VW Indiana Settlement Information


Kerri Garvin

Executive Director, Greater Indiana Clean Cities Coalition
May, 2018

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.

The Indiana Department of Environmental Management has been 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 – Kerri@greaterindiana.com



Governor’s Order Begins Process to Distribute $40.9 Million from VW Settlement

Thursday, October 12, 2017

INDIANAPOLIS – Governor Eric J. Holcomb today signed an executive order outlining next steps to distribute Indiana’s $40.9 million portion of the Volkswagen Environmental Mitigation Trust Fund (trust fund), which was formed as a result of a settlement between the U.S. Department of Justice and the Volkswagen Corporation for its violation of the federal Clean Air Act.

The executive order establishes the Indiana Volkswagen Environmental Mitigation Trust Fund Committee (committee) and names the Indiana Department of Environmental Management (IDEM) as the beneficiary of and the administrative agency for the trust fund.

The 11-member committee is charged with establishing appropriate procedures for distributing the funds and working with IDEM to develop a plan for how the funds should be used, which must be made available for public comment. The committee will ensure the funds are distributed in alignment with the plan, and IDEM will provide staff support to the committee.

Committee Members

  • Beverly Gard, former Indiana state senator
  • Kay Nelson, director of environmental affairs, Northwest Indiana Forum
  • Bill Beranek, president, Indiana Environmental Institute
  • Reggie Jones, central Indiana business owner and philanthropist
  • Brent Dickson, retired Indiana Supreme Court Justice; adjunct at the Indiana University McKinney School of Law
  • Joe McGuinness, commissioner, Indiana Department of Transportation
  • Tristan Vance, director, Indiana Office of Energy Development
  • Danielle McGrath, vice president, Indiana Economic Development Corporation
  • Melissa Rekeweg, interim director, Indiana State Department of Agriculture
  • Bruno Pigott, commissioner, Indiana Department of Environmental Management
  • Jody Peacock, vice president, Ports of Indiana

The trust fund was established to offset the excess pollution emitted by vehicles associated with Volkswagen’s Clean Air Act violation. As such, the executive order charges IDEM and the advisory board to ensure the funds are directed to achieve that purpose.



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%


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%


Freight Switchers

Repower (Include Install Cost) Replace

Pre-Tier 1

Up to 40% / 25% / 75%

Up to 100%


Ferries / Tugs

Repower, Replace

Unreg,Tier1 or Tier2 engines

Up to 40% / 75%

Up to 100%


Ocean Going Vessels Shorepower

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


Up to 25%

Up to100%


Class 4-7 Local Freight Trucks (Medium Trucks)

Repower (Including Installation Cost), Replace

2002 – 2009*

Up to 40% / 25% / 75%

Up to 100%


Airport Ground Service Equipment

Repower, Replace

Tier 0, 1 or 2 diesel/gas

Up to 75%

Up to 100%


Forklifts (>8000lb) and Port Cargo Handling Equipment

Repower, Replace

8,001 lb. lift cap.

Up to 75%

Up to 100%


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

Repower, Replace


Up to 25% – 80%

Up to 60 – 100%


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




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