An Overview of the VW Environmental Mitigation Settlement Andy Bessler Project Director Institute for Tribal Environmental Professionals Northern Arizona University For Non-Profit Educational Use Only
∗ Overview of the VW Settlement ∗ How Tribes Can Apply for Funding 2
Diesel vs Gasoline Engines 3
Diesel vs Gasoline Engines Gasoline and diesel are both fuels refined from crude oil, but with significant • chemical differences. Before being refined, crude oil contains a variety of hydrocarbon • compounds. Refineries separate these compounds into a variety of products, including gasoline and diesel. Gasoline and diesel require different engine technology, so cars and trucks will • use one fuel or the other, never both. In comparison to gasoline, diesel: • Is denser and harder to ignite • Allows greater torque (pulling power) but less horsepower (less velocity) • Contains more energy per gallon of fuel than gasoline (generally resulting in higher • fuel economy) Contains more carbon per gallon (generally resulting in more CO2 emissions per • gallon) Has, on average, 30% more nitrogen dioxide emissions and more particulate matter • emissions 4
Diesel vs Gasoline Engines 5
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News Headlines from the VW Settlement September 18, 2015 EPA, CARB issues Notice of Violation to VW for Clean Air Acts emissions standards January 4, 2016 U.S. government files complaint against Volkswagen for alleged CAA violations June 28, 2016 VW settles emissions-cheating cases for $14.7 billion and agrees to buy back cars October 2, 2017 DOJ and EPA announce VW Mitigation Trust Agreement of $2.8 billion December 6, 2017 Volkswagen Official Gets 7-Year Term in Diesel- Emissions Cheating February 22, 2018 Documentary filmmaker Alex Gibney created the Netflix series on Volkswagen's emissions scandal May 4, 2018 Former Volkswagen CEO Indicted Over Emissions Testing Scandal November 19, 2018 VW Emissions Trust to Fund More Tribes’ Air Quality Efforts 7
Overview of the VW Environmental Mitigation Trust Agreement ∗ Environmental Mitigation Trust Agreement ∗ Filed with the U.S. District Court of the Northern District of California on Sept. 9, 2017 and a Trust Effective Date was filed on Oct. 2, 2017. Modifications made in 2018 and approved by court on Nov. 16, 2018. Awaiting final signatures. ∗ Funding for States and Tribes for NOx emission mitigation projects ∗ $54.5 million federally recognized Tribes ∗ $2.8 billion for States and Territories ∗ About $8 million to State of Alaska ∗ Funds dispersed over 4 years to all 573 Federally Recognized Tribes, until 2021 based on procedures outlined in the Trust Agreement Appendix documents. ∗ If funds remain after 2021, remaining funds will be offered for another year. ∗ Tribes submit documents to both federal court and trustee to opt in. 8
Eligible Mitigation Actions, D-2 ∗ Repower, replace engines, or new vehicles ∗ Class 8 / Port Drayage Trucks ∗ Class 4 – 8 School Buses, Transit Bus ∗ Ferries, Tugs ∗ Ocean Going Vessels ∗ Class 4 – 7 Local Freight Trucks ∗ Forklifts ∗ DERA Option 9
Eligible Mitigation Actions, D-2 ∗ Most vehicles must be 1992-2009 ∗ 100% replacement for Tribally owned vehicles ∗ 40-70% cost of Non-Tribally owned vehicles ∗ Replace dirty diesels with ∗ Cleaner diesel ∗ Propane ∗ CNG ∗ Electric 10
Diesel Emission Reduction Act (DERA) Option and Eligibility ∗ DERA Option in D-2 for eligible generators and construction equipment ∗ 2018 EPA’s Tribal Request for Applications OPEN DEADLINE EXTENDED TO APRIL 3, 2019 ∗ DERA Option uses three pots of money: ∗ EPA DERA Grant ∗ VW Settlement funds (Voluntary Match) ∗ Tribal Mandatory Match 11
VW Settlement Next Steps ∗ First round of funding closed for Tribes on 1/2/18 ∗ 29 Tribes were certified by court in first round ∗ 26 submitted Eligible Mitigation Action Plans ∗ 2 Native Alaskan Villages: Beaver Village and Native Village of Stevens using DERA Option ∗ Tribes can apply for funding each year until 2021 ∗ If funds remain, a fifth funding cycle will be offered ∗ ITEP will establish a Tribal Advisory Council starting in 2019 12
Steps for Tribes to Apply for Funds 2019-2021 ∗ Call ITEP for help and review D-2 options ∗ Register with Trustee on Intralinks and certify with Incumbency forms ∗ Submit D-3 in March, 2019 ∗ Trustee files Notice of Beneficiary Designation in May, 2019 ∗ Trustee informs Tribes in May, 2019 about funds available to each Tribe ∗ Tribes submit Appendix D-6 in June, 2019 if they wish to participate or opt out ∗ Trustee informs Tribes in June, 2019 final funds available ∗ Within 60 days, Tribes submit either mitigation plan and budget or opt Out form (D-7) ∗ Within 60 days, Trustee approves, disapproves or requests modifications ∗ Payments made for approved plans to Tribes in December, 2019 13
Documents Required for Filing by Tribes Documents Reminders Filing Locations O NLY REQUIRED OF T RIBES WHO HAVE NOT E MAIL TO T RUSTEE AT : BEEN DESIGNATED AS I NTRALINKS I NCUMBENCY C ERTIFICATE BENEFICIARIES ( PER RCRANE@wilmingtontrust.com TRUSTEE ’ S NOTICE OF BENEFICIARY DESIGNATION DATED J ANUARY 29, 2018) O NCE DESIGNATED AS I NTRALINKS : B ENEFICIARY , T RIBE MUST FILE THESE WITH I NTRALINKS FILLABLE DOCUMENTS T RUSTEE AVAILABLE IN “WT S ECURITY I NCUMBENCY AND E XHIBIT A P ROCEDURES ” FOLDER INSIDE N EEDS TO BE FILED “G ENERAL I NFORMATION ” FOLDER WITH T RUSTEE BEFORE T RIBE CAN BE PAID M UST COMPLETE AND FILE IN T RIBE ’ S UNDER AN APPROVED “I NCUMBENCY AND E XHIBIT A” A PPENDIX D-4 FOLDER SUBMISSION 14
Documents Required for Filing by Tribes Documents Reminders Filing Locations C OURT ( VIA CM/ECF SYSTEM , ACCESSED BY ATTORNEYS ) I NTRALINKS H ARD COPY TO : V OLKSWAGEN D IESEL E MISSIONS E NVIRONMENTAL M ITIGATION T RUST FOR A PPENDIX D-3 - B ENEFICIARY S TATUS C ERTIFICATION O NLY REQUIRED OF T RIBES I NDIAN T RIBE B ENEFICIARIES F ORM WHO DID NOT PARTICIPATE IN W ILMINGTON T RUST , N ATIONAL F IRST F UNDING C YCLE A SSOCIATION A TTENTION : C APITAL M ARKETS AND A GENCY S ERVICES R ODNEY S QUARE N ORTH 1100 N ORTH M ARKET S TREET W ILMINGTON , DE 19890 N EEDED BY ALL T RIBES A PPENDIX D-6 - B ENEFICIARY ’ S P ARTICIPATION PARTICIPATING IN THE S ECOND I NTRALINKS N OTICE F UNDING C YCLE A PPENDIX D-4 – E NVIRONMENTAL M ITIGATION O NLY NEEDED IF T RIBE IS NOT I NTRALINKS A CTION C ERTIFICATION F ORM SUBMITTING A PPENDIX D-7 O NLY NEEDED IF T RIBE IS NOT A PPENDIX D-7 - B ENEFICIARY ’ S E LECTION TO OPT I NTRALINKS SUBMITTING A REVISED 15 O UT F ORM A PPENDIX D-4
States VW Settlement Information ∗ Alaska’s Lead Agency is the Alaska Energy Authority: ∗ http://www.akenergyauthority.org/Programs/vwsettlement ∗ State Agencies have additional resources on the VW Settlement here: ∗ https://vwclearinghouse.org/ 16
ITEP VW Settlement Technical Assistance Program We can help! Connie Fredenberg, Alaskan Technical Assistance Provider conniefredenberg@mtaonline.net Andy Bessler, ITEP Project Director 928-523-0526 andy.bessler@nau.edu 17
Thank you for your attention! Questions? Comments? Concerns? More information on the VW Settlement can be found on http://www7.nau.edu/itep/main/Home/ www.ntaatribalair.org 18
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