Volkswagen Settlement - Environmental

Mitigation Trust


Background

On October 25, 2016, the United States District Court for the District of Northern California approved a settlement with Volkswagen (VW) addressing 2.0 liter diesel engines. This action was taken to partially settle allegations by EPA and California that VW used illegal defeat devices on Model Year 2009-2015 diesel vehicles to evade emission tests, resulting in an exceedance of tailpipe emissions for nitrogen oxides (NOx). The settlement requires VW to establish an environmental mitigation trust for states (including tribes, DC and Puerto Rico) to implement projects that reduce NOx emissions. In addition, a second partial consent decree was approved in December 2016 dealing with 3.0 liter diesel engines.

Trust Allocations

The State of Kansas will receive nearly $15.6 million over the next ten years for projects that reduce NOx emissions. The Kansas Department Health and Environment will be the lead agency to act on behalf of the trust for the State of Kansas.

Anticipated Timeline

Event
Anticipated Date

Court approved partial settlement, 2.0 liter engines

October 25, 2016

Court approved partial settlement, 3.0 liter engines

December 20, 2016

Trust effective date established

October 2, 2017

Kansas will seek certification as a trust beneficiary

Due December 1, 2017

States notified of beneficiary designation

Due January 30, 2018

Kansas files a beneficiary mitigation plan

No later than 30 days prior to submitting the first funding request

First projects to be funded in Kansas

2018

Mitigation Plan Development

Each beneficiary/lead agency must write and submit to the trustee a Beneficiary Mitigation Plan that summarizes how the mitigation funds will be used. The summary must include:

  • Overall goal for use of the funds
  • Assessment of the percentage of funds that will be used per category of the Eligible Mitigation Actions
  • Description of the air quality benefit of the action in the plan on area with disproportionate air quality burden
  • Estimated range of emission reduction benefit of selected actions

Public Comment

The Kansas Department of Health and Environment will seek public comment on the mitigation plan and compile examples of eligible project ideas. Please direct all current questions to the following e-mail address: kdhe.ksvwsettlement@ks.gov

Eligible Mitigation Actions = Eligible Projects

There is a considerable list of eligible actions for government and non-government owned vehicles. Each category has model year, funding level and other restrictions. The Volkswagen Mitigation Plan Toolkit provides details of eligible actions and maximum project amounts. A document about eligible projects can also be found in the Eligible Projects link below.

The following is a list of eligible projects to consider including in the mitigation plan:

  • Class 8 Local Freight and Port Drayage Trucks - Engine repowers and vehicle replacements
  • Class 4-8 School Bus, Shuttle Bus, or Transit Bus - Engine repowers and vehicle replacements
  • Freight switchers (locomotives) - Engine repowers and vehicle replacements
  • Improvements to Ferries and Tugs
  • Shorepower for Ocean Going Vessels
  • Class 4-7 Local Freight Trucks - Engine repowers and vehicle replacements
  • Air Ground Support Equipment - Engine repowered or replaced with an all-electric engine
  • Forklifts and Port Cargo Handling Equipment - Engine repowered or replaced with an all-electric engine
  • Light Duty Zero Emission Vehicle Supply Equipment - Charging stations or hydrogen dispensing equipment
  • Diesel Emission Reduction Act (DERA) - State-level program expansion

Buyback and Zero Emission Vehicles

Also under the settlement, VW and related entities agreed to the following actions but these are not part of the Mitigation Trust, please select a link for more information:

  • Compensate consumers and get vehicles off the road through buyback, repair and additional compensation programs - $10 billion
  • Expand infrastructure and improve access to zero emitting vehicles - $2 billion

Links

Eligile Projects - VW Environmental Mitigation Plan in Kansas |

www.vwclearinghouse.org |

www.epa.gov/vw