The Kentucky Energy and Environment Cabinet (EEC) has
created this page to inform the public about the Volkswagen (VW) Settlement
(hereafter referred to as the Settlement). VW
agreed to spend up to $14.73 billion to settle allegations of cheating
emissions tests and deceiving customers. The automaker will spend
$10.03 billion to compensate consumers who purchased affected 2.0 and 3.0 liter
diesel vehicles, and $4.7 billion to mitigate pollution from these vehicles and
invest in zero emission vehicle (ZEV) technology and infrastructure.
Consumers – Buyback or modification of
Volkswagen worked directly with the owners of affected vehicles
on buybacks, lease terminations, and repairs to engines. For more information on the Settlement; visit
2. National Zero Emission Vehicle (ZEV)
The Settlement required that VW invest $2 billion ($800
million to California, leaving $1.2 billion for the remainder of the U.S.) to
promote the use of zero emission vehicle (ZEV) technology across the
country. VW is required to invest these
funds over four 30 month cycles, $300 million in each cycle. For more information; see Appendix C of the
Settlement; visit www.electrifyamerica.com/our-plan.
3. States -- $2.7
billion Environmental Mitigation Trust Fund
VW will also pay
$2.7 billion to remediate the excess NOx emissions from affected 2.0 liter
engines. These funds will be used to establish an Environmental
Mitigation Trust that will be administered through a nationwide Trustee,
(Wilmington Trust) with allocations to states, territories and tribal government
beneficiaries to use for specific types of diesel emission reduction projects.
Kentucky’s allocation under this program is $20.3 million over the next 10
years. The allocations are based primarily on the number of Volkswagen 2.0 and
3.0 diesel vehicles registered within the jurisdictions. (For state and
tribal allocations see Appendix D1 of the Settlement). https://www.epa.gov/sites/production/files/2016-10/documents/amended20lpartial-cd.pdf
named as Beneficiaries under the Trust must develop and submit plans to the
National Trustee on how the funds will be used in their respective
jurisdictions to reduce NOx emissions. On
December 2, 2016, Governor Matt Bevin named the Kentucky Energy and Environment
Cabinet as the Lead Agency in Kentucky to administer these funds for the
Kentucky was named a beneficiary under the Trust on January
30, 2017. As a beneficiary, Kentucky
must develop a Beneficiary Mitigation Plan (BMP) that provides information on
how the Commonwealth plans on spending the funds. When finalized, this plan will be submitted
to the Wilmington Trust in order to have access to the funds for projects in
the state. Eligible mitigation actions
under the Trust can be found in Appendix D2 of the Settlement. Links to both Kentucky’s Draft Mitigation
Plan, Appendix D2 of the Settlement, and other resources can be found below.
Since being named as beneficiary in late 2016, EEC has been
conducting public outreach about the Settlement, and receiving comments from
interested parties on how the mitigation funds should be spent in Kentucky.
The Energy and Environment Cabinet has released a proposed Beneficiary Mitigation
Plan outlining how Kentucky plans to use the Mitigation Trust Funds allocated
to Kentucky. Kentucky's draft plan can be accessed here.
Interested parties have several ways to submit comments on the draft plan.
A Public Meeting to take comment on the plan will be held on September 5, 2018, at the offices of the Energy and Environment Cabinet, 300 Sower Blvd., Frankfort, Kentucky from 4:00 p.m. till 6:00 p.m.
· Comments may be submitted directly to the Energy and Environment Cabinet, Office of Energy Policy through an electronic form. Comment Form
Comments may be emailed directly to the agency
Link to Settlement, Settlement FAQ's