An Overview of the VW Environmental Mitigation Settlement Andy - - PowerPoint PPT Presentation

An Overview of the VW Environmental Mitigation Settlement

Andy Bessler Project Director Institute for Tribal Environmental Professionals Northern Arizona University

For Non-Profit Educational Use Only

∗Overview of the VW Settlement ∗How Tribes Can Apply for Funding

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Diesel vs Gasoline Engines

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Diesel vs Gasoline Engines

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• Gasoline and diesel are both fuels refined from crude oil, but with significant

chemical differences.

• Before being refined, crude oil contains a variety of hydrocarbon
• compounds. Refineries separate these compounds into a variety of products,

including gasoline and diesel.

• Gasoline and diesel require different engine technology, so cars and trucks will

use one fuel or the other, never both.

• In comparison to gasoline, diesel:
• Is denser and harder to ignite
• Allows greater torque (pulling power) but less horsepower (less velocity)
• Contains more energy per gallon of fuel than gasoline (generally resulting in higher

fuel economy)

• Contains more carbon per gallon (generally resulting in more CO2 emissions per

gallon)

• Has, on average, 30% more nitrogen dioxide emissions and more particulate matter

emissions

Diesel vs Gasoline Engines

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News Headlines from the VW Settlement

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September 18, 2015 EPA, CARB issues Notice of Violation to VW for Clean Air Acts emissions standards January 4, 2016 U.S. government files complaint against Volkswagen for alleged CAA violations June 28, 2016 VW settles emissions-cheating cases for $14.7 billion and agrees to buy back cars October 2, 2017 DOJ and EPA announce VW Mitigation Trust Agreement of $2.8 billion December 6, 2017 Volkswagen Official Gets 7-Year Term in Diesel- Emissions Cheating February 22, 2018 Documentary filmmaker Alex Gibney created the Netflix series on Volkswagen's emissions scandal

May 4, 2018

Former Volkswagen CEO Indicted Over Emissions Testing Scandal

November 19, 2018

VW Emissions Trust to Fund More Tribes’ Air Quality Efforts

∗ Environmental Mitigation Trust Agreement

∗ Filed with the U.S. District Court of the Northern District of California

• n Sept. 9, 2017 and a Trust Effective Date was filed on Oct. 2, 2017.

Modifications made in 2018 and approved by court on Nov. 16, 2018. Awaiting final signatures. ∗ Funding for States and Tribes for NOx emission mitigation projects

∗ $54.5 million federally recognized Tribes ∗ $2.8 billion for States and Territories ∗ About $8 million to State of Alaska

∗ Funds dispersed over 4 years to all 573 Federally Recognized Tribes, until 2021 based on procedures outlined in the Trust Agreement Appendix documents. ∗ If funds remain after 2021, remaining funds will be offered for another year. ∗ Tribes submit documents to both federal court and trustee to opt in.

Overview of the VW Environmental Mitigation Trust Agreement

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∗ Repower, replace engines, or new vehicles

∗ Class 8 / Port Drayage Trucks ∗ Class 4 – 8 School Buses, Transit Bus ∗ Ferries, Tugs ∗ Ocean Going Vessels ∗ Class 4 – 7 Local Freight Trucks ∗ Forklifts

∗ DERA Option

Eligible Mitigation Actions, D-2

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∗ Most vehicles must be 1992-2009 ∗ 100% replacement for Tribally owned vehicles ∗ 40-70% cost of Non-Tribally owned vehicles ∗ Replace dirty diesels with

∗ Cleaner diesel ∗ Propane ∗ CNG ∗ Electric

Eligible Mitigation Actions, D-2

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∗ DERA Option in D-2 for eligible generators and construction equipment ∗ 2018 EPA’s Tribal Request for Applications OPEN DEADLINE EXTENDED TO APRIL 3, 2019 ∗ DERA Option uses three pots of money:

∗ EPA DERA Grant ∗ VW Settlement funds (Voluntary Match) ∗ Tribal Mandatory Match

Diesel Emission Reduction Act (DERA) Option and Eligibility

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∗ First round of funding closed for Tribes on 1/2/18 ∗ 29 Tribes were certified by court in first round

∗ 26 submitted Eligible Mitigation Action Plans ∗ 2 Native Alaskan Villages: Beaver Village and Native Village of Stevens using DERA Option

∗ Tribes can apply for funding each year until 2021 ∗ If funds remain, a fifth funding cycle will be offered ∗ ITEP will establish a Tribal Advisory Council starting in 2019

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VW Settlement Next Steps

∗ Call ITEP for help and review D-2 options ∗ Register with Trustee on Intralinks and certify with Incumbency forms ∗ Submit D-3 in March, 2019 ∗ Trustee files Notice of Beneficiary Designation in May, 2019 ∗ Trustee informs Tribes in May, 2019 about funds available to each Tribe ∗ Tribes submit Appendix D-6 in June, 2019 if they wish to participate

• r opt out

∗ Trustee informs Tribes in June, 2019 final funds available ∗ Within 60 days, Tribes submit either mitigation plan and budget or

• pt Out form (D-7)

∗ Within 60 days, Trustee approves, disapproves or requests modifications ∗ Payments made for approved plans to Tribes in December, 2019

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Steps for Tribes to Apply for Funds 2019-2021

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Documents Required for Filing by Tribes Documents

Reminders

Filing Locations

INTRALINKS INCUMBENCY CERTIFICATE

ONLY REQUIRED OF TRIBES WHO HAVE NOT

BEEN DESIGNATED AS BENEFICIARIES (PER TRUSTEE’S NOTICE OF BENEFICIARY DESIGNATION DATED

JANUARY 29, 2018) EMAIL TO TRUSTEE AT: RCRANE@wilmingtontrust.com

INCUMBENCY AND EXHIBIT A

ONCE DESIGNATED AS BENEFICIARY, TRIBE

MUST FILE THESE WITH

TRUSTEE NEEDS TO BE FILED

WITH TRUSTEE BEFORE

TRIBE CAN BE PAID

UNDER AN APPROVED

APPENDIX D-4

SUBMISSION

INTRALINKS: INTRALINKS FILLABLE DOCUMENTS

AVAILABLE IN “WT SECURITY

PROCEDURES” FOLDER INSIDE “GENERAL INFORMATION” FOLDER MUST COMPLETE AND FILE IN TRIBE’S “INCUMBENCY AND EXHIBIT A”

FOLDER

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Documents Required for Filing by Tribes

Documents Reminders Filing Locations APPENDIX D-3 - BENEFICIARY STATUS CERTIFICATION FORM ONLY REQUIRED OF TRIBES

WHO DID NOT PARTICIPATE IN

FIRST FUNDING CYCLE COURT (VIA CM/ECF SYSTEM, ACCESSED BY

ATTORNEYS)

INTRALINKS HARD COPY TO: VOLKSWAGEN DIESEL EMISSIONS ENVIRONMENTAL MITIGATION TRUST FOR INDIAN TRIBE BENEFICIARIES WILMINGTON TRUST, NATIONAL ASSOCIATION ATTENTION: CAPITAL MARKETS AND AGENCY SERVICES RODNEY SQUARE NORTH 1100 NORTH MARKET STREET WILMINGTON, DE 19890 APPENDIX D-6 - BENEFICIARY’S PARTICIPATION NOTICE NEEDED BY ALL TRIBES

PARTICIPATING IN THE SECOND

FUNDING CYCLE INTRALINKS APPENDIX D-4 – ENVIRONMENTAL MITIGATION ACTION CERTIFICATION FORM ONLY NEEDED IF TRIBE IS NOT

SUBMITTING APPENDIX D-7

INTRALINKS APPENDIX D-7 - BENEFICIARY’S ELECTION TO OPT OUT FORM ONLY NEEDED IF TRIBE IS NOT

SUBMITTING A REVISED

APPENDIX D-4 INTRALINKS

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States VW Settlement Information

∗ Alaska’s Lead Agency is the Alaska Energy Authority:

∗ http://www.akenergyauthority.org/Programs/vwsettlement

∗ State Agencies have additional resources on the VW Settlement here:

∗ https://vwclearinghouse.org/

We can help!

Connie Fredenberg, Alaskan Technical Assistance Provider conniefredenberg@mtaonline.net Andy Bessler, ITEP Project Director 928-523-0526 andy.bessler@nau.edu

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ITEP VW Settlement Technical Assistance Program

Questions? Comments? Concerns? More information on the VW Settlement can be found on http://www7.nau.edu/itep/main/Home/ www.ntaatribalair.org

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Thank you for your attention!