Vermont's Volkswagen Mitigation Trust Funds
Welcome to Vermont's VW Mitigation Trust page. This page provides basic information about the VW Mitigation Trust and how Vermont's Trust allocation can be used. Our Beneficiary Mitigation Plan (BMP), which includes project priorities, can be found below.
New Funding Opportunity! Please see below for details.
Please check this page often for updates on the status of the Mitigation Trust, additional information, and specific areas where the State of Vermont is seeking input. Use the email contact, anr.decvwmitigation@vermont.gov, to submit your contact information so that we can add your name to a distribution list for updates and information. Thank you for your interest and participation.
Background | Beneficiary Mitigation Plan | Funding Opportunities
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Background
On June 28, 2016, the U.S. Department of Justice filed with the U.S. District Court, Northern District of California, a settlement that partially resolves claims that Volkswagen (VW) violated the Clean Air Act by the sale of approximately 500,000 vehicles containing 2.0 liter diesel engines equipped with devices designed to defeat emission controls. On October 25, 2016, the Court approved the partial settlement and entered a partial Consent Decree requiring VW to:
- buy back or modify emission controls on at least 85 percent of the subject vehicles,
- invest $2 billion to promote the use of zero emission vehicles and infrastructure, and
- establish and fund a $2.7 billion environmental mitigation trust (EMT).
In late December of 2016, a settlement involving similar claims for 83,000 3.0 liter diesel engines equipped with defeat devices was reached, which includes an additional $225 million towards the environmental mitigation trust. Vermont’s allocation of the EMT is $18.7 million.
The Trust Effective Date for the EMT occurred on October 2, 2017, triggering the requirement for all beneficiaries of the EMT, including Vermont, to submit a Beneficiary Certification Form. This requirement was completed on November 1, 2017 and the VW Trustee certified Vermont as a Beneficiary on January 31, 2018.
Beneficiary Mitigation Plan
Availability of funds from the Volkswagen Mitigation Trust depends on the requirement that Vermont submit a Beneficiary Mitigation Plan to the Trustee. Per the terms of the Mitigation Trust Agreement, the Vermont Agency of Natural Resources through the Department of Environmental Conservation (DEC) has sought public input on a draft Beneficiary Mitigation Plan that proposes how to best utilize the funds to meet the purpose of the Trust. Vermont's final Beneficiary Mitigation Plan is now available and was submitted to the VW Trustee on May 29, 2018. Note that the BMP is subject to change, as described above, should goals or priorities need to change to adapt to eligible mitigation project interest, funding and feasibility. In the event that any major components of the finalized BMP are amended, those amendments will be submitted to the EMT Trustee and will be made available to the public.
View Vermont's Beneficiary Mitigation Plan.
Overall goals for use of the Environmental Mitigation Trust allocation are as follows:
- REDUCE NOx emissions from mobile sources, eligible for replacement or repower, in the most cost-effective way possible;
- DEMONSTRATE the feasibility of all-electric or other NOx mitigating alternatively fueled heavy-duty and transit vehicles and begin to catalyze market transformation; and
- MAXIMIZE public and private investment in electric vehicle charging infrastructure.
Request for Public Input
The Partial Consent Decree requires public engagement in the development of the BMP prior to its submittal to the Trustee. Therefore, DEC held a public comment period to seek comments related to the required elements of the BMP, including how to utilize Vermont’s funding allocation to meet the purpose of the EMT as stated in Appendix D, which is to be used to fund “environmental mitigation projects that reduce emissions of NOx” where affected VW vehicle were, are, or will be operated. DEC also sought comments on the Proposed Funding Priorities listed in Section 1 of the proposed BMP, with the intent that these priorities may be used to inform the project prioritization and selection criteria for proposed projects to be funded from Vermont’s allocation of the EMT.
On May 29, 2018, DEC released a Responsiveness Summary to address public written and verbal comments received during the public comment period.
Public Informational Meetings
On December 13, 2017, DEC held a public meeting to provide information on the eligible mitigation projects and the process associated with Vermont’s allocation of the EMT, and to accept public comments on the Proposed BMP. For more information, please view the presentation provided during the public meeting and video of the public meeting provided by ORCA Media.
Although the formal public comment period is closed, you can always use the email contact, anr.decvwmitigation@vermont.gov, to submit your contact information so that we can add your name to a distribution list for updates and information.
Funding Opportunities
Since submitting the BMP to the Trustee, Vermont has been developing project funding opportunities to implement the goals and objectives of the final BMP and the EMT. The Vermont Department of Environmental Conservation (DEC) periodically solicits applications from potential project partners for projects that achieve significant reductions in diesel emissions from diesel powered engines, vehicles and equipment operating in Vermont.
NEW: Funding Opportunity! DEC is now accepting applications for projects reducing diesel emissions. View the Request for Applications and application forms on the Vermont Business Assistance Network website. Application deadline is December 9, 2024.
Details regarding past and ongoing projects are provided below.
Vermont's Electric School & Transit Bus Pilot Program
Based in part on input from the public, other state agencies and the legislature, DEC directed $4 million from Vermont’s allocation of the EMT to an electric school and transit bus pilot program. The goals of the pilot were to evaluate: the feasibility and cost-effectiveness of electric buses and electric vehicle supply equipment (EVSE) operating under conditions comparable to conventional diesel-powered buses (i.e., year-round under a full range of route conditions and settings, such as rural and urban routes) in the state; as well as quantify the reduction in NOx and greenhouse gas emissions as described in the state’s BMP. Findings from the pilot will be used to encourage and inform future electric bus purchases by Vermont transit agencies, school districts, and school bus contractors operating in Vermont.
The Vermont DEC contracted with VEIC to administer the pilot program on behalf of the state. Four Project Partners, participating in the pilot and listed below, sought proposals from prospective vendors for the purchase of 8 electric buses: 6 school buses and 2 transit buses during the summer/fall of 2020. The first electric buses began arriving in summer of 2021, and data collection for the pilot concluded in spring of 2023.
School District Project Partners:
- Barre Unified Union School District in partnership with Student Transportation of America: $511,900 towards 2 Electric Lion Type C School Buses and associated charging equipment
- Champlain Valley School District: $512,435 towards 2 Electric Lion Type C School Buses and associated charging equipment
- Franklin West Supervisory Union: $535,620 towards 2 Electric Blue Bird Type C School Buses and associated charging equipment
Transit Agency Project Partner:
- Marble Valley Regional Transit District: $1,492,980 towards 2 Electric Gillig Transit Buses and associated charging equipment
Related Links
- The final report is now available! Vermont Electric School and Transit Bus Pilot Program Report
- June 12, 2019 Press Release
- December 19, 2019 Press Release
- April 18, 2022 Press Release
- July 7, 2020 Request for Proposals
- Pilot Program Frequently Asked Questions Document
- School Bus Emissions & Upgrades Fact Sheet
For more information, please contact Leigh Martin at leigh.martin@vermont.gov.
2020 Request for Proposals
The Vermont Department of Environmental Conservation (DEC) previously sought proposals in the fall of 2020 for electric replacement or repower (engine replacement) projects for all eligible mitigation actions under the EMT. Applications were due November 3, 2020, and grant agreements were negotiated with selected applicants, listed below. Replacement vehicle deliveries began in 2022 and are still ongoing.
- Highland Electric Fleets in partnership with South Burlington School District: $965,000 towards 4 Electric Thomas Type C School Buses
- Casella Waste Services: $1,086,123 towards 1 Electric Mack Class 8 Refuse Hauler, 1 Electric Battle Motors Class 8 Refuse Hauler, and associated charging equipment
- Burlington Electric Department: $560,000 towards 1 Electric Terex Class 8 Bucket Truck and associated charging equipment
- Green Mountain Power: $914,556 towards 1 Electric Battle Motors Class 8 Bucket Truck and 1 Electric Lion Class 6 Stake Truck
2022 Memorandum of Agreement
In December 2022, the Vermont Department of Conservation (DEC) entered into a Memorandum of Agreement with the Vermont Agency of Transportation (VTrans), allocating over $2 million towards the State’s transportation electrification efforts in the public transit sector. VTrans has applied for federal assistance through the Federal Transit Administration’s Low or No Emission Bus and Bus Facility Grant Program to replace 17 diesel transit buses with electric models and intends to use Volkswagen EMT funding towards the required local cost share. More information will be provided as this project continues to develop.
Vermont's Electric Vehicle Supply Equipment Grant Program
The Vermont Agency of Commerce and Community Development administers Vermont's Electric Vehicle Supply Equipment Grant Program and to support the purchase and installation of Level 2 and DC fast charging stations in Vermont, over $1 million in EMT funding was awarded in 2019 over two grant rounds. In 2020, a third grant round, focusing on expanding Vermont's DC fast charging network, was announced in the Governor's February 22, 2021 Press Release. General information regarding the grant program can be found on the Vermont Electric Vehicle Supply Equipment Grant Program website. The program is administered by the Vermont Department of Housing and Community Development in coordination with the Vermont Agency of Natural Resources, the Agency of Transportation, the Public Service Department, Department of Building and General Services, and the Department of Health.
Reporting
For additional information including Vermont's semi-annual reports and funding requests as well as documentation from the Trustee, please visit Vermont's State Trust Overview page.
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