Public Announcements


VW Settlement & NGVs

VW Settlement Announced: 
$2.7 Billion Environmental Mitigation Fund Created  - Includes NGVs

June 28, 2016 | Thank you to NGVAmerica for sharing this update 

Earlier today, Volkswagen, government entities, and plaintiff's attorneys filed a settlement with the federal court related to the diesel emissions scandal that has plagued Volkswagen since last year.  NGVAmerica has advocated for a resolution that includes NGVs as part of any environmental/NOx remediation effort related to this matter.  The settlement announced today includes opportunities for NGVs and sets up two funds (beyond the compensation of the owners of the affected vehicles):

Establishes a $2.7 billion Environmental Mitigation Fund.  Monies are divided among the states to fund programs to replace and/or repower existing medium and heavy duty vehicles (generally 1992-2006 MY) with new, cleaner technologies. The program allows projects for on-road HD vehicles in various classes and applications, as well as for off-road equipment including rail, marine and others.

The program would pay 40% of the cost of an eligible truck repower to diesel, natural gas or other alternative fuels; and 25% of the cost of a new diesel, natural gas or other alternative fueled truck.  All-electric vehicles are funded at 75%.  Funding for all repowers or new vehicles, regardless of technology, is 100% if owned by a government agency.

This program favors electric vehicles while treating diesel and natural gas the same.  It does not provide any direct preference for "Near-Zero" Low NOx natural gas engines.  It also allows states to use monies in this fund for programs eligible under the DERA program (some advantage exists here for Low-NOx).

Ultimately, given the way this fund is structured, parties interested in advancing NGV projects under this fund will make their case state by state.  This will allow for state/regional preferences (e.g. fuel type, government or private, application, etc.).  We still have much to digest in understanding how the industry can take advantage of the potential opportunities created by this fund.

Establishes a $2 billion fund to support "Zero-Emission" vehicle investments.  Our interpretation is that only electric and fuel cell technologies would be eligible in this fund given that emissions are determined at the tailpipe.

Next steps

The Court has scheduled a status hearing for June 30 and has preliminarily set July 26 as the date to approve a final settlement.  Interested parties and the public have until that date to provide comments to the Court regarding the various provisions.  NGVAmerica will study these proposals further and consult with our members to develop comments.  Several issues related to both funds seem appropriate to address through comments (ignoring superior NOx reductions achievable with NG, ensuring greater access to DERA funds, NGV access to the "Zero-Emission" fund, and others).


Please contact Jeff Clarke at<> with any questions.

Matthew Godlewski
400 N. Capitol St. NW STE 450, Washington, D.C. 20001
202-824-7397 [o] | 202-306-2985 [m]<>