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Volkswagen News and Information Mailing List

DEQ will be sending out all information related to the Volkswagen settlement, development of the mitigation plan, information and updates on our VW settlement interested parties list.

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Request for Information from Local Governments

The Montana Energy Office at the Department of Environmental Quality (DEQ) requests information on aspects of Montana’s plan to fund eligible projects and activities as part of the Environmental Mitigation Trust (EMT) portion of the Volkswagen settlement agreement. In October 2017, several parties, including the U.S. Department of Justice, the Federal Trade Commission, and the Environmental Protection Agency, entered into a legal Settlement with the Volkswagen Group of America (VW). The Settlement stemmed from the parties filing a lawsuit against VW for selling vehicles that exceeded nitrogen oxide (NOx) emissions allowed by the federal Clean Air Act. The Settlement required VW to pay more than $2.9 billion into an Environmental Mitigation Trust Fund (EMT) to mitigate and offset the excess emissions of NOx from the offending vehicles. Montana’s allocation from the EMT is $12.6 million. DEQ has been designated as the lead agency in Montana to allocate funding to eligible projects that mitigate mobile sources of NOx emissions.

Local, state, tribal and federal government entities, private businesses, non-profit organizations, and individuals may receive partial funding for eligible projects. Eligible mitigation projects include replacement or repowering the following on-road medium and heavy-duty vehicles with cleaner diesel, alternative fuel, or all-electric engines or vehicles. No light duty vehicle replacements or repowers may be funded under this opportunity. The list of vehicle categories below does not include ocean-going vessels because these vehicles do not operate in Montana.

• Class 4-8 school bus, shuttle bus, or transit bus
• Class 4-7 local freight trucks*
• Class 8 local freight trucks*
• Ferries/tugs
• Airport ground support equipment
• Railroad freight switchers
• Forklifts

* May include, but not limited to, vehicles such as garbage trucks, street sweepers, delivery vans, bucket trucks, and construction trucks 

DEQ is requesting input on a potential funding opportunity for governmental entities (state agencies, university system, tribal governments, counties, cities, towns, and special districts such as school districts) to replace older diesel vehicles or engines with alternative fueled or electric-powered vehicles or engines. Given the diverse needs of governmental entities across Montana, comments received will help DEQ develop funding opportunities and parameters that best meet those needs. Please answer as many questions as you would like or provide comments that address any of the questions. 
 
This Request for Information (RFI) is strictly for the purpose of gaining knowledge of potentially eligible mitigation projects, with an estimate of their corresponding costs, and should not be construed as intent, commitment, or promise to grant funding to any RFI respondents. No contract or funding agreement will directly result from any response to this RFI. 

Has your governmental entity researched adding any type of alternative fueled or electric powered vehicles to its fleet?  If so, what types of vehicles were considered? 
 
2) What vehicle(s) in your existing fleet would you be interested in replacing with an alternative fueled or electric-powered equivalent? 
 
3) Vehicle replacement programs usually include a cost share requirement for the funding recipient. What would be an appropriate cost share for this funding opportunity? 
 
4) Vehicle replacement programs often require that the new vehicle remain in use for a certain number of years. If this potential funding opportunity were to include such a requirement, how long do you believe is reasonable? 
 
5) What other criteria should DEQ consider when evaluating applications for funds? (e.g., geographic distribution of funds, public health benefits, environmental impacts, economic development, project cost and benefits, low-income or disadvantaged community, etc.) 
 
6) What timeline for completing individual projects should DEQ establish?  
 
7) During the COVID-19 pandemic, has your governmental entity purchased new vehicles and did you experience any delay in delivery of the vehicle? 
 
8) What information/resources could DEQ provide that would be helpful to those that are interested in submitting project proposals? 
 
9) Do you have any other input or general comments related to DEQ’s goals, criteria, priorities, or other issues associated with use of the Volkswagen Environmental Mitigation Trust settlement? 

Please send all information to Neal Ullman at neal.ullman@mt.gov no later than September  16, 2020. For additional information, please visit: deq.mt.gov/energy/transportation/VW-settlement-page