Louisiana Volkswagen Environmental Mitigation Trust

Louisiana Volkswagen Environmental Mitigation Trust Allocations To Date

The State of Louisiana has awarded $8,590,768 to 15 Parish School Boards who applied for funding under the VW Environmental Mitigation Settlement.

The Louisiana Department of Transportation and Development is replacing old diesel equipment and vehicles with $6,981,107 of funding.

The Louisiana Department of Agriculture and Forestry is replacing old diesel equipment and vehicles with $1,057,913 of funding.

The Louisiana Department of Corrections is replacing old diesel equipment and vehicles with $2,300,000 of funding.

The Town of Hornbeck was awarded $75,000.00 to replace an old diesel dump truck with a clean-burning CNG emergency roadside nurse dump truck that will be used to refuel other CNG vehicles.

The Volkswagen Environmental Mitigation Trust Agreement authorized each Beneficiary to use up to 15% of its allocation of Trust Funds on the costs necessary for, and directly connected to, the purchase, installation, and maintenance of new, light-duty zero emission electric vehicle supply equipment (EVSE) located in a public place, workplace, or multi-unit dwelling that is not consumer light-duty EVSE (i.e., not located at a private residential dwelling that is not a multi-unit dwelling).  $1,680,611.41 has been awarded for EVSE projects in the State

VW Mitigation Fund application opportunities are currently closed. At this time, there are no plans to reopen the application process. Any residual fund distribution will follow the terms set forth in the VW Settlement Agreement.

 

About the Louisiana Volkswagen Environmental Mitigation Trust

As part of a settlement, states are eligible to receive funds to pay all or part of the cost of projects to reduce emissions from diesel vehicles and to install electric vehicle charging stations. See Appendix D.

Funds used to replace eligible diesel school buses.

The amount paid to each state is based on the number of subject VW vehicles registered in the state. Louisiana’s share is approximately $19.8 million. To qualify for the funds, the state has to develop a Mitigation Plan for the expenditure of the funds and submit that plan to the VW trust fund for approval. That plan has to outline how the state will use the funds to reduce NOx emissions.

Three Louisiana state agencies were designated to receive equal shares of the fund: The Louisiana Department of Environmental Quality (LDEQ), the Louisiana Department of Conservation and Energy (LDC&E) and the Louisiana Department of Transportation and Development (LDOTD). These agencies were tasked to allocate the VW Mitigation Trust funds. LDEQ was designated as the lead agency (beneficiary)

LDEQ and LDC&E, with public input, pooled their funds to target the replacement of eligible diesel school buses. The bus replacement program offered partial funding primarily to school districts to replace their buses with electric, alternative fuel or high-efficiency diesel vehicles.

LDOTD used its share of the funds to replace eligible diesel vehicles and heavy equipment with new, less polluting engines.

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Volkswagen Clean Air Act Civil Settlement

The Volkswagen settlement was approved by a federal court in California on October 25, 2016. VW is required to pay $2.9 billion into an environmental mitigation trust fund to be shared among the states and tribes. Louisiana will receive $19.8 million over three years. The money will be used to offset the excess air pollution caused by VW’s actions. 

Separate parts of the settlement require Volkswagen to spend $10 billion to buy back affected vehicles, terminate leases early, or repair the vehicles. Additionally, Volkswagen is required to invest $2 billion over 10 years in electric vehicle charging stations and education. VW, the U.S. Environmental Protection Agency (EPA), and California will administer these parts of the settlement.

• Louisiana’s Mitigation Plan
• Volkswagen Clean Air Act Civil Settlement
• LDEQ Volkswagen Mitigation Plan Response to Comments
• Volkswagen Eligible Mitigation Action Project Application Guidance
• Wilmington Trust’s Louisiana Web Page - This webpage contains current and historical information and reports concerning funding requests.

Historial Press Releases

• August 1, 2019 - The third round of applications for the Volkswagen Mitigation Trust Settlement projects  
• Feb. 19, 2019 – LDEQ opens the application for VW Mitigation Trust Settlement projects
• June 27, 2017 - VW Mitigation Proposal Extended - Public Notice

In 2017, Volkswagen AG (VW) agreed to plead guilty to charges that it installed software in its model year 2009-2016 2.0-liter and 3.0-liter diesel cars that circumvented EPA emissions standards using a “defeat device.” These vehicles emit up to 40 times more pollution than emissions standards allow in the form of nitrogen oxides (NOx), a pollutant that harms public health and contributes to ozone or smog formation.

Helpful Links

• AMENDED ENVIRONMENTAL MITIGATION TRUST AGREEMENT FOR STATE BENEFICIARIES as of 02/28/2019
• ENVIRONMENTAL MITIGATION TRUST AGREEMENT FOR STATE BENEFICIARIES as of 10/02/2017
• VW electrify America
• COMPARISON OF VW ELIGIBLE MITIGATION ACTIONS

For more information, please email vwsettlement@la.gov.