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Indiana Volkswagen Mitigation Trust Program

September 2020 Update

The national Volkswagen Environmental Mitigation Trust Program provides Beneficiaries with the flexibility to use Trust funds in combination with a state’s Diesel Emission Reduction Act (DERA) awards. The state of Indiana is an annual recipient of a DERA State Allocation award and the Indiana Volkswagen Environmental Mitigation Trust Fund Committee approved a portion of the state’s overall Volkswagen funding to be utilized in this manner.

The 2020 Request for Proposals is now live on the DieselWise Indiana page: 2020 DieselWise Indiana with Volkswagen DERA Option Request for Proposals.

August 2020 Virtual Public Meeting

The Indiana Volkswagen Environmental Mitigation Trust Fund Committee met on Wednesday, August 19, 2020, at 10:00 AM EDT. Due to COVID-19, the committee met virtually via Microsoft Teams.

The meeting was recorded and is available online [YouTube].

Meeting Documents:

Request for Proposals: Electric Vehicles

The Indiana Volkswagen Environmental Mitigation Trust Program is announcing funding available for projects focused on improving Indiana’s statewide electric vehicle (EV) charging network. Proposals may include plans focused on a single statewide EV charging network or regional, local, or individual charging network installations. The total estimated funding for this competitive grant opportunity is $6.15 million.

The application deadline for the Electric Vehicles Request for Proposals (RFPs) is September 23, 2020 at 5:00 PM EDT.

On July 9, 2020, IDEM’s Shawn Seals participated in the 2020 Indiana VW Electric Vehicle Charging Network RFP Webinar hosted by South Shore Clean Cities, Inc.

May 2020 Virtual Public Meeting

The Indiana Volkswagen Environmental Mitigation Trust Fund Committee met on Thursday, May 28, 2020, at 10:00 AM EDT. Due to COVID-19, the committee met virtually via Microsoft Teams.

The meeting was recorded and is available online.

Meeting Documents:

Past Meetings and Materials

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. 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.

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