The State of Arizona is reaching out to inform the public of the recent Volkswagen (VW) Settlement. In two related settlements, German automaker Volkswagen AG (VW) has agreed to spend up to $14.73 billion to settle allegations of cheating emissions tests and deceiving customers. The automaker will spend up to $10.03 billion to compensate consumers under the program, and will spend $4.7 billion to mitigate the pollution from these cars and invest in clean vehicle technology.

VW Zero Emission Vehicle Investment Commitment and Outreach Plan:

Of that $4.7 billion in settlement funds, $1.2 billion were set aside for investment in Zero Emission Vehicle (ZEV) projects nationally over a ten (10) year period. Eligible ZEV investments will include: the design, planning, construction, installation, operation and maintenance of ZEV infrastructure; the development of brand-neutral education and public outreach campaigns; and programs to increase public exposure or access to ZEVs.

The State of Arizona intends to work with its public and private partners to identify eligible projects to be included in what is anticipated to be a required submission by the State of Arizona to the appropriate designated party yet to be determined for potential ZEV Investment Plan funds. Stakeholder meetings are in the process of being scheduled and will be posted on this site once finalized.  In the interim, organizations and/or people with thoughts and ideas concerning ZEV funds should use the "Submit a Comment" function at the bottom of the page to forward that advice and provide their contact information in order to ensure that they receive all future communications.

VW Environmental Mitigation Trust Fund:

Over the next ten (10) years, the State of Arizona will receive nearly $57 million dollars in settlement funds for projects that reduce nitrogen oxide (NOx) emissions in areas of the state significantly affected by diesel emissions.  The State of Arizona will be required to develop and submit a mitigation plan to the settlement Trustee that will summarize how the state plans to use the mitigation funds. Eligible mitigation actions include replacing or repowering eligible large trucks, buses, freight switchers, ferries/tugs, medium trucks and other vehicles with new diesel or alternative fuel engines, or all-electric engines. Beneficiaries may also use up to 15 percent of their allocation of trust funds on acquiring, installing, operating and maintaining new light duty zero emission vehicle supply equipment.

The Governor's Office, in partnership with the Arizona Department of Environmental Quality (ADEQ) and the Arizona Department of Administration (ADOA), are currently outlining the process for the development of Arizona's mitigation plan and more information including stakeholder briefings will be announced no later than mid-December. In the interim, organizations and/or people with thoughts and ideas concerning Environmental Mitigation Trust funds should use the "Submit a Comment" function at the bottom of the page to forward that advice and provide their contact information in order to ensure that they receive all future communications.

Next Steps:

Formal program guidance and application instructions are currently being developed.

Anticipated Timeline:

October 25, 2016 - Consent Decree approved by the court
November 24, 2016 - Deadline for submission of Trustee candidates
March 15, 2017 - Wilmington Trust named as Trustee
October 2, 2017 - Trust Effective Date established. Governmental entities begin process to file Certification Forms (for Beneficiary status)
November 2017 - Trustee approves/denies Beneficiary status
Nov/Dec 2017  - State to engage stakeholders and develop mitigation plan
December 2017 - Beneficiary to submit the mitigation plan

Documents/Resources:

More information concerning the VW Settlement can be found at: https://www.vwdieselinfo.com/

Information, including application instructions, concerning the ZEV funding can be found at: https://www.electrifyamerica.com/

US Environmental Protection Agency (EPA) information concerning the VW Settlement: https://www.epa.gov/enforcement/volkswagen-clean-air-act-partial-settlements