1. Understanding the Volkswagen Settlement: Potential Catalyst for EV Adoption
Cassie Powers
National Association of State Energy Officials October 18, 2017

2. About NASEO Formed by the states in 1986
Membership includes the 56 Governor-designated energy policy officials from each state and territory, as well as private sector affiliates
Facilitates peer learning across states to improve the effectiveness of energy programs and policies
Serves as a resource for and about State and Territory Energy Offices
Advocates on behalf of the State Energy Offices with Congress, federal agencies, and private-sector organizations
Works through topical committees to facilitate peer learning across states to improve the effectiveness of energy policies and programs
Visit for more information

3. Settlement Overview
Volkswagen agreed to spend up to $14.9 billion to settle allegations of cheating emissions. Settlement funds will be used to buyback and/or modify vehicles, and to support national- and state-level projects to reduce NOx emissions.

4. Electrify America’s National ZEV Investment Plan
Volkswagen subsidiary, Electrify America (EA), will invest $2 billion in ZEV program over 10 years
$800 million – California
$1.2 billion – rest of United States
EA released their National ZEV Investment Plan in April
The plan describes $300 million of National ZEV Investments that will be implemented over the first 30 months. Eligible expenses include:
Design/planning, construction/installation, and operation and maintenance of ZEV infrastructure
Programs or actions to increase public exposure or access to ZEVs
Brand-neutral media activities that will provide education and raise awareness on ZEVs

5. Electrify America’s National ZEV Investment Plan
EA has selected 11 metropolitan areas for “community charging” investments over the first 30 months
Overview of metropolitan area selection methodology

6. Electrify America’s National ZEV Investment Plan
EA plans to install DC fast chargers at approximately 240 highway sites across 39 states in the first investment cycle.
Overview of long-distance highway and community-based local networks (excluding California)

7. Environmental Mitigation Trust
$2.9 billion will be placed in an Environmental Mitigation Trust (administered by Wilmington Trust), and will be allocated to beneficiaries (states, tribes, and certain territories) based on the number of impacted VW vehicles in their jurisdictions
The Trust will support projects that reduce NOx emissions where the VW vehicles were, are, or will be operated

8. Environmental Mitigation Trust: Eligible Mitigation Actions
Eligible Mitigation Actions must result in decreased NOx emissions.
State “beneficiaries” may invest in the following action areas:
Large Trucks
Class 8 local freight or drayage
Medium Trucks
Class 4-7 local freight trucks
Buses
Class 4-8 school buses, shuttle buses, or transit buses
Freight Switchers
Ferries/Tugs
Ocean Going Vessels (OGV) Shorepower
Airport Ground Support Equipment
Forklifts
Light Duty Zero Emission Vehicle Supply Equipment
Diesel Emission Reduction Act (DERA)-eligible projects

9. Environmental Mitigation Trust: Light Duty EV Supply Equipment
Beneficiaries may use up to 15% of its allocation of Trust Funds on the costs to acquire, install, operate and maintain new light duty ZEV supply equipment. Eligible projects include:
Level 1, Level 2 or DC fast chargers located in a public place, workplace, or multi-unit dwelling
Hydrogen fuel cell supply equipment, including hydrogen dispensing equipment that is located in a public place
Many states will choose to invest 15% of their allocation in EV charging stations
Percentage of Project That Can Be Funded Through Trust
EVSE - publicly available at government owned property
100%
EVSE - publicly available at non-government owned property
80%
EVSE - at workplace but not available to general public
60%
EVSE - at multi-unit dwelling but not available to general public
FCVSE - publicly available and able to dispense at least 250kg/day
33%
FCVSE - publicly available and able to dispense at least 100kg/day
25%

10. Environmental Mitigation Trust: Timeline

11. Environmental Mitigation Trust: Beneficiary Mitigation Plan
States must submit a high-level Beneficiary Mitigation Plan that summarizes how the funds will be spent. Plans should address:
Overall goal for the use of the funds;
Categories of anticipated eligible mitigation actions, and preliminary assessment of the percentages of funds anticipated to be used for each type of action;
How the proposed actions will impact air quality in areas that bear a disproportionate share of the air pollution burden within its jurisdiction;
Expected ranged of emissions benefits.
Beneficiaries may adjust their goals and spending plans at their discretion and will provide the Trustee with updates to their Beneficiary Mitigation Plan
States will provide opportunities for the public to provide input on how the EMT funds should be spent.

12. Environmental Mitigation Trust: Accessing and Spending Allocations
Beneficiaries may submit an “Eligible Mitigation Action Certification” form at any time to receive funding, and must certify that chosen projects comply with the terms of the settlement
Beneficiaries can request funding before or after a vendor is selected
Funds can be reimbursed or advanced to the Beneficiary
Payment can be made to the Beneficiary or another party
Beneficiaries have up to 10 years to spend 80% of their allocation, and up to 15 years to spend 100% of their allocation
Beneficiaries may request up to one-third of its allocation during the first year, and up to two-thirds of its allocation during the first two years
Two or more beneficiaries may submit a joint request for Eligible Mitigation Action funds

13. Environmental Mitigation Trust: State Progress
9 draft plans released
Arkansas, Connecticut, Colorado, Delaware, Maine, Nevada, Oregon, Pennsylvania, Virginia
About 3/4 of states have launched a website
About 1/4 of states have requested some kind of public comment
About 2/3 of states publicly announced lead agency
States with Settlement Website
Image and data courtesy of Atlas Public Policy’s EV Hub

14. Environmental Mitigation Trust: Draft Plan Highlights - Maine
Funding priorities include projects that:
Scale to achieve the greatest NOx reduction
Maximize health benefits
Are administered by entities with experience
Are in areas that are disproportionately impacted from diesel pollution
Impact Federal Class I (park) areas
Leverage funding
Can be implemented within 2 years of award date
Have sustained emissions benefits over ten years

15. Environmental Mitigation Trust: Draft Plan Highlights - Nevada
Funding priorities include projects that:
Maximize the use of EMT funds to reduce NOx
Are in areas that are disproportionately impacted from diesel pollution
Reduce ozone concentration
Balance environmental, social, and economic benefits, and are communities where EJ concerns are evident
With respect to EVSE, align with the goals of the Nevada Electric Highway and other EV priorities

16. The VW Settlement in Context: EV Market and Private Sector Investment
GM: announced that it is working toward an all-electric, zero-emissions future. That starts with two new, fully electric models next year—then at least 18 more by 2023.
Ford: will add 13 EV models over the next several years with a five year investment of $4.5 billion
BMW: plans to be able to mass produce electric cars by 2020 and offer 12 different models by 2025
VW: will spend up to 70 billion euros (~$84 billion USD) in order to bring 300 electric vehicle models to market by 2030.
Volvo: announced that every Volvo it launches from 2019 will have an electric motor
Daimler: plans to offer electrified versions of all of its cars by 2022 under the new EQ sub-brand
Source: GoElectricDrive.org

17. Preparing for EV Infrastructure Investment
Widespread EV infrastructure investment is coming
How can states, utilities, and others prepare to accommodate this infrastructure cost-effectively and equitably?
Significant load will be needed for high-power DC fast charging banks
Distribution system upgrades will be needed to accommodate chargers
Infrastructure ownership models will need to be explored
Image courtesy of Edison Electric Institute

18. Different Approaches, Different States
No silver bullet – states will approach EVSE differently
California – PG&E, Southern California Edison, and SDG&E undertaking pilots to test EV rates/infrastructure ownership models
Kansas – Kansas Corporation Commission denied request by KCP&L to recover costs associated with chargers
Michigan – MPSC and MAE held technical workshop to explore topical areas related to EVs

19. Contact Information
Thank You
Cassie Powers