Volkswagen Mitigation Plan Developed for illegal "Defeat Devices"

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Sustainable Energy Program 1

August 9, 2018

In this issue:


Volkswagen Mitigation Plan Developed: Vehicle Consent Decree Ordered

Background Info

On September 18, 2015, the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB) issued a Notice of Violation of the Clean Air Act to Volkswagen AG (VW), Audi AG and Volkswagen Group of America, Inc. alleging that model year 2009-2015 Volkswagen and Audi diesel cars equipped with 2.0 liter and 3.0 liter engines included illegal "defeat device" software that circumvents EPA and CARB emissions standards for nitrogen oxides (NOx). 

Approximately 550,000 vehicles in the United States had "defeat devices" installed; approximately 16,000 were delivered to Maryland.

On October 25, 2016, the U.S. District Court Northern District of California approved a Partial Consent Decree between the U.S, Justice Department and VW regarding excess emissions of NOx due to the installation of these "defeat devices" on 2.0 liter diesel engines. The use of "defeat devices" has increased vehicle emissions of NOx at high way driving speeds, resulting in adverse affects on air quality. NOx emissions contribute to the formation of ground-level ozone, which is not sustainable to our air quality. More information on the consent decrees for VW may be found here
 
The Consent Decree established an Environmental Mitigation Trust of $2.925 billion to fully remediate the excess NOx emissions from the affected 2.0 and 3.0 liter vehicles. The State of Maryland is eligible to receive over $71 million from the VW Trust for the 2.0 liter vehicles. 

Maryland Mitigation Plan

A settlement for the affected 3.0 liter vehicles was reached December 20, 2016 as well and Maryland is eligible to receive an additional $4.6 million from the VW Trust for these vehicles. The State of Maryland is eligible to receive a total of over $75.7 million from the VW Trust  to use for specifically defined eligible mitigation projects. 

On August 1, 2018, Maryland released this draft “Volkswagen Mitigation Plan” (hereinafter referred to as the Draft Plan) and is requesting public comment through August 31, 2018. Maryland will also hold regional public meetings on the draft plan. 

The Draft Plan maximizes the environmental benefits described above through a primary goal of achieving the most NOx emissions reductions possible. It includes a balanced approach with projects in the following category areas:

  1. Electric Vehicle Charging Infrastructure (15%): The Trust Fund guidelines allow a maximum of 15% of the funds to be used for electric vehicle charging infrastructure.  
  2. Private Businesses and Federal Government (37.7%): A portion of the funds available will be allocated for private business and federal government projects.  
  3. Local Governments and Communities and Environmental Justice (15.8%): Local governments and communities will be given a chance to submit project ideas for funding. 
  4. State Agency Projects (30.2%): MDOT has identified a number of potential projects within their Transportation Business Units that would help the state continue to demonstrate leadership in pollution reduction. 
  5. Administrative Costs (1.3%): The Draft Plan sets aside $1 million of the Trust Funds for administrative costs associated with overseeing and managing the Draft Plan.

The Maryland Department of the Environment will be accepting comments on the proposed Mitigaion Plan until close of business on August 31, 2018. Please send comments to mde.vw@maryland.gov.

To learn more about the settlement or the draft plan, please visit the https://mde.maryland.gov/programs/Air/MobileSources/Pages/MarylandVolkswagenMitigationPlan.aspx.


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