Update: VW Mitigation Fund Planning February 8, 2017
Volkswagen Settlement 2015 U.S. EPA Notice of Violation to VW/Audi Approximately 500,000 diesel cars with 2.0 liter engines included software that circumvents EPA standards for nitrogen oxide (NOx) emissions During normal operation, these defeat device vehicles emit levels of NOx that significantly exceed federal standards $14 billion settlement approved by federal court 10/25/16
Volkswagen Partial Consent Decree ~$10B funding pool to compensate owners of VW diesel products (buyback, repair) $2.0B to create infrastructure and promote zero emission vehicles (ZEVs), administered by California and U.S. EPA $2.7B set aside to remediate environmental effects of excess NOx emissions across all 50 states, D.C., Puerto Rico and Tribes
VW Mitigation Trust Fund Allocated to states based on total number of defeat device vehicles sold Ohio $71.4 million, based on >15,000 sold Beneficiaries have up to 15 years to spend Related settlement involving 3.0 liter vehicles could increase Ohio s share to $75 million
VW Mitigation Trust Fund Beneficiaries may use for projects that reduce emissions of NOx where the 2.0 liter vehicles were operated no mention of PM2.5 Impact air quality in areas that bear a disproportionate share of air pollution burden Administered by Court-appointed Trustee, not by U.S. EPA
Mitigation Fund Timeline
Possible Eligible Counties Counties of concern for NOx/ozone levels Location of defeat device vehicles Disproportionate share of pollution burden Great Lakes ports, rail yards, distribution centers
10 Allowable Uses of the Funds Replace or repower aging diesel vehicles and equipment with new clean diesel, alternative fuels (e.g. CNG, propane, hybrid) or all-electric Government-owned fleets reimbursed at higher rates than private sector fleets Charging and fueling infrastructure for Zero Emissions Vehicles (ZEVs, e.g. electric and hydrogen)
#1 Large Local Freight Trucks Model Years 1992-2009 Repower with new diesel/alt fuel/all-electric engine (govt. 100%; private 40% of cost for diesel/alternative fuel, 75% for all-electric) Replace with current year new diesel/alt fuel/allelectric truck (govt. 100%, private 25% diesel/alternative fuel or 75% all-electric) Decommission the old truck engine
Same but up to 50% cost to replace a privatelyowned truck Port Drayage Trucks
#2 School, Shuttle, Transit Buses Model year 2009 or older, class 4-8 Repower with new diesel/alt. fuel/all-electric engine (govt. 100%; private 40% of cost for diesel/alt. fuel, 75% for allelectric) including installation Replace with current or prior year new diesel/alt. fuel/allelectric bus (govt. 100%; private 25% diesel/alt fuel or 75% allelectric) Decommission the old bus. May include electric charging infrastructure.
#3 Switcher Locomotives Pre-tier 4, operating > 1,000 hours per year Repower with new diesel/alt fuel/genset or allelectric (govt. 100%; private 40% diesel/alt fuel or 75% all-electric) including installation Replace with new diesel/alt fuel/gensets (govt. 100%; private 25% diesel/alt fuel/genset, or 75% all-electric) Decommission the old engine May include charging infrastructure
#4 Ferries and Tugboats Tier 0, 1 or 2 marine engines Repower with new tier 3 or 4 diesel or alt. fuel engine, or all-electric, or certified remanufacture (govt. 100%; private 40% diesel or alt fuel, 75% all-electric) Must decommission old engine May include charging infrastructure
#5 Shorepower for Ocean Going Vessels Enable vessel s main and auxiliary engines to remain off while at berth. Govt-owned up to 100% of cost; private up to 40% for diesel/alt. fuel, or up to 75% all-electric. May include installation costs and charging infrastructure.
#6 Medium Trucks: Local Freight Class 4-7, model year 1992-2009
Medium Trucks Local Freight Repower with current or prior year diesel/alt fuel/all electric engine (govt. 100%; non-govt. 40% diesel/alt fuel, 75% all-electric) Replace with current or prior year diesel/alt fuel/all-electric truck (govt. 100%; non-govt. 25% diesel/alt fuel, 75% all-electric) Must decommission old truck May include charging infrastructure
#7 Airport Ground Support Equipment (GSE) Tier 0-3 diesel, uncertified or certified to 3 g/bhp-hr, spark ignition engine powered Repower or replace with all-electric (govt. 100%; private up to 75%) Old equipment must be scrapped
EV Charging for Airport GSE
#8 Forklifts and Port Cargo Handling Equipment > 8,000 pounds lift capacity Repower or replace with all-electric Govt. owned up to 100% Privately owned up to 75% Old must be decommissioned May include charging infrastructure
Port Cargo Handling Equipment Repower or replace with all-electric Govt. owned up to 100% Privately owned up to 75% Old equipment must be scrapped
Ohio Ports and Bulk Terminals
#9 Light Duty Zero Emission Vehicle Supply Equipment: Electric Electric: Level 1, 2, & fast charging equipment Located in public places, workplaces, multi-unit dwellings Govt. 100% purchase, install, maintain Private 80%, if publicly available Private 60% at workplace, multiunit dwelling if not publicly available
Light Duty ZEV Supply Equipment: Hydrogen Hydrogen fuel cell supply dispensing at least 70 megapascals (MPa) at least 250 kg/day 33%; at least 100 kg/day 25% Located in a public place
#10 DERA Option States may use trust funds to provide the state match on their State Clean Diesel allocation grants from U.S. EPA under DERA, for same uses. (Ohio uses for school bus replacements.) State may also cover their costs of administering the program.
Ohio EPA Invited Informal Comments Through Dec. 31, 2016 Ohio is open to all ten eligible categories of mitigation actions. We invited comments on: the demand for each the relative percentages of available funds to allocate to each. Proposed map of priority counties.
Planning Resources: U.S. Department of Energy Alternative Fuels Data Center www.afdc.energy.gov
http://www.afdc.energy.gov/uploads/publication/ evse_cost_report_2015.pdf Planning Resources
http://www.cleanfuelsohio.org/ev-readinessplan Planning Resources
http://www.calstart.org/libraries/publications /Best_Practices_for_Workplace_Charging.sflb. ashx Planning Resources
https://www.epa.gov/ports-initiative/nationalport-strategy-assessment-1 Planning Resources
https://www.epa.gov/moves/currentmethodologies-preparing-mobile-source-portrelated-emission-inventories-final-report Planning Resources
Draft Ohio VW Mitigation Plan Spring 2017 Ohio EPA will develop and circulate a draft Mitigation Plan for formal public comments during the 90-day window. We expect to offer one annual grant competition for ~$15 million in 2017, 2018 and 2019. ZEV may be a separate application. Email derg@epa.ohio.gov to be added to the Interested Parties list.
Questions? DERG@epa.ohio.gov Funding questions: Carolyn Watkins Office of Environmental Education (614) 644-3768 Carolyn.Watkins@epa.ohio.gov Technology questions: Alan Harness Division of Air Pollution Control (614) 644-4838 Alan.Harness@epa.ohio.gov