You may remember back in 2016 when Volkswagen got caught manipulating diesel-powered car emissions tests to look far better than they actually were and ultimately found itself coughing up $2.9 billion in a Environmental Mitigation Trust settlement to be paid to states, territories, and tribes where the VWs had been sold. The idea behind the trust was that these entities would purchase lower-emission vehicles for their fleets, cars, buses, and trucks that run on cleaner fuels, natural gas, or electricity.
The entities receiving a piece of the settlement have wide latitude in what they buy with the money. And the majority of them are buying more fossil-fueled vehicles.
In fact, in a 29-page report published by the U.S. PIRG Education Fund and Environment America this week, researchers wrote:
Under the terms of the settlement, states can spend their share of the Environmental Mitigation Trust funds in several different ways, including by purchasing newer diesel vehicles, natural gas vehicles, and electric vehicles, as well as repowering older diesel vehicles with newer engines or electric motors. States are also allowed to use up to 15 percent of their award on electric vehicle (EV) charging infrastructure. How each state spends its share of the funds within these allowable uses is up [to] the state but must be set forth in a “Beneficiary Mitigation Plan” submitted to a trustee.
Although technically allowable under the settlement, for states to spend this money on outdated diesel or other fossil fuel technology would be a wasted opportunity. The Volkswagen settlement money presents states with a unique chance to accelerate transportation electrification, and this money should be spent towards that goal. Long-term exposure to vehicle exhaust is associated with respiratory problems, especially in children. Transportation is the largest source of greenhouse gas emissions in the nation, and the cars and trucks on our road account for the majority of those emissions.
Unfortunately, after evaluating the mitigation plans, the two eco-groups could only award an A or A- to four states—Washington, Hawaii, Rhode Island, and Vermont—because they allocated most or all their money toward electrification. California, Massachusetts, and New York got Bs for plans that set aside 15% of the funds for diesel projects. But the plans are written in such a way that that figure could go higher. Eight states got Cs for talking a good game on electrics but not doing enough to direct mitigation money to electrics. The bad news? Thirty-five states, the District of Columbia and Puerto Rico got Ds or Fs.
What the researchers found was these states were going for short-term emissions gains with cheaper fossil-fueled cars even though the pricier electrics are better in the long run, both in terms of pollution and cost.
The report includes details for each state and includes a collection of selected case studies. Here are three:
Washington is the only state to receive a perfect grade on this scorecard. Washington has committed to spending all of the VW settlement funds on accelerating transportation electrification. Most of the money will be spent on electric transit and school buses, some on electric ferries, and the maximum allowable 15 percent will be spent on electric vehicle charging infrastructure. Washington’s $112.7 million share will go a long way towards building a cleaner and healthier transportation future for the Pacific Northwestern state. [...]
On the surface, the Oregon plan sets out some ambitious goals to move Oregon to vehicle electrification Unfortunately, the plan also incentivizes investment in new diesel technology. Before the Oregon Department of Environmental Quality (DEQ) released its plan to spend the state’s share of the settlement, the Oregon legislature passed a directive which required theDEQ’s plan to prioritize investments in updating the exhaust systems of diesel school buses. This means that the first projects to receive funding will proliferate the use of diesel rather than encouraging a transition away from this highly polluting fuel. This approach is short sighted as it favors quick-fixes rather than prolonged, meaningful investment in projects that will improve Oregon’s air quality. [...]
The state of Wisconsin has thus far allocated $42 million, or approximately 62.5 percent, of its total award, and is in the process of creating a plan to spend the remaining $25.1 million. The two major programs funded by the Wisconsin plan so far are immediate replacement of retiring state vehicle and competitive capital grants for government and non-government owned vehicle projects. Both programs are meant to lower the number of aging diesel vehicles without-of-date emissions standards on the road. The $32 million capital grant program established by the plan is specifically designed to prioritize the replacement of public transit buses. What is more, the plan gives special consideration to public transit routes which are critical for connecting employees with employers. This plan gives preference to areas where public transit is essential to residents, and therefore more frequently used. Nonetheless, Wisconsin's current plan receives a failing grade in our analysis in part because neither the state vehicle replacement program nor the capital grant program incentivize or prioritize electric vehicles, which means that a bulk of the award could end up going towards diesel vehicle projects.
As we fall deeper into the climate crisis, governments at all levels will have to make adjustments in their purchasing habits. Given how strapped many of them are, some suffering ever since the 2007-09 Great Recession, this windfall of millions of dollars ought to be spent wisely, and in most states it clearly isn’t, even though this is essentially free money.
The necessary transformation of our transportation system cannot be avoided any more than retooling our energy and agriculture systems can. We can diligently try to achieve these transformations. No guarantees it will work. But we cannot—we must not—think we can hide from nature the way those 35 states are doing.