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.

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 was required to develop and submit a mitigation plan to the settlement Trustee that summarized 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 state submitted its Beneficiary Mitigation Plan to the Trustee on June 8, 2018. Click here to access a simulated budgeting application that demonstrates scenarios for balancing the allotted trust funding and the environmental impact of the mitigation effort.

Arizona Attorney General Consumer Fraud Settlement: 

The Attorney General's Office negotiated a $40 million settlement with Volkswagen to resolve consumer complaints. Under the settlement, VW agreed to pay Arizona consumers up to $1,000 for every qualifying vehicle.  This settlement was managed through the Attorney General's Office. For more information, please refer to the Arizona Attorney General's website or call the claims administrator at 1-866-507-8035.

Timeline

April 8, 2019 - State makes fifth wave of school bus funding awards

February 11, 2019 - State makes third and fourth waves of school bus funding awards

January 4, 2019 - State makes second wave of school bus funding awards

December 6, 2018 - State begins making school bus funding awards

August 13, 2018 - State begins accepting applications for funding

August of 2018 - Trustee approves mitigation plan

June 8, 2018 - State submits the mitigation plan

November 2017 - State applies for beneficiary status

January 30, 2018 - Beneficiary status approved

October 2, 2017 - Trust Effective Date established

March 15, 2017 - Wilmington Trust named as Trustee

November 24, 2016 - Deadline for submission of Trustee candidates

October 25, 2016 - Consent Decree approved by the court