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August 25, 2016   |   Diesel Technology Forum

Policy Insider

Your State Won the Clean Air Fund Lottery. Now What?

States are about to hit the clean air lottery, thanks to dollars that will soon be flowing their way in an environmental mitigation trust as a result of the impending VW emissions settlement.


States are about to hit the clean air lottery, thanks to dollars that will soon be flowing their way in an environmental mitigation trust as a result of the impending VW emissions settlement. This is different from the choices that will be available to VW diesel car owners - where there are separate compensation plans, buy backs and other options. 

These funds are $2.7 billion paid by VW to the public to mitigate the excess emissions resulting from the emissions certification problems (this is in addition to $2 billion set aside for electric vehicles). It’s among the largest settlements in history. The lowest allocation is $7.5M for PR, ND, HI, SD, AK, WY and DC, with the highest allocations going to Washington ($103M), Pennsylvania ($110M), New York ($117M), Florida ($152M) Texas ($191M) and California ($381M). Those last six states account for nearly 40 percent of all the allocations. Thirty states get less than $50 million each while 19 states get less than $20 million each.

While the unexpected funding will surely be welcome, there are terms and conditions on its use, most notably that the funds will be limited to approved projects that reduce emissions of nitrogen oxides. In the proposed settlement, government-owned vehicles were eligible for higher awards (100 percent) than are non-government owned vehicles (25-75 percent). Heavy-duty trucks Class 8 (1992-2006) and school buses (2006 and older) are identified as projects in the draft settlement. We’ll see how the final court order and decree are issued later this year as to whether there are any changes in funding allocations or terms and conditions or not. Many entities submitted comments to the Court regarding issues such as equity, technology neutrality and timing for desired emissions reductions.

The trust is meant to reduce emissions of nitrogen oxides. The NOx emissions from a new clean diesel heavy-duty truck today are less than 0.20 grams per brake-horsepower hour (g/BHP-hr). The same truck of a 2006 vintage has NOx emissions of about 4.0 g/BHP-hr- twenty times lower!

At the core NOx reduction can be most rapidly done by replacing older technology diesel engines with newer technology diesel engines. Before the funds are available, states must take a number of procedural steps to gain access to the funds with certain designations, including a trustee for the administration of the funds. Once that’s settled, these funds will become available and are expected to be allocated and spent within about a three year window though there are provisions that could extend the timeframe. 

More details and information are expected over the next 60 days as the Federal District Court in San Francisco enters the final settlement terms.  

State

Allocation

Alabama

$24.0 Million

Alaska

$7.5 Million

Arizona

$53.0 Million

Arkansas

$13.9 Million

California

$381.3 Million

Colorado

$61.3 Million

Connecticut

$51.6 Million

Delaware

$9.0 Million

District of Columbia

$7.5 Million

Florida

$152.3 Million

Georgia

$58.1 Million

Hawaii

$7.5 Million

Idaho

$16.3 Million

Illinois

$97.7 Million

Indiana

$38.9 Million

Iowa

$12.2 Million

Kansas

$14.8 Million

Kentucky

$19.0 Million

Louisiana

$18.0 Million

Maine

$20.3 Million

Maryland

$71.0 Million

Massachusetts  

$69.0 Million

Michigan

$60.3 Million

Minnesota

$43.6 Million

Mississippi

$9.3 Million

Missouri

$39.0 Million

Montana

$11.6 Million

Nebraska

$11.5 Million

Nevada

$22.3 Million

New Hampshire 

$29.5 Million

New Jersey 

$65.3 Million

New Mexico

$16.9 Million

New York

$117.4 Million

North Carolina

$87.2 Million

North Dakota

$7.5 Million

Ohio

$71.4 Million

Oklahoma

$19.0 Million

Oregon

$68.2 Million

Pennsylvania

$110.7 Million

Puerto Rico

$7.5 Million

Rhode Island

$13.5 Million

South Carolina

$31.6 Million

South Dakota

$7.5 Million

Tennessee

$42.4 Million

Texas

$191.9 Million

Tribal Alloc.

$49.6 Million

Utah

$32.4 Million

Vermont

$17.8 Million

Virginia

$87.6 Million

Washington

$103.9 Million

West Virginia

$11.5 Million

Wisconsin

$63.6 Million

Wyoming

$7.5 Million



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Key Contact

Ezra Finkin
Director, Policy
efinkin@dieselforum.org
301-668-7230

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