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Volkswagen Settlement Information

 

Background:Settlement Breakdown

 

In 2016, courts determined that Volkswagen had violated the Clean Air Act by selling diesel vehicles equipped with technologies that tricked emissions testing and resulted in the sale of vehicles that violated federal requirements.

 

This ruling resulted in a settlement totaling $14.7 billion, which included the following major components:

 

  • $10 billion set aside for consumer and dealer compensation
  • $4.7 billion to implement new projects that reduce Nitrogen Oxides (NOx) emissions. This will be done through two initiatives
    • Zero Emission Vehicle (ZEV) Investment Program, which will be managed through Electrify America.
    • An Environmental Mitigation Trust, which will be used for projects that primarily clean up emissions from old heavy-duty diesel engines. This will be distributed through the states and is proportional to the number of polluting vehicles sold in each area.

NCTCOG Involvement

Over 10,000 violating vehicles were registered in North Texas. NCTCOG is leading efforts in the region to provide feedback on ways to maximize the benefits of any funding received in Texas, especially for the DFW area. NCTCOG is collaborating with local governments, fellow regional agencies, and industry stakeholders on potential use of these funds.

 

Environmental Mitigation Trust

As part of the settlement, Texas could receive up to $209 million from the Environmental Mitigation Trust. These funds have the potential to impact the Dallas-Fort Worth Region greatly.

A Trustee was selected by the Court in early 2017. The next step is for a "Trust Effective Date" to be finalized, which could happen any day. After that date, the State of Texas has 60 days to file as a Beneficiary and identify a Lead Agency to implement funding in Texas. The Trustee must publish a list of Beneficiaries 120 days from the Trust Effective Date.

  •   NCTCOG submitted comments on the draft Environmental Mitigation Trust. Comments focused on the principle that the Trust should be administered in a way that ensures funding of as many eligible activities as possible, thus optimizing NOx emission reductions achieved.

  •   In an effort to encourage the State of Texas to pursue funding made available as part of the Environmental Mitigation Trust, NCTCOG provided comments to the Governor's office.  These comments included recommending the Texas Commission on Environmental Quality as the lead agency for Texas, distributing available funds through Councils of Governments, and allocating funds based on registered violating vehicles in that region. If accepted, this recommendation would provide $63 million in funds from the Environmental Mitigation Trust to NCTCOG to administer through North Texas area.

 

  • NCTCOG, in collaboration with Clean Cities and Councils of Government across the state developed a survey to gather information on fleet interest in the event      Texas does file as a beneficiary.

Link to NCTCOG survey Link to TCAWG survey

 

ZEV Investment

NCTCOG submitted a proposal to Electrify America encouraging investment in Texas and outlining the region's priorities to address key electric vehicle infrastructure gaps and build awareness of electric vehicles (EVs). Recommendations included placement of a high-speed, intercity EV charging network locations, endorsement of multi-family properties and workplaces as priority locations, requiring charging network interoperability, and focusing on dealer education. Although North Texas was not included in the first round of Electrify America Investment, NCTCOG will continue to monitor the program and will submit additional suggestions in the future.


Recent Presentations

Resources

Consumer Settlement Information

Environmental Mitigation Trust

ZEV Investment Program

EPA site on Volkswagen Settlement

 

National Association of State Energy Officials Volkswagen Toolkit

 

7/10/2017 AP/MG 

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