It’s been almost three years since “dieselgate” and the resulting Volkswagen settlement, which forced the German automaker to pay billions of dollars in vehicle buybacks and US-based clean-transportation investments for cheating on its emissions-testing software. Now states throughout the country are closing in on projects to award more than $3 billion from the federal Environmental Mitigation Trust. While it’s impossible to put a dollar amount on the damage inflicted, making sure that this settlement money is spent on transportation electrification that will benefit public health and the environment is a move in the right direction toward cleaning up Volkswagen’s dirty deceit.
Millions of dollars in all 50 states are available to be allocated toward clean transportation solutions, and your transit agency, school district, airport, or company may be eligible for these funds.
We know that these grant-application processes can seem daunting. So for those operating transit bus, school bus, port vehicle, or airport vehicle fleets, the Sierra Club has created a guide that could help you apply for millions of dollars in electric-vehicle grant funds.
Why Electric Vehicles?
According to the settlement, VW funds can be spent on “cleaner” vehicles powered by electricity, compressed methane gas, propane, or the deceitfully named “clean diesel.” This presents a significant opportunity for you to procure funds and invest in electric vehicles (EVs), the only vehicle type eligible for investment that is truly clean. Because EVs have no tailpipe emissions, they are safer for communities traditionally burdened by air pollution. Low-income residents, children, the elderly, and people of color suffer disproportionately from health conditions such as asthma and heart disease. EVs are cleaner in every state. And as we shift to more renewable sources of electricity like wind and solar, EVs become even cleaner over time.
The VW settlement is a one-of-a-kind funding opportunity that significantly expands the funding pool available for clean-transportation projects. These public grants slash higher upfront costs associated with electric vehicles and charging infrastructure and allow your agency to maximize the fuel and maintenance savings and environmental benefits associated with vehicle electrification.
States like New Jersey are leading the country with recent investments in electric vehicles using VW funds, while others like New York are seeing massive maintenance savings resulting from municipal fleet electrification. The technology is here, and clean transportation solutions like zero-emission buses are navigating streets nationwide.
Designing Your Proposal
Our new guide provides specific information about the VW settlement to help applicants tailor their proposals. Existing resources can also guide your agency through this process.
Request for proposal (RFP) processes may vary from state to state. For example, Massachusetts is administering an open solicitation grant program with guidelines that allow for a wide range of projects. Other programs, like those administered by the Bay Area Air Quality Management District, focus on investments in disadvantaged communities. States will often outline specific evaluation criteria. Check out this example from the Connecticut Department of Energy and Environmental Protection.
As long as the criteria outlined in your state’s beneficiary mitigation plan are met, the funding allows your agency or company to design programs that best fit the needs of your community. For further information on RFP processes and best practices, you can visit the resource hubs for The American Public Transit Association (APTA) and the Alternative Fuels Data Center (AFDC). You can find information on your particular state’s VW RFP process on your lead agency’s website, (you'll find a link in a table at the bottom of the Sierra Club guide).
Settlement Recap
This $3 billion represent a portion of the more than $14.7 billion Volkswagen was forced to pay following investigations uncovering the installation of emissions cheating software in more than 500,000 vehicles in the US. The computer systems were designed to fake emissions test results, allowing vehicles to emit 15 to 40 times the legal limit of nitrogen oxide. The majority of the settlement funds were allocated to consumers for vehicle buybacks, and $2 billion was allocated to Electrify America to expand the charging network and EV public outreach across the country.
Fallout from malpractice has not been limited to VW. This year, American auto giant Fiat-Chrysler was forced to hand over $800 million in a settlement covering over 100,000 vehicles. Public backlash generated from emissions scandals has pushed Ford to conduct internal investigations and confess to potential failures to meet emissions standards, in an effort to minimize their damages. The message is ringing loud and clear—polluters will be punished and forced to help finance the clean-transportation revolution.
The VW emissions cheating scandal was egregious, but the silver lining is the opportunity to boldly transition your agency and community toward a cleaner, healthier, and more equitable transportation system.