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Volkswagen and Diesel Funding

The 2025 Vehicle Replacement Program (VRP) is now open for applications. To be considered for funding, complete applications must be submitted by 12 a.m. (midnight) Mountain Time on September 22, 2025.

The 2025 VRP is funded through a combination of EPA Diesel Emission Reduction Act (DERA) grants and the Volkswagen Environmental Mitigation Trust settlement fund. This competitive application process provides reimbursement rebates for a percentage of the cost of eligible vehicle replacements as well as costs for all-electric vehicle infrastructure when replacing an eligible vehicle with an electric vehicle.

This opportunity provides approximately $4 million in available funding for replacing eligible existing on-road vehicles and non-road vehicles and equipment (referred to collectively as vehicle) with eligible new vehicles. Non-road vehicles are not licensed for on-road (public roadways) use.

The following timelines will be required for all awarded projects: 

  • Order all vehicle(s) and infrastructure equipment (if applicable) within 60 days of the award and provide a signed purchase order to DEQ.
  • The existing vehicles are required to be scrapped or rendered permanently inoperable within 90 days of being replaced and prior to submitting the reimbursement request.
  • Complete the project for all vehicles and infrastructure no later than July 15, 2027. This includes receiving new vehicle(s), scrapping existing vehicle(s), completing installation of infrastructure (if applicable), and submitting required rebate request documentation to DEQ.

Applications for the 2025 VRP must be submitted through DEQ’s AmpliFund Management System.

For assistance with developing and submitting an application, reference the 2025 Vehicle Replacement Program Application Guide. Resources to create an AmpliFund account and submit and monitor applications can be found on DEQ’s Grant Funding Resources page.

Contact Michael Brown at (208) 373-0232 or VRP2025@deq.idaho.gov before the application deadline with questions.

Idaho can potentially receive $17.3 million under the Volkswagen (VW) settlement to upgrade older vehicles and support projects that reduce air pollution. DEQ also receives federal funds through the Diesel Emissions Reduction Act (DERA) grant.

These funds are used to replace or retrofit eligible vehicles or equipment with new diesel engines, alternate fueled engines (e.g., propane, compressed natural gas), or all-electric engines that emit fewer pollutants. The funds can also support the installation of Electric Vehicle Supply Equipment (EVSE) at sites throughout Idaho. 

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2020 Funding Summary

DEQ has completed evaluations of the 2020 Vehicle Replacement Program (VRP) applications and will be funding 29 projects under the 2020 VRP, awarding $5.3 million in VW Settlement and Diesel Emission Reduction Act (DERA) grant funds that will support projects valued at $16.1 million, and replacing 75 vehicles throughout the state. 

The Office of Energy and Mineral Resources (OEMR) and the Idaho Department of Environmental Quality (DEQ) have awarded Electric Vehicle Supply Equipment (EVSE) Program funds to 12 recipients across the state of Idaho. 

The funds will be used to deploy publicly available electric vehicle (EV) charging equipment along Idaho’s major highways and freeways, creating a greater network of charging services for the public. 

The following entities have been selected for funding through the EVSE Program: 

  • Blaine County, County Annex Building, Hailey
  • City of Arco, Idaho Science Center, Arco
  • City of Bonners Ferry, Visitor Center, Bonners Ferry
  • City of Driggs, Driggs Community Center, Driggs
  • City of Island Park, City Building, Island Park
  • Cloninger’s, Grangeville
  • Cloninger’s, Kamiah
  • Eagle Landing, Fuel Station 76 on Kathleen, Coeur d’Alene
  • Fall River Cooperative Headquarters, Ashton
  • May’s Hardware, McCall
  • Nez Perce Tribe, Clearwater River Casino, Lewiston
  • Northern Lights Headquarters, Sagle

DEQ and OEMR have managed the EVSE Program since 2017 with funding from the Volkswagen Settlement. The program was designed to provide cost-share funds or reimbursements for direct current fast charger equipment, commonly called charging stations or charging docks. The program provided a total of $2.6 million in funds and ended in July 2022. 

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