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Volkswagen Settlement Process

 

Under the Volkswagen Settlement Consent Decree, states are required to submit a plan to the trustee (Wilmington Trust) before they are eligible to receive allocated funds from the VW Settlement. Beneficiaries will have up to 10 years to spend 80 percent of their allocated funds, and at most 15 years to spend 100 percent of their funds. Beneficiaries can request up to one-third of their allocated funding in the first year or two-thirds during the first two years. 

Settlement Timeline

  • Court approved the partial settlement (October 25, 2016)
  • Trust Effective Date  (October 2, 2017)
  • North Carolina applies to become a beneficiary  (December 1, 2017)
  • North Carolina named a beneficiary by Trustee  (January 29, 2018)
  • Draft Mitigation Plan released for input  (March 2018)
  • DAQ holds stakeholder meetings  (March/April 2018)
  • Public comment period for Mitigation Plan ends (May 3, 2018)
  • North Carolina submits its plan for using the funds  (August 2018)

EPA Volkswagen Page

Prior to submitting the Volkswagen Mitigation Plan to the trustee, the N.C. Department of Environmental Quality scheduled a series of stakeholder information sessions on the Draft State Mitigation Plan that will invest the first phase of $92 million in projects aimed at reducing pollution impacts from diesel emissions. DEQ accepted comments on the draft plan through May 3, 2018.

Phase 1 Timeline

  • Plan submission to trustee (Summer 2018)
  • Release request for proposals (Fall 2018)
  • Proposal evaluations (Winter 2018/Spring 2019)
  • Phase 1 project selections (Spring/Summer 2019)
  • Phase 2 planning (Fall 2019/Winter 2020)

VW Town Hall Meetings 

The DEQ held five public stakeholders meetings across the state to discuss the VW Settlement and the draft Mitigation Plan and provide an opportunity for the public to provide input. The meetings were open to the public and were held in: Asheville (March 26), Kannapolis (March 27), Kinston (April 16), Durham (April 17), and Wilmington (April 20). The Durham meeting was video taped to allow those that could not attend to see what was presented. Presentations Volkswagen 101 Volkswagen Mitigation Draft Plan

Settlement Breakdown

Of the $2.9 billion allocated to environmental mitigation projects, North Carolina will receive approximately $92 million. The amount awarded was based on the approximately 16,000 affected 2.0-and 3.0-liter diesel engine vehicles registered in North Carolina.

Heat map of the concentrations of affected Volkswagen vehicles by county

 

 

Mitigation Projects

North Carolina’s $92 million allocation from the VW Settlement will be invested in a variety of environmental mitigation projects. Appendix D-2 of the Consent Decree outlines specific details of how trust funds may be used. Overall, money from the settlement may be used to pay some or all of the cost to repower (change the engine) or replace eligible diesel-powered vehicles with new diesel or alternative fuel, or all-electric engines or vehicles for these 10 project types: 

Class 8 Local Freight or Port Drayage Trucks

Class 8 Local Freight or Port Drayage Trucks

Model year 1992 – 2009 Class 8 local freight trucks are eligible.

Percentage of project that can be funded through the trust:

  Government-Owned Eligible Large Trucks Non-government Owned Eligible Large Trucks
Repower with new diesel or AFV Engine Up to 100% Up to 40%
Purchase new diesel or AFV engine Up to 100% Up to 25% 
Repower with all-electric engine Up to 100% Up to 75%
Purchase new all-electric vehicle  Up to 100% Up to 75%

 

Class 4 – 8 School Bus, Shuttle Bus or Transit Bus

Class 4 – 8 School Bus, Shuttle Bus or Transit Bus

2009 model year or older buses are eligible.

Percentage of project that can be funded through the trust:

  Government-Owned Buses and Buses Under Public School District Contract Non-Government Owned Buses
Repower with new diesel or AFV engine Up to 100% Up to 40%
Purchase new diesel or AFV vehicle Up to 100% Up to 25%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric vehicle (includes infrastructure)  Up to 100% Up to 75%

 

Freight Switchers

Freight Switchers

Pre-Tier 4 switcher locomotives that operate 1,000 hours or more per year are eligible.

Percentage of project that can be funded through the trust:

  Government-Owned Freight Switchers Non-Government Owned Freight Switchers
Repowering with new diesel, AFV engine or Generator sets Up to 100% Up to 40%
Purchase new diesel or AFV Freight Switcher Up to 100% Up to 25%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric Freight Switcher (includes infrastructure)  Up to 100% Up to 75%

 

Ferries and Tugboats

Ferries and Tugboats

Tier 1 or Tier 2 marine engines are eligible.

Percentage of project that can be funded by the trust:

  Government-Owned Ferried and Tugboats Non-Government Owned Ferries and Tugboats
Repower with new diesel or AFV engine Up to 100% Up to 40%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%

 

Ocean Going Vessels Shorepower

Ocean Going Vessels Shorepower

Components eligible for reimbursement include cables, cable management systems, shore power coupler systems distribution control systems and power distribution components.

Percentage of projects that can be funded by the trust:

  Government-Owned Marine Shorepower Non-Government Owned Marine Shorepower
Cost associated with shore-side systems Up to 100% Up to 25%

 

Class 4 – 7 Local Freight Trucks (Medium Trucks)

Class 4 – 7 Local Freight Trucks (Medium Trucks)

1992 – 2009 model year local freight trucks are eligible.

Percentage of projects that can be funded through the trust:

  Government-Owned Medium Trucks Non-Government Owned Medium Trucks
Repower with new diesel or AFV engine Up to 100% Up to 40%
Purchase new diesel or AFV vehicle Up to 100% Up to 25%
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric vehicle (includes infrastructure) Up to 100% Up to 75%

 

Airport Ground Support Equipment

Airport Ground Support Equipment

Tier 0 – 2 diesel powered airport ground support equipment are eligible.

Percentage of projects that can be funded through the trust:

  Government-Owned Airport Ground Support Equipment Non-Government Owned Airport Ground Support Equipment
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all-electric equipment (includes infrastructure) Up to 100% Up to 75%

 

Forklifts and Port Cargo Handling Equipment

Forklifts and Port Cargo Handling Equipment

Forklifts with greater than 8,000-pound lift capacity are eligible.

Percentage of projects that can be funded through the trust:

  Government-Owned Forklift Non-Government Owned Forklift
Repower with all-electric engine (includes infrastructure) Up to 100% Up to 75%
Purchase new all electric equipment (including infrastructure) Up to 100% Up to 75%

 

Light Duty Zero Emission Vehicle Supply Equipment

Light Duty Zero Emission Vehicle Supply Equipment

•    Limited to 15 percent of funds
•    Funds can be used for acquisition, installation, operations and maintenance of light duty ZEV equipment. These include level 1 and 2 DC fast chargers in public spaces, workplaces and multi-unit dwellings as well as hydrogen fuel cell supply equipment in public spaces.
 

Diesel Emission Reduction Act (DERA) Option

Diesel Emission Reduction Act (DERA) Option