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August 14, 2019

Maine DOT to distribute $3M in VW settlement

Businesses and private organizations that own and use diesel-powered heavy equipment from 2009 or earlier may be eligible for money to buy fuel-efficient replacements.

The funds are being distributed by the Maine Department of Transportation as part of the $21 million the state received in a 2017 environmental mitigation settlement with car maker Volkswagen.

The $3 million in the current round of applications represents what's left in the $5 million Appendix D-2 Eligible Mitigation Action category of the settlement, according to a news release from the DOT. The first round of funding, awarded last year, resulted in payments totaling nearly $2 million to replace Class 4-8 school buses.

Those eligible may get 25% to 80% of the base price of new vehicles or equipment. The DOT will accept applications from Sept. 16 to Nov. 15, and money would be awarded early next year.

Maine received $21 million after the U.S. District Court in Northern California approved a partial consent decree to settle allegations that Volkswagen had installed defective devices on some diesel vehicles sold or leased in the United States. The devices turned off emission controls, allowing more than 40 times the allowed emissions to be released.

The total award was $14.7 billion. The amount each state got was determined by the number of registered vehicles identified as having defective devices.

The settlement is separate from a lawsuit the state won last year against VW, receiving $5.1 million. The state is partnering with Efficiency Maine on electric vehicle initiatives with that money.

Strict rules for disbursement

The state transportation department administers the 2017 VW settlement, and there are strict rules about how and when it can be spent, according to the DOT website. The Maine Department of Environmental Protection and the Governor’s Energy Office also have input into where the money will go.

The portion in Tuesday's announced distribution is the second round for $5 million aimed at replacing high-emission vehicles in Maine with ones that are more energy efficient. There are 10 overall categories for replacement:

  • Class 8 local freight or port drayage trucks;
  • Class 4-8 school, shuttle, or transit buses;
  • Pre-tier 4 freight switcher locomotives;
  • Tier 0-2 ferry or tug engines;
  • Class 4-7 local freight trucks;
  • Airport ground support equipment;
  • Forklifts and port cargo handling equipment; 
  • Installation of shore power for ocean-going vessels;
  • Light-duty zero-emission vehicle supply equipment;
  • Non-federal voluntary match for the Diesel  Emission Reduction Act program. 

Maine's funding priorities are eliminating the greatest emissions per dollar invested, maximizing public health benefits and putting a structure in place for implementing diesel emission reduction or offset projects.

Goals are reduced air pollution from diesel fleets at ports, rail yards, terminals, school depots/yards and freight distribution centers, as well as areas such as Acadia National Park, Roosevelt Campobello International Park and Moosehorn Wilderness Area in Washington County.

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