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Home My WebLink AboutVW State of Alaska Fact Sheet 12-01-2017-VWDecember 2017 Volkswagen Settlement FOR MORE INFO CONTACT: Betsy McGregor Environmental Manager VWSETTLEMENT@AIDEA.ORG (907) 771-3000 Quick Facts State of Alaska is eligible to receive $8.125M Public process for Mitigation Trust funds fall 2017 - spring 2018 Additional opportunities for Tribal entities Current Status The VW Settlement addresses VW’s illegal use of emission control “defeat devices” on nearly 580,000 diesel vehicles for model years 2009-2016. These devices masked the actual levels of nitrogen oxides (NOx) emitted from these vehicles which were significantly in excess of the EPA standards, violating the Clean Air Act. The Settlement requires VW to (1) implement a Buyback, Lease Termination, Vehicle Modification and Emissions Compliant Recall Program for the affected vehicles; (2) fund the National Zero-Emission Vehicle (ZEV) Investment Plan to increase usage of ZEV technology; and (3) fund two Environmental Mitigation Trusts to reduce NOx emissions to offset the lifetime excess NOx created by the subject vehicles. Under the Settlement, the State of Alaska, as a Beneficiary, was allocated $8.125 million of the State Trust. AEA has been designated the lead agency to administer the State’s allocation. The final trust agreement was filed with the court October 2, 2017, establishing the Trust Effective Date. In January 2018, Alaska was designated a Beneficiary. A draft Beneficiary Mitigation Plan has been developed. The Beneficiary Mitigation Plan summarizes how the State allocation of mitigation funds will be distributed among the various eligible mitigation actions to reduce NOx emissions. AEA has posted the draft Beneficiary Mitigation Plan to the project website and initiated a 60-day public comment period to determine what types of eligible pollution-reducing projects are of priority to Alaska communities and to identify possible synergies and partnerships that might leverage Trust funds. AEA will revise the draft plan based on public input and anticipates that the final plan will be submitted to the Trustee summer 2018. Please go to AEA’s website for additional information and to submit comments: www.akenergyauthority.org/Programs/vwsettlement/. Sign up for the list serve to stay up to date on activities related to the VW Settlement. (1) Buyback & Recall Program Volkswagen is required to earmark about $10 billion to buy back affected noncompliant vehicles, terminate leases early, or repair the vehicles. Volkswagen administers this part of the settlement directly with affected vehicle owners. More information is available here: https://www.vwcourtsettlement.com/en/. (2) National Zero-Emission Vehicle (ZEV) Investment Plan Under this program, VW will invest $1.2 billion nationally (excluding California) over 10 years into actions that will support increased use of ZEV technology in the United States, including but not limited to the development, construction, and maintenance of zero emission vehicle-related infrastructure. This part of the settlement will be administered by Volkswagen and the U.S. EPA in four 30-month investment cycles. For each cycle, project April 2018 Volkswagen Settlement (cont’d) proposals are submitted to Volkswagen, and Volkswagen develops an investment plan to be reviewed and approved by the EPA. VW released its national ZEV plan for the first 30-month cycle mid-April 2017. Proposals for the second cycle are currently being accepted. While AEA will not be administering these funds, AEA is seeking information from interested parties to identify projects and partnering opportunities. More information is available here: https://www.electrifyamerica.com/. (3) Mitigation Trusts VW was required to fund two Mitigation Trusts, one for states and territories and one for federally-recognized tribes, totaling $2.925 billion. The intent of the trusts is to achieve reductions in NOx emissions to offset the lifetime excess NOx created by the subject vehicles. The trust funds can only be used for specific types of vehicles or equipment, as specified in the Settlement consent decrees, or ZEV supply equipment. Eligible vehicles and equipment may be replaced or repowered with new diesel engines, alternative fueled engines (compressed natural gas, propane, or hybrid), or all-electric engines. Eligible Vehicles and Equipment  Class 4-7 local freight trucks  Class 8 local freight trucks and port drayage trucks  Class 4-8 school bus/shuttle/transit buses  Freight switcher locomotives  Ferries/tugboats  Shore power for ocean going vessels  Airport ground support equipment  Forklifts and cargo handling equipment at ports  Light duty ZEV supply equipment (limited to 15% of funds)  Projects eligible under the Diesel Emission Reduction Act (DERA) Tribal Trust Nearly $54.5 million was allocated to federally-recognized Tribes nationwide. Tribes may submit funding requests annually, beginning January 2, 2018. The Institute for Tribal Environmental Professionals has been designated as the technical assistance provider and the National Tribal Air Association has formed a VW Settlement Work Group. More information is available here: http://www7.nau.edu/itep/main/Home/. State Trust Alaska was allocated $8.125 million, to be disbursed within 10 years, with AEA designated as the lead agency. AEA will develop the Beneficiary Mitigation Plan through a public process, with multiple opportunities for public comment. Once the Plan is approved by the Trustee, AEA will request applications for eligible projects. 4Q 2016 Volkswagen Settlement for State Mitigation Trust Timeline 4Q 2016 — 2Q 2018 Court approves settlement 2Q 2017 Court Approves trustee 4Q 2017 Trust Effective Date 2Q 2018 AEA submits Beneficiary Mitigation Plan 4Q 2017 Governor files beneficiary certification 1Q 2018 Court certifies Alaska as beneficiary 3Q 2018 AEA project solicitation begins Day 0 60 Days 120 Days