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Volkswagen Settlement Fund (Updated): How to Apply

Volkswagen Settlement Update: Louisiana

Baton Rouge, LA - The state has announced that it will distribute the Mitigation Trust Fund dollars among lasting, sustainable solutions. In order to be considered, you must send in your project concepts directly to the lead agency, the Louisiana Department of Environmental Quality.

  • The state will give preference to projects proposed by public agencies that offer long-term benefits to the community at large and show a significant reduction in NOx.
  • The state is considering using a portion of the fund for the replacement of or repowering of publicly owned school buses as provided in the Consent Decree and the replacement of or repowering of aging state-owned heavy equipment fleet vehicles that are eligible under the mitigation trust. The vehicles will be replaced with new cleaner vehicles and or new cleaner burning engines.
  • Any funds remaining after these projects are implemented may be used for  projects proposed by other public or private entities as long as they meet the criteria outlined in Appendix D.
  • Funding is for vehicle REPLACEMENT or a repower, not to expand your fleet.

Please note that the state has NOT finalized their mitigation plan so your project proposals are very important! You still have time to get your ideas before them and have some influence over the general plan. Also, the mitigation plan is NOT a list of the final approved projects. The state's mitigation plan is a guidance document that will be flexible and able to adapt to changes.

No project will be considered unless you apply (and that includes school bus replacement projects).

How to Apply

Proposals may be submitted by email to Perry Theriot at perry.theriot@la.gov; faxed to 225-219-0000; mailed to the Department of Environmental Quality, Attn: Perry Theriot, P.O. Box 4303, Baton Rouge, LA 70821-4303; or it may be hand delivered to 602 N. Fifth Street, Baton Rouge, LA 70802.   

Deadline: EXTENDED - All proposals must be received by the LDEQ no later than 4:30 p.m. Thursday, July 27, 2017

Proposal should contain the following information:

  • What you want to do
  • How much it will cost
  • The amount of funding you are requesting
  • The associated NOx benefits of your project

Helpful, but not required:

  • Any additional matching funds for your project, if applicable
  • Air quality in your area / Whether or not your parish is in attainment or close to being in non-attainment
  • Any other benefits that this funding would bring to your region
  • Your budgetary constraints or other information that would help the LDEQ to understand the financial need of the applicant

If you have any questions about qualifying projects or what type of information to include in your letter, please refer back to Appendix D. Even though the LDEQ will continue to accept applications after the deadline, we urge you to send in your proposals sooner rather than later.

View the Full Public Notice (Updated):  LDEQ's VW Settlement Notice  

The full Partial Settlement, including Appendix D is available for review at: https://www.justice.gov/opa/file/871306/download

Related Links

Background

On Jan. 4, 2016, and as amended on Oct. 7, 2016, the United States, on behalf of the Environmental Protect Agency (EPA), filed a complaint against Volkswagen (VW) alleging violations of the Clean Air Act regarding approximately 500,000 model year 2009 to 2016 vehicles containing 2.0 liter diesel engines and approximately 80,000 model year 2009 to 2016 motor vehicles containing 3.0 liter diesel engines. The complaint alleges that each of these vehicles contains, as part of the computer control modules, certain algorithms and calibrations that cause the emissions control systems to perform differently during normal vehicle operation and use than when undergoing emissions testing. The use of these prohibited defeat devices caused the vehicles to produce NOx emissions significantly in excess of those allowed by law. On June 28, 2016, the State of California, the California Air Resources Board (CARB), filed a similar complaint against Volkswagen.

Partial Consent Decree

The consent decree provides for the establishment of an Environmental Mitigation Trust to provide funds to the states to remediate the air quality impacts of the 2.0 liter vehicle emissions. Louisiana’s initial share is approximately $18 million over a three-year period. The $18 million to be distributed from the trust fund will pay for defined eligible projects also known as eligible mitigation actions. These include projects to reduce NOx from heavy duty diesel sources near population centers, such as large trucks, school and transit buses. A complete list of eligible mitigation actions is found in Appendix D-2 of the Consent Decree. The goal of each Eligible Mitigation Action shall be to achieve reductions of NOx emissions in the United States.

 

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2017 DERA National RFP Webinar

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U.S. Environmental Protection Agency


EPA Clean Diesel News - 06/02/17

2017 DERA National Request for Proposals

Webinar - RFP Information Session

Wednesday, June 7, 2017

EPA will host a webinar to provide an overview of the 2017 Clean Diesel Funding Assistance Program Request for Proposals (RFP). Time will be allotted for questions and answers.

Registration is not required, simply follow the link below at the designated time to enter the webinar. Audio is available through your computer speakers or by telephone.

Webinar: 2017 Clean Diesel Funding Assistance Program Overview #2
Date: Wednesday, June 7, 2017

Time: 1:30-3:00 PM Eastern
URL: https://epawebconferencing.acms.com/dera2017rfp2/
Audio: 1-866-299-3188, code 3439147#

The RFP closing date has been extended to July 5, 2017. More information about this funding opportunity is available at https://www.epa.gov/cleandiesel/clean-diesel-national-grants .

If you have questions, please contact CleanDiesel@epa.gov.

 

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New Alternative Fueling Station Locator App for Android

Android users can now access the Alternative Fueling Station Locator app available through the Google Play Store. Just like the iPhone app, it allows users to select an alternative fuel and find the 20 closest stations within a 30-mile radius. Users can view the locations on a map or as a list with station addresses, phone numbers, and hours of operation.

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Getting Started With Biodiesel

Fuel retailers interested in biodiesel should answer these questions

Have you been looking for ways to increase your fuel margins? Introducing biodiesel blends to your product offering is a great place to start.

There are fuel retailers that have increased their margins by several cents per gallon after adding biodiesel blends to their fuel lineup. That doesn’t mean there aren’t questions you should consider before calling a supplier to place your first biodiesel order.

Should I buy blended fuel or blend myself?

Starting out, you will need to decide how you want to purchase biodiesel. One option is to buy diesel fuel that already has biodiesel blended into it. You can see if your current diesel supplier has a biodiesel blended option or can make one available. If not, you can seek a fuel distributor that does.

The other option is to do the blending yourself. This often provides the best margin opportunities for you but also comes with additional considerations. You will need to install a dedicated biodiesel storage tank and blending system. While the initial cost may seem expensive, it can provide a relatively quick payback of between six to 18 months. A number of states offer grants and loans to help retailers finance these infrastructure upgrades, so research those options.

If you purchase biodiesel from a producer, you will need to decide if you want the biodiesel with or without Renewable Identification Numbers (RINs). Every gallon of biodiesel produced generates 1.5 RINs. These can be traded for a monetary value, with the value fluctuating based on market conditions. If you buy the biodiesel without RINs, the RIN value should be captured in the price of the biodiesel. If you buy it with RINs, you will want to trade the RINs either by using a thirdparty vendor, which will likely charge a commission, or by trading them yourself. 

Do I have a reliable supplier?

Whether buying blended fuel from a fuel supplier or straight biodiesel (B99/B100) from a biodiesel producer, you should ensure the biodiesel meets ASTM D6751 standards for biodiesel and that the producer participates in the voluntary BQ-9000® quality assurance program. This is the best way to give your customers a quality product. Also look for suppliers that are knowledgeable about the fuel retail industry and have a reliable and cost-effective supply chain to your locations.

What is the right blend level?

In every state, biodiesel blends of up to 5 percent can be sold without additional labeling at the pump. This is because the blended fuel still meets ASTM D975 diesel fuel specs. Blends from B6 to B20 are a good option to maximize profits with positive blending economics but do require additional labeling. Weather can also be a factor, but maybe not as much as you think. Proper storage, handling and additive use allows retailers to sell B20 year-round no matter their location, but if you are in a colder climate you may feel more comfortable dialing the blend back a bit in the winter.

What economic incentives are available to me?

Speaking of positive blending economics, many states recognize the benefits of making biodiesel more available and offer incentives to retailers that sell it. In Iowa, for example, outlets that sell B5 blends get a 4.5-cents-per-gallon tax credit, plus an additional 3-cents-per-gallon tax rollback on B11 and higher blends. In Texas, retailers can save up to 4 cents per gallon on the state fuel tax, depending on the blend level. If you operate stores in more than one state, familiarize yourself with each state’s regulations.

Answering these questions will help you get started so you can take advantage of the benefits of adding biodiesel to your locations. However, you don’t have to do this alone. REG has a team of experts to help you.

Get started today by talking with Jon Scharingson, Executive Director, Sales and Marketing for REG at (515) 239-8042 or Jon.Scharingson@regi.com.

 


(844) 405-0160 regi.com

© 2017 Renewable Energy Group, Inc. All Rights Reserved. BQ-9000 is a registered trademark of the National Biodiesel Board, used with permission.

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