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Volkswagen Settlement Information

Background:Settlement Breakdown

In 2016, courts determined that Volkswagen had violated the Clean Air Act by deliberately selling diesel vehicles equipped with technologies that tricked emissions testing. These vehicles violated federal emissions requirements, polluting up to 40 times as much as regulations allowed.

 

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. Funds will be distributed through the states and is proportional to the number of polluting vehicles sold in each area.
Environmental Mitigation Trust (EMT) UPDATE: LEAD AGENCY ANNOUNCED

On December 1, Texas filed as a beneficiary to claim approximately $209 million which will be used to fund projects to replace or repower diesel vehicles or equipment. The Texas Commission on Environmental Quality was named the Lead Agency and will be responsible for administering these funds in Texas. Appendix D-2 of the Amended 2.0L Partial Consent Decree outlines eligible projects and reimbursement levels.

 

The next step is for the Trustee to publish a list of Beneficiaries, which must happen within 120 days from the Trust Effective Date of October 31. The graphic below illustrates this timeline. NCTCOG anticipates that the earliest funding will be available would be Spring 2018. 

 

Key Resources for Environmental Mitigation Trust:

Timeline of VW settlement

 
ZEV Investment

Electrify America selected 11 metropolitan areas where it will help install new community charging infrastructure, which will be located at high-traffic, publicly accessible locations.  Additional funds will be devoted to installing new DC fast-charging infrastructure along interstate highways nationwide.

               

Key Resources for ZEV Investment:

NCTCOG Involvement

Over 10,000 violating vehicles were registered in North Texas, and there is significant potential for new projects in the DFW area as a result of the Volkswagen Settlement.  NCTCOG is leading efforts 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.  Most NCTCOG efforts have been focused on the EMT.

 

  • NCTCOG submitted comments on the draft EMT. 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.
  • NCTCOG provided comments to the Governor's office encouraging the State to (1) take advantage of EMT funds (2) designate the Texas Commission on Environmental Quality as the lead agency for Texas, (3) distribute available funds through Councils of Governments, and (4) allocate funds to specific regions based on a variety of criteria. If the recommendations are accepted, NCTCOG could receive $63 million to administer through the North Texas area.  
  • NCTCOG is gathering information on fleet interest to help prepare and plan for possible upcoming funding:

 

Link to NCTCOG survey

 

  • NCTCOG also submitted a proposal to Electrify America encouraging investment in Texas and outlining local priorities related to electric vehicles (EVs). 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 NCTCOG Presentations

Key Resources

 

For more information, please contact Lori Clark at (817) 695-9232 or LClark@nctcog.org.

 

12/5/2017 AP/MG 

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