HomeMy WebLinkAboutVW Settlement Current Status 04-01-2019-VWVOLKSWAGEN SETTLEMENT
>100 public
comments on
Draft
Beneficiary
Mitigation
Plan
$54.5 million
VW funds for
tribes
nationwide
$8.125 million
Total State
VW Funds
CURRENT STATUS
Through a required public process, Alaska Energy Authority (AEA) developed a Beneficiary
Mitigation Plan that was approved by the Governor’s office and submitted to the Trustee in
late 2018. The Plan outlines how AEA will disburse the State’s $8.125 million allocation. In
the first quarter of 2019, AEA began preparing to issue funding solicitations. The first of
these was released end of March 2019 with two more to be released this spring/summer.
Funding for eligible mitigation actions displayed below is inclusive of AEA’s allowable
administrative fee so the actual amount available for grants may be lower:
•School bus replacement – 50% of funding
•March 2019 ‐ $2.0 million through RFA solicitation
•Fall 2019 ‐ $2.0 million through RFA solicitation
•Public transit bus replacement – 10% of funding
•April 2019 ‐ $800,000 through RFA solicitation
•Commercial marine vessel upgrade – 10% of funding
•Fall 2019 ‐ $800,000 through RFA solicitation
•Electric vehicle charging infrastructure – 15% of funding
•Summer 2019 allocation
•Railbelt & Copper Valley Regions (together) ‐ $950,000 through RFA solicitation
•Southeast Alaska ‐ $125,000 through RFA solicitation
•All other areas of the state ‐ $135,000 through RFA solicitation
•The Beneficiary Mitigation Plan also allocates 15% of total settlement funds to be used
to leverage federal funds through the Diesel Emission Reduction Act (DERA) program
which in Alaska is used to replace diesel engines used for prime power. These funds flow
through AEA. Projects are selected based on emission reductions, need, and eligibility.
•January 2019 ‐ $500,000
•Spring 2019 ‐ $250,000
•Spring 2020 ‐ $250,000
•Spring 2021 ‐ $250,000
TRIBAL VW TECHNICAL ASSISTANCE
The VW Settlement included a $54.5 million allocation for federally recognized tribes. The
Denali Commission has funded AEA to provide technical assistance to tribes who are
pursuing DERA projects using VW funding. In order for tribes to be eligible to use VW funds
for a DERA project they must first have a DERA‐approved project, either through the
competitive Tribal DERA program or through the State DERA program.
PROGRAM OVERVIEW
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, one for States and one for Tribes, 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, which is to be disbursed within 10 years.
APRIL 2019
QUICK FACTS
FOR MORE INFO
CONTACT:
INFO@
AKENERGYAUTHORITY.ORG
907.771.3000
WWW.AKENERGYAUTHORITY.ORG
REDUCING THE COST
OF ENERGY IN ALASKA