What is the Volkswagen Settlement? |
In 2015, Volkswagen (VW) publicly admitted it had secretly and deliberately installed a defeat device, software designed to cheat emissions tests and deceive federal and state regulators, in nearly 500,000 VW and Audi branded 2.0-liter diesel vehicles and 83,000 3.0-liter diesel vehicles sold to American consumers. This “defeat device” resulted in better real world fuel mileage and driving performance, but also resulted in the release of thousands of tons of NOX emissions in excess of regulated limits.
On October 25, 2016, a partial settlement was approved that resolves consumer claims concerning the 2.0-liter diesel vehicles. Volkswagen agreed to spend $14.7 billion to settle allegations of cheating emissions. The settlement is divided into three distinct parts. Ten billion dollars of the settlement money will be used to buy back or modify diesel vehicles from consumers. Modifications are expected to be proposed as they are developed, and will be approved by the U.S. EPA and California Air Resources. The second requirement of the settlement is that VW must create a National Zero Emission Vehicle (ZEV) Investment Plan and spend $2 billion on ZEV infrastructure and programs and brand neutral media activities aimed at increasing public awareness of zero emission vehicles. The amount will be divided between California ($800 million) and the rest of the U.S. ($1.2 billion). The third component of the settlement is the environmental mitigation trust. To mitigate environmental damages from violating the Clean Air Act, the settlement requires VW to invest $2.9 billion in an independently administered environmental mitigation trust, which will fund projects to reduce diesel emissions. As a result of these partial settlements, New York is expected to receive over $127 million for use towards offsetting the excess NOx emissions caused by VW’s actions through extensive mitigation projects to reduce NOx from a wide array of mobile sources. |
NYSERDA Clean Transportation Updates
In response to COVID-19, New York State Energy Research and Development Authority (NYSERDA) will enact the following Clean Transportation program changes:
In response to COVID-19, New York State Energy Research and Development Authority (NYSERDA) will enact the following Clean Transportation program changes:
- New York Truck Voucher Incentive Program: Submissions are still being accepted new voucher applications and additional documentation for previously submitted applications and previously approved vouchers. NYSERDA will extend the allowable period for deliveries of vehicles on an as needed basis.
Overview
In 2018, New York State released the Beneficiary Mitigation Plan (the “Plan”) that describes the overall goals of improving air quality and accelerating the transition to zero emission transportation through funding made available under the Volkswagen (VW) Partial Consent Decrees. These air quality improvement goals include reducing nitrogen oxides (NOx), greenhouse gases, particulate matter, hydrocarbon, and mobile source air toxic emissions throughout the state. New York State will receive approximately $128 million for air quality improvement and emissions reduction projects.
The projects described in the Plan will result in significant NOx reductions while accelerating the transformation to a zero tailpipe emission transportation system. Projects will be located throughout New York State, with particular focus on those communities and neighborhoods that are subjected to a disproportionate amount of air pollution from diesel-powered vehicles and equipment.
The projects described in the Plan will result in significant NOx reductions while accelerating the transformation to a zero tailpipe emission transportation system. Projects will be located throughout New York State, with particular focus on those communities and neighborhoods that are subjected to a disproportionate amount of air pollution from diesel-powered vehicles and equipment.
Breakdown of Funding Opportunities
Source: New York State Department of Environmental Conservation. (2019). Beneficiary Mitigation Plan.
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Source: New York State Department of Environmental Conservation. "VW Settlement Information."
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New York Truck Voucher Incentive Program* (NYTVIP)
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New York Truck Voucher Incentive Program (NYTVIP) uses a combination of more than $9 million from the state's $127.7 million portion of the Volkswagen Settlement and the New York State Department of Transportation's allocation of approximately $11 million in federal funds. NYTVIP aims to permanently remove older, polluting diesel trucks from New York's roadways and replace them with new, cleaner trucks, including all-electric trucks.
NYTVIP provides vouchers to fleets across New York State for the replacement of older diesel vehicles with the purchase or lease of electric, conventional hybrid electric, compressed natural gas, or propane medium- and heavy-duty vehicles. Voucher amounts are based on a percentage of the incremental cost of the vehicle. |
webinar: New Incentives Available for Clean School Buses through NYTVIP
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New York City Clean Trucks Program
The New York City Department of Transportation (NYC DOT) announced on June 3rd that the NYC Clean Trucks Program will provide $9.8 million to replace older, dirtier diesel-powered trucks in New York City with newer, less polluting trucks. This new initiative will help improve air quality, reduce greenhouse gas emissions that contribute to climate change, and promote investment in cleaner, advanced trucks and transportation technologies.
Rebate incentive funding is now available for fleets and businesses in NYC Industrial Business Zones (IBZs) for the replacement of older, diesel-fueled trucks with alternative fuel or electric vehicle technologies. Funding available from $12,000 to $185,000 per truck replacement, depending on fuel type and truck class size.
Rebate incentive funding is now available for fleets and businesses in NYC Industrial Business Zones (IBZs) for the replacement of older, diesel-fueled trucks with alternative fuel or electric vehicle technologies. Funding available from $12,000 to $185,000 per truck replacement, depending on fuel type and truck class size.
Clean Transportation NY
State Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) announced $24 million to support electric transit buses in environmental justice communities.
Press Releases
NYC Dept. of Transportation. June 3, 2020. "NYC DOT in Partnership with the NYCDEC Announces Launch of the New York City Clean Trucks Program."
Department of Environmental Conservation. March 30, 2020. "DEC Announces $9.8 Million in Volkswagen Settlement Funds to Support New York City's Clean Truck Program."
Department of Environmental Conservation. March 20, 2020. "DEC and NYSERDA Announce $24 Million in Volkswagen Settlement Funds to Support All-Electric Transit Buses in Environmental Justice Communities."
New York State Energy Research and Development Authority. September 24, 2019. "Governor Cuomo Announces $20 Million in Volkswagen Settlement and Federal Funds Available to Increase Number of Clean Vehicles on New York's Roads."
Webinars
New Incentives Available for Clean School Buses through NYTVIP. January 27, 2021. Register here.
Introduction to New York City Clean Trucks Program. June 10 & 23, 2020. Register here: <<https://learn.nycctp.com/NYCCTP_Introduction_Webinar_Registration>>
New York State Energy Research and Development Authority. January 14, 2020. Slideshow: New York Truck Voucher Incentive Program: Transit buses.
Empire Clean Cities Newsletter
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Empire Clean Cities bi-weekly newsletter is the best way to stay up-to-date with the Volkswagen Settlement as funds and programs continue to be released. Empire Clean Cities shares relevant funding opportunities and events to make sure our stakeholders have the most recent, reliable information about the VW Settlement. Use the form to sign up and receive our newsletter and other funding-specific email blasts. You may opt out at any time. |
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ECC Fleet Resources
Visit our Resources page to find out about electric and alternative fuel vehicles in the light, medium, and heavy-duty sector. Empire Clean Cities has information about different fuel types, funding opportunities, and other resources for fleets, OEMs, industry partners, and individuals.
Volkswagen Diesel Emissions Settlement Program
Learn more about the Settlements and program to modify or buyback certain Volkswagen, Audi or Porsche diesel automobiles in the United States. Vehicles are broken down by 2.0 liter and 3.0 liter models.
EPA Settlement Website
The United States Environmental Protection Agency (EPA) provides useful information about the VW Settlement and frequently asked questions. Learn more by visiting the EPA website.