On August 29, 2018, the Illinois Environmental Protection Agency ("Illinois EPA") released application materials for the first funding period of monies allocated to Illinois from Volkswagen's $2.9 billion settlement with the federal government for violations of the Clean Air Act. As part of the settlement, commonly referred to as "the VW Settlement," Illinois will receive $108 million over the course of the next 10 years to be used on environmental mitigation projects that reduce emissions of nitrogen oxides in Illinois. The Illinois EPA intends on having a minimum of three funding periods wherein transit agencies, cities, schools, privately-owned businesses, and the like may submit applications to receive funding for certain eligible environmental mitigation projects identified by the Illinois EPA.

For this first funding period, the Illinois EPA is only accepting applications from:

• Government entities such as school districts, municipalities, cities, joint powers of authority, transit districts, and port authorities, for projects in the category of public transit. Those entities with privately-owned fleets that were purchased with government funds are also eligible to apply for public transit projects. The public transit project must occur in Cook, DuPage, Will, Lake, McHenry, or Kane Counties, or Goose Lake and Aux Sable Townships in Grundy County, or Oswego Township in Kendall County.
• Government and non-government entities for projects in the category of all-electric school bus pilot projects occurring in Cook County.

All potential applicants for public transit or all-electric school bus pilot projects that meet the aforementioned criteria must pre-qualify prior to application submission. Thereafter, the eligibility requirements and application materials vary depending on the proposed project to be funded.

Applicants are only allowed to submit one application per project type per funding round and will not have an opportunity to correct incomplete or improperly submitted applications. Applications for the first funding period are due on October 15, 2018 by 5:00 CST.