Alabama VW Settlement - Volkswagen Settlement Eligible Mitigation Action Item Projects

Alabama VW Settlement Program

Administrator: Alabama Department of Economic and Community Affairs (ADECA) Energy Division

Background: Volkswagen was found in violation of the U.S. Clean Air Act in 2016 by installing software in approximately 590,000 vehicles that misled the amount of emissions the vehicles were emitting. The company agreed to a $2.9 billion nationwide settlement, with Alabama awarded approximately $25 million to be allocated over 10 years.

Purpose: Fund replacement vehicles and equipment powered by electricity, propane, or cleaner-burning diesel fuel to reduce nitrogen oxide emissions and offset environmental damage from Volkswagen Group of America Inc.'s emission test manipulation.

Geographic Scope: Alabama

Eligible Applicants:

• Public agencies
• Governmental entities
• Non-governmental entities
• School districts
• Municipal governments
• Businesses

Focus Areas:

• School bus replacement
• Truck replacement/upgrade
• Equipment replacement (locomotives, forklifts, dump trucks, boom cranes, garbage trucks)
• Alternative fuel conversions (CNG/LNG, Propane Autogas, Electric)

Example Awards (First Round):

• Alabama Forestry Commission: $128,800 (2 medium-sized trucks)
• Alabama Port Authority: $697,200 (1 train locomotive repower)
• Boaz Board of Education: $263,524 (4 school buses)
• Fort Payne Board of Education: $805,750 (4 school buses)
• Huntsville City: $532,935 (9 trucks) and $356,750 (2 dump trucks, 1 boom crane)
• Mobile City: $303,000 (garbage truck) and $124,667 (truck)
• Mobile County Board of Education: $2,160,000 (76 school buses)
• Oakland Metal Buildings Inc.: $111,365 (electric forklift)
• Sysco Central Alabama Inc.: $315,000 (15 short-haul trucks)

Contact:

• Email: vwsettlement@adeca.alabama.gov
• Alabama Clean Fuels Coalition: Contact via email for alternative fuel application questions

Application Process

1. Obtain Application Materials:
   • Application Guide available at https://adeca.alabama.gov/Divisions/energy/vw/Pages/Application-Information.aspx
   • Application Form available at same URL
2. Complete Application Form
   • Include project details and specifications
   • Specify alternative fuel type (CNG/LNG, Propane Autogas, or Electric)
3. Submit Application
   • Email to: vwsettlement@adeca.alabama.gov
   • By deadline: 11:59 PM CST on August 31, 2020 (note: this appears to be an historical deadline; current deadlines should be verified)
4. Available Support:
   • Alabama Clean Fuels Coalition available to assist governmental and non-governmental entities in discussing possible alternative fuel applications
   • Contact: email ACFC through their website