Volkswagen Diesel Settlement Grants

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Alaska is a beneficiary of $8.125 million from the federal Volkswagen (VW) Settlement for VW's installation of illegal software in diesel vehicles designed to cheat emission tests. The Alaska Energy Authority (AEA) developed a Beneficiary Mitigation Plan (Plan) through a public process that describes how the state proposes to distribute the funds amongst the eligible mitigation actions defined in the settlement. All Requests for Applications (RFAs) will be publicly noticed on this website. Beneficiary Mitigation Plan

On January 29, 2018, Alaska became a beneficiary of the VW Settlement Environmental Mitigation Trust. AEA developed a Beneficiary Mitigation Plan as required by the Trust Agreement through public input. After consideration of the public support for school bus replacement, AEA amended the Plan, eliminating the allocation of commercial marine vessel upgrades to allow for additional school bus replacement. The Plan, as amended, summarizes how the State proposes to allocate the mitigation funds among the various Eligible Mitigation Actions to reduce NOx emissions. Alaska anticipates disbursing the $8.125 million fund as follows: Electric Vehicle (EV) Charging Infrastructur e - 15% School Bus Replacement- 60% Public Transit Bus Replacement - 10% Replacement of Diesel Engines Used for Prime Power - 15% Installation of EV Charging Stations (EMA 9)

Alaska allocated 15 percent of the Trust funds ($1.25 million) for EV fast-charging and Level 2 charging installations. AEA developed a phased approach to establish a statewide interconnected EV fast-charging network along the highways and ferry terminals, to be completed as funding allows. In 2021, AEA utilized about $875,000 of VW Trust funds and $90,000 of DOE State Energy Program funds, along with private matching funds from site hosts, to develop the first phase of the fast-charging network, connecting Seward and Homer north to Healy. Fifteen fast chargers and eight Level 2 chargers will be installed at nine selected sites located within 100 miles of adjacent sites. The first station was commissioned in Homer in September 2021; the remaining sites are anticipated to be completed by summer 2022. The remaining $375,000 Trust funds allocated for publically available EV chargers will be disbursed 2022-2023. Future solicitations will be posted here. School Bus Replacement Program (EMA 2)

Eligible Mitigation Action 2 allowed for the replacement of Types A-D school buses with engine model years of 2009 or older with new similar cleaner diesel, alternative fueled (e.g., CNG, propane, electric hybrid), or all-electric vehicles.

Since 2019, AEA expended about $4.5 million on the purchase of 33 school buses in eight school districts: Alaska Gateway (1), Anchorage (13), Juneau (1), Kake City (2), Kenai Peninsula Borough (7), Kodiak Island (1), Matanuska-Susitna Borough (4), and Southeast Island (Prince of Wales Island) (4). The school bus in Tok is the first all-electric school bus in the State of Alaska and the third electric school bus manufacturer Thomas has ever made. It has been in operation at the Alaska Gateway School District in Tok since fall 2020. The new buses will result in a reduction of 24.6 tons of nitrogen oxides (NOx) and 1.8 tons of fine particulate matter over the lifetime of the replaced school buses. This program is now closed. Public Transit Bus Replacement Program (EMA 2)

Eligible Mitigation Action 2 allowed for the replacement of Classes 4-8 shuttle or transit buses having engine model years of 2009 or older with new cleaner diesel, alternative fueled (e.g., CNG, propane, electric hybrid), or all-electric vehicles.

AEA opened a solicitation in spring 2019 and received one application from the City and Borough of Juneau, Capital Transit. Capital Transit was awarded $233,960 for the purchase of an all-electric transit bus and associated charging…

Topic areas: Energy and Environment, Circular Economy and Sustainability, Public Policy and Governance, Transportation and Mobility.

Funding amount

This grant provides Varies in funding.

Deadline

Applications are accepted on a rolling basis; there is no single fixed deadline.

Who can apply

This opportunity is open to the following applicant types:

• Not specified by the program.

Eligibility

The program did not publish a separate eligibility statement. See the official opportunity page for the full eligibility criteria.

Agency

Volkswagen Diesel Settlement Grants is administered by Alaska Energy Authority (AEA), listed via Alaska Energy Authority.