Indiana Volkswagen Mitigation Trust Program

October 2018 Update

The Indiana Volkswagen Environmental Mitigation Trust Fund Advisory Committee will meet on Wednesday, October 24, 2018 at 1:00 PM EDT at the Indiana State Museum, 3rd Floor Conference Room.

Museum Conference Room Directions: Please take the elevator to level 3, turn left off the elevator and walk through the glass doors to a small hallway; the Museum Conference Room is the 2nd door on the right.

The meeting will be streamed live.

Public comments received regarding Indiana’s draft Beneficiary Mitigation Plan (BMP):

August 2018 Update

Indiana’s draft Beneficiary Mitigation Plan (BMP) is available for public comment. Comments are due September 28, 2018. Send comments to the Volkswagen Mitigation Trust (VWTrust@idem.IN.gov). The Indiana Volkswagen Environmental Mitigation Trust Fund Advisory Committee will meet during October after the comment period deadline.

June 2018 Update

The Indiana Volkswagen Environmental Mitigation Trust Fund Advisory Committee met on Monday, June 4, 2018 at 1:00 PM at the Indiana Government Center South-Conference Room A.

The meeting was streamed live online and recorded.

Presentations:

May 2018 Update

A subcommittee of the Indiana Volkswagen Environmental Mitigation Trust Fund Advisory Committee met at 9:00 AM (EDT) on Thursday, May 17, 2018, at the Indiana Finance Authority, One North Capitol, 9th Floor Conference Room.

The meeting was streamed live online and recorded.

April 2018 Update

The Indiana Volkswagen Environmental Mitigation Trust Fund Advisory Committee met on Wednesday, May 2, 2018, at 1:30 PM in the Indiana Government Center South, Conference Rooms 1 & 2.

The meeting was streamed live online and recorded.

March 2018 Update

IDEM and Members of the Volkswagen Environmental Mitigation Trust Fund Committee Public Meetings Have Concluded.

Documents

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.

  • Class 8 Local Freight and Port Drayage Trucks (Model Year 1992-2009)
    • Government owned eligible Class 8 trucks
      • Up to 100% of Repower or Replacement costs regardless of fuel type
    • Non-Government owned eligible Class 8 trucks
      • Up to 40% of Repower costs with new diesel, alternative fuel, or hybrid engine
      • Up to 25% of Replacement vehicle costs with new diesel, alternative fuel, or hybrid engine
      • Up to 75% of Repower costs with new All-Electric engine
      • Up to 75% of Replacement vehicle costs with new All-Electric vehicle
    • Non-Government owned eligible Drayage Trucks
      • Up to 40% of Repower costs with new diesel, alternative fuel, or hybrid engine
      • Up to 50% of Replacement vehicle costs with new diesel, alternative fuel, or hybrid engine
      • Up to 75% of Repower costs with new All-Electric engine
      • Up to 75% of Replacement vehicle costs with new All-Electric vehicle
  • Class 4-8 School Bus, Shuttle Bus or Transit Bus (Model Year 1992-2009)
    • Government owned eligible buses
      • Up to 100% of Repower or Replacement costs regardless of fuel type
    • Non-Government owned eligible buses
      • Up to 40% of Repower costs with new diesel, alternative fuel, or hybrid engine
      • Up to 25% of Replacement vehicle costs with new diesel, alternative fuel, or hybrid engine
      • Up to 75% of Repower costs with new All-Electric engine
      • Up to 75% of Replacement vehicle costs with new All-Electric vehicle
  • Freight Switchers (Pre-Tier 4 and operated over 1,000 hours per year)
    • Government owned eligible freight switchers
      • Up to 100% of Repower or Replacement costs regardless of fuel type for engines or generator sets
    • Non-Government owned eligible freight switchers
      • Up to 40% of Repower costs with new diesel, alternative fuel, or hybrid engines or generator sets
      • Up to 25% of Replacement freight switcher costs with new diesel, alternative fuel, or hybrid engines or generator sets
      • Up to 75% of Repower costs with new All-Electric engines
      • Up to 75% of Replacement freight switcher costs with new All-Electric freight switcher
  • Ferry/Tug Engines (Pre-Tier 3)
    • Government owned eligible ferry/tug engines
      • Up to 100% of Repower costs regardless of fuel type for engines
    • Non-Government owned eligible ferry/tug engines
      • Up to 40% of Repower costs with new diesel, alternative fuel, or hybrid engines
      • Up to 75% of Repower costs with new All-Electric engines
  • Ocean Going Vessels Shorepower
    • Government owned eligible marine shorepower
      • Up to 100% of the shore-side system costs
    • Non-Government owned eligible marine shorepower
      • Up to 25% of the shore-side system costs
  • Class 4-7 Local Freight Trucks (Model Year 1992-2009)
    • Government owned eligible Class 4-7 trucks
      • Up to 100% of Repower or Replacement costs regardless of fuel type
    • Non-Government owned eligible Class 4-7 trucks
      • Up to 40% of Repower costs with new diesel, alternative fuel, or hybrid engine
      • Up to 25% of Replacement vehicle costs with new diesel, alternative fuel, or hybrid engine
      • Up to 75% of Repower costs with new All-Electric engine
      • Up to 75% of Replacement vehicle costs with new All-Electric vehicle
  • Airport Ground Support Equipment (Pre-Tier 3)
    • Government owned eligible equipment
      • Up to 100% of Repower or Replacement costs with new All-Electric engine or equipment
    • Non-Government owned eligible equipment
      • Up to 75% of Repower costs with new All-Electric engine
      • Up to 75% of Replacement equipment costs with new All-Electric equipment
  • Forklifts and Port Cargo Handling Equipment (Greater than 8,000 lift capacity)
    • Government owned eligible equipment
      • Up to 100% of Repower or Replacement costs with new All-Electric engine or equipment
    • Non-Government owned eligible equipment
      • Up to 75% of Repower costs with new All-Electric engine
      • Up to 75% of Replacement equipment costs with new All-Electric equipment
  • Light Duty Zero Emission Vehicle Supply Equipment (Level 1, Level 2, or Fast Charging)
    • Government owned eligible equipment
      • Up to 100% of purchase, installation, and maintenance costs of light duty electric vehicle supply equipment available to the public
    • Non-Government owned eligible equipment
      • Up to 80% of purchase, installation, and maintenance costs of light duty electric vehicle supply equipment available to the public
      • Up to 60% of purchase, installation, and maintenance costs of light duty electric vehicle supply equipment available at workplace but not to the public
      • Up to 60% of purchase, installation, and maintenance costs of light duty electric vehicle supply equipment available at multi-unit dwelling but not to the public
  • Diesel Emission Reduction Act (DERA) Option (DERA eligibility and match requirements must be met)
    • Beneficiaries may use Trust Funds for their non-federal voluntary match
    • Allows for actions not specifically enumerated in the Mitigation Trust
    • Example DERA-eligible projects, not VW-eligible:
      • Exhaust aftertreatment retrofits
        • Up to 100% of purchase and installation costs
      • Idle reduction technologies
        • Up to 40% of switcher locomotives technology costs
        • Up to 25% of Class 4 - 8 trucks and school buses technology costs
        • Up to 30% of truck stop electrification infrastructure costs
      • Diesel engine upgrades
        • Up to 40% of the upgrade technology costs
      • Diesel engine Repowers of different project and fuel types not permitted under VW
        • Up to 40% of Repower costs for locomotive, marine, nonroad, and onroad engines using alternatives beyond All-Electric
        • Up to 60% of Repower costs for locomotive, marine, nonroad, and onroad engines using electric alternatives

VW Settlement Timeline of Events *

* All dates are estimates and are subject to change

  • Court approved the partial settlement: October 25, 2016
  • Trust took effect and VW deposited funds: October 2017
  • Governor Holcomb designated IDEM as Beneficiary through Executive Order: October 4, 2017
  • IDEM filed formally to become Indiana Beneficiary: November 17, 2017
  • Trustee formally designated Indiana (IDEM) Beneficiary: January 29, 2018
  • States file a Beneficiary Mitigation Plan describing broadly how funds will be used: Spring/Summer 2018
  • Indiana Volkswagen Mitigation Trust program releases Solicitation for Projects for first round of funding: Summer/Fall 2018
  • States may request funds: Summer 2018 (30 days after BMP approved)

Indiana’s Beneficiary Mitigation Plan Draft Framework - Comments Requested: Submission Deadline is March 31, 2018

Indiana’s Beneficiary Mitigation Plan, will be based on clean diesel projects that can produce the greatest air quality benefit in terms of diesel emission reductions, with a particular focus on NOx emission reductions. Indiana also seeks innovative projects that will have lasting impacts on not only Indiana’s air quality, but its infrastructure and economy as well. The diesel emission reductions achieved through the Beneficiary Mitigation Plan should reduce public exposure to the pollutants in diesel exhaust, and promote clean vehicle technologies. Indiana initially expects to include all ten eligible categories of mitigation actions (listed above) in the Indiana Beneficiary Mitigation Plan, and is seeking public comments on the relative percentages of available funds to be allocated to each category.

Under the terms of the Volkswagen Mitigation Trust, Indiana may have up to approximately $13.6 million in grant funds available in each of the first three years of the program (2018, 2019, and 2020 presumably). If these funds are not fully expended in the first 3 years, the VW consent decree does allow for an additional 7 years to fully expend any remaining funds. One important factor in funding will be an attempt to direct funding to areas that bear a disproportionate share of the increased pollution burden. This could include densely-populated areas and communities adjacent to rail yards, shipping terminals, and distribution centers where diesel emissions are concentrated.

Indiana will continue to update this website to inform the public about the Volkswagen Settlement, and gather information and ideas from the public and stakeholders as the Indiana Volkswagen Beneficiary Mitigation Trust Plan is developed.

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, please send an email to VWTrust@idem.IN.gov.

For questions, please contact Shawn Seals, IDEM’s Office of Air Quality, at (317) 233-0425 or SSeals@idem.IN.gov.