Background:
 
In 2016, it was discovered that Volkswagen (VW) made a series of intentional missteps in the design and operation of their diesel vehicles. In July 2016, the US Environmental Protection Agency (EPA) filed complaints against VW for the violation of the Clean Air Act with regard to approximately 580,000 model year 2009-2016 motor vehicles containing 2.0 and 3.0 liter diesel engines. 
  
In October 2016, VW agreed to pay up to $14.7 billion to settle these allegations. This sum will be distributed to benefit consumers, states, and national programs. As of March 17, 2017,  Wilmington Trust has been named as the National Trustee that will oversee the disbursement of funds.

Of the $14.7 Billion:
  • $10 Billion- Will be spent on vehicle buyback and modification for consumers
  • $2.7 Billion- Set aside for States in an Environmental Mitigation Trust to be allocated to beneficiaries based on the number of impacted VW vehicles in their jurisdictions
  • $2 Billion- Will be spent over the next 10 years to support increased use of zero emission vehicle technology in the US

Status: 

Texas has 60 days from the Trust Effective Date to file as a Beneficiary. In the event Texas files as a Beneficiary, the State could receive up to $209 million to fund projects outlined in the Environmental Mitigation Trust. As of June 13, the Trust Effective Date has not been set. However, North Central Texas Council of Governments (NCTCOG), in collaboration with Clean Cities and Councils of Government across the state, is gathering information on fleet interest in this opportunity in the event Texas does file as a Beneficiary. This information will be used to guide feedback during development of the state Mitigation Plan. As you answer these questions, keep in mind that the Mitigation Trust allows up to 10 years to implement projects.

For more information visit http://nctcog.org/trans/air/VWsettlement/

For questions and comments related to how the funds may be directed within Texas, email AQfunding@nctcog.org 

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