New Report Finds $71 in Volkswagen Settlement Funds Headed to Maryland Could Help Accelerate All-electric Transportation Revolution

Media Contacts
Emily Scarr

State Director, Maryland PIRG; Director, Stop Toxic PFAS Campaign, PIRG

Report Recommends Maryland Fund Purchase of Up To 200 Electric Vehicle

Maryland PIRG Foundation

A new report from the Maryland PIRG Foundation finds that $71 Million from the Volkswagen (VW) settlement is headed to Maryland to help clean up the state’s transportation system and recommends using the funds to purchase electric vehicle fast charging stations for the state’s highways along with an aggressive expansion of all-electric transit buses to replace aging, dirty, diesel buses. The report finds that this amount of investment could purchase between 100 and 200 fast charging stations to add to the existing 61 fast charging stations in the state. The report also finds that the Maryland could purchase 75 all-electric, zero-emissions buses, reducing dangerous pollution and saving money, all while accelerating further market transformation to an all-electric transportation system.

“Volkswagen lied to the American people and the residents of Maryland paid the price,” said Maryland PIRG Director Emily Scarr. “VW’s crime gives us an historic opportunity to help clean up our transportation system and accelerate the transition to a cleaner, healthier, 21st century transportation network for Maryland. We must ensure these funds are spent on all-electric options that can help save lives and protect the planet and not squandered on dirty, outdated technology like diesel and natural gas.”

According to the terms of the VW settlement, agreed to by VW and the Department of Justice, VW will pay a total of $14.7 billion in damages for their role in violating federal clean air laws – selling more than half-a-million vehicles with its “clean diesel” marketing that actually emitted up to 40 times the legal limit of dangerous NOx pollution. 

Of the civil damages outlined in the VW settlement, roughly $10 billion will go toward compensating affected consumers, and the remaining $4.7 billion will be divided into two separate funds to mitigate the environmental damages VW caused.  Of that $4.7 billion, $2.7 billion will be placed in an Environmental Mitigation Trust (EMT) and sent directly to states based on the number of affected vehicles in that state.

Maryland is set to receive 71 million dollars and Governor Hogan will be able to formally request the funds and appoint one of the state’s agencies to develop and administer a plan for how they will be used.

“Maryland’s share of the Environmental Mitigation Trust, if spent wisely, can represent an important down payment toward electrifying our state’s transportation system. The 71 million in funds is sufficient to purchase up to 200 electric vehicle fast charging stations for use along the state’s highways, covering all of 5,166 miles state owned highway system, along with 75 zero-emissions, all-electric buses,” said Scarr. “These investments would drastically reduce harmful pollution, help saves lives, protect the environment, combat global warming, and accelerate the market shift toward complete electrification of our transportation system.”

The new report recommends that states use the maximum allowable amount of EMT funds, 15 percent, on the purchase and installation of fast charging stations for the state’s highways. Such chargers can fully charge a zero-emissions, all-electric vehicle in fewer than 30 minutes. “Greater installation of electric vehicle charging stations has a direct and substantial correlation on further personal EV adoption,” said Scarr. “Investing in fast charging stations helps ease consumers’ fears of running out of power while on the road, which remains one of the biggest impediments to electric vehicle adoption, even as the technology and range continue to improve and costs continue to decrease.”

The report further recommends using the remaining EMT funds, 85 percent, to purchase all-electric transit buses to replace aging, dirty, diesel buses. The report’s analysis is based, in part, on the fact that the most unlinked passenger trips are taken on transit buses, more than any other mode of public transit. The report finds, therefore, that investing in all-electric transit buses could potentially reduce inhalation of toxic fumes for the greatest possible number of people over the broadest possible area, relative to investment in other modes. The report finds that such widespread public exposure has the potential to further accelerate the market transformation to all-electric vehicles, a key component of future success fighting air pollution and combating global warming.

“Investment of VW settlement funds in all-electric buses can decrease toxic air pollution that makes us sick and contributes to dangerous global warming, all while increasing public awareness of zero-emissions electric vehicles and the substantial health and environmental benefits they can provide. This will in turn prompt additional transformation of the current marketplace, increasing benefits for years to come,” said Scarr.

The remaining $2 billion in VW settlement funds will be put into a Zero Emission Vehicle trust for actions intended to increase the sales, use and adoption of electric vehicles. VW will propose how to spend those funds and the EPA (or CARB in California) will approve the plan. Complimentary use of the ZEV funds is possible.

States may also apply for matching funds through the federal Diesel Emissions Reduction Act (DERA) program.

A few days ago, it was further reported that VW will now also plead guilty to federal criminal charges for customs violations, obstruction of justice, and conspiracy to commit wire fraud and violate the Clean Air Act. VW will pay a further $4.3 billion in additional criminal and civil penalties in connection with this latest agreement.

You can read out report here.

For additional reading, please see our blog here.