Settlement money could go toward new buses, electric charging stations

State to decide how to split $25.5 million from VW settlement

MONTGOMERY, AL (WSFA) - The state will divvy up the $25.5 million Alabama received in a 2017 federal settlement against Volkswagen for intentionally violating emissions standards.

The Alabama Department of Economic and Community Affairs said this money is supposed to go toward projects that will help reduce air pollution and nitrogen oxide emissions.

“It’s a form of pollution. It’s something that can affect asthma and other health conditions and it’s an air quality issue," said Maureen Neighbors, the ADECA Energy Division Chief.

Maureen said around $5.4 million of that money could be used to upgrade or provide new vehicles for schools or public businesses. For example, if one school bus costs $60,000, the money allotted would allow for around 90 new buses.

On top of this, around $3.2 million is for items including electric car charging stations. Private businesses and cities can apply for this money.

“Apartment complexes can do it, shopping centers, a grocery store, and also a gas station,” Maureen said.

ADECA will submit a mitigation plan for the money.

Eligible Mitigation Type Funding Allocation (million)
Class 8 Local Freight Trucks  $2.16 million
School Bus, Shuttle Bus, or Transit Bus $5.4 million
Diesel Emission Reduction Act Option $974 thousand
Freight Switchers $2.59 million
Ferries and Tugs $1.5 million
Ocean-Going Vessels Shore-Power $974 thousand
Medium Trucks $2.8 million
Airport Ground Support Equipment $974 thousand
Forklifts and Port Cargo Handling Equipment $974 thousand
Equipment like electric car chargers $3.24 million

To receive the money, groups or businesses will need to apply for it. ADECA said the applications may be ready by summer of 2019.

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