The Volkswagen Settlement
The Volkswagen Settlement comprised a series of legal settlements involving various federal agencies, the State of California, and multiple entities linked to VW. The final settlement addressed the repercussions of the company's manipulated emissions tests, resulting in vehicle emissions exceeding the limits set by the Clean Air Act. Notably, $2.7 billion of this settlement was allocated to an Environmental Mitigation Trust. These funds were then divided among the states to finance projects targeting the reduction of Nitrogen Oxide (NOx) emissions at the local level.
The Kentucky General Assembly directed the state's $20.3 million share towards the replacement of school and transit buses throughout the Commonwealth. The allocations were as follows: $8,521,700 for school bus replacements, $8,521,700 for transit bus replacements, $3,056,700 for light-duty zero emission vehicle supply equipment, and $278,500 for administrative costs.
Light-Duty Zero-Emission Vehicle (ZEV) Infrastructure Program
Kentucky has access to $3,056,700 through the Volkswagen Environmental Mitigation Settlement for Light Duty Zero Emission Vehicle (ZEV) Infrastructure funding. This funding will cover Level 2 and DC Fast Chargers in the state. Plans are to use 25% of the funding (roughly $765,000) for level 2 chargers and 75% (roughly $2.2 million) for DC Fast Chargers, as DC Fast Chargers are substantially more expensive than level 2 chargers. There is a legislatively mandated 50% cost match on the funding. Any questions regarding the application instructions should be sent to KY.VWSettlement@ky.gov.
A call for applications on the Level 2 charging infrastructure for local, state and federal government agencies was released May 1st, 2024. These funds were not expended and another call for proposals will be made for Level 2 charging infrastructure in the coming months.
School and Transit Bus Replacement Program
School districts received a 50% reimbursement for the purchase cost, allowing for the replacement of up to five school buses per district. Utilize the interactive map below to explore the number and types of replacement buses, and the funding amounts allocated to each of the 91 school districts.
The following transit agencies received authorization for reimbursement for replacement transit buses:
- Transit Authority of River City (TARK) - $4,768,281
- Transit Authority of Northern Kentucky (TANK) - $2,104,672
- Lex Tran - $1,492,344
- Owensboro Transit System - $156,403
Below is a map depicting the school districts that have received funding to replace school buses under this allocation - users may click a sschool district to learn how many buses were replaced and what types of bus the district purchased.
School Bus Reimbursement Process
Instructions for school districts previously approved for the 50% reimbursement for 2001 and earlier school buses are below, along with the certification form that must be completed and submitted to the Energy and Environment Cabinet. Once all documentation has been collected, the school district may submit the reimbursement request at ky.vwsettlement@ky.gov