News & Events

Mississippi Rolls Out Volkswagen Beneficiary Mitigation Plan

In January 2016, the United States sued Volkswagen for installing defective emission devices in certain model years 2009-2016 vehicles.  As part of the settlement agreement, Volkswagen agreed to establish a $2.9 billion trust fund to fulfill Volkswagen’s mitigation obligations under the Consent Decree.

The State of Mississippi is currently allocated $9,874,413.91 from the trust fund. On February 15, 2019, the State of Mississippi released it proposed plan for use of its share of the trust fund.  The Mississippi Department of Environmental Quality has been designated as the state’s agency to administer the funds.

Under the proposed plan, grants will be available to eligible recipients to replace or repower vehicles with new diesel, alternative fuel, or all-electric vehicles or engines.  Most of the funding will go toward large trucks, buses and medium trucks.  The remaining funds will be distributed between locomotives, ferries, tugs, ocean going vessel shore power, airport ground supply equipment, and forklift and port cargo handling equipment in the following manner.

Percentage of Funds Eligible Mitigation Action
10% Large Trucks (freight trucks)
10% School, shuttle, or transit buses
10% Medium Trucks (garbage trucks)
8% Freight Switchers (locomotives)
8% Ferries and tugs
8% Ocean going vessel shore power
8% Airport ground support equipment
8% Forklifts and port cargo handling equipment
10% Light-duty zero emission vehicle supply equipment
5% Diesel Emission Reduction Act (DERA) match money

Eligible Engine Year Models

  1. Large Truck category consists of Class 8 Local Freight Trucks with engine model years 1992 to 2009.
  2. Buses Class 4-8 including 2009 engine model year or older.
  3. Freight Switchers include per-Tier 4 switcher locomotives that operate 1000 or more hours per year.
  4. Ferries and Tugs include unregulated, Tier 1 or Tier 2 marine engines.
  5. Medium Trucks include 1992-2008 engine model class 4-7 Local Freight Trucks.
  6. Forklifts and Port Cargo Handling equipment includes forklifts with greater than 8000 pounds lift capacity.

   

For Non-Governmental Owned Engines the following grants will be available:

  1. Up to 40% for the cost of a repower with a new diesel or alternative fueled (e.g. CNG, propane, hybrid) engine, including the cost to install the engine.
  2. Up to 25% of the cost of a new diesel or alternative fueled vehicle.
  3. Up to 75% of the cost of a repower with a new all-electric engine including the cost to install the engine.
  4. Up to 75% of the cost of a new all-electric vehicle including charging infrastructure.

For Governmental Owned Class 8 Large Trucks the following grants will be available:

  1. Up to 100% for the cost of a repower with a new diesel or alternative fueled (e.g. CNG, propane, hybrid) engine, including the cost to install the engine.
  2. Up to 100% of the cost of a new diesel or alternative fueled vehicle.
  3. Up to 100% of the cost of a repower with a new all-electric engine including the cost to install the engine.
  4. Up to 100% of the cost of a new all-electric vehicle including charging infrastructure.

Airport Ground Support Equipment includes Tier 0, Tier 1 or Tier 2 diesel airport ground support equipment and uncertified or certified to 3 g/bhp-hr or higher emissions, spark ignition engines.

Non-Governmental Owed Equipment will be eligible for up to 75% of the cost of a repower with a new all-electric engine, including the cost to install the engine or cost of a new all-electric equipment including the charging infrastructure associated with the new equipment.

Government Owned Equipment will be eligible for up to 100% of the cost to repower with a new all-electric engine, including the cost to install the engineer or cost of a new all-electric equipment including the charging infrastructure associated with the new equipment.

Light Duty Zero Emission Vehicles Supply Equipment
Up to 15% of trust funds may be used to install, operate and maintain a new light duty zero emission vehicle supply equipment, which includes Level 1, Level 2 or fast charging equipment that is located in a public place, workplace or multi-unit dwelling and is not located at a private residential dwelling that is not a multi-unit dwelling.  In addition, grant money may be used to install hydrogen fuel cell supply equipment at a pressure of 70 megapascals that is located in a public place.

  1. Up to 100% of the cost to purchase, install, and maintain eligible electric supply equipment that will be available to the public at a Government Owned Property.
  2. Up to 80% of the cost to purchase, install, and maintain eligible electric supply equipment that will be available to the public at a Non-Government Owned Property.
  3. Up to 60% of the cost to purchase, install and maintain eligible electric supply equipment at a workplace that is not open to the general public.
  4. Up to 60% of the cost to purchase, install and maintain eligible electric supply equipment at a multi-dwelling that is not open to the general public.
  5. Up to 33% of the cost to purchase, install and maintain eligible hydrogen fuel cell supply equipment capable of dispensing at least 250 kg/day that will be available to the general public.
  6. Up to 25% of the cost to purchase, install and maintain eligible hydrogen fuel cell supply equipment capable of dispensing at least 250 kg/day that will not be available to the general public.
 

Authored by: Michael D. Caples and Laura D. Heusel

Michael and Laura are attorneys in Butler Snow’s Jackson office. They can be reached at michael.caples@butlersnow.com or laura.heusel@butlersnow.com.