State Draft Second Amendment to Massachusetts VW Settlement Beneficiary Mitigation Plan
BOSTON — The Baker-Polito Administration issued a draft Second Amendment to the "Final Massachusetts Volkswagen Settlement Beneficiary Mitigation Plan (BMP)," making millions of dollars available to electrify the transportation sector.
The original BMP and its first Amendment committed $40.7 million of Massachusetts' $75 million share of a national settlement to resolve a vehicle emissions cheating scandal by Volkswagen (VW).
The draft Second BMP Amendment proposes to allocate the remaining $34.3 million of Massachusetts VW Settlement funds in three categories: $26.8 million for Regional Transit Authority electric transit buses and chargers; $7.5 million for an electrification-only VW Open Solicitation offering; and $50,000 for administrative costs to disburse checks to grantees. The Massachusetts Department of Environmental Protection (MassDEP) is now seeking public comment on the proposed draft Second BMP Amendment.
"The Baker-Polito Administration continues to identify solutions and coordinate with partners to achieve substantial greenhouse gas emission reductions from the transportation sector," said Energy and Environmental Affairs Secretary Beth Card. "The projects implemented through this amendment will result in reduced emissions across the Commonwealth, particularly in Environmental Justice neighborhoods, making Massachusetts a better place to work and live for everyone."
The 2017 VW court settlement resulted from litigation brought against VW by federal and state governments for the company's unlawful use of "defeat devices," producing fraudulent emission results for certain vehicles and excess pollution from those vehicles, in violation of federal and state laws. Massachusetts, through the efforts of the Attorney General's Office and MassDEP, led multi-state litigation against VW, resulting in settlements with the state that included significant consumer relief and the largest-ever state environmental penalty of more than $20 million. The draft Second BMP Amendment issued today will continue to fund projects that:
- Help the Commonwealth achieve greenhouse gas (GHG) emission reduction targets and reduce air pollution in the transportation sector;
- Promote electrification of the state's transportation network;
- Drive technological and policy progress in air pollution mitigation and GHG emissions reduction in the transportation network;
- Serve environmental justice populations; and
- Promote equitable geographic distribution across the state.
"Committing the remaining VW trust funds to electrification projects will enable us to maximize emissions reductions and protect public health," said MassDEP Commissioner Martin Suuberg. "Further electrifying our transit fleet and providing funds for medium- and heavy-duty vehicle electrification will continue the transportation sector transformation started with prior expenditures."
This draft Second BMP Amendment will commit Massachusetts' full $75 million VW Settlement allocation to:
- $48.8 million to support the purchase of electric transit buses and chargers by Regional Transit Authorities;
- $11.3 million on the purchase and installation of light-duty electric vehicle charging infrastructure across Massachusetts;
- $7.5 million through the January 2019 VW Open Solicitation for proposals to implement projects eligible under the VW Settlement;
- $7.5 million through the proposed second VW Open Solicitation for proposals to implement electrification projects eligible under the VW Settlement; and
- $50,000 in administrative funds to disburse checks to grantees.
Funds spent under the VW Settlement so far have been used to replace older diesel vehicles and equipment with cleaner diesel and alternative fuel, including electric models, as well as funding the Massachusetts Electric Vehicle Incentive Program (MassEVIP) that provides grants for electric vehicle charging stations. MassEVIP funds Level 1 and 2 and Direct Current Fast Charging stations that are publicly available, as well as Level 1 and 2 stations at workplaces, multi-unit dwellings, and educational campuses. More information on MassEVIP is available on MassDEP's website. More information on Massachusetts projects completed using VW Settlement funds is available here.
Public comments on the draft Second BMP Amendment will be accepted by MassDEP until 5 p.m. on Friday, January 13, 2023. Electronic comments can be submitted to vw.settlement@mass.gov with the subject line, "Comments on VW BMP Amendment."
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