OVERVIEW OF VOLKSWAGEN
SETTLEMENT
Introductory Regional Meeting
Lori Clark
June 16, 2017
BACKGROUND
Lawsuits Against Volkswagen Group 2.0 and 3.0 Liter Diesel
Engine Vehicles
Found to Exceed the Environmental Protection Agency’s (EPA)
Standard for Nitrogen Oxides (NOX) Emissions
Violating Vehicles Emitted up to 40 Times
Permitted NOX Levels
Approximately 590,000 Vehicles Sold in the U.S.
Approximately 40,000 in Texas (National Renewable Energy Lab data)
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SETTLEMENT BREAKDOWN
Total Settlement: $14.7 Billion
Zero Emission Vehicle (ZEV) Investment - Managed by Electrify America
Environmental Mitigation Trust (EMT) - Distributed to States
Settlement Breakdown ($ in Billions)
$2.0
$10.0
Texas’ Share:
$209 Million
$2.7
Vehicle Buyback and Modification
ZEV Investment
Environmental Mitigation Trust
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ZEV INVESTMENT
$1.2 Billion Commitment
Four 30-Month Cycles from Q1 2017 to Q2 2019
Cycle 1 Areas of Focus:
Charging Infrastructure Installation – Approx. $250 Million
Long Distance Highway Network
Community Charging (Multifamily Homes, Workplaces,
Commercial/Retail, Community, Municipal Lots/Garages)
Public Education Initiatives – Approx. $25 Million
ZEV Access Initiatives – Under Development
$25 Million Reserved for Electrify America Administrative Costs
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ZEV INVESTMENT
Charging Infrastructure Installation – Cycle 1
Long Distance Highway Network
240 Highway Sites by Cycle End
Focus on States with Higher
Anticipated ZEV Average
Annual Daily Traffic by 2020
High Correlation with FHWA EV
Charging Corridors
I-30 (5-9 Stations)
I-20 (2-4 Stations)
I-35 (5-9 Stations)
Approx. 66 Miles Between Sites
Community Charging
Houston Included in Cycle
1 Funding
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MITIGATION TRUST
$2.7 Billion
Distributed to States Proportional to Violating Vehicles Sold
June 2019: Deadline to Remove 85% of Violating Vehicles
Through Approved Emissions Modification or Recall
Consequence: Pay Additional Funds to the Mitigation Trust
For Each Percentage Point Shortfall,
Volkswagen Must Pay…
2.0 Liter Vehicles
$85 Million
3.0 Liter Vehicles, Generation 1
$5.5 Million
3.0 Liter Vehicles, Generation 2
$900,000
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MITIGATION TRUST PROCESS
Trustee Selected
(Wilmington Trust, N.A. Appointed March 15, 2017)
Trust Agreement Finalized
(Trust Considered Effective)
Potential Government Beneficiaries Must File Certification Form to
Become Beneficiary and Identify Lead Agency
(Up to 60 days from Trust Effective Date)
Trustee Files List of Designated Beneficiaries
(Up to 120 days from Trust Effective Date)
Beneficiaries Must Create Mitigation Plan
(Summary of How the Beneficiary Intends to Use Allotted Funds)
Mitigation Trust Administered by Trustee
(Trustee Required to Transmit Determination of Beneficiary’s Funding
Request within 60 Days Upon Receipt)
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RTC ACTION TO DATE
March 10, 2016: Request to the Department of Justice (DOJ) and
Texas Attorney General (AG), if a Financial Settlement is Reached,
Funds be Dispersed to Texas Nonattainment Regions
March 9, 2017: Request to Governor Abbott and Texas AG to:
1) Pursue $209 Million Allocated to Texas as Part of the
Mitigation Trust
2) Designate TCEQ as the Lead Agency
3) Allow Input from Regions and Other Interested Parties to
Develop the Mitigation Plan
4) Determine Project Priorities and Distribute Funds through
Regional Councils of Governments (or by TCEQ Directly if
Region not Interested)
5) Allocate to Regions Based on Total Number Registered
Vehicles
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NCTCOG FUNDING RECOMMENDATION
Fair Share Funding Recommendation Based on Number of Affected
Vehicles Per Region After Set-Aside of 10% for Other Interested Regions
Region
Funding (In
Millions)
Alamo Area Council of Governments (AACOG)
$27.4
Capital Area Council of Governments (CAPCOG)
$32.9
Houston-Galveston Area Council (H-GAC)
$58.9
Rio Grande Council of Governments (RGCOG)
90%
$5.9
North Central Texas Council of Governments (NCTCOG)
$63.0
Other Regions
$20.9
Total
$209 100%
10%
Recommended COGs are within Transportation Management Areas, and Meet at
Least One of the Following Criteria:
Are Within Recommended Nonattainment Regions (2015 NAAQS for Ozone)
Have Existing Vehicle Inspection/Maintenance Programs
Are Included In Texas Clear Lanes Initiative
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MITIGATION TRUST – PROPOSED STRUCTURE
Trustee for Environmental Mitigation Trust
(Wilmington Trust, N.A., Appointed March 15, 2017)
Beneficiary and Lead
Agency Structure
Defined by Trust;
Governor Abbott’s
plans still unknown
AACOG
CAPCOG
Beneficiary
(State of Texas Eligible)
Lead Agency
(TCEQ?)
H-GAC
TCAWG, AACOG, CAPCOG, and
NCTCOG Proposal; whether
will be accepted is unknown…
NCTCOG
RGCOG
Other
COGs
…under TCAWG et. al proposal, each regional council would administer funding.
Regardless, each council could be a point of contact within their regions to provide
technical support, identify priority areas of focus, opportunities suitable for statewide
coordination, etc.
TCAWG = Texas Clean Air Working Group
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ELIGIBLE NOX MITIGATION ACTIONS
Eligible Mitigation Actions 1-9
1. Freight and Port Drayage Trucks (Class 8)
2. School, Shuttle, & Transit Buses (Class 4-8)
3. Freight Switchers
4. Ferries/Tugs
5. Ocean Going Vessels (OGV) Shorepower
6. Freight Trucks (Class 4-7)
7. Airport Ground Support Equipment
8. Forklifts and Port Cargo Handling Equipment
9. Light-Duty Zero Emission Vehicle Supply Equipment
Eligible Mitigation Action 10
10. Diesel Emission Reduction Act (DERA) Option
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VW OPPORTUNITY INTEREST SURVEY
North Central Texas Council of Governments (NCTCOG), in
collaboration with Clean Cities and Councils of Government
across the state developed a survey:
Purpose: Gather Information On Fleet Interest In Anticipation In
The Event Texas Does File As A Beneficiary
Reasoning: Information Will Guide Feedback During Development
Of The State Mitigation Plan
What Do You Want to Do?
https://www.surveymonkey.com/r/texasVWfunding
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QUESTIONS AND DISCUSSION
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LEARN MORE
Volkswagen Workshop:
Monday, June 26, 10 am – 4 pm @ Austin Convention Center
Register: http://www.smartcitiesconnect.com/register.html
Select “Expo Floor Only”, Enter Discount Code 17AUSTX
Email Donna Tiemann at [email protected]
to Confirm
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FOR MORE INFORMATION
Chris Klaus
Senior Program Manager
817-695-9286
[email protected]
Lori Clark
Program Manager
817-695-9232
[email protected]
www.nctcog.org/airquality
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