms and provide related instructions for potential applicants.

Project proposals must be submitted to DEEP by 5:00 p.m. on June 11, 2026.

About the VW settlement

Between June 2016 and January 2017, three partial consent decrees were finalized between the United States, the State of California, and VW regarding the installation and use of emissions control defeat device software on nearly 590,000 VW, Audi, and Porsche branded diesel vehicles sold and operated in the United States from 2009 through 2015. As a result of these settlements, Connecticut was allocated more than $55 million and has expended over $30 million to date.

While it will be impossible to offset the entirety of pollution that resulted from VW's emissions cheating, the projects funded through these grants will help to improve air quality and protect public health in Connecticut.