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             Volkswagen Settlement Information


Recent Developments

View Presentations and Comments from Recent VW Settlement Meeting for More Information

In March 2018, NCTCOG submitted comments to Electrify America pertaining to Cycle 2 Zero Emission Vehicle Investments.

 

In April 2018, NCTCOG submitted additional input on the Draft Mitigation Plan to the

Texas Commission on Environmental Quality (TCEQ).

 

Get Involved!

                       


 

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, managed through Electrify America.
    • Environmental Mitigation Trust (EMT), to be used primarily for projects that reduce emissions from older, heavy-duty diesel engines. Funds will be distributed through the states in proportion to the number of polluting vehicles sold in each area
 

Key Resources

 

Environmental Mitigation Trust (EMT)

Texas filed as a beneficiary to claim approximately $209 million; funds will be used for projects to replace or repower diesel vehicles and equipment. The Texas Commission on Environmental Quality (TCEQ) 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.

On January 28, the Trustee filed a list of designated beneficiaries. The next step is for the TCEQ to submit a mitigation plan, which must be done 30 days prior to submitting first funding request.

TCEQ Now Accepting Comments!

The TCEQ is now accepting comments pertaining to the use of the Trust Funds. Outlined below are the four points that comments may address.

1. Overall goal for use of the funds

2. Categories of mitigation actions and preliminary assessment of the percentages of funds anticipated to be used for each type of action (thus, commenters may wish to address what categories of mitigation actions should be prioritized)

3. Description of how the Beneficiary will consider the potential beneficial impact on air quality in areas that bear a disproportionate share of the air pollution burden. (thus, commenters may wish to address how funds should be distributed geographically)

4. General description of the expected ranges of air emissions benefit 

All comments should be sent to VWsettle@tceq.texas.gov or mailed to the addresses provided here

Key Resources for Environmental Mitigation Trust:

 

Zero-Emission Vehicle (ZEV) Investment

Electrify America plans to invest $2 billion in ZEV infrastructure and education outreach over the next nine years. For Cycle 1 of the project, Electrify America has selected 11 metropolitan areas for the installation of new community charging infrastructure to be located in high-traffic, publicly accessible locations. Additional funds will be allocated to installing new DC fast-charging infrastructure along interstate highways nationwide. Cycle 2 is slated for July 2019 - December 2021.

Key Resources for ZEV Investment:

 

Role of NCTCOG

Over 10,000 violating VW vehicles were registered in North Texas. The extra pollution from these cars undermines ongoing efforts to attain the Ozone Standard. NCTCOG is participating in efforts to maximize the benefits of any funding received in Texas, especially for the DFW area. NCTCOG efforts included:

Environmental Mitigation Trust

  • August 2016:  NCTCOG provided comments to the Assistant Attorney General on the proposed Partial Consent Decree.  Comments included recommendations on administration of funds, funding levels, definitions, and eligible project types.”
  • March 2017: NCTCOG provided comments to the Governor's office in March 2017 encouraging the State to (1) take advantage of EMT funds (2) designate the TCEQ 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. The Governor has elected to accept EMT funds and named TCEQ as the lead agency. TCEQ is currently drafting a statewide EMT plan.
  • April 2018:  NCTCOG provided additional input to the Texas Commission on Environmental Quality (TCEQ) regarding a draft mitigation plan.  Topics included the potential role of regional agencies and elements related to project eligibility, funding levels, and selection
  • Ongoing: NCTCOG is currently gathering information on applicable fleet interest in preparation for potential funding.

Zero Emission Vehicle Investment

  • January 2017: NCTCOG also submitted a proposal to Electrify America for the first cycle of ZEV Investment, encouraging investments in Texas.
  • March 2018: NCTCOG submitted comments to Electrify America regarding Cycle 2 ZEV investments in March 2018. Comments focused on electric vehicle infrastructure gaps at the state and regional level as well as the necessity for outreach and education to stakeholder groups.

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

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