volkswagen (vw) settlement · pdf file2. presentation overview • role of the missouri vw...
TRANSCRIPT
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Advisory Committee Meeting
Dec. 7, 2017Jefferson City, MO
Volkswagen (VW) Settlement
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Presentation Overview• Role of the Missouri VW Advisory Committee• Summary of first four VW meetings• VW Advisory Committee surveys• Beneficiary mitigation plan elements• DERA option
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Role of the Missouri VW Advisory Committee
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• Respond to technical surveys regardingMissouri’s beneficiary mitigation plan
• Review summaries of comments and provideinput to department
• Participate in meetings• Give presentations on topics of interest• Participate in discussions
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Committee Members Expected to:
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• Review early draft of plan to provide inputprior to the opening period for publiccomment
• Review comments received on proposed planand provide input prior to finalizing plan
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Join the Mo. VW Advisory Committee: dnr.mo.gov/env/apcp/vw/vw-committee.htm
Committee members expected to:
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• Summary of comments• Questions and answers• For meeting dates, attendance records,
presentation, videos and Q&A sessions, goto:
dnr.mo.gov/env/apcp/vw/vw-meetings
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VW Public Meetings Summary
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Topics included:• Types of projects• Cost-share requirements• Attributes of diesel, electricity, natural gas
and alternative fuels• Process for accepting applications and
selecting projects
VW Meetings - Comments
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• Department plans to post a Q&A for allquestions received:dnr.mo.gov/env/apcp/vw/vw-meetings
VW Meetings – Q&A
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Common Question #1Q: Will joining the Missouri VW Advisory
Committee create a conflict of interest that would prevent me from applying for funds?
A: No. The committee is open to the public. Committee members will help develop the overall plan, not select individual projects to fund. Membership will not present a conflict of interest.
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Q: Is my organization’s fleet considered government owned?
A: Yes, if your organization meets the definition of government in Appendix D-2 of the consent decree -
“Government”: a State or local government agency (including a school district, municipality, city, county, special district, transit district, joint powers authority, or port authority, owning fleets purchased with government funds)…
If unclear, the department is answering these questions case by case
Common Question #2
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Q: Can funding go toward projects not listed in Appendix D-2 if they benefit air quality?
A: No, any project that receives funding through the VW Environmental Mitigation Trust must fall under one of the ten categories listed in Appendix D-2 of the consent decree. No state has the option to change this.
Common Question #3
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VW Advisory Committee Surveys
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• VW Survey #1• VW Survey #2
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VW Survey #1
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• Distribution: Full VW email list• When: Late November 2017• Deadline: Dec. 1, 2017 • Participation: 151 responses received• Questions covered high-level decision items
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0%5%
10%15%20%25%30%35%40%
Survey Respondents by Affiliation
Total is more than 100% because respondents could select multiple answers
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0%10%20%30%40%50%60%70%
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High-Level Goals?
Total is more than 100% because respondents could select multiple answers
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0%5%
10%15%20%25%30%35%40%45%
Score all Separatecategories,still score
Lottery all Separatecategories,use lottery
Hybridapproach
Other
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How to Select Individual Projects?
Total may not equal 100%; some people skipped question
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0%10%20%30%40%50%60%70%80%
Include
Do Not Include
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Which Project Categories Should be in the Plan?
Total is more than 100% because respondents could select multiple answers
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0%
5%
10%
15%
20%
25%
30%
35%
40%
Yes No Undecided
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Should We Reserve a Portion Just for Public Fleets?
Total may not equal 100%; some people skipped question
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0%
10%
20%
30%
40%
50%
60%
Electric overDiesel
Electric overAlt. Fuel
Alt. Fuel overDiesel
All FuelsTreated Equal
Undecided
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Should We Give Preferenceto Certain Fuels?
Total is more than 100% because respondents could select multiple answers
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0%
10%
20%
30%
40%
50%
60%
Yes No Undecided
Total may not equal 100%; some people skipped question 20
Should We Set Target Areas and Give Preference to Them?
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Total may not equal 100%; some people skipped question 21
0%5%
10%15%20%25%30%35%40%45%50%
Yes No Undecided
Should We Give Preference to Projects That Provide Higher Matching Funds?
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22Total may not equal 100%; some people skipped question
Should We Require Higher Matching Percentages Than the Consent Decree?
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Project type Gov’t-owned
Privately-owned
Repower: Diesel/alt. fuel(new engine) 100% 40%
Repower: All-electric(new engine) 100% 75%
Diesel/alt. fuel replacement (new vehicle/equipment) 100% 25%
All-electric replacement (new vehicle/equipment) 100% 75%
* Max funding levels for project categories 1-8 in Appendix D-2* Not all project categories allow for all four project types
Categories: Max Funding
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Owner/Location Electric vehicle charging stations
Government-owned and open to public 100%
Privately-owned
Open to public 80%Open to a work place but not the public 60%Open to a multi-unitdwelling but not the public 60%
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Dispensing Capacity Hydrogen fuel cell station100 kg/day – 250 kg/day 25%At least 250 kg/day 33%
* Max funding levels for project category 9 in Appendix D-2
Categories: Max Funding
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VW Survey #2VW Survey #2 will only be sent to VW Advisory Committee members• Survey will be sent out mid-December• Members will have 1-2 weeks to complete• Results for Survey #2 will be released in
January
25Join the VW Advisory Committee: dnr.mo.gov/env/apcp/vw/vw-committee
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VW Survey #2, cont.
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Questions will focus on the following:• Funding percentages for project categories• Target areas?
• If so, how should plan treat them? • Preference to electric and alt. fuel projects?
• If so, how should plan do this?• Application process; selection; scheduling of
projects
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Beneficiary Mitigation Plan Elements
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Mitigation Plan Must Include:• Overall goal for the use of funds• Project categories to receive funds and
percentage of funds for each category• Consideration of air quality benefits in areas
with disproportionate air pollution burdens• Estimation of emission benefits to be
realized by the project categories included in the plan
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• Reduce emissions of NOx and other air pollutants
• Focus on areas struggling to meet air quality standards
• Spread funds throughout state• Promote new or alternative fuels and
technology
Examples of Overall Goals:
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Examples of Overall Goals:• Reduce diesel and gasoline consumption• Support small businesses• Leverage funding through cost share• Others
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Project Categories and Percentages
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Our plan should answer two questions –
1. Which of the ten eligible mitigation actionswill be allowed to apply for funding?(Appropriate to achieve the overall goals)
2. How much funding expected go towardeach project category?
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Considerations may include:• Nonattainment and maintenance areas• Location of affected VW vehicles• Local “hot spot” areas, such as:
• Ports, industry parks, bus depots, rail yards, construction sites
• Sensitive populations• Others
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Benefits for Areas with Disproportionate Air Pollution Burdens
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Examples include:• Reserving a portion of funding for such areas• Requiring lower cost-share amounts for
projects in such areas• Giving bonus points to applications for
projects in such areas• Other options
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Benefits for Areas with Disproportionate Air Pollution Burdens
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Estimating Emission Benefits
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• The department has several tools and experienced staff to address this requirement
• Emission reduction estimates for various example projects are displayed on the following slides
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Emission Reductions – Age of Fleet
35Source: https://www.naseo.org/Data/Sites/1/03-27-17_naseo-vw-beneficiary-mitigation-plan-toolkit-final.pdf
- 200 400 600 800
1,000 1,200 1,400
NO
xEm
issi
on R
educ
tions
(lb
s/ye
ar)
Model Year of Engine Replaced
Replace Large Diesel Truck with New Diesel Truck
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Emission Reductions –Type of Fleet
36Source: https://www.naseo.org/Data/Sites/1/03-27-17_naseo-vw-beneficiary-mitigation-plan-toolkit-final.pdf
466 1,061 462
20,406
78,870
47,812
3,769 7,781 4,9200
20,000
40,000
60,000
80,000
100,000
NO
xEm
isis
on R
educ
tions
(lb
s/ye
ar)
Type of Fleet Upgraded
Replace Older Diesel Engines with New Diesel Engines
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0%10%20%30%40%50%60%70%
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VW Survey #1 ResultsHigh Level Goals?
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0%10%20%30%40%50%60%70%80%
Include
Do Not Include 38
VW Survey #1 ResultsWhich Project Categories Should be in the Plan?
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Emission Reductions ̵ New Fuel Type
39Source: https://www.naseo.org/Data/Sites/1/03-27-17_naseo-vw-beneficiary-mitigation-plan-toolkit-final.pdf
1,061 1,077 1,080 1,105
-
200
400
600
800
1,000
1,200
NO
xEm
issi
on R
educ
tions
(lb
s/ye
ar)
Fuel Type of New Engine
Replace 1995 Large Truck with Engines Using New Fuels
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0%
10%
20%
30%
40%
50%
60%
Electric overDiesel
Electric overAlt. Fuel
Alt. Fuel overDiesel
All FuelsTreated Equal
Undecided
40
VW Survey #1 ResultsShould We Give Preference to Certain Fuels?
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Other Plan Considerations
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Not required by consent decree, but may also be considerations:• Process and timing for selecting projects• Preferred fuel types for new vehicles/engines
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DERA Option
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• DERA Overview• Matching Bonus• Example• Additional project options• Potential drawbacks
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Diesel Emissions Reduction Act
dnr.mo.gov/env/apcp/dera 43
• A federal program to upgrade and replace older diesel engines (medium to heavy duty)
• Projects similar to those in the VW consent decree• New funding and programs developed each year
(subject to appropriations)• Three funding pools exist• Missouri has implemented
DERA since 2008
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• State may use VW funds as a voluntary match to qualify for bonus federal DERA funding• States that provide voluntary match equal to the
initial federal grant receive bonus federal dollars –an extra 50 percent
DERA Matching Bonus
Initial federal DERA grant
VW trust funds as match Total project funding
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State gives $25,000/bus for four bus replacements
State gives $25,000/bus for four replacements with VW
State gives $25,000 per bus for two extra bus replacements with DERA funding
Total DERA grant: $100,000
Total VW Funds Used: $100,000
DERA funding: $50,000
DERA Option: Bonus Example
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Vehicle Type Project Type
Long-haul locomotives Replace, retrofit, repower or upgrade engine; install equipment to reduce idling
Agriculture, construction, energy and mining equipment Replace, repower or upgrade engine
Commercial marine –other than ferries and tugboats (riverboats, cruise liners, fishing boats)
Repower or upgrade engine
Onroad medium- to heavy-duty trucks Retrofits, fuel conversions; install equipment to reduce idling
Transport refrigeration units Replace or repower engine
* This is not an exhaustive list
DERA - Additional Project Options *
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DERA - Potential Drawbacks• Different cost-share requirements
(no 100% funding for government-owned fleets)
• Requirements change from year to year• Federal grant terms and conditions• Timing requirements (one-year programs)• Others
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Anticipated TimelineTiming Milestone
Oct. 2, 2017 Trust effective date (TED)
November 2017 Missouri filed its certification with the court and trustee
November 2017 -February 2018
Department holds outreach and advisory committee meetings to discuss Volkswagen settlement and solicit input
January 2018 Trustee approves certification forms for beneficiaries
March 2018 Missouri releases proposed plan for using settlement funds; public may comment on plan
May 2018 Missouri submits final plan to trustee
Summer 2018 Missouri begins accepting applications and implementing projects
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Questions?
Missouri Department of Natural ResourcesAir Pollution Control ProgramVolkswagen TeamPhone: 573-751-4817
dnr.mo.gov/env/apcp/vw
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