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Kate Cohen,
ConnPIRG

New Report Finds $51.6 Million in Volkswagen Settlement Funds Headed to Connecticut Could Help Accelerate All-electric Transportation Revolution

Report Recommends Connecticut Fund Purchase of Up To 154 Electric Vehicle Fast Charging Stations, Enough to Cover Connecticut’s Entire State Highway System, and 54 All-electric Transit Buses
For Immediate Release

A new report from ConnPIRG Education Fund finds that $51.6 Million from the Volkswagen (VW) settlement is headed to Connecticut to help clean up the state’s transportation system and recommends using the funds to purchase electric vehicle fast charging stations for the state’s highways along with an aggressive expansion of all-electric transit buses to replace aging, dirty, diesel buses. The report finds that this amount of investment could purchase 154 fast charging stations and 54 all-electric, zero-emissions buses, reducing dangerous pollution and saving money, all while accelerating further market transformation to an all-electric transportation system.

“Volkswagen lied to the American people and the residents of Connecticut paid the price,” said Kate Cohen, ConnPIRG Education Fund State Director. “VW’s crime is now an historic opportunity to help clean up our transportation system and accelerate the transition to a cleaner, healthier, 21st century transportation network. We must make sure these funds are not squandered on dirty, outdated technology like diesel and natural gas instead of all-electric options that can help save lives and protect the planet.” she added.

According to the terms of the VW settlement, agreed to by VW and the Department of Justice, VW will pay a total of $14.7 billion in damages for their role in violating federal clean air laws – selling more than half-a-million vehicles with its “clean diesel” marketing that actually emitted up to 40 times the legal limit of dangerous NOx pollution. 

Of the civil damages outlined in the VW settlement, roughly $10 billion will go toward compensating affected consumers, and the remaining $4.7 billion will be divided into two separate funds to mitigate the environmental damages VW caused.  Of that $4.7 billion, $2.7 billion will be placed in an Environmental Mitigation Trust (EMT) and sent directly to states based on the number of affected vehicles in that state.

Connecticut is set to receive $51.6 million dollars and Governor Malloy will be able to formally request the funds and appoint one of the state’s agencies to develop and administer a plan for how they will be used. “Connecticut’s share of the Environmental Mitigation Trust, if spent wisely, can represent an important down payment toward electrifying our state’s transportation system. The $51.6 million in funds is sufficient to purchase up to 154 electric vehicle fast charging, enough to cover the state’s entire highway system, along with 54 zero-emissions, all-electric buses,” said Cohen. “These investments would drastically reduce harmful pollution, help saves lives, protect the environment, combat global warming, and accelerate the market shift toward complete electrification of our transportation system,” she noted.

The new report recommends that states use the maximum allowable amount of EMT funds, 15 percent, on the purchase and installation of fast charging stations for the state’s highways. Such chargers can fully charge a zero-emissions, all-electric vehicle in fewer than 30 minutes. “Greater installation of electric vehicle charging stations has a direct and substantial correlation on further personal EV adoption,” said Cohen. “Investing in fast charging stations helps ease consumers’ fears of running out of juice while on the road, which remains one of the biggest impediments to electric vehicle adoption, even as the technology and range continue to improve and costs continue to decrease,” she remarked.

The report further recommends using the remaining EMT funds, 85 percent, to purchase all-electric transit buses to replace aging, dirty, diesel buses. The report’s analysis is based, in part, on the fact that the most unlinked passenger trips are taken on transit buses, more than any other mode of public transit. The report finds, therefore, that investing in all-electric transit buses could potentially reduce inhalation of toxic fumes for the greatest possible number of people over the broadest possible area, relative to investment in other modes. The report finds that such widespread public exposure has the potential to further accelerate the market transformation to all-electric vehicles, a key component of future success fighting air pollution and combating global warming.

“Investment of VW settlement funds in all-electric buses can decrease toxic air pollution that makes us sick and contributes to dangerous global warming, all while increasing public awareness of zero-emissions electric vehicles and the substantial health and environmental benefits they can provide. This will in turn prompt additional transformation of the current marketplace, increasing benefits for years to come,” said Cohen.

The remaining $2 billion in VW settlement funds will be put into a Zero Emission Vehicle trust for actions intended to increase the sales, use and adoption of electric vehicles. VW will propose how to spend those funds and the EPA (or CARB in California) will approve the plan. Complimentary use of the ZEV funds is possible.

States may also apply for matching funds through the federal Diesel Emissions Reduction Act (DERA) program.

A few days ago, it was further reported that VW will now also plead guilty to federal criminal charges for customs violations, obstruction of justice, and conspiracy to commit wire fraud and violate the Clean Air Act. VW will pay a further $4.3 billion in additional criminal and civil penalties in connection with this latest agreement.

You can read our report here.

For additional reading, please see our blog here.

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