Indiana Volkswagen Mitigation Trust Program

January 2019 Public Meeting

The Indiana Volkswagen Environmental Mitigation Trust Fund Committee met on Thursday, January 17, 2019, at 1:00 PM EDT in the Indiana Government Center South, Conference Room C.

The meeting was recorded. An agenda [PDF] for the meeting is available, along with the Draft Resolution [DOCX].

The 2019 Indiana Volkswagen Mitigation Trust Program’s Onroad and Nonroad Round 1 preliminary draft document ("Request for Proposals") was provided to the Committee as a guide for conversation. It should be noted that IDEM and the Committee are not intending to accept formal comments on the Request for Proposals document.

Program Background

On September 6, 2017, the United States filed its Notice of and Memorandum in Support of Its Unopposed Motion for Court Approval of Finalized Trust Agreements. (“Motion for Approval”) The Court approved the Trust documents shortly after the filing. This Environmental Mitigation Trust Fund is the result of a Consent Decree between the U.S. Justice Department, the Volkswagen (VW) Corporation, and its subsidiaries addressing the installation and use of emission testing defeat devices in over 590,000 2.0 and 3.0 liter subject vehicles sold and operated in the U.S. beginning in 2009. The settlement requires VW to pay $2.9 billion into the Environmental Mitigation Trust Fund, to offset the excess air pollution emitted by the VW vehicles that violated the Clean Air Act. Indiana expects to receive $40.9 million from the Trust in, at least, three annual installments starting in 2018, with all funds being fully disbursed by 2028. Pursuant to the terms of the Mitigation Trust, eligible projects to reduce NOx emissions from diesel-powered vehicles and equipment will include replacement and repowering of existing diesel vehicles or equipment with cleaner alternatives serving the same purpose. Indiana must develop and submit a Beneficiary Mitigation Plan (“BMP”) to the Trustee describing what types of eligible projects will be implemented to achieve reductions in diesel emissions, with a focus on NOx emissions, across Indiana.

This website has been developed to provide information on the Indiana Volkswagen Mitigation Trust Program and to solicit comment on the Indiana Beneficiary Mitigation Plan Draft Framework (see link below). The comments received through this process will be considered in the development of the final BMP submitted to the Trustee. In addition to this request for comments, several public meetings will be scheduled around the state to provide an opportunity for interested parties to provide comments on the draft BMP prior to its completion and submittal to the Trustee.

Projects Eligible for Funding under the Indiana Volkswagen Mitigation Trust Program and Funding Caps as prescribed by National Volkswagen Mitigation Trust Agreement

Trust funds may be used to pay some or all of the cost to repower or replace eligible diesel-powered vehicles with new diesel, alternative fuel, or all-electric engines or vehicles. A repower project consists of the removal of an existing engine and replacing with a newer, cleaner, engine. A replacement project consists of the removal from the fleet of an existing vehicle and the replacement of it with a vehicle of the same size and purpose. Appendix D-2 to the Partial Consent Decree spells out eligible model years and different percentages of the cost for government-owned and privately-owned vehicles, and requires that the old engines and vehicles be scrapped. The Chart of Vehicles by Class Size [JPG] provides additional clarification of the different eligible truck and bus classes.

The Executive Order and press release from Governor Holcomb that outline steps of the Volkswagen Environmental Mitigation Trust fund are available online:

To submit formal comments regarding the Indiana Volkswagen Mitigation Trust Program, or for general questions, please contact OAQ.