NMED News:
The New Mexico Environment Department (Department) is seeking public comment on proposed draft revisions to the Volkswagen Beneficiary Mitigation Plan for New Mexico. The Plan summarizes the state’s goals for the expenditure of the $17,982,660.90 allocated under the Volkswagen Environmental Mitigation Trust Agreement for State Beneficiaries (Trust). The Trust funds allow the state the opportunity to offset (mitigate) the impact of excess nitrogen oxide (NOx) emissions caused by Volkswagen’s (VW) use of illegal defeat devices in affected diesel vehicles registered within the state. The finalized plan was approved by the Trustee, Wilmington Trust, N.A. in 2018. The state may adjust these goals and specific spending plans at its discretion and, if so, shall provide the Trustee with updates to the Plan.
The Department proposes to make minor administrative changes that will not affect the total amount of funding already received from the Trust, nor will it change the amount of funding awarded to current or future diesel emission reduction projects.
The proposed revisions will reconcile the necessary amount of funding to be set aside for the Diesel Emissions Reduction Act (DERA) Option, from approximately 1.8% of the total funding amount ($317,553) to 3.29% ($592,244). This is because $592,244 was already earmarked as “state matching funds” for DERA Grant funding previously awarded by EPA. (i.e., $592,244/$17,982,660.90 = 3.29%). See chart below. By providing state matching funds, utilizing VW settlement funding, New Mexico’s original DERA grant amount was augmented by EPA, who provided a “match incentive” of 50% of their “base allocation”. EPA’s “base allocation” for FY17-18 ($274,691) + FY19 ($317,553) = $592,244. New Mexico matched this amount utilizing VW settlement funds ($592,244), and was rewarded with a “match incentive” bonus of $296,123 [FY17-18 ($137,346) + FY19 ($158,777) = $296,123].
DERA is a congressionally authorized program that enables the EPA to offer funding assistance for actions reducing diesel emissions.
The draft plan can be found at: https://www.env.nm.gov/vw-settlement/wp-content/uploads/sites/26/2025/10/VW-Beneficiary-Mitigation-Plan-revisions-10-15-25.pdf
The New Mexico Environment Department will accept written comments on the proposed revisions to the plan for 30 days from the date of this notice. Comments should be emailed to neal.butt@env.nm.gov .