Quick Summary
A list of “shovel ready” NOx mitigation and Zero Emission Vehicle (ZEV) projects is needed for when Kentucky’s $19 million in allocated VW settlement funding becomes available. Please complete the survey below to have your diesel replacement project(s) included in this “wish list”.
SURVEY — Tell us about your potential vehicle replacement project(s) by MAY 30, 2017
Please use the free form text fields below to describe the type of diesel vehicles/equipment currently operating. Use a separate line for each specific vehicle/equipment type. Include on or off road vehicles or equipment.
Thank you. KCFC will use your input to express our members’ interests as Kentucky moves forward with naming a beneficiary agency and mitigation plan development.
VW Settlement Background
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.
The Settlement
In October 2016, 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. $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. For more information on eligible consumer vehicles, visit https://www.ftc.gov/enforcement/cases-proceedings and search for Volkswagen.
What Happens Next
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. For further information visit http://www.naseo.org/volkswagen-settlement
Vehicle/Equipment Replacement Project Examples
The following matrix outlines the designated vehicle classes, model year and applications, eligible for replacement with VW Mitigation Trust Funds.
