The recently announced proposed settlement between VW and the government will create new opportunities for cleaner emitting trucks. The settlement is expected to be approved by the courts by the end of July and is the result of an emissions situation with certain of their diesel-powered passenger car engines.
In addition to owner compensation, the settlement will create two funds to help reduce future emissions. The Environmental Mitigation Fund would divide $2.7 billion among the states to replace or repower medium and heavy duty vehicles (primarily MY 1992-2006) with cleaner technologies. The purpose of the fund is to support environmental programs throughout the country that will reduce NOx in the atmosphere by an amount equal to or greater than the combined NOx pollution caused by the cars that are the subject of the lawsuit.
The program would pay 40% of the cost for repowering an eligible truck, and 25% of the replacement cost for a new diesel or alternative fuel truck. Electric trucks would be funded at 75%. Government owned repowers or replacements would be funded at 100%.
Given that these funds will be distributed to the states they will have the authority to make certain determinations based on local or regional concerns.
The second fund established by the settlement will be the $2 billion Zero Emission Fund. This fund would be dedicated to electric and fuel cell technologies. According to the Court, “In addition, Volkswagen must spend $2 billion to promote non-polluting cars (“zero emissions vehicles” or “ZEV”), over and above any amount Volkswagen previously planned to spend on such technology.”
Access the Court’s Summary and Settlement documents.