HomeMy WebLinkAboutVW Settlement Program Fact Sheet 04-2018-VWALASKA ENERGY AUTHORITY
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VOLKSWAGEN SETTLEMENT
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
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/.
APRIL 2018
Betsy McGregor
ENVIRONMENTAL MANAGER
VWSETTLEMENT@AIDEA.ORG
907.771.3000
State of
Alaska is
eligible to
receive
$8.125 M
Additional
opportunities
for Tribal
entities
Public process
for Mitigation
Trust funds:
fall 2017 –
spring 2018
ALASKA ENERGY AUTHORITY
WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST
OF ENERGY IN ALASKA
VOLKSWAGEN SETTLEMENT
(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 buss/shuttle/transit busses
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 paproved by the
Trustee, AEA will request applications for eligible projects.
APRIL 2018
4Q 2016
Volkswagen Settlement for State Mitigation Trust Timeline 4Q 2016 —2Q 2018Court
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
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