VW Indiana Settlement Information

FROM THE DESK OF:

Kellie Walsh

Executive Director, Greater Indiana Clean Cities Coalition
July, 2017

This page is intended to be a clearing house of information for Indiana Public and Private sector fleets interested in learning more about opportunities for diesel vehicle replacement and electric vehicle infrastructure installation from Indiana’s pending VW Settlement allotment.

At the time of this post, Indiana has not officially named the beneficiary agency charged with management and disbursement of the funds. Bookmark this page as updates will be made when new information becomes available.

The Greater Indiana Clean Cities Coalition has partnered with the law firm of Ice Miller in an effort to educate their municipal clients and our members of VW Settlement information. To learn more about the history of VW Settlement filings and rulings, CLICK HERE.

Please email me with any questions you might have regarding the VW settlement or alternative fuel and technology options – Kellie@greaterindiana.com

 


 

The Volkswagen Diesel Mitigation Trust Settlement Overview

In 2016, it was discovered that Volkswagen, a German car manufacturer, made a series of intentional missteps in the design and operation of their diesel vehicles. In July 2016, The U.S. Environmental Protection Agency filed complaints against Volkswagen alleging that the car manufacturer violated the Clean Air Act with regards to approximately 580,000 model year 2009-2016 motor vehicles containing 2.0 and 3.0-liter diesel engines. The EPA alleged that each vehicle contained an internal computer that caused the emissions control system of those vehicles to perform differently during normal operation compared to EPA emissions testing certification process. During normal operation and use, it was discovered that the vehicles emit levels of nitrogen oxides (NOx) significantly exceeding EPA’s compliance levels.

In October, Volkswagen agreed to spend up to $14.7 billion to settle these allegations. The funds will be divided to benefits consumers, states, and national programs. Of the $14.7 billion, $10 billion will be spent on vehicle buyback and modification for consumers. For more information on eligible consumer vehicles, visit https://www.ftc.gov/enforcement/cases-proceedings and search for Volkswagen. $2.9 billion has been set aside for states in an Environmental Mitigation Trust and will be allocated to beneficiaries based on the number of impacted VW vehicles in their jurisdictions. The trust will support projects that reduce NOx emissions where the VW vehicles were, are or will be operated. Lastly, $2 billion will be spent over the next 10 years to support increased use of zero emission vehicle (ZEV) technology in the U.S.

As of March 17, Wilmington Trust has been named as the national trustee who will oversee the disbursement of funds. Currently, Wilmington is reviewing appendix D for any changes they may need to submit to the courts. Once Wilmington is confirmed Governors of each state will have 60- days to file to receive their allocated pot of mitigation trust funds by naming the agency that will be the beneficiary of said funds.

Indiana has been allotted $38.9 million for use in reducing NOx emissions where the offending VW vehicles “were, are or could operate” per the court approved consent decree. At the time this article is being written, a beneficiary agency(ies) has not been selected by Governor Holcomb.

For further information visit https://www.ftc.gov/enforcement/cases-proceedings/162- 3006/volkswagen-group-america-inc.

If you have questions or comments related to Indiana and how the funds might be directed, contact Kellie Walsh, Executive Director of the Greater Indiana Clean Cities at kellie@greaterindiana.com.

 


 

Greater Indiana Fleet Members Project Wish List Survey

Please Let Us know the Type of Replacement Projects You Intend to Pursue Utilizing VW Mitigation Trust Funds Allocated to Indiana?

 

The chart below outlines the designated vehicle classes, model year and applications, eligible for replacement with VW Mitigation Trust Funds.

 


 

Qualified Mitigation Actions* *(Refer to Appendix D-2 for more details of eligibility) replaced engines must be scrapped

Eligible Actions any diesel or any alt fuel e.g: CNG, LPG or all- electric engine

Target Years

Funding % Non-Gov.

Funding % Government

Scrapping Required for Replacements

Class 8 Local Freight Trucks (Eligible Large Trucks) Class 8 Port Drayage Trucks (Eligible Large Trucks)

Repower (Including Installation cost) Replace vehicle

1997 – 2009* 1992 – 2009*

40% / 25% / 75%

Up to 100%

Yes

Class 4-8 School Bus, Shuttle Bus, or Transit Bus (Eligible Buses)

Repower (Including Installation Cost) Replace

1992 – 2009*

Up to 40% / 25% / 75%

Up to 100%

Yes

Freight Switchers

Repower (Include Install Cost) Replace

Pre-Tier 1

Up to 40% / 25% / 75%

Up to 100%

Yes

Ferries / Tugs

Repower, Replace

Unreg,Tier1 or Tier2 engines

Up to 40% / 75%

Up to 100%

Yes

Ocean Going Vessels Shorepower

Install systems that power vessel’s main/aux. engine so it’s off at berth

NA

Up to 25%

Up to100%

NA

Class 4-7 Local Freight Trucks (Medium Trucks)

Repower (Including Installation Cost), Replace

2002 – 2009*

Up to 40% / 25% / 75%

Up to 100%

Yes

Airport Ground Service Equipment

Repower, Replace

Tier 0, 1 or 2 diesel/gas

Up to 75%

Up to 100%

Yes

Forklifts (>8000lb) and Port Cargo Handling Equipment

Repower, Replace

8,001 lb. lift cap.

Up to 75%

Up to 100%

Yes

LDV Zero Emission Supply Equipment (up to 15% of Trust Fund Allocation)

Repower, Replace

NA

Up to 25% – 80%

Up to 60 – 100%

NA

(*If state has existing upgrade requirements to 2009, 2010 – 2012 MY diesel vehicles are eligible)

 


 

ADDITIONAL RESOURCES

Use the link below to learn more about the following topics:

Petroleum Reduction Planning Tool
Create a plan for your fleet to reduce petroleum consumption and emissions.

AFLEET Tool
Calculate a fleet’s petroleum use, cost of ownership, and air pollutant and GHG emissions

Vehicle Search
Compare all classes of alternative fuel vehicles, electric vehicles, and hybrids

Vehicle Cost Calculator
Compare cost of ownership and emissions for most vehicle models.

https://www.afdc.energy.gov/tools