$2.7 Billion Grant Opportunities – Transportation / Ground / Marine Equipment from Volkswagen Settlement

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Overview

In June 2016, the U.S. Department of Justice issued a partial consent decree settling claims against Volkswagen AG (VW) made by the United States Environmental Protection Agency (EPA) and Federal Trade Commission. $2.7 billion has been set aside for certain transportation-related projects that reduce nitrogen oxide (NOx) emissions from diesel engines. Each state has been allocated its own amount and can use this money for a number of eligible actions. For more information about the settlement and Environmental Mitigation Trust Agreements, review the National Association of State Energy Officials (NASEO) toolkit and the EPA’s overview of the settlement.

The settlement provides funding to repower or replace vehicles, develop shore power for ports, build out electric vehicle charging infrastructure and expand other emissions-reducing programs.

Timing

Each state will be accepting applications in February 2019; it’s imperative to apply now. Not all state competitive programs have been finalized and are subject to change. Immediate action is required to secure a share of the allocation of state grant funds. Each state, depending on its own goals, has developed a plan to allocate this money.

The tables below are from the settlement (as noted in the NASEO toolkit) and describe the program eligibility parameters each state has to follow.

Table 2: Percentage of Project that can be funded through Trust - Class 8 Local Freight Trucks and Port Drayage Trucks table

Table 7: Percentage of Project that can be funded through Trust - Freight Switchers table

Table 10: Percentage of Project that can be Funded through Trust - Ferries and Tugs table

Table 11: Percentage of Project that can be Funded through Trust - Marine Shorepower table

Table 14: Percentage of Project that can be Funded through Trust - Local Freight Trucks (Medium Trucks) table

Table 16: Percentage of Project that can be Funded through Trust - Airport Ground Support Equipment

For more information about eligibility, review the NASEO toolkit linked above.

Applications

The mitigation trust is now accepting applications. Each state has its own application process. For more information on how to apply and become a beneficiary, visit the Volkswagen Diesel Emissions Environmental Mitigation Trust website.

Immediate Action Required

States are accepting grant applications now. There is heavy competition for these funds and they will be awarded on a first-come basis. These trust funds have the capabilities to not only fix the affected engines, but also reduce NOx emissions and help make transportation equipment more environmentally friendly in the process.

For more information, contact Bill Finnecy at 814.314.8902 or Sean Vanderhoof at 814.314.8908.

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