AASHTO Journal, 28 October 2016
A federal judge approved the $14.7 billion Volkswagen settlement with federal and California authorities over its diesel emissions cheating scandal, clearing the way for the automaker to put billions of dollars into emission reduction programs that state agencies and other transportation equipment users can tap into.
Besides spending $10.03 billion to buy back noncompliant vehicles from their owners and compensate consumers, the settlement calls for VW to put $2.7 billion into an environmental mitigation trust to fund emission projects across the United States and $2 billion more over 10 years to develop zero-emissions vehicle infrastructure.
As earlier reported, the environmental mitigation trust sets aside specific amounts by formula to be spent on emission reduction projects in each state plus a tribal allocation.
State formula allocations vary from $391 million for California, which was directly part of the settlement along with federal agencies, to $192 million for Texas, nearly $88 million for Virginia, $61 million for Colorado, $18 million for Louisiana and down to $7.5 million for several smaller-percentage states.
The terms allow a range of eligible projects to qualify for funding across various transportation modes.
They include replacing or repowering older large freight trucks and port drayage trucks, school and transit buses, government-owned vehicles, airport ground equipment, freight rail switcher locomotives, ferries and tugboats, and installation of shore power systems that allow ocean-going vessels to power down their engines while docked.