Department of
Environmental Quality

It is anticipated that the Idaho Department of Environmental Quality (DEQ) will be named Idaho’s Designated Beneficiary in January 2018.

Within 90 days of Idaho being deemed a beneficiary, DEQ must submit a Beneficiary Mitigation Plan to the trustee for approval. The plan is intended to be a high-level, nonbinding plan that explains what eligible projects the agency hopes to fund with the mitigation money. The final plan will likely be submitted in spring 2018 depending on the BMP approval date

DEQ intends to work closely with the Governor’s Office of Energy and Mineral Resources, the Idaho Transportation Department, and the Department of Administration in developing the plan. In addition, DEQ seeks any and all input from interested parties on proposed projects and ideas. The beneficiary certification includes a commitment by the beneficiary to solicit public input and ensure the process is inclusive, transparent, and easily accessible. This is an exciting opportunity for DEQ to work with others to ensure that the mitigation projects the state requests funding for meet the needs of Idaho in the areas most beneficial to its citizens.

Learn more about the settlement and program through the various links on this page. This website will be updated to include stakeholder meeting opportunities. At any time, the public is encouraged to share input with DEQ using information provided in the VW Mitigation Plan Project Proposal section above.

Eligible mitigation actions are those that replace diesel emission sources with cleaner technology to reduce excess emissions of oxides of nitrogen (NO_X) caused by the violating vehicles. Money from the settlement may be used to pay some or all of the cost to repower or replace eligible diesel-powered vehicles with new diesel or alternative fueled or all-electric engines or vehicles within the following 10 categories:

• Class 8 local freight trucks and port drayage trucks
• Class 4-8 school buses, shuttle buses or transit buses
• Freight switcher locomotives
• Ferries and tugs
• Ocean going vessels shore power
• Class 4-7 local freight trucks
• Airport ground support equipment
• Forklifts and port cargo handling equipment
• Light duty zero emission vehicle supply equipment
• Matching funds for projects eligible under the Diesel Emission Reduction Act (DERA)

Appendix D-2 to Partial Consent Decree - Appendix D-2 Outlines how trust funds may be used for each of the 10 categories of eligible mitigation actions

Comparison of VW Eligible Mitigation Actions 1–9 and Eligible Mitigation Action 10 (DERA Option) - This EPA document compares the different eligibility requirements and funding levels for eligible mitigation actions 1–9 and the DERA option, number 10.

The Beneficiary Mitigation Plan summarizes how the state allocation of mitigation funds will be distributed among the various eligible mitigation actions to reduce NOx emissions. The plan will be developed through a public process, with multiple opportunities for public input.

2.0 Liter Partial Consent Decree - On October 18, 2016, the US District Court for the Northern District of California held a hearing on the partial consent decree including amendments made in response to public comment. On October 25, 2016, the court granted the motion to enter into the amended partial consent decree. The approved partial consent decree consists of three major parts:

• Volkswagen will buy back, terminate leases, or provide approved emissions modifications for subject 2.0-liter TDI diesel vehicles.
• Volkswagen will invest $2 billion over 10 years in projects that increase the use of zero emission vehicles (ZEV).

• Appendix C: The ZEV Investment Commitment

• Volkswagen will pay $2.7 billion to an Environmental Mitigation Trust to fund projects to reduce emissions of NOx.

• Appendix D: Form of Environmental Mitigation Trust

3.0 Liter Partial Consent Decree - On December 20, 2016, a second partial consent decree addressing 3.0-liter subject vehicles was proposed. Notice of the second consent decree was published in the Federal Register on December 29, 2016, opening a 30-day comment period. On February 2, 2017, the comment period was extended to February 14, 2017; a Preliminary Approval of the 3.0-Liter Class Action Settlement was granted by the court on February 16, 2017. While the proposed partial consent decree is waiting to be finalized by the court, it consists of two major parts:

• Volkswagen will buy back, terminate leases, or provide approved emission modifications for subject 3.0-liter vehicles.
• Volkswagen will be required to pay an additional $225 million to the Environmental Mitigation Trust.

Third Partial Consent Decree - On January 11, 2017, a third partial consent decree was proposed to address Volkswagen’s liability under the Clean Air Act for civil penalties and injunctive relief to prevent similar future violations. Under the third partial settlement, Volkswagen will pay $1.45 billion civil penalty for alleged civil violations of the Clean Air Act. Notice of the third consent decree was published in the Federal Register on January 24, 2017, beginning a 30-day public comment period that closed on February 23, 2017. On April 13, 2017, the court granted the motion for entry of this third partial consent decree.