Energy

Settlement Background

In January 2016 the United States and the State of California filed a lawsuit against Volkswagen (VW) alleging it had manufactured diesel cars sold and operated in the U.S. with systems intended to defeat emissions tests. These systems allowed vehicles to emit nitrogen oxide (NOx) pollution at levels up to 40 times the amounts allowed under the Clean Air Act.

The total VW settlement is over $15.7 billion dollars across three categories:

1. Vehicle Buyback and Modification: $10.8 billion for buyback or emission control modifications on at least 85 perfect of the affected vehicles.
2. Environmental Mitigation Trust: $2.9 billion in an account to be used for "Eligible Mitigation Actions" to achieve reductions of mobile NOx emissions. Eligible beneficiaries of this trust account include each of the 50 states and American Indian Tribes.
3. Zero Emission Vehicle Investment: $2 billion for investments in zero emissions vehicles and infrastructure.

Montana will receive $12.6 million from the environmental mitigation trust. This trust fund will be used for projects that are Eligible Mitigation Actions under the trust that mitigate NOx emissions in the transportation sector. Projects eligible for funding include but are not limited to diesel trucks, buses, freight switcher locomotives, and airport ground support equipment. Vehicle replacements, engine upgrades, and retrofits are eligible for funding. States can also use up to 15 percent of their funds for light duty electric vehicle charging stations available to the public or located at workplaces or multi-unit housing locations.

The Montana Department of Environmental Quality (DEQ) is the state’s lead agency to oversee how Montana’s $12.6 million allocation is distributed and spent. DEQ will be consulting with other agencies and members of the public on how best to spend these funds on eligible projects to maximize air quality and other economic and environmental benefits. Prior to receiving funding, the agency must submit a Beneficiary Mitigation Plan describing how the state plans to use the funds. To develop the Plan, DEQ is seeking public input on state goals, criteria, focus areas and other issues associated with spending and disbursing the environmental mitigation trust funds.

To view information and additional resources from other states involved in the Volkswagen Environmental Mitigation Trust settlement please visit the VW Settlement Clearinghouse page. This page includes contact information and other state’s progress on their mitigation plans.

Settlement Documents

• 2.0 Liter Partial Consent Decree
• 3.0 Liter Partial Consent Decree
• Appendix D- Volkswagen Environmental Mitigation Trust

• Final Montana Beneficiary Mitigation Plan
• VW Public Comment Link
• Press Release

DEQ held an informational meeting on Montana’s Draft Beneficiary Mitigation Plan on August 7, 2018. To view the recorded meeting, please click here.

• Approximately 2,800 Montanans are registered as owning or leasing affected vehicles. The additional NOx emissions from the affected vehicles is between .07 tons and .26 tons per day.

Charge Your Ride

Charge Your Ride Funding Draw Down Request

Diesel Emissions Reduction Act Clean School Bus Program

Clean School Bus Funding Draw Down Request

Mountain Line Transit Bus Replacement

• DEQ Press Release
• Funding Draw Down Request

Project Tools

The AFLEET Tool - AFLEET stands for Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET). This Excel-based tool allows anyone to input simple fleet/vehicle information data and compare emissions, cost of ownership and other outputs.

Mitigation Activity Eligible for Funding:

• Eligible Medium Trucks - Class 4-7 Freight Trucks
• Eligible Buses - Class 4-8 School Bus, Shuttle Bus, or Transit Bus
• Eligible Large Trucks - Class 8 Local Freight Trucks
• Airport Ground Support Equipment
• Ferries/Tugs
• Forklifts
• Railroad Freight Switchers
• Charging Stations for light duty electrical vehicles
  • Up to 15% of total state allocation
• Administration Marketing and Education
  • Up to 15% of total state allocation

*Click on the drop-downs below to view criteria for each category*

Class 4-7 Local Freight (Medium Trucks) Eligibility

• Gross Vehicle Weight Rating (GVWR 14,000-33,000 lbs.)
• 1992-2009 engine model year medium trucks
• Repower with new diesel or alternate fueled engine
• Replace with new diesel or alternate fueled vehicle
• Repower with all-electric engine (can include charging infrastructure)
• Purchase new all-electric vehicle (can include charging infrastructure)
• Alternate fuels include CNG, propane, hybrid

Class 4-8 School Bus, Shuttle Bus, or Transit Bus Eligibility

• Bus with 2009 engine model year or older
• Repower with new diesel or alternate fueled engine
• Replace with alternate fueled vehicle
• Repower with all-electric engine (can include charging infrastructure)
• Purchase new all-electric vehicle (can include charging infrastructure)
• Alternate fuels include CNG, propane, hybrid

Class 8 Local Freight Trucks Eligibility

• 1992-2009 engine model year Class 8 truck
• Repower with new diesel or alternate fueled engine
• Replace with new diesel or alternate fueled vehicle
• Repower with all-electric engine (can include charging infrastructure)
• Purchase new all-electric vehicle (can include charging infrastructure)
• Alternate fuels include compressed natural gas (CNG), propane, hybrid

Airport Ground Support Equipment Eligibility

• Tier 0, Tier 1, Tier 2
• Uncertified, or certified to 3g/bhp-hr. spark ignition
• Repower with all-electric engine (can include charging infrastructure)
• Purchase new all-electric vehicle (can include charging infrastructure)
• Electrification projects only, no new diesel or alternate fuels

Ferry/Tugs Eligibility

• Ferries/Tugs with unregulated, Tier 1, Tier 2 marine engines
• Repower with new diesel or alternate fueled engine or generator sets
• Repower with all-electric engine (can include infrastructure)
• No funding for replacement ferries/tugs

Forklifts Eligibility

• Forklifts with greater than 8,000 lb. lift capacity
• Repower with all-electric engine (can include charging infrastructure)
• Purchase new all-electric vehicle (can include charging infrastructure)
• Electrification projects only, no new diesel or alternate fuels

Freight Switcher Eligibility

• Switcher with pre- Tier 4 that operates at least 1,000 hours per year
• Repower with new diesel or alternate fueled engine or generator sets
• Replace with new diesel or alternate fueled freight switcher certified to meet US EPA emission standards
• Repower with all-electric engine (can include charging infrastructure)
• Purchase all-new electric freight switcher (can include infrastructure)

• VW Settlement Clearinghouse - This website gathers resources and information from states on the Volkswagen Environmental Mitigation Trust settlement. It also includes contact information and state progress on their mitigation plans.
• AFLEET Tool - AFLEET stands for Alternative Fuel Life-Cycle Environmental and Economic Transportation (AFLEET). This Excel-based tool allows anyone to input simple fleet/vehicle information data and compare emissions, cost of ownership and other outputs.

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