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Volkswagen Diesel Settlement

Public Outreach
Environmental Mitigation Plan

James Symon, P.E.

Division of Air Resources
September 28, 2017
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Overview
Outreach to gather public input and comments
Partial Consent Decrees (and Appendices)
Appendix D - NOx mitigation
Funding timeline
Environmental Mitigation Plan
Fig. 1. Volkswagen Golf (Wikipedia Commons)
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Excess NOx Emissions

VW, Audi, Porsche (VW) equipped with emissions defeat devices
2.0 and 3.0 liter light duty diesel vehicles
Model years 2009-2015
More than 25,000 registered in NYS

Fig. 2. Volkswagen Vehicle Emissions Test (TimesFreePress)

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Partial Consent Decree

Appendix D: NOx Mitigation Trust Agreement

$2.7 billion to be spent nationwide over 10 years

Up to $127.7 million allotted to New York State
Repower/Replace older diesel powered vehicles and equipment
Up to 15% for light duty electric vehicle charging infrastructure.
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Eligible Mitigation Actions*

1. Class 8 Local Freight Trucks and Port Drayage Trucks (Eligible Large Trucks)
2. Class 4-8 School Bus, Shuttle Bus, or Transit Bus (Eligible Buses)
3. Railroad Freight Switchers
4. Ferries/Tugs
5. Ocean going Vessels (OGV) Shorepower
6. Class 4-7 Local Freight Trucks (Eligible Medium Trucks)
7. Airport Ground Support Equipment
8. Forklifts and Port Cargo Handling Equipment
9. Light Duty Zero Emission Vehicle Supply Equipment
10. Voluntary matching funds for projects eligible under the DERA
* Most projects require a cost share
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1. Class 8 Local Freight Trucks and Port Drayage

Trucks (Eligible Large Trucks)

1992 -2009 engine model year Class 8 truck Government Owned Non-Government Owned
Repower with new diesel or alternate fueled Up to 100% Up to 40%
engine
Replace with new diesel or alternate fueled vehicle Up to 100% Up to 25% (local freight)
Up to 50% (drayage)
Repower with all-electric engine Up to 100% Up to 75%
(includes infrastructure)
Purchase new all-electric vehicle Up to 100% Up to 75%
(can include infrastructure)
Fig. 3. Class 8 Drayage Truck (Wikipedia Commons)`

Alternate fuels include CNG, propane, hybrid

Includes waste haulers, dump trucks, concrete mixers
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2. Class 4-8 School Bus, Shuttle Bus, or Transit

Bus (Eligible Buses)
Bus with 2009 engine model year and older Government Non-Government
Owned Owned

Repower with new diesel or alternate fueled engine Up to 100% Up to 40%

Replace with new diesel or alternate fueled vehicle Up to 100% Up to 25%
Repower with all-electric engine Up to 100% Up to 75%
(includes infrastructure)

Purchase new all-electric vehicle Up to 100% Up to 75%

(can include infrastructure)

Government owned includes privately owned school buses under contract with a public school district
Alternate fuels include CNG, propane, hybrid
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3. Freight Switchers
Switcher with pre-Tier 4 that operate 1000 hours + a year Government Non-Government
Owned Owned
Repower with new diesel or alternate fueled engine or Up to 100% Up to 40%
generator sets
Replace with new diesel or alternate fueled freight Up to 100% Up to 25%
switcher certified to meet USEPA emission standards
Repower with all-electric engine Up to 100% Up to 75%
(includes infrastructure)
Purchase new all-electric freight switcher Up to 100% Up to 75%
(can include infrastructure) Fig. 5. Freight Switcher (Wikipedia Commons)

Alternate fuels include CNG, propane, hybrid

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4. Ferry/Tugs
Ferries/Tugs with unregulated, Tier 1, Tier 2 marine engines Government Non-Government
Owned Owned

Repower with new diesel or alternate fueled engine or generator sets Up to 100% Up to 40%

Repower with all-electric engine Up to 100% Up to 75%

(includes infrastructure)

Alternate fuels include CNG, propane, hybrid

No funding for replacement ferries/tugs
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5. Ocean Going Vessel (OGV) Shorepower

Ocean Going Vessel Shorepower Government Non-Government
Owned Owned
Shore-side system connected with local utility Up to 100% Up to 25%

Fig. 7. OGV Shorepower (Flickr)

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6. Class 4-7 Local Freight (Medium Trucks)

(GVWR 14,000 to 33,000 lbs)
1992 - 2009 engine model year medium trucks Government Non-Government
Owned Owned

Repower with new diesel or alternate fueled engine Up to 100% Up to 40%

Replace with new diesel or alternate fueled vehicle Up to 100% Up to 25%

Repower with all-electric engine Up to 100% Up to 75%

(including infrastructure)

Purchase new all-electric vehicle Up to 100% Up to 75%

(including infrastructure)

Alternate fuels include CNG, propane, hybrid

Includes delivery trucks, box trucks, moving trucks, waste haulers, dump trucks
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7. Airport Ground Support Equipment

Tier 0, Tier 1, Tier 2 Government Non-Government
Uncertified, or certified to 3 g/bhp-hr spark ignition Owned Owned

Repower with all-electric engine Up to 100% Up to 75%

(including infrastructure)

Purchase new all-electric vehicle Up to 100% Up to 75%

(including infrastructure)
Fig. 8. Airport Ground Support (Wikipedia Commons)

Electrification projects only

No new diesel or alternate fuel projects
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8. Forklifts and Port Cargo Handling Equipment

Forklifts with greater than 8,000lb lift capacity Government Non-Government
Owned Owned

Repower with all-electric engine Up to 100% Up to 75%

(including infrastructure)

Purchase new all-electric vehicle Up to 100% Up to 75%

(including infrastructure)

Fig. 9. Electric Terminal Truck (Orange EV)

Electrification projects only
No new diesel or alternate fuel projects
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9. Light Duty Zero Emission Vehicle Supply Equipment

Level 1, Level 2, or fast charging equipment Funding

Available to public at government owned property Up to 100%

Available to public at non=government owned property Up to 80%

Available to workplace but not the general public Up to 60%

Available at a multi-unit dwelling but not the general Up to 60%

public
Hydrogen fuel cell vehicle supply equipment (70 MPa) Funding

Available to public and capable of dispensing 250kg/day Up to 33%

Fig. 10. ZEV Charging station (NYPA)
Available to public and capable of dispensing 100kg/day Up to 25%

Purchase, install, and maintain

Appendix D-2 cap at 15% of mitigation fund total
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10. Diesel Emission Reduction Act (DERA) Option

EPA funding must be approved each year
VW funds for voluntary non-federal matching funds
Past projects in NY included:
The incremental cost for propane school bus
Locomotive Auxiliary Power Units (anti-idle technology)
School bus exhaust retrofits (emission reduction technology)
School bus coolant heaters (anti-idle technology)
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Typical DERA Funding Levels

Typical DERA Funding Levels DERA Funding Required Match

Repower Locomotive, Marine, Non-road 40% 60%

Repower Highway Diesel 40% 60%

Replace Locomotive, Marine, Non-road 25% 75%

Replace Highway Diesel 25% 75%

DERA funding revisited annually

Scrappage Program no fleet expansion
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DERA Math - Highway Diesel Replacement

Example for a State Clean Diesel DERA grant of $100,000:
$100,000 Federal DERA funds
$100,000 Match (VW funds)
+$50,000 Federal bonus
$250,000 Total DERA/Match available

Highway diesel vehicle replacement (75% cost share*)

$250,000 DERA/Match funds
+ $750,000 non-federal funds (non-VW)
$1,000,000 in Total Project Costs

*DERA cost share varies by project type

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Vehicle/Engine Scrappage Program

Repower 3 inch hole cut in old engine
Replacement Chassis cut, 3 inch hole cut in old engine
Cannot keep or resell existing vehicle
No fleet expansion
Proper disposal of old diesel engine/vehicle

Fig. 11. Scrapped School Bus (stnonline.com)

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VW Environmental Mitigation Trust Timing

Timing Estimated Date Consent Decree Milestone

Consent Decree entered into

Settlement Effective Date (SED) October 25, 2016
court (actual)

SED + 30 Days November 24, 2016 Trustee candidates submitted

Establishment of Environmental
Trust Effective Date (TED) Fall 2017
Trust

TED + 15 days ? Trustee established trust account

Governmental entities file

TED + 30 days ?
Certification Forms
TED + 120 days (note: proposed
consent decree includes the phrase
Trustee approves/denies
no later than, so the Trustee may ?
Beneficiary status
grant Beneficiary status sooner than
120 days)
TED + 210 days (not later than 90
Beneficiary Mitigation Plan
days after being deemed a ?
submitted
Beneficiary)
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Funding Availability Timeline

Funding Availability Funding Released

Year 1 1/3 of Funding

Year 2 2/3 of Funding

Year 3 3/3 of Funding

10 years to complete all projects

Additional 5 years possible for additional time or redistributed.
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Settlement Requirements for a Mitigation Plan

Eligible Mitigation Action(s)
Support air quality goals
Ability to deploy in timely manner
Take into account neighborhoods receiving disproportionate amount of
diesel emissions
Outreach for stakeholder input
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Areas that have

received a
disproportionate
amount of diesel
emissions may
include:
Railyards
Seaports
Airports
Distribution Centers
Fig. 12. Sunnyside Railyard LIC (Wikipedia Commons)
Bus Depots
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Project Organization
Appendix D-2 Eligibility
Define project (e.g., inventory of vehicles to be replaced)
Project time frame
Define total projects costs, consider potential required cost share
Determine cost effectiveness of proposed lifetime NOx reductions
Take into account neighborhoods receiving disproportionate amount of
diesel emissions
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VW Settlement Appendix D Preparation

Public outreach efforts
What did we learn?
What has worked in the past
Identifying projects
Where are we now?
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Questions?
Submit Mitigation Ideas/Comments
Website: www.dec.ny.gov/chemical/109784.html
Email: VW.AppenD@dec.ny.gov

Contact Info:
NYSDEC
Bureau of Mobile Sources App D
625 Broadway
Albany, NY 12233-3255
518-402-8292