1. State and Local Air Directors’ Meeting May 23, 2019
VW Settlement Update
State and Local Air Directors’ Meeting
May 23, 2019

2. VW Environmental Mitigation Trust
As part of the settlement, VW will provide ~$2.9 billion for 2.0 and 3.0 liter violating vehicles to an Environmental Mitigation Trust.
Funds from the trust will be used to remediate the excess NOx emissions.
 Beneficiaries must fund projects from a list of Eligible Mitigation Activities. These projects include funding for the replacement and/or upgrade of:
Heavy and medium-duty trucks and buses
Freight switcher locomotives
Ferries and tugs
Ocean going vessel shorepower
Airport ground support equipment
Cargo handling equipment
Light duty charging infrastructure
DERA Option
$2.7 billion for the 2.0 liter violating vehicles and $225 million for the 3.0 violating vehicles 
All 50 states, DC, Puerto Rico, and federally recognized Indian tribes are eligible beneficiaries to the trust.  Each state, DC, and PR receive their own allocation (ranging from $8.125M to $422M) and tribes share a $54M allocation.

3. VW Environmental Mitigation Trust
 Trust Effective Date -- October 2, 2017
All states, the District of Columbia, and Puerto Rico certified as beneficiaries.   
State beneficiaries must submit beneficiary mitigation plans before accessing trust funds. There is no specific due date for state beneficiary mitigation plans.
However, beneficiary mitigation plans must be submitted at least 30 days before the state can send its first funding request.

4. The DERA Option
State and tribal beneficiaries may use trust funds as voluntary matching funds on DERA State and Tribal grants (the "DERA Option").
DERA Option allows the use of trust funds for actions not specifically listed in the trust but otherwise eligible under DERA such as:
Generators
Agriculture, construction, and mining equipment
Line haul locomotives
Marine engines
Retrofit and idle reduction technology
DERA Option is for DERA State and Tribal grants only.
In FY 2018, 33 states expressed interest in using the DERA Option.

5. Remember:
EPA is not making eligibility determinations on projects or providing guidance on how to fill out trust paperwork.
EPA will only provide guidance on the DERA Option. 
Eligibility determinations for the other eligible mitigation actions is the responsibility of the beneficiary.

6. Region 4 State Plans: Alabama (percentages are of total VW funds)
Class 8 Local Freight Trucks and Port Drayage Trucks : $2,165, % Class 4-8, School Bus, Shuttle Bus, or Transit Buses: $5,414, % Diesel Emission Reduction Act Option: $974, % Freight Switchers: $2,599, % Ferries and Tugs: $1,516, % Ocean-Going Vessels Shore-power: $974, % Class 4-7 Local Freight Trucks (Medium Trucks): $2,815, % Airport Ground Support Equipment: $974, % Forklifts and Port Cargo Handling Equipment: $974, % Light Duty Zero Emission Vehicle Supply Equipment: $3,248, %

7. Region 4 State Plans: Florida, Georgia, Kentucky
Florida: Shortly publish a Draft Mitigation Plan to be available for public comment for a period of 30 days
Also publish a suite of Requests for Information seeking all interested individuals from the public and private sectors to provide FDEP with information based on each of the Eligible Mitigation Actions selected in the Mitigation Plan.
Will then finalize the Mitigation Plan and submit it to the Trustee
Funding the first Volkswagen Settlement funded projects in the State Fiscal Year which starts July 1, 2019, and ends June 30, 2020
Georgia: Eligible transit buses
$63,624, % of total
Kentucky: Eligible transit buses
$16,302, at least 80 of total%
Zero Emission Vehicle Supply Equipment (gov and non-gov)
$3,056, up to 15 of total%

8. Region 4 State Plans: Mississippi
Large trucks: %
School bus, shuttle bus, or transit bus: %
Medium trucks %
Freight switchers (locomotives): %
Ferries/tugs: %
Ocean going vessel shore power: %
Airport ground support equipment: %
Forklifts and port cargo handling equipment: 8%
Light-duty zero-emission vehicle supply equipment: 10%
Diesel Emission Reduction Act (DERA): %
Allowable administrative costs: %

9. Region 4 State Plans: North Carolina

10. Region 4 State Plans: South Carolina
Class 4-8 School, Shuttle and Transit Buses (Eligible Buses) (80-100%)
Light Duty Zero Emission Vehicle (ZEV) Supply Equipment (0-10%)

11. Region 4 State Plans: Tennessee
Class 8 Local Freight Trucks and Port Drayage Trucks: 10%
Class 4-7 Local Freight Trucks: %
Class 4-8 School Bus, Shuttle Bus, or Transit Bus: %
Light Duty Zero Emission Vehicle Supply Equipment: 15%