TCEQ to dole out state’s share of $2.9B settlement
Volkswagen emissions fraud funds will aid removal of diesel vehicles
Texas’ share of the $2.9 billion Volkswagen paid to settle emissions fraud charges will be doled out by state environmental officials, perhaps, as advocates hope, to greatly expand electric vehicle use statewide in governmental and private fleets.
Gov. Greg Abbott on Monday announced the Texas Commission on Environmental Quality will oversee the state’s $209.3 million portion of the Environmental Mitigation Trust. The fund was set up after the automaker of Volkswagen, Audi, and Porsche brands settled claims that it cheated U.S. vehicle emissions standards.
“Because Volkswagen polluted Texas with illegal emissions from diesel vehicles, the top priority for using settlement funds is to remove old, dirty diesel vehicles from the road,” said Adrian Shelley, director of Public Citizen’s Austin-based Texas office.
TCEQ Commissioner Jon Niermann was named as the primary administrator for Texas. The state formally made the declaration last month.
Each state has between three and 10 years to spend its share of the settlement. The money must be spent to reduce nitrogen oxide emissions, and spells out 10 different mitigation actions states can take, all focused on replacing diesel vehicles such as freight trucks, ferries, school buses and port machinery. Officials also can award grants to agencies and pri-
vate companies to replace diesel vehicles.
All oil-burning vehicles emit nitrogen oxide, though diesel engines release more of the pollutant, which is harmful to people, especially those with breathing problems.
“We look forward to working with all stakeholders to develop a plan that effectively mitigates the emissions from vehicles that did not meet the emission standards,” Niermann said in a statement.
To use the money, Texas must develop a plan for how to spend it, then finalize that plan after public comment. The state can use up to 15 percent of its award — in Texas’ case, $31.4 million — for administrative costs associated with doling out the funds.
“The agency will endeavor to minimize administrative expenses,” TCEQ spokeswoman Andrea Morrow said.
The schedule for the public process still is being determined, Morrow said. Texas first must be officially designated a beneficiary by the trustee of the settlement, which is expected in February. After that, officials will develop a plan and submit it to the trustee, which then must make the plan public and wait 30 days before approving any funds.
The agency already has an email address, VWsettle@tceq.texas.gov, to receive public comments.
Advocates have pressed for most, if not all, the money in Texas to go toward replacing diesel vehicles with electric vehicles, as opposed to natural gas vehicles.
“Compressed natural gas vehicles aren’t going to get any cleaner over time — they will still continue to produce the carbon dioxide and methane emissions responsible for climate change,” Shelley said.
Texas trails many other states in the use of electric vehicles, according to local and national data, despite having 16,000 plug-in vehicles on the road. Texas has 0.69 electric vehicles per 1,000 people, according to the U.S. Department of Energy, Vehicle Technologies Office. Among the 10 most populous states, only Ohio has fewer electric vehicles per-person.
Shelley said the settlement ultimately could be good for the environment and business.
“Texans have the technical know-how to build electric vehicle infrastructure,” he said. “Electric vehicles built and sold in Texas will consume energy produced in Texas. Furthermore, these vehicles will get cleaner as electricity production in Texas gets greener.”