You are on page 1of 26

1

Volkswagen Diesel Settlement
Public Outreach
Environmental Mitigation Plan

James Symon, P.E.
Division of Air Resources
September 28, 2017
2

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”)
3

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”)
4

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.
5

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
6

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
7

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
8

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
9

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
10

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”)
11

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
12

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
13

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
14

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
15

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)
16

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
17

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
18

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”)
19

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)
20

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.
21

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
22
23

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
24

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
25

VW Settlement Appendix D Preparation
• Public outreach efforts
• What did we learn?
• What has worked in the past
• Identifying projects
• Where are we now?
26

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