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In 2015, it was discovered that 500,000 Volkswagen diesel cars had emissions-cheating devices installed that indicated they were in compliance with federal regulations while idle when, in fact, they were spewing up to 40 times the legal limit of pollution while driving. These vehicles contributed to high levels of smog known to cause respiratory problems such as asthma and other health problems. As a result of its cheating, Volkswagen must pay more than $15 billion in settlement funds, including $2.7 billion to all 50 states for investment in clean transportation programs to help mitigate the excess pollution from these cheating vehicles.
States are now in the thick of drafting plans for how best to spend these funds. Each state is faced with a choice: Invest in the same fossil fuels that got us into this mess in the first place (diesel, compressed natural gas, and propane), or invest in truly clean, zero-emission transportation and infrastructure.
Ten states have already released their final mitigation plans, 22 states have released draft plans (many of which are soliciting public input), and 18 states -- including Texas, Florida, New Jersey, and New York -- have yet to release even a draft plan.
If We Build It, They Will Charge
Installing charging stations has been a classic “chicken and egg scenario” -- consumers are hesitant to buy electric cars unless there are enough accessible charging stations, and investors won’t build charging stations unless consumers buy electric cars. Under the VW settlement, tens of millions in funds are available for states to build new -- and expand existing -- charging networks. Every state has the option to invest a maximum of 15 percent of the its settlement funds in building out EV charging networks. Encouragingly, most states are opting to do so.
To be effective, EV charging stations should be installed in areas that experts have identified as being key to accelerating widespread EV adoption, such as multi-unit dwellings (apartments and condominiums), workplaces, and highway corridors, as California and Colorado have committed to in their plans. But placing charging stations based on major “points of interest” such as grocery stores, malls, and landmarks, as Colorado plans to do, can also reduce range anxiety, ensuring that drivers needn't fear being left stranded on roads.
Some states have outlined plans to install charging stations in underserved communities, understanding that equity and access are important principles in the effort to bring clean transportation for everyone, regardless of race or class. These are areas that suffer the highest impact from air pollution -- most often low-income areas and communities of color. Colorado’s final plan carves out 15 percent of funds ($10.4 million) toward EV charging along interstate corridors but also ensures environmental justice communities will have equal access. Although California’s plan is still in the draft phase, the state has committed 35 percent of the funds allocated for charging stations for investment in disadvantaged communities.
Transitioning to Zero-Emission Transit Buses
To date, 69 U.S. cities have committed to 100 percent clean energy, and transitioning to zero-emission bus fleets is an important part of reaching those goals. The Sierra Club’s Ready For 100 campaign secures city commitments that ensure justice, equity, affordability, and access for all members of the community while prioritizing the communities most burdened by the fossil fuel industry, such as low-income areas and communities of color. The VW settlement provides a well-funded springboard for cities to replace fossil-fueled transit buses with clean, zero-emission buses.
Atlanta has committed to achieve 100 percent renewable electricity by 2035, which will eventually power the electric buses that Georgia plans to buy using part of the state’s VW funds. Atlanta will see electric transit buses for the State Road and Tollway Authority’s (SRTA) Xpress system, as well as electric terminal-to-terminal transit buses serving Hartsfield-Jackson Atlanta International Airport.
Washington State’s plan will invest 45 percent of its $112.7 million in electrifying medium- and heavy-duty vehicles, prioritizing transit bus fleets. Seattle’s Climate Action Plan has a goal of reducing passenger transportation emissions 82 percent by 2030, which VW funds will certainly help achieve. In Washington, D.C., more than 120 Sierra Club supporters signed a petition in March urging investment in electric transit buses, and their voices were heard. The mayor announced that over half of the state’s full $8 million will be used to replace older, diesel-burning Circulator buses with zero-emission electric buses, strengthening D.C.'s position as a national leader in curbing emissions through green buildings and clean energy.
Rhode Island has announced that an impressive 75 percent of its $14.3 million will be spent on replacing 20 diesel-powered transit buses with electric buses and that it will consider environmental justice principles when selecting them. Additionally, lawmakers in upstate New York are advocating for a portion of their state’s $128 million to go toward electric buses in their communities.
Cleaning the Air for Our Schoolchildren
Though school buses aren’t on the road as often as transit buses, the majority of schoolchildren ride daily on school buses powered by diesel engines that emit high levels of toxic fumes known to harm human health, and studies show that children are especially vulnerable to this pollution.
Electric school buses can be operated for half the cost of their diesel and propane counterparts owing to lower electricity and maintenance costs, and they keep more than 2 million tons of carbon emissions out of the atmosphere each year.
Students from disadvantaged communities are particularly affected by school buses that run on dirty fossil fuels -- that’s why the Sierra Club and our friends at the League of Conservation Voters, Vermont Energy Investment Corporation, Environment California, and others are urging states to spend part their settlement money to buy electric school buses and protect the health of these vulnerable communities and families.
Vermont recently announced plans to use a portion of its $18.7 million to launch an electric transit and school bus program. "Because of the enthusiastic public support for this idea, we've chosen to lead out of the gate with establishing an electric school pilot program to test these new technologies in Vermont," said Department of Environmental Conservation commissioner Emily Boedecker.
Oregon plans to use a quarter of its $73 million on upgrading 450 diesel school buses. The fuel type of Oregon’s school buses is not specified in the draft plan, which leaves room for input from school districts, parents, and administrators to influence the outcome in favor of clean electric buses rather than dirtier diesel or propane vehicles. Meanwhile, in Ohio, some schoolchildren will soon be riding in electric school buses as part of a $3 million pilot project as allocated in the state's mitigation plan.
Zero-Emission Marine Vessels
The ferry fleet in Washington State is the nation's largest and will soon see an upgrade to cleaner vessels, thanks to the VW settlement. In the Puget Sound, state-run ferries account for more than half of the air pollution generated by harbor vessels. The Washington legislature allocated $600,000 to explore how to convert three state ferries from diesel to hybrid electric engines, which would significantly reduce carbon emissions and reduce ferry operating costs by up to 20 percent. Vermont, too, has proposed to allocate VW funds (up to 11 percent, or $2 million) toward repowering marine vessels owing to the high level of emissions reductions this change would yield.
This is just a snapshot of how some of the Volkswagen settlement money will be invested across the nation. Sierra Club chapters, members, and allies are working hard to influence how these plans will be finalized in the coming weeks and months. We are advocating for a truly clean transportation future (and against investing the funds in compressed natural gas, propane, or diesel vehicles) and for making sure disadvantaged communities aren’t marginalized or left out in receiving the benefits of cleaner air. To learn how you can become involved in state advocacy efforts, contact Mary Lunetta at mary.lunetta@sierraclub.org.